MASTER IN ANTI-CORRUPTION STUDIES PROGRAMME The Influence of Incentive Structures on Collective Action The Case of Anti-Corruption Collective Action in Malawi Ipyana Musopole 2017 Supervisor: Professor Michael Johnston This publication is an adaptation of the master’s thesis submitted to fulfil the requirements for the Master in Anti-Corruption Studies degree at the International Anti-Corruption Academy I pledge on my honour that I have not plagiarized, used unauthorized materials, given and/or received illegitimate help on this assignment, and hold myself accountable to the academic standards binding upon students of the MACS programme. Signature: Ipyana Musopole Date: 15 October 2017 Table of Contents Abstract ................................................................................................................................................ 4 Key Words ............................................................................................................................................ 5 List of Abbreviations ......................................................................................................................... 6 1. INTRODUCTION .......................................................................................................................... 7 1.1. Introduction ............................................................................................................................. 7 1.2. Background .............................................................................................................................. 7 1.3. Overview of the corruption situation in Malawi ........................................................... 8 1.4. Efforts to address corruption in Malawi ......................................................................... 9 1.5. Attempts at collective action as an anti-corruption approach ............................... 10 1.6. Studies on collective action within the region and beyond .................................... 13 1.7. The influence of incentives on collective action ........................................................ 15 1.8. Objectives of the study ...................................................................................................... 17 1.9. Research question ............................................................................................................... 18 1.10. Research motivation ....................................................................................................... 18 1.11. Research hypotheses ...................................................................................................... 20 1.12. Null hypothesis (H ) 0 ......................................................................................................... 20 1.13. Alternative hypotheses .................................................................................................. 21 1.14. Research variables ........................................................................................................... 22 1.15. Structure of the thesis .................................................................................................... 23 1.16. Conclusion ......................................................................................................................... 24 2. LITERATURE REVIEW ................................................................................................................ 25 2.1. Introduction ........................................................................................................................... 25 2.2. What Is collective action? .................................................................................................. 25 2.3. Influencing factors for occurrence of collective action............................................ 28 2.4. Incentives and their influence on collective action ................................................... 36 2.5. Classifications of incentives and incentive structures ............................................. 39 2.6. Credible incentive structures vs. flawed incentives structures ............................. 41 2.7. Measuring success or failure of collective action efforts ........................................ 42 2.8. Conclusion ............................................................................................................................. 50 3. RESEARCH METHODOLOGY .................................................................................................. 52 3.1. Introduction ........................................................................................................................... 52 3.2. Philosophical paradigm underpinning this study ...................................................... 52 1 3.2.1. Positivist paradigm .......................................................................................................... 53 3.2.2. Interpretivist paradigm .................................................................................................. 53 3.3. Research approach .............................................................................................................. 55 3.4. Research design and strategy .......................................................................................... 56 3.4.1. Quantitative methods ..................................................................................................... 56 3.4.2. Qualitative research ........................................................................................................ 57 3.5. Sampling methods used in the study ............................................................................ 58 3.6. Data collection ...................................................................................................................... 61 3.7. Data collection tools ........................................................................................................... 62 3.8. Structure and content of the questionnaire ................................................................ 62 3.9. Expert review of the questionnaire ................................................................................ 64 3.10. Mode of administration of the questionnaire ......................................................... 65 3.11. Document review ............................................................................................................. 68 3.12. Data analysis and interpretation ................................................................................. 68 3.13. Ethical considerations .................................................................................................... 69 3.14. Challenges encountered ................................................................................................ 70 3.15. A brief profile of the organizations ........................................................................... 71 3.16. Conclusion ......................................................................................................................... 73 4. RESEARCH FINDINGS AND ANALYSIS ................................................................................. 74 4.1. Introduction ........................................................................................................................... 74 4.2. An overview of key theories underpinning this study .............................................. 74 4.3. Results of the hypotheses ................................................................................................. 75 4.3.1. Null hypothesis ................................................................................................................. 76 4.3.2. Alternative hypotheses .................................................................................................. 77 4.4. Background Information .................................................................................................... 82 4.4.1. Description of respondents interviewed for the study ........................................ 82 4.4.2. Membership of the collective action organizations .............................................. 85 4.4.3. Formation, management structure and operations .............................................. 85 4.4.4. Sector representation on the collective action organization ............................. 88 4.5. Detailed results of the study ............................................................................................ 90 4.5.1. Incentive structures in the collective action organizations ................................ 90 4.6. Influencing factors for participation and the role of incentives ........................... 97 4.6.1. Key factors that influenced participation of stakeholders .................................. 98 4.6.2. The role of incentives in the decision to participate .......................................... 101 2 4.6.3. Incentive preference by various sectors ................................................................. 101 4.6.4. Why anticipation of incentives influenced participation? .................................. 104 4.6.5. Participation levels of stakeholders and their influencing factors ................. 105 4.6.6. Realisation of incentives by stakeholders .............................................................. 108 4.7. Success or failure of the collective action organizations ...................................... 110