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According to popular belief, transparency is a versatile tool for the governance of organizations: it is supposed to help in mitigating problems such as corruption, economic deficiencies, and a lack of legitimacy. However, is it a truly effective panacea, as it has been envisioned by its advocates? Empirical research gives reason to doubt, indicating that there is a wide gap between the idealized expectations of transparency and its practical merits. Organizations face severe difficulties when they try to implement such measures, especially because their daily activities often deviate significantly from societal expectations. Putting a combination of Erving Goffman’s frontstage/backstage theory and Niklas Luhmann’s sociological systems theory to use, this chapter conceptualizes organizations as social entities constantly engaged in boundary-maintenance, which not only comprises – in Luhmannian terms – “operative closure” (the autonomy of a system from direct influence of its environment) but also boundaries of visibility. It is thus not at all surprising that organizations regularly try to circumvent the implementation of transparency and develop new practices of secrecy. This chapter outlines an integrative conceptualization that enables researchers to reject mundane visions of how transparency ought to improve organizations, and suggests new pathways for empirical research.

The Chicago School of Sociology heralded a new age: that of the rise and establishment of sociology as an academic discipline in the US. It also spurred on an intellectual tradition in ethnography that focuses on a wide array of methodological tools and empirical data with a focus on the specificity of place that continues to live on in contemporary urban sociology. Yet, its traditions have also been extensively criticized. Burawoy (2000) is one preeminent scholar, who has denounced the Chicago School as being parochial, ahistorical, and decontextualized from the national and international processes that shape cities. Instead, he calls for a move toward “global ethnography,” one that focuses on “global processes, connections, and imaginations” (Burawoy et al., 2000). Increasingly, US urban sociologists study research sites that are located outside the US and pay attention to how global actors and/or transnational connections influence US dynamics. Given this trend, what, if any lessons can global and urban sociologists take away from the Chicago School? In this chapter, I highlight three such lessons: (1) the global is central to city life; (2) rooting our work in the specificities of place helps extend and build theory; and (3) the School still provides useful conceptual and methodological tools to study the global. In doing so, I argue that scholars should recognize the plurality of approaches to global ethnography and how each approach can further our understanding of how the global shapes social life.

It is doubtful whether Max Weber would have been appreciative of his current status as the father of organisation theory. Weber did not develop the concept of bureaucracy as part of a quest to advance a science of organisations, or in order to do a microanalysis of the internal structure of particular organisational units. The concept of bureaucracy was an ideal-typical concept developed as a point of departure for comparisons across historical periods and geographic settings. Weber’s research was motivated by macroscopic and historical questions such as ‘why did capitalism develop in the West’ and, ‘how do persons in the West and other civilizations attach meaning to their activities?’ Unlike consultants and organisation theorists that make use of him today, it was not a major concern for Weber to develop criteria for the most efficient kinds of organisations. Rather, his concern was to identify variations in administrative and bureaucratic cultures and patterns by the means of the bureaucratic ideal type. It is maintained in modern textbooks in organisation theory that there has been a development from a closed and rationalistic paradigm towards an understanding of organisations as open and natural systems, and Max Weber’s theory of bureaucracy is taken as a point of departure for this kind of narrative. This classification of Weber as an example of a rational and closed approach is highly questionable. The cross-societal and historical approach used so effectively by Weber, is put on a sidetrack in such mainstream narratives. It would be more in the spirit of Weber to focus on organising as an activity, bureaucracy as an ethos and to study organisations within their particular political and cultural contexts.

I evaluate how the tax reform of 2012 reduced informality in Colombia both theoretically and empirically. Theoretically, I develop a labor market model and obtain simulations indicating that the reform should reduce informality significantly. Empirically, I obtain difference-in-difference estimates from two household surveys. Estimates from the repeated cross-sections data indicate small, short-term effects and large long-term effects. Estimates from the household survey panel data are in line with these results. I also simulate difference-in-difference estimates with different combinations of changes in payroll taxes and enforcement indicating that large improvements would have been needed to obtain the corresponding econometric estimates.

