Informal institutions and corporate innovation: A Perspective from Red Culture.

Since the 20th century, Red Culture has served as a significant informal institution guiding revolutionary trajectory and developmental course. However, integrating Red Culture into contemporary corporate management and leveraging its constructive influence within today's market-driven economy necessitates comprehensive exploration and thoughtful consideration. This study aims to explore the potential influence of Red Culture on contemporary innovation. Empirical findings reveal substantial and affirmative effects of Red Culture on corporate innovation. Specifically, a heightened Red Culture ambiance correlates with a marked increase in both innovation input and output within corporate. Further investigation underscores Red Culture's pivotal governance role in mitigating strategic manipulation of innovation and research and development practices, especially within the overarching framework of innovation-driven strategies. Moreover, Red Culture synergizes with formal innovation incentive mechanisms, jointly fostering corporate innovation. This study provides micro-level empirical evidence that elucidates the impact of Red Culture on corporate innovation. Additionally, it furnishes valuable policy insights for the practical implementation and enhancement of pertinent Red Culture initiative.

The unwritten rules and HIV: a qualitative study of informal institutions and HIV vulnerability among workers at social venues in Uganda.

Introduction: There is increasing appreciation of the need to understand how social and structural factors shape HIV risk. The unwritten rules, also known as informal institutions or social norms, are increasingly recognized as important determinants of HIV transmission. Unfortunately, these informal institutions, especially among high-risk environments for HIV, such as social venues like bars, lodges, remain poorly understood. This study explored the informal institutions at social venues, and how these institutions influenced vulnerability for HIV for venue workers in Uganda. Methods: We conducted a qualitative study in two districts of Kyotera and Rakai in Central Uganda. We purposively selected and interviewed 44 workers including, cleaners, waiters, and waitresses and 22 venue managers at 22 social venues to explore the informal institutions at these establishments and how the institutions shaped HIV vulnerabilities among the workers. 31.8% (14) of the participants were males, and 68.2% (30) females. Data were analyzed using thematic content analysis. Results: We found that the informal institutions at the venues were both officially and socially created, communicated, and sanctioned. The most common institutions operated through; selective hiring, rigid reporting structures, and informal job contracting procedures. Meager salaries, varying and delayed payments as well as attractive benefits and bonuses from customers were also important forms of informal institutions at the venues. Drinking alcohol, and offering sexual services at the venues were acceptable, although excessive drinking, and committed sexual relationships with customers were disapproved. These informal institutions shaped a risk environment at the venues by creating risk exposure opportunities that influenced workers' engagement into sexual risk behaviors. Conclusion: The risk environment at social venues is shaped by the informal institutions at these venues. Thus, the need for venue-based HIV programs that integrate social norms interventions to better address the contextual determinants of HIV risk behaviors at the venues.

Study on the influence of Chinese traditional culture on corporate environmental responsibility.

In accordance with the theory of informal institutions, culture exerts a crucial influence on the enactment of corporate social responsibility. Based on the two core variables of Chinese traditional culture and corporate environmental responsibility, we designed a panel data model to investigate the impact of Chinese traditional culture on corporate environmental responsibility and its heterogeneity. The findings indicate the following: 1) Chinese traditional culture can promote the performance of corporate environmental responsibility. 2) Chinese traditional culture has a heterogeneous influence on the environmental responsibility of enterprises that depends on the ownership difference of enterprises; that is, the influence of traditional culture on the environmental responsibility of state-owned enterprises is stronger than that of non-state-owned enterprises. 3) Chinese traditional culture has a heterogeneous influence on the environmental responsibility of enterprises according to the difference in industrial pollution levels; that is, traditional culture has a positive correlation with the environmental responsibility of enterprises in heavily polluting industries and a negative correlation with non-heavily polluting industries. 4) Chinese traditional culture has a heterogeneous influence on corporate environmental responsibility according to geographical differences; that is to say, traditional culture promotes the development of corporate environmental responsibility in the central and western regions, and vice versa in the eastern regions.

Informal Institutions Moderate the Relationship Between Environmental Emotion and Grassland Governance Behavior.

