The emergence of new industries and technologies, such as AI and fintech, often requires government intervention, such as policy and regulations for AI safety, cryptocurrencies and open banking.
This involves interactions between government and big companies, which hold dominant market power. Given the high-stakes strategic issues and the power dynamics at play, this can be emotionally taxing for stakeholders, which often influences their decision-making.
This is why Professor Saouré Kouamé has been awarded a Social Sciences and Humanities Research Council Insight Grant for his research project titled “Stakeholder emotions and market power regulation.” His research asks: “How do emotional dynamics between a regulator and regulated firms shape market power regulatory processes and outcomes?”
Understanding the emotion behind market regulation
While most research and literature on this subject focuses on antitrust law enforcement and the financial and economic aspects of monopoly regulation, Kouamé’s research approaches this problem through the lens of market regulation as an inter-organizational process.
For him, social interactions between different stakeholder groups (e.g., decision-makers, politicians, business leaders and social influencers) shape outcomes.
Developing appropriate organizational emotional capabilities—for example, an organization-related emotional mechanism enabling managers and decision-makers to address these challenges—can be crucial.
Kouamé’s emphasis on the emotional dimensions of market regulation will help policymakers and regulators better understand these capabilities.
The research will also contribute to the management literature on regulation, as well as to the emerging literature on emotion in strategic management. Kouamé’s research results will be useful as well for regulatory decision-makers and business leaders.
This study is part of Kouamé’s broader research agenda on emotion in strategic management. For an example of this, see his article on how a family feud affected Rogers Communication.
