All in the Family: The Influence of Social Networks on Dispute Processing (A Case Study of a Developing Economy)

Abstract

This paper presents the results of an empirical investigation of the influence of social networks on how individuals choose to process their legal disputes. The research focuses on business disputes and disputants in Venezuela, a developing economy. Previous socio-legal research adopts a dichotomous view of societies, labeling them as either traditional or modern, and argues that certain forms of disputing processing are differentially preferred by most disputants in each system. This research finds a mix of dispute processing mechanisms and preferences in the Venezuelan business sector. Applying social network theory, I argue that rather than stage of development explaining dispute processing preferences, social networks within the Venezuelan business sector reveal when and why business disputants choose different formal fora and different mechanisms. The research that informs this paper was conducted using a multi-method approach, but the overarching research strategy has been that of a case study. Data obtained from secondary sources, and also from semi-structured interviews with at least seventy respondents was collected from 2002 to 2006. Two cases of disputes processing within the business sector have been analyzed (courts and publicly-sponsored ADR institutions), each one referring to a different mechanism and/or forum that is available to disputants in Venezuela.

Keywords: dispute resolution, ADR, courts, social networks

JEL Classification: K40, K42