Metagovernance and Democratic Legitimacy: a theoretical essay in light of non-market approaches

Guilherme Paulo  Andrade; Júlio César  Andrade de Abreu; Ruan Carlos dos Santos; Saleh Fadel Ahmad  Khatib

doi:10.21434/IberoamericanJCG.v9i.116

Authors

Guilherme Paulo Andrade University Federal Fluminense, UFF, Rio de Janeiro
Júlio César Andrade de Abreu Federal University of Rio de Janeiro, Rio de Janeiro
Ruan Carlos dos Santos Centro Universitário Avantis - UNIAVAN, Santa Catarina
Saleh Fadel Ahmad Khatib University Teknologi Malaysia

DOI:

https://doi.org/10.21434/IberoamericanJCG.v9i.116

Keywords:

Metagovernance, Market, Non-market, Democracy, Government

Abstract

Purpose of the study: The aim of this study is to demonstrate why metagovernance is not effective in increasing the democratic legitimacy of networks; to this end, an articulated map will be presented to describe how interactions occur within metagoverned environments.

Methodology/approach: To construct the macro-model of analysis, the methodology of Quivy and Campenhoudt (2005) was used. To consolidate the knowledge involved in the theoretical approach, the Knowledge Development Process-Constructivist (Proknow-C) method by Ensslin, Dutra and Ensslin (2000)
was used. Such a proposal allowed a multidisciplinary perspective, capturing important concepts from economics and organizational theory to apply them to the meta-governed environment.

Originality/Relevance: Metagovernance systems suggest some ability to provide democratic plurality to a social environment, in that we need to understand "if" and "how" this applies; metagovernance is recent in academia and is under discussion; we need to understand its impact in countries with developing institutional environments.

Key findings: Metagoverned systems involve multiple players; difficulty of reconciliation raises transaction costs, both ex-ante - to achieve consensus in the network - and ex-post - when creating mechanisms to deal with disgruntled actors. Such a scenario leads key players to effect coalitions to 'narrow the road' to their own interests, and practice corporate political activity seeking to influence decision making. Actions will focus on impacting the public agent designated as metagovernor, in order to influence possible changes in the environment (regulation).

Theoretical/methodological contributions: An articulated map has been proposed, presenting the cycle of interactions within a metagoverned environment. It shows that sometimes the decisions taken are not the most democratic ones, but those of interest to coalitions.

Social contributions / to management: From a legitimacy perspective, it is necessary to understand how the outcome of networked decision-making can become more democratic, and how metagoverned environments can become less susceptible to harmful corporate political activity, especially in developing democracies.

Author Biographies

Guilherme Paulo Andrade, University Federal Fluminense, UFF, Rio de Janeiro

Master's in Administration from the Universidade Federal Fluminense (UFF). Bachelor's degree in Economic Sciences from the Federal University of Rio de Janeiro (2011). Bachelor in Accounting Sciences from the Universidade Federal Fluminense (2016). Works mainly on the following topics: governance mechanisms, public administration and accounting in the third sector.

Júlio César Andrade de Abreu, Federal University of Rio de Janeiro, Rio de Janeiro

PhD in Administration from the Federal University of Bahia (UFBA) with a sandwich internship at the Complutense University of Madrid, Spain. Master in Administration (UFBA) with an internship period in the University of Coimbra, Portugal. Specialist in Social Movements, Popular Organizations and Participatory Democracy (UFMG) and in Information Systems Administration (UFLA). He was coordinator of the Public Administration Course at Universidade Federal Fluminense (UFF) University Pole of Volta Redonda (PNAP/UAB/CEDERJ). He acted as consultant in the area of public management for several national (ENAP, FINEP, CAPES, CNPq, INEP) and international (ONU/PNUD) public institutions.

Ruan Carlos dos Santos, Centro Universitário Avantis - UNIAVAN, Santa Catarina

Bachelor's Degree in Philosophy from the University of Southern Santa Catarina (2006). Full Degree in Philosophy and Social Sciences from Faculdade Integrada do Cruzeiro - FIC (2018). Bachelor in Theology from the Faculdade Católica de Santa Catarina Católica - FACASC/ITESC (2008). Specialization and MBA in Strategic Business Management from Faculdade Porto das Águas -
FAPAG (2012). Specialization in Teaching Methodology of Philosophy and Sociology by Faculdade de Administração, Ciências, Educação e Letras - FACEL (2018). MBA in Corporate Governance at UnIBF (2019).

Saleh Fadel Ahmad Khatib, University Teknologi Malaysia

Ph.D. scholar at University Teknologi Malaysia. He has published several scholarly articles in various domestic and international peer reviewed journals and participated in many international conferences. His researches can be found in Business Strategy and The Environment, environmental impact assessment review, and Journal of Asian Finance Economics and Business. His research interests are related to the Corporate governance, Auditing, Firm performance, Financial policy, Capital structure, Cash holdings, Dividends, Disclosure quality, and Corporate social responsibility. Khatib earned his M.S. in finance from
Limkokwing University in Malaysia in 2018.

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