Clarifying the behavior motivation of herders participating in grassland governance has important theoretical and practical significance for the construction of ecological civilization and economic development in pastoral areas. Based on the data from 425 households in the Inner Mongolia Autonomous Region, this paper constructs a Double-Hurdle model to explore the impact of informal institutions and environmental emotion (individual emotion, collective emotion, and intergenerational dependence) on herders' grassland governance. The results show that informal institutions promote herders' willingness and payment for participating in grassland governance, and collective emotions hinder herders' participation, showing a "free-ride" mentality. Informal institutions moderate the relationship between collective emotions and grassland governance behavior. Informal institutions also help herders understand the collective sense of responsibility and morality behind grassland protection, thereby reducing the "free-ride" mentality. Therefore, it is necessary to maintain the informal institutions' role as a "glue" in the traditional culture of pastoral areas and to promote the realization of policy goals.

Transparency of subnational governments: the impact of inequality on transparency / Transparencia de los gobiernos subnacionales: el impacto de la desigualdad en la transparencia / Transparência dos governos subnacionais: o impacto da desigualdade na transparência

Abstract What are the effects of extractive informal institutions on the horizontal accountability process in a developing democracy? This paper presents evidence about the harmful effects of extractive informal institutions on horizontal accountability within subnational governments in Brazil. After three decades of free and competitive elections, the institutional design of oversight institutions for state governments has hardly changed. We explore the hypothesis that more extractive informal institutions, measured by the level of income inequality, is associated with decreasing transparency levels. Given its extensive social, political, and economic diversity embedded in an overall centralized formal institutional framework, Brazil provides an appropriate setting to test the hypothesis that extractive informal institutions responsible for increased income inequality can undermine horizontal accountability in new democracies.

Resumen ¿Cuáles son los efectos de las instituciones informales extractivas sobre el proceso de accountability horizontal en una democracia en desarrollo? Este artículo presenta evidencia sobre los efectos dañinos de las instituciones informales extractivas sobre la accountability horizontal dentro de los gobiernos subnacionales en Brasil. Después de tres décadas de elecciones libres y competitivas, el diseño institucional de las instituciones de supervisión de los gobiernos estatales apenas ha cambiado. Exploramos la hipótesis de que las instituciones informales más extractivas, medidas por el nivel de desigualdad de ingresos, están asociadas con niveles decrecientes de transparencia. Dada su amplia diversidad social, política y económica integrada en un marco institucional formal, general y centralizado, Brasil proporciona un entorno apropiado para probar la hipótesis de que las instituciones informales extractivas, responsables de una mayor desigualdad de ingresos, pueden socavar la accountability horizontal en las nuevas democracias.

Resumo Quais são os efeitos das instituições informais extrativas no processo de accountability horizontal numa democracia em desenvolvimento? Este artigo apresenta evidências sobre os efeitos nocivos das instituições informais extrativistas na accountability horizontal dos governos subnacionais no Brasil. Após três décadas de eleições livres e competitivas, o desenho institucional das instituições de fiscalização dos governos estaduais praticamente não mudou. Exploramos a hipótese de que instituições informais mais extrativas, medidas pelo nível de desigualdade de renda, estão associadas a níveis decrescentes de transparência. Dada a sua extensa diversidade social, política e econômica, inserida num quadro institucional formal centralizado, o Brasil oferece um cenário apropriado para testar a hipótese de que as instituições informais extrativas responsáveis pelo aumento da desigualdade de rendimentos podem minar a accountability horizontal nas novas democracias.

Informal payments by patients, institutional trust and institutional asymmetry.

The aim of this paper is to evaluate the extent of the practice of using informal payments for accessing the services of public clinics or hospitals across Europe and to explain the prevalence of this corrupt practice using the framework of institutional theory. To achieve this, a multi-level mixed-effect logistic regression on 25,744 interviews undertaken in 2020 with patients across 27 European Union countries is conducted. The finding is that the practice of making informal payments remains a prevalent practice, although there are large disparities in the usage of this practice in different European countries. However, informal payments by patients are more likely when there is a lower institutional trust and a higher degree of asymmetry between formal and informal institutions. The resultant proposal is that policy makers need to address the institutional environment to tackle such informal payments. How this can be achieved is outlined.

The Companion Pandemic to COVID-19: The Use of Informal Practices to Access Public Healthcare Services in the European Union.

