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The purpose of this paper is to examine the role of proto-institutions that are new institutional subsystems that subsequently affect the current institutional arrangements in the evolution of service ecosystems.

To shed light on the mode of action of proto-institutions, the authors investigate the changes of three service ecosystems in Italy: the health care ecosystem, the food-supply ecosystem and the urban mobility ecosystem.

First, the paper elucidates how changes of service ecosystems are triggered by megatrends that are external to specific service ecosystems. Second, the study empirically shows how service ecosystems and their institutional settings change through the establishment of proto-institutions.

Responding to recent calls to investigate in more detail how actors challenge dominant social patterns and to conduct research to better understand how changes at the level of individual actors may lead to shifts within overall service ecosystems, this paper is one of the first to empirically study the relationships between phenomena that are external to service ecosystems, the emergence of proto-institutions and the resulting changes of institutional arrangements.

This study aims to examine an important mechanism in the policy-led institutional transitions in China, namely, Te Shi Te Ban (Special Treatments for Special Matters) – an institutional device that facilitates policy implementation. The discussions are contextualized based on the latest chapter of China’s institutional transition, known as the reform initiative of Fang Guan Fu (i.e. the FGF reform: delegate power, streamline administration and optimize government services), which is a policy regime introduced in 2018 to improve the state-market relationship for better socioeconomic development.

Based on the theoretical lens of proto-institutions and institutional work and using real-life examples from mass media, this perspective paper examines the effects of the Special Treatments in the institutional transition under the FGF Reform.

The Special Treatments are the proto-institutions purposively adopted by the regulators in China to innovate, supervise and renovate the rules and norms during policy implementation. They produce both incremental and radical institutional effects which allow for a more efficient and effective policy-led institutional transition.

This study contributes to institutional theory in the Chinese management context. Foremost, this study introduces the concept of proto-institutional work and shows how proto-institutions can serve as a mechanism to support and manage the process of institutional transition. In addition, to the best of the authors’ knowledge, this paper is the first to study the FGF Reform – the latest reform initiative in China and theorize an under-researched but important mechanism in its institutional environment – the Special Treatments for Special Matters.

Procurement is increasingly used as a strategic tool to mitigate societal issues such as social exclusion and unemployment of marginalized groups. By conducting social procurement and imposing so-called employment requirements, organizations can create job opportunities for marginalized people. Such practices are becoming increasingly popular in the construction sector, but remain scattered, which hinders the effective creation, use and dissemination of cohesive and commonly shared social procurement practices. Accordingly, this paper analyzes the creation, use and dissemination of social procurement practices in the Swedish construction sector.

The theory of proto-institutions, which refers to institutions under development, is applied to analyze 46 interviews with construction practitioners.

There is currently little convergence of social procurement practices, due to practices not being fully internalized across organizations and projects; interns hired through employment requirements not having strong enough incentives to engage with their internships; actors working strategically and operatively having different possibilities to create social procurement practices; and the development of maintenance mechanisms for the formalization of sustainable practices being weak.

This paper contextualizes efforts to increase equality, diversity and inclusion of marginalized groups in the construction sector. The adoption of an institutional perspective of practice development elucidates the institutional constellation of existing institutional logics that impact on this practice development. This paper also indicates how the work with social procurement can become more effective and efficient and maximize the social value output for marginalized people living in social exclusion. For institutional theory, it illustrates how proto-institutions can be driven by both top-down and bottom-up perspectives.

Multinational enterprises (MNEs) attempting to create social value in base of the pyramid (BoP) economies are encumbered by unique market and institutional barriers. To overcome these challenges, BoP scholars have advocated the strategy of using embeddedness as a replacement for inefficient formal institutions. Reliance on informal social ties for coordinating market exchange, however, leads to costly investments, exposure to opportunism and the creation of nontransferable capabilities. This paper aims to investigate these issues.

The authors argue that embeddedness should be used as an intermediate step toward developing more enduring formal institutions rather than as a replacement for them.

The authors put forward the notion of proto-institutions as a useful concept for exploring how MNEs can engage in co-designing efficient and inclusive institutional forms aimed at engendering long-term social value creation.

The authors identify three institutional fields wherein MNEs can leverage social embeddedness to develop proto-institutions that are potentially transferable to become formal institutions. First, MNEs can build governance institutions that can enhance coordination among local actors. Second, MNEs can experiment with small-scale change and adaptation of market institutions that reduce transaction costs and facilitate market exchanges. For example, improved institutional practices in value chain governance can boost business performance while also improving the livelihoods of supply chain partners. Finally, the authors discuss the potential for developing favorable socio-cultural institutions by introducing new principles of organizing or educational practices.