Dysfunctional institutions

Another feature of institutional dysfunction is weak governance and accountability, which also have the potential to erode trust in formal institutions and governments (North, 1990). Studies indicate that dysfunctional institutions, such as weak governance structures, limited regulatory enforcement and oversight, and inadequate regulations, have often been major contributory factors in pushing some businesses to engage in illegitimate activities (Amankwah-Amoah et al., 2018). Another dysfunctional institution with the potential to precipitate the growth of counterfeit products is weak intellectual property protection in many developing economies (Cavusgil et al., 2020). Indeed, weak intellectual property rights enforcement can lead to the theft of ideas and the breaching of copyrights (Ang et al., 2014; Cavusgil et al., 2020; Mandrinos et al., 2022). These deficiencies can pose significant challenges for firms operating in emerging economies or transitional societies where legal systems, property rights, and regulatory frameworks may be incomplete or weak (Ang et al., 2014). History has shown that trade in counterfeit goods and trademark infringements is not new to developing or developed nations (OECD, 2017; Yi et al., 2022). In recent decades, the proliferation of counterfeit products has been further exacerbated by rapid technological advancements, including the internet and social media platforms (Gao and Wu, 2023; Sun et al., 2020). Counterfeit and substandard products continue to bedevil developing countries, unleashing a diverse range of challenges for countries (Amankwah-Amoah, 2022; Amankwah-Amoah and Hinson, 2022; Bian et al., 2023; Bolla et al., 2020; Karungamye, 2022). Accordingly, this study seeks to illuminate how institutional dysfunctions in developing countries can create conditions leading to the evolution and detrimental public health effects of counterfeiting.