Filling institutional voids: interactions between digital and individual intermediaries in facilitating corporate social entrepreneurs for building inclusive markets

Abstract

Purpose This study aims to explore how digital intermediaries interact with individual intermediaries to assist corporate social entrepreneurs (CSEs) in building inclusive markets. In response to the challenge of social exclusion, CSEs craft strategies by leveraging their existing capabilities and resources. However, when it comes to building inclusive markets, CSEs face the liabilities of institutional voids and must rely on intermediaries to establish efficient trading channels. This study focuses on the process by which CSEs firstly construct technology affordances of digital intermediaries, and then actualise affordances through the interactions of digital and individual intermediaries in overcoming technology constraints and triggering involvement cycle in the context of rural e-commerce. Design/methodology/approach Using a single-case study design, the authors unfolded the process of a rural e-commerce project conducted by a Chinese e-commerce giant. The authors interviewed 35 informants from 2016 to 2018; each interview lasted 45–90 minutes. In addition, archival and observational data were collected for triangulation. After thorough examination, the data was coded and a grounded framework was developed. Findings This study provides a detailed process of how the interactions of digital and individual intermediaries facilitate CSEs in building inclusive markets through a rural e-commerce project. The authors find that CSEs generate corporate strategy in building inclusive markets by constructing three affordances of digital intermediaries: equality facilitator, harmony maintainer and stickiness creator. Subsequently, in actualising these affordances, CSEs fill institutional voids through the interactions between digital and individual intermediaries. Specifically, the technology constraints of digital intermediaries trigger a four-phase cycle involving individual intermediaries: identification, activation, coaching and empowerment. This involvement cycle effectively overcomes the technology constraints of digital intermediaries. The interactions between digital and individual intermediaries facilitate the dual goals achievement of CSEs and finally restructure the market architecture. Originality/value Firstly, this study stands among the pioneering research endeavours exploring the interactions between digital and individual intermediaries in facilitating CSEs to develop inclusive markets. Diverging from existing literature, which often enhances or refines the role of a single intermediary in filling institutional voids, the authors posit that digital and individual intermediaries dynamically complement each other in actualising affordances. This complementary dynamic stands as a substitute for the evolution of a single intermediary in building inclusive markets. Secondly, by zooming out the process of constructing and actualising affordances, this study contributes to the literature on technology affordance in both contextual and relational aspects. Contextually, the authors identify three tenets of affordances generated by the corporate strategy of CSEs. Relationally, the authors argue that affordances can be predeveloped by CSEs and then fully actualised through interactions between digital and individual intermediaries, challenging the conventional view that sees affordances as a relational concept solely determined by users and artefacts during the actualisation process. Thirdly, this study makes a contribution by untangling the process of CSEs in reshaping the market context to make it more inclusive. Departing from the conventional focus on the role of institutional intermediaries for CSEs in filling institutional voids, the authors explore how CSEs develop digital intermediaries and induce their interactions with individual intermediaries to restructure market architecture during the process of constructing and actualising affordances. In conclusion, this study adds valuable insights to the literature on institutional voids, technology affordance and CSE in building inclusive markets.