By Wilfred Dolfsma (auth.)
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Additional info for Institutions, Communication and Values
Example text
Habits are conceptually and ontologically broader than routines, with which they can nonetheless be closely associated; for example, when functioning as organizational memory (Nelson and Winter 1982), where a routine is, ‘… a regular course or manner of proceeding or going on, a recurrent performance of particular acts’ (Lawson, 1997, pp. 159–60, emphasis added). Habits do not necessarily involve acts, but are propensities, dispositions and ‘submerged repertoires’ of behaviour underpinning particular ways of acting and communicating in specific situations, or as a consequence of particular stimuli (Dewey 1945; Hodgson 2003).
Notwithstanding the behavioural and situational amendments required to incorporate institutional arrangements into economic analysis, the agency-based neoclassical explanation has remained intact. Presented as solutions to problems of organization, institutions are seen to enhance efficiency, improve predictability and reduce uncertainty, imposing barriers or constraints on behaviour that affect the range of options open to the individual. Adherents of evolutionary/institutional economics, in which the research programme(s) of institutionalists such as Veblen, Commons, Mitchell and Ayres have been revived, emphasize the role in economic Structure, Agency and the Role of Values 33 decision-making of pre-existing habits and rules, values and cognitive frames and typically argue that the individual does not take decisions in isolation, but that decisions are pre-defined by the social context in which the agent finds him or herself.
Communication comprises a ‘unity of information, utterance and understanding’ such that it is difficult to isolate any one component even for analytical purposes. Luhmann argues that communication is the process by which a social system forms in distinction to its environment. Critically, an event to be captured must be new to the social system if it is to have the currency of information. Nevertheless, information is for the system and can only be made sense of in terms generated by the system.