Crossing Juridical Borders: Relational Governance in International Package Tourism from Germany to Jordan

This chapter explores the under—examined aspects of informal institutions and small and medium—sized enterprises (SMEs) in the tourism industry in the context of global value chains (GVCs). The focus of the empirical elements of the study is the operation of the package tourism industry between Germany and Jordan. The chapter highlights through empirical evidence the importance of the broader, encompassing and dynamic interplay between co-ordination within value chains and the external influences on the chain. It argues that informal institutions, including conventions, customs, norms, or social routines in a socio-economic environment might therefore be a specific aspect of both the institutional framework and governance characteristics which cannot be analysed separately. Small service firms operating within GVCs differ greatly from those in the primary and secondary sectors dealing in tangible products. The relational form of governance seems to apply in the case of the tourism GVC and is characterised by: complex interactions between buyers and sellers.