Objectives: The objective of this paper is to evaluate the use of informal payments and personal connections to gain preferential access to public health services during the COVID-19 pandemic and to propose effective policy measures for tackling this phenomenon. Methods: Using data from 25,744 patients in the European Union, six different scenarios are analyzed in relation to making informal payments and/or relying on personal connections to access public healthcare services. To evaluate the propensity to engage in informal practices in healthcare, probit regressions with sample selection and predicted probabilities are used. Robustness checks are also performed to test the reliability of the findings. Results: For each scenario, a statistically significant association is revealed between the propensity to make informal payments and/or rely on personal connections and the asymmetry between the formal rules and the patients' personal norms and trust in public authorities. Conclusion: To tackle informal practices in healthcare, policy measures are required to reduce the asymmetry between the formal rules and personal norms by raising trust in public authorities.

Research on the impact of clan network on farmers' entrepreneurial income-The case of China.

Farmers' entrepreneurial income is related to poverty alleviation and common prosperity. The clan network is an important social capital for farmers. However, research on effects of this relationship is still scant. We classifies farmers' social capital as endowed social capital such as clan networks and leapfrogging social capital that needs to be operated. Using the data of CFPS 2010-2018 in China, this study investigates the influence of clan networks and farmers' entrepreneurial income. Based on the social capital theory, we adopt a semilogarithmic model, and propensity score matching method for robustness checks. The results show that the clan network, as an endowed social capital of farmer, has a significant and positive effect on entrepreneurial income for both men and women. And the clan network has the greatest impact on middle-income farmers. Our results have important implications for policymakers in other developing economies who seek to increase farmers' income.

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

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.

Insights into the Sustainable Development of the Bioeconomy at the European Level, in the Context of the Desired Clean Environment.

The increasing awareness of the impact of global climate change has brought bio-based projects back into consideration. Thus, having as supports the reality of the troubling scenario that threatens the entire ecosystem and the up-to-date theoretical discourse and debate on sustainable development, this article aims to investigate the socio-economic and institutional determinants that trigger the dynamics of the bioeconomy value added indicator-a valuable instrument developed and recently launched by the EU's BioMonitor project. Using a panel corrected standard errors framework, we find that investment in human development along with innovation, the growing role of women and sound public governance have a positive effect on the transition towards a durable and resilient bioeconomy at the European level. This naturally implies that a combination of social and technological innovation can ensure the rise of a sustainable bioeconomy.

Conservation status and cultural values of sea turtles leading to (un)written parallel management systems in Fiji.

Globally and locally, conservationists and scientists work to inform policy makers to help recovery of endangered sea turtle populations. In Fiji, in the South Pacific, sea turtles are protected by the national legislation because of their conservation status, and are also a customary iTaukei resource. Centered on our interview-based study at Qoma and Denimanu villages, parallel management systems coexist, where both the (written) national legislation and the (unwritten) customary iTaukei rules determine the time and the quantity of sea turtle harvest. In addition, non-governmental organizations and academic institutions may influence local sea turtle management by providing scientific awareness and helping divert the economic values from the meat to the living animal. We suggest that the government and non-governmental organizations emphasize community management of sea turtles, and work alongside the customary chiefs and their fishing clans to understand the real harvest (eventually by allowing quotas) and to monitor the recovery of South Pacific sea turtles in Fijian waters.

Hybrid institutional complexes in global governance.

Most issue areas in world politics today are governed neither by individual institutions nor by regime complexes composed of formal interstate institutions. Rather, they are governed by "hybrid institutional complexes" (HICs) comprising heterogeneous interstate, infra-state, public-private and private transnational institutions, formal and informal. We develop the concept of the HIC as a novel descriptive and analytical lens for the study of contemporary global governance. The core structural difference between HICs and regime complexes is the greater diversity of institutional forms within HICs. Because of that diversity, HICs operate differently than regime complexes in two significant ways: (1) HICs exhibit relatively greater functional differentiation among their component institutions, and hence suffer from relatively fewer overlapping claims to authority; and (2) HICs exhibit greater informal hierarchy among their component institutions, and hence benefit from greater ordering. Both are systemic features. HICs have characteristic governance benefits: they offer good "substantive fit" for multi-faceted governance problems and good "political fit" for the preferences of diverse constituents; constrain conflictive cross-institutional strategies; and are conducive to mechanisms of coordination, which enhance substantive coherence. Yet HICs also pose characteristic governance risks: individual institutions may take on aspects of problems for which they are ill-suited; multiple institutions may create confusion; HICs can amplify conflict and contestation rather than constraining them; and the "soft" institutions within HICs can reduce the focality of incumbent treaties and intergovernmental organizations and forestall the establishment of new ones. We outline a continuing research agenda for exploring the structures, operations and governance implications of HICs.

