The Roots of Informal Responses to Regulatory Change: Non‐compliant Small Firms and the National Living Wage

Monder Ram; Paul Edwards; Guglielmo Meardi; Trevor Jones; Sabina Doldor

doi:10.1111/1467-8551.12363

The Roots of Informal Responses to Regulatory Change: Non‐compliant Small Firms and the National Living Wage

Monder Ram, Paul Edwards, Guglielmo Meardi, Trevor Jones, Sabina Doldor

Aston Business School

Research output: Contribution to journal › Article › peer-review

Abstract

How do small ‘non‐compliant’ firms (those evading existing regulations) react to further regulatory change? The impact of the National Living Wage in the UK in 2016 is analysed through 22 mostly longitudinal case studies of small non‐compliant firms. The varied responses, endurance of non‐compliance, and blurred and dynamic nature of transitions to compliance are discussed through the lens of institutional approaches to informality. The analysis sheds new light on the relative autonomy of micro processes and the conditions under which external forces affect these processes. Non‐compliant informality, as a persisting feature of small business, is unlikely to be transformed by legal regulation alone.

Original language	English
Pages (from-to)	856-871
Number of pages	16
Journal	British Journal of Management
Volume	31
Issue number	4
Early online date	2 May 2019
DOIs	https://doi.org/10.1111/1467-8551.12363
Publication status	Published - 1 Oct 2020

Bibliographical note

© 2019 The Author. British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management

This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.

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10.1111/1467-8551.12363Licence: CC BY-NC 3.0

The Roots of Informal Responses toRegulatory Change
© 2019 The Author. British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.
Final published version, 183 KBLicence: CC BY-NC 3.0

Cite this

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The Roots of Informal Responses to Regulatory Change: Non‐compliant Small Firms and the National Living Wage

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