When do firms conform? The effect of regulatory control processes on compliance and opportunism

Gilliland, David I. and Manning, Kenneth C. (2002). When do firms conform? The effect of regulatory control processes on compliance and opportunism. Journal of Public Policy and Marketing, 21 (2), pp. 319-331.

Abstract

The authors use social control theory to develop a conceptual model that addresses the effectiveness of regulatory agencies’ (e.g., Food and Drug Administration, Occupational Safety and Health Administration) field-level efforts to obtain conformance with product safety laws. Central to the model are the control processes agencies use when monitoring organizations and enforcing the safety rules. These approaches can be labeled formal control (e.g., rigid enforcement) and informal control (e.g., social instruction). The theoretical framework identifies an important antecedent of control and the relative effectiveness of control’s alternative forms in gaining compliance and reducing opportunism. Furthermore, the model predicts that the regulated firms’ level of agreement with the safety rules moderates the relationships between control and firm responses. A local health department’s administration of state food safety regulations provides the empirical context for testing the hypotheses. The results from a survey of 173 restaurants largely support the proposed model. The study findings inform a discussion of effective methods of administering product safety laws. The authors use social control theory to develop a conceptual model that addresses the effectiveness of regulatory agencies’ (e.g., Food and Drug Administration, Occupational Safety and Health Administration) field-level efforts to obtain conformance with product safety laws. Central to the model are the control processes agencies use when monitoring organizations and enforcing the safety rules. These approaches can be labeled formal control (e.g., rigid enforcement) and informal control (e.g., social instruction). The theoretical framework identifies an important antecedent of control and the relative effectiveness of control’s alternative forms in gaining compliance and reducing opportunism. Furthermore, the model predicts that the regulated firms’ level of agreement with the safety rules moderates the relationships between control and firm responses. A local health department’s administration of state food safety regulations provides the empirical context for testing the hypotheses. The results from a survey of 173 restaurants largely support the proposed model. The study findings inform a discussion of effective methods of administering product safety laws.

Publication DOI: https://doi.org/10.1509/jppm.21.2.319.17578
Divisions: Aston Business School > Marketing & strategy
Aston Business School > Marketing & strategy research group
Uncontrolled Keywords: social control theory,effectiveness,regulatory agencies,field-level efforts,product safety laws,control processes agencies,monitoring organizations,safety rules,formal control,rigid enforcement,informal control,social instruction,compliance,opportunism
Full Text Link: http://www.jour ... .21.2.319.17578
Related URLs:
Published Date: 2002
Authors: Gilliland, David I.
Manning, Kenneth C.

Export / Share Citation


Statistics

Additional statistics for this record