Effect of Village Informal Institutions and Cadre-Mass Relationship for Farmers' Participation in Rural Residential Environment Governance in China.

Rural residential environment governance (RRE), as the first tough battle of China's rural revitalization strategy, relies on farmers' participation since farmers are the main laborers, builders, and administrators in environmental governance. However, lackluster farmers' enthusiasm and initiative have hindered RRE initiatives, prompting this paper. Based on the survey data of 1804 farmers in China, this paper, from the perspective of mobilization governance, empirically analyzes the impact of informal village institutions, the cadre-mass relationship, and their interaction on farmers' participation in RRE governance through the entropy method, ols, and quantile regression model. The empirical results indicate that informal institutions promoted farmers' participation through three mechanisms, with disciplinary supervision impact being the most significant and value-oriented next, but transmission internalization doesn't work as well as it should. Meanwhile, for farmers with varying degrees of participation, there is a general difference in the governance effect of informal institutions. Furthermore, the close cadre-mass relationship significantly strengthened disciplinary supervision and transmission internalization effects to mobilize farmers' participation. Therefore, the village committee should implement diverse informal institutions based on the actual situation of their village. Moreover, it is necessary to shape a close cadre-mass relationship to improve the accuracy of institutions' implementation.

Institutional Determinants of Informal Payments for Health Services: An Exploratory Analysis across 117 Countries.

Healthcare accessibility and equity remain important issues, as corruption in the form of informal payments is still prevalent in many countries across the world. This study employs a panel data analysis over the 2006-2013 period to explore the role of different institutional factors in explaining the prevalence of informal payments. Covering 117 countries, our findings confirm the significant role of both formal and informal institutions. Good governance, a higher trust among individuals, and a higher commitment to tackling corruption are associated with diminishing informal payments. In addition, higher shares of private finance, such as out-of-pocket and domestic private health expenditure, are also correlated with a lower prevalence of informal payments. In policy terms, this displays how correcting institutional imperfections may be among the most efficient ways to tackle informal payments in healthcare.

Informal Payments by Patients in Central and Eastern Europe during the COVID-19 Pandemic: An Institutional Perspective.

Confronted with a global pandemic, public healthcare systems are under pressure, making access to healthcare services difficult for patients. This provides fertile ground for using illegal practices such as informal payments to gain access. This paper aims to evaluate the use of informal payments by patients during the COVID-19 pandemic and the institutions that affect the prevalence of this practice. Various measurements of formal and informal institutions are here investigated, namely the acceptability of corruption, the level of trust, transparency, and performance of the healthcare system. To do so, a logistic regression of 10,859 interviews with patients conducted across 11 Central and Eastern Europe countries in October-December 2020 is employed. The finding is that there are large disparities between countries in the prevalence of informal payments, and that the practice is more likely to occur where there are poorer formal and informal institutions, namely higher acceptability of corruption, lower trust in authorities, lower perceived transparency in handling the COVID-19 pandemic, difficult access to, and poor quality of, healthcare services, and higher mortality rates due to the COVID-19 pandemic. These findings suggest that policy measures for tackling informal payments need to address the current state of the institutional environment.

Bank systemic risk around COVID-19: A cross-country analysis.

Using 1,584 listed banks from 64 countries during the COVID-19 pandemic, we conduct the first broad-based international study of the effect of the pandemic on bank systemic risk. We find the pandemic has increased systemic risk across countries. The effect operates through government policy response and bank default risk channels. Additional analysis suggests that the adverse effect on systemic stability is more pronounced for large, highly leveraged, riskier, high loan-to-asset, undercapitalized, and low network centrality banks. However, this effect is moderated by formal bank regulation (e.g., deposit insurance), ownership structure (e.g., foreign and government ownership), and informal institutions (e.g., culture and trust).