This chapter examines the role firm specific and institutional variables (such as regulation and trust) in firms’ decision to register their economic activities with authorities. Our empirical analysis is based on a large data set gathered from 40 African countries on more than 11,000 small, medium and large firms via the World Bank Enterprise Survey covering the period 2006–2014. This chapter is aimed at reinforcing the limited but a growing body of literature focussing on determinants of informal entrepreneurship using firm-level databases. The analysis of this study shows in institutional environments where there is trust in public institutions such as courts, firms are less likely to stay unregistered. Concerning firm specific variables young firms are found to be more likely to stay unregistered but there is a non-linear relationship between age and length of years spent unregistered. Firms with exporting strategy and in foreign ownership are less likely to stay longer unregistered. There are significant gains if policy-makers focus on building trust in institutions, fighting corruption, embarking on meaningful enforcement of rule of law principles, providing services without reliance on predatory tax policies, reducing firm transaction costs via improved licensing and technology-assisted registration systems.

Utilizing data drawn from 18 in-depth case studies the authors explore in detail the factors shaping employment in a diverse range of Irish small- and medium-sized enterprises. Existing theory in HRM is deemed inadequate in capturing the complexity of HRM in SMEs especially as it treats organizations as hermetically sealed entities. In an effort to animate the criticism directed at normative models of HRM the authors use a conceptual framework with an emergent, open systems theoretical proposition to examine the parameters, dynamics and determining factors of HRM at each of the case study companies. The results show that the notion of a normative HRM model was not coherent in terms of actual practices but rather reactive, and emergent HRM-related processes were often imposed to meet legislative requirements or to reinforce owner–manager legitimacy and control. The authors conclude that an appreciation of the interaction between structural factors both inside and outside the immediate work milieu is crucial if the heterogeneity of HRM in SMEs is to be adequately accommodated and understood.

Informal entrepreneurship challenges sustainable economic performance and is a barrier to productive entrepreneurship. In this context, the level of development of formal and informal institutions and their impact on informal entrepreneurship is crucial. This chapter examines the informal sector entrepreneurship in Kosovo using institutional theory lenses. Using a survey with 500 owners/managers of private companies, the study finds that the service industry has the highest participation in the informal economy compared to other sectors. On average small firms, compared to larger ones, report a higher percentage of unreported incomes. Our findings also suggest that when informal entrepreneurs perceive penalties for tax avoidance from tax authorities as high, they tend to have higher compliance with reporting their income. In addition, our findings indicate that the higher the vertical (trust in formal institutions) and horizontal distrust (trust in business partners), the higher the involvement in the informal economy. The chapter concludes with some policy implications for tackling the informal economy in Kosovo and similar institutional contexts.

We study the impact of tax and minimum wage reforms on the incidence of informality. To gauge the incidence of informality, we use measures of the extent of tax evasion, the extent of minimum wage noncompliance, and the size of the informal workforce. Our approach allows us to examine (i) the distinction between determinants of firm-level reported wage distribution and actual wage distribution, (ii) the complementarity of tax and minimum wage enforcement, (iii) the impact that a minimum wage reform has on tax and minimum wage compliance, and (iv) the impact that a tax policy reform has on tax and minimum wage compliance. We conclude with the design of optimal minimum wage and tax policies (even in the complete absence of minimum wage enforcement). We do so based on two objectives derived from popular concerns associated with an unchecked expansion of informality: tax revenue maximization, and poverty alleviation among workers.

The 2001 Russian tax reform reduced average tax rates for the personal income tax and the payroll or social tax. It also made the tax structure more regressive. Because individuals in the lower income bracket were for the most part not affected, it is possible to estimate the effects of the reform using a differences-in-differences approach. I study the effect of the reform on informal employment. Informality is defined using information on employment registration and self-employment. Applying parametric and semi-parametric techniques, I find evidence that the tax reform led to a significant reduction in the fraction of informal employees. Among the different forms of informality I study, the reform seems to have had the strongest effect on the prevalence of informal irregular activities. I also document stronger effects on individuals who benefited from the largest reductions in tax rates. The strong response to the tax reform is consistent with the emerging consensus in the literature on taxation that changes to the tax system lead to significant behavioral responses, although not necessarily in the form of a reduced labor supply.