PROYECTOS DE INVESTIGACIÓN SUBVENCIONADOS

Red connector arrows with text boxes demonstrate how different segments and the relationships between different segments in the Ghanaian cocoa chain will be targeted in the analysis to build on the core aspects of the conceptual framework.

Blue circular arrows demonstrate the concept of institutional change that will be explored within the micro analysis of the domestic supply chain.

Red circular arrows demonstrate the concept of competing supply chain governance systems, which will be explored in the macro analysis.

5.7 - Behavioural Assumptions

It is important to outline the behavioural assumptions being adopted in this study not only to facilitate the exchange of ideas between the NIE and GVC, but also to clearly define the foundations upon which the research will be based.

Research within the NIE traditionally adopts Simon’s [1955] concept of ‘bounded rationality’ to describe the individual. Simon contends that ‘if we accept the proposition that both the knowledge and the computational power of the decision maker are severely limited, then we must distinguish between the real world and the actor’s perception of it and reasoning about it’ [Simon 1986, pg 210-211]. Building on this, Furubotn and Richter [1997] highlight that the neoclassical economic assumptions of individual rationality and

149 zero transaction costs are strongly rejected in the NIE. Indeed, North contends that ‘a modification of these [rational choice] assumptions is essential to further progress in the social sciences’ [North, 1990, p 17]. This statement is particularly true within the developing world where market failures, incomplete information and inefficient institutions encourage a revision of the rationality assumption held within orthodox economics¹⁶⁴.

Within the NIE, subjectivity and incomplete processing of information play a critical role in individual decision-making [North, 1990]. Agents are considered to be partially rational, thus leaving open the possibility of socially constructed influences such as cultural heritage, social ties and reputation in the decision-making process. Individuals make decisions based on subjective mental models, constructed through the intergenerational transfer of knowledge, norms and culture as well as the individual’s direct experience [North, 2005]. As such, there is regular interplay between the agent and his/her surrounding economic, political and social institutions. Resultantly, North finds that

‘individuals from different backgrounds will interpret the same evidence differently; they may, in consequence, make different choices’ [North, 2005, p 23].

Richter [2001] asserts that integration between the approaches of economics and economic sociology can be made by relaxing the neoclassical economic assumption of individual rationality. In light of this, it may be contended the socially enriched behavioural assumptions adopted within the less deterministic strands of the NIE used in this study are also applicable to GVC analysis. GVC analysis considers individuals to be

‘embedded’ in networks of economic and social relationships [Granovetter, 1985]. As such, the GVC understanding of the individual is not inimical to the environmentally influenced individual described in the work of North [1993a, 2005]. In light of this, the same behavioural assumptions will be employed throughout both the NIE and GVC sections of this study. Indeed, in many respects the economic sociology of GVC will help to enrich

164 The behavioural assumption of perfect rationality adopted within orthodox economic thinking is fundamental to the economists’ goals of economic modelling and positivist testing. Within the developed world, where market forces signal with greater clarity and economic agents have access to more information, such rational choice assumptions will have greater applicability than in the case of the developing world.

150 our understanding of the individual, thus help to avoid the problems associated with neoliberal development policies based on the position of individual rationality.

5.8 – Conclusion

The conceptual framework for this study has been designed around two main concerns.

Firstly, it has been necessary to design a framework suitable for the analysis of the unique model of market organisation used in the Ghanaian cocoa market. Secondly, the theoretical approaches used within this study need to be suitable for analysis of a developing country market, operating within a rapidly evolving global supply chain. In particular, the choice of theoretical approaches used in this study was based on the theories’ capacity to understand the challenges of the economic activity within the developing country environment. Given the specificities of these requirements it was necessary to develop a cross-disciplinary theoretical approach using both new institutional economics and global value chain analysis.

However, as observed above, the adoption of this framework does not necessarily add to the complexity of the research process. Indeed, in many ways the clear separation that exists between the theories based on their different levels of analysis will help to give focus to the research process. As such, the cross-disciplinary framework has been developed with the objective of pragmatism, as opposed to the goal of theory unification.

Nevertheless, there are complementarities between the theories, which will be of greatest use when looking at aspects of the market which take effect at both the micro and macro levels. Cocoa quality is one such example of this. Chapter six will now outline the methodology developed for this study.

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In document RESUMEN DEL CURRÍCULUM (página 49-56)