Unpacking the red packets: institution and informal payments in healthcare in China.

Informal cash payments from patient to healthcare providers for services provided by the healthcare system have attracted increasing scholarly interest. However, the root and mechanism of informal payments are not well understood. This paper contributes to the literature by positing informal payments as informal institutions. We use a nationally representative longitudinal survey in 28 provinces in China to explore the root of informal payments. Our empirical findings suggest that patients' informal payments for healthcare services may originate from information acquisition and processing, failure of government and market in allocating healthcare resources, and disparities in utilization. Further, this informal institution could be changed by the self-reinforcement of individual patients. These findings suggest that policies to facilitate transparency and to remove institutional barriers, such as the introduction of market competition, may reduce the incidence of informal payments.

Can the social trust promote corporate green innovation? Evidence from China.

Corporate green innovation has played a crucial role in balancing profitability and environmental protection. The existing research on determinant factors of green innovation has its main defects in emphasizing excessively enterprise's formal institutional environment and neglecting the informal institutional environment, causing an incomplete understanding of the relationship between institutional environments and corporate green innovation. To bridge this gap, using a sample of Shanghai and Shenzhen A-share listed firms in manufacturing industry during the period of 2010-2016, we investigate how social trust, an important informal institutions, affects corporate green innovation. Our results show that social trust is positively associated with green innovation, remaining valid after applying endogenous and robustness tests. In addition, the positive relationship between social trust and green innovation is more prominent when the enterprise is non-state-owned or locates in a looser command-and-control (CAC) environmental regulations region. Further analysis shows that social trust boosts corporate green innovation via promoting knowledge sharing, decreasing financing constraints, and fulfilling more corporate social responsibility (CSR). This paper enriches the literature concerning social trust and green innovation and draws back more public attention on the role of informal institutions play in promoting green innovation.

International evidence on state ownership and trade credit: Opportunities and motivations.

Recent events, most notably the Global Financial Crisis and the COVID-19 pandemic, have made it increasingly apparent that liquidity is synonymous with corporate survival. In this paper, we explore how governments can fulfill an important need as suppliers of liquidity. Building on the financing advantage view of state ownership, we theorize how state-owned enterprises (SOEs) may provide capital by offering trade credit to customer firms. The data indicate a positive relation between the level of state ownership and the provision of trade credit. Using an institution-focused framework, we further determine that the nation's institutional environment systematically affects the opportunities and motivations for SOEs to grant trade credit. Specifically, we find that SOEs grant more trade credit in countries with less developed financial markets, weaker legal protection of creditors, less comprehensive information-sharing mechanisms, more collectivist societies, left-wing governments, and higher levels of unemployment. Firm-level factors also influence the credit-granting decisions of SOEs, with SOEs with lower levels of state ownership and higher extents of internationalization offering lower amounts of trade credit. Overall, our study offers novel insights regarding the important role of state-owned firms as providers of liquidity.

Les événements récents, notamment la crise financière mondiale et la pandémie de COVID-19, ont montré de plus en plus que la liquidité est synonyme de survie des entreprises. Dans cet article, nous explorons comment les gouvernements peuvent répondre à un besoin important en tant que fournisseurs de liquidités. En nous appuyant sur la perspective de l'avantage financier de la propriété de l'État, nous théorisons comment les entreprises publiques (EP) peuvent fournir des capitaux en offrant des crédits commerciaux aux entreprises clientes. Les données indiquent une relation positive entre le niveau de propriété de l'État et l'offre de crédits commerciaux. En utilisant un cadre axé sur les institutions, nous déterminons en outre que l'environnement institutionnel du pays affecte systématiquement les possibilités et les motivations des EP d'octroyer des crédits commerciaux. Plus précisément, nous constatons que les EP accordent plus de crédits commerciaux dans les pays avec des marchés financiers moins développés, une protection juridique plus faible des créanciers, des mécanismes d'échanges d'informations moins complets, des sociétés plus collectivistes, des gouvernements de gauche et des taux de chômage plus élevés. Des facteurs au niveau de l'entreprise influencent également les décisions d'octroi de crédit des EP, les EP avec des niveaux inférieurs de propriété de l'État et des niveaux plus élevés d'internationalisation offrant des montants de crédits commerciaux plus faibles. Dans l'ensemble, notre étude offre de nouvelles perspectives sur le rôle important des entreprises publiques en tant que fournisseurs de liquidités.

