Informal Networks, Informal Institutions, and Social Exclusion in the Workplace: Insights from Subsidiaries of Multinational Corporations in Korea

Abstract

Drawing on interviews with decision makers in multinational corporations (MNCs) in South Korea, we examine the role of informal networks in the social exclusion of women in the workforce. Although legislation in the country is in favor of gender equality, we found that informal barriers in the workplace remain difficult to overcome. Informal networks in Korea, yongo, present an ethical issue in the workplace, as they tend to socially exclude women, limiting possibilities for their participation and career progression. We found that informal networks are pervasive and strong because of the informal institutions in which they are embedded and that there is a complex interplay between informal networks and informal institutions that socially excludes women. Due to difficulties accessing yongo, women appear to build inmaek, a network type that is more open and accessible. We also found that MNCs in Korea can compensate for the lack of local informal networks for their female employees. However, despite providing a more supportive environment for women at work, gender equality policies in MNCs are not yet as effective as they could be due to the dynamics of the workplace and the fact that the policies are not tailored to the local context. We have seen evidence in recent years that MNCs can serve as role models for implementing gender equality policies by creating a more inclusive work environment and demonstrating leadership commitment and support.

Towards understanding the failure of new public management in the MENA region: Are informal networks to blame?

“…Informal networks can be defined as culturally embedded channels formed by informal dyadic ties between individuals, and these dyadic ties rely on the peer pressure of wider informal networks and connections in interaction with others, which can be activated when needed (Minbaeva et al, 2022). Furthermore, these informal networks place a strong emphasis on cooperation, trust, and mutuality, as well as an implicit understanding of shared values and norms (Horak & Suseno, 2023). Moreover, they facilitate interactions between the structural and behavioral levels, and can act as channels through which formal institutional effects flow (Owen-Smith & Powell, 2008).…”

“…This study contributes to the literature in two ways. First, given the fact that the development of informal networks theory is still in an early and evolving stage (Horak, 2024; Horak et al, 2020; Horak & Paik, 2022; Horak & Suseno, 2023; Minbaeva et al, 2022), this study adds knowledge to the limited literature on informal networks, by exploring the interplay between informal networks on one side, and the NPM literature on the other side (Bach & Bordogna, 2011; Bryson et al, 2014; Christensen & Lægreid, 2016; Groot & Budding, 2008; Gunter et al, 2016; Hood, 1995; Hope, 2001; Minvielle, 2006; O'Flynn, 2007). To the best of our knowledge, there is no existing literature exploring the role that informal networks may play when it comes to the success or failure of the implementation of NPM agendas.…”

Empowering leadership and organizational exploration: the role of preoccupation with failure and leader gender

“…For instance, men tend to be more decisive and assertive (Hoyt et al, 2009), while their posture indicates greater social ease (Cashdan, 1998). Women struggle to advance to higher levels in the workplace due to the false stereotype that they are less capable of holding managerial jobs (Eagly and Karau, 2002;Horak and Suseno, 2023). Even though there has been a significant shift toward encouraging women to hold leading roles in society, gender bias still exists (Larsson et al, 2023;Lawson et al, 2022).…”

How Informal Networks Impacts Ambidextrous Innovation via Absorptive Capacity

“…An informal network is a group created by colleagues in formal organizations who have complimentary skills because they share the same interests, hobbies, or feelings [15]. Its function is to share information and talk about feelings [16]. All aspects of business activity will be affected by informal network learning and communication from a humanistic perspective [17].…”