Conference Proceeding

The Relevance of Clan Based Organizations and Actor Network Theory in Creation and Development of Hawala Enterprise

Mahama, Habib, Farooqi, Nauman, Sharif, Khurram J

2014

Overview

Hawala networks (hereafter HNets) is a worldwide phenomenon commonly used by expatriates wanting to send money home; businesses in import/export, foreign exchange, travel, and jewelry. It is estimated that every year US$100 billion to US$300 billion flow through Hnets Buencamino, Gorbunov, 2002). HNets exist due to a number of reasons, which include; anonymity, cultural friendliness (Chene, 2008), low transaction costs (Maimbo, 2003), less transit time (Schramm, Taube, 2002), enhanced level of trust versus banks and other conventional channels (Schramm, Taube, 2002) and increased efficiency (Ballard, 2003). However, little is known about this network structured \"organization\" especially its governance and management control systems. Virtually no research has been conducted to specifically look at the governance mechanisms and management control systems in these HNets. A review of existing research in the area of HNets reveals that most of the research has focused on defining what they do and describing the general mechanics of how money is transferred through the system and the types of players involved (e.g., Ballard, 2003; El-Qorchi, Maimbo, Wilson, 2003; Maimbo, 2003; Passas, 1999; Passas, 2006; Schramm, Taube, 2002; Wilson, 2002). This type of research provides basic information on how the network operates and how the linkages among network members function (Ballard, 2005); but none of it provides answers to the questions about how these informal networks are governed, coordinated or on how controls are exercised. The proposed research investigates the informal management and governance mechanism and structures within the HNets through the lens of Clan Based Organizations and Actor Network Theory.

• Publisher: Centar za istrazivanje i razvoj upravljanja d.o.o
• Subject: Actor-network theory / Data collection / Default / Economic activity / EFTS / Electronic funds transfer systems / Interviews / Language policy / Management controls / Network topologies / Questionnaires / Studies / Transfer of funds / Transnationalism