Los sucesos recientes, en particular la crisis financiera mundial y la pandemia COVID-19, han hecho cada vez más evidente que la liquidez es sinónimo de supervivencia corporativa. En este documento, exploramos cómo los gobiernos pueden satisfacer una necesidad importante como proveedores de liquidez. Basándonos en la visión de la ventaja financiera de la propiedad estatal, teorizamos cómo las empresas de propiedad estatal (SOEs por sus iniciales inglés) pueden proporcionar capital ofreciendo crédito comercial a las empresas clientes. Los datos indican una relación positiva entre el nivel de propiedad estatal y la provisión de crédito comercial. Usando un marco centrado en las instituciones, determinamos además que el entorno institucional de la nación afecta sistemáticamente las oportunidades y motivaciones para que las empresas de propiedad estatal otorguen crédito comercial. Específicamente, encontramos que las empresas de propiedad estatal de comercio otorgan más crédito comercial en países con mercados financieros menos desarrollados, una protección jurídica más débil de los acreedores, mecanismos de intercambio de información menos amplios, sociedades más colectivistas, gobiernos de izquierda y mayores niveles de desempleo. Los factores a nivel de las empresas también influyen en las decisiones de concesión de crédito de las empresas de propiedad estatal, con empresas de propiedad estatal con niveles más bajos de propiedad estatal y mayores extensiones de internacionalización que ofrecen menores cantidades de crédito comercial. En general, nuestro estudio ofrece aportes novedosos sobre el importante papel de las empresas de propiedad estatal como proveedores de liquidez.

Eventos recentes, mais notadamente a Crise Financeira Global e a pandemia COVID-19, tornaram cada vez mais evidente que liquidez é sinônimo de sobrevivência corporativa. Neste artigo, exploramos como governos podem atender a uma importante necessidade como fornecedores de liquidez. Com base na visão da vantagem de financiamento de propriedade estatal, teorizamos como empresas estatais (SOEs) podem fornecer capital ao oferecer crédito comercial a empresas clientes. Os dados indicam uma relação positiva entre o nível de propriedade do Estado e a oferta de crédito comercial. Usando um modelo focado em instituições, determinamos ainda que o ambiente institucional do país afeta sistematicamente as oportunidades e motivações para SOEs concederem crédito comercial. Especificamente, descobrimos que SOEs concedem mais crédito comercial em países com mercados financeiros menos desenvolvidos, proteção legal mais fraca a credores, mecanismos de compartilhamento de informações menos abrangentes, sociedades mais coletivistas, governos de esquerda e níveis mais elevados de desemprego. Fatores no nível da firma também influenciam as decisões de concessão de crédito de SOEs, sendo que SOEs com níveis mais baixos de propriedade estatal e mais altos de internacionalização oferecem menores quantidades de crédito comercial. De modo geral, nosso estudo oferece novos insights sobre o importante papel de empresas estatais como provedoras de liquidez.

Why the Navajo Nation was hit so hard by coronavirus: Understanding the disproportionate impact of the COVID-19 pandemic.

The COVID-19 (SARS-CoV-2) pandemic of 2019-2020 has incurred astonishing social and economic costs in the United States (US) and worldwide. Native American reservations, representing a unique geography, have been hit much harder than other parts of the country. This study seeks to understand the reasons for the disproportionate impact of the pandemic on Native American communities by focusing on the Navajo Nation - the largest Native American reservation in the US. I first reviewed the historical pandemics experienced by Native Americans. Guided by the literature review, an institutional analysis focusing on the Navajo Nation suggests a lack of both institutional resilience and healthcare preparation. The analysis further identified four factors that could help explain the Navajo's slow response to the COVID-19 pandemic: prevalence of underlying chronic health conditions, lack of institutional resilience, the relationship between the federal government and tribal governments, and lack of social trust. Relevant policy implications are discussed. For instance, to better prepare Native American communities for shocking events like the COVID-19 pandemic in the future, policymaking should integrate informal institutions to build efficient formal institutions for self-governance. Promoting public health education and establishing collaborations between Native and non-Native communities are also necessary long-run strategies.