Zhou, Ziqi; Yau, Yung
A icle
Re isi ing ins i u ional c edibili y o in o mal en al
housing in Shenzhen: Fo dwelling unc ion o exclusion
unc ion?
Jou nal o U ban Managemen
P o ided in Coope a ion wi h:
Chinese Associa ion o U ban Managemen (CAUM), Taipei
Sugges ed Ci a ion: Zhou, Ziqi; Yau, Yung (2023) : Re isi ing ins i u ional c edibili y o in o mal en al
housing in Shenzhen: Fo dwelling unc ion o exclusion unc ion?, Jou nal o U ban Managemen ,
ISSN 2226-5856, Else ie , Ams e dam, Vol. 12, Iss. 2, pp. 112-128,
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Resea ch A icle
Re isi ing ins i u ional c edibili y o in o mal en al housing in
Shenzhen: Fo dwelling unc ion o exclusion unc ion?
Ziqi Zhou
a
, Yung Yau
b
,
*
a
Depa men o Public Policy, Ci y Uni e si y o Hong Kong, 999077, Hong Kong, China
b
School o G adua e S udies &Depa men o Sociology and Social Policy, Lingnan Uni e si y, 999077, Hong Kong, China
ARTICLE INFO
Keywo ds:
In o mal en al housing
C edibili y hesis
Ins i u ional unc ion
Dys unc ion
Func ional subs i u e
Ins i u ional change
ABSTRACT
The c edibili y hesis p emises ha an ins i u ion's endogenous c edibili y and unc ion, a he
han i s o m, ensu es i s pe sis ence. In o mal en al housing (IRH), an in o mal housing ins i-
u ion in China, was sugges ed o se e as a dwelling o low-income esiden s in p e ious esea ch
on ins i u ional c edibili y. Combining he ins i u ional unc ionalism in c edibili y hesis and he
ela ional and cons uc i is pe spec i e in he s a egic- ela ional app oach (SRA), his esea ch
on wo dis inc SPRH cases in Shenzhen aims o e-examine he c edibili y hesis, mo ing he
emphasis away om ins i u ional unc ions owa d he in e ac ion be ween unc ion and
dys unc ion, and hei subs i u abili y in he ela ion econs uc ion dynamics. I e eals ha he
in o mal housing ins i u ion's c edibili y a ionale has shi ed in Shenzhen. Ins ead o se ing a
dwelling unc ion, IRH is becoming an in es men ool o p ofi -making and a pa o public
se ice o go e nmen a ge s, con ibu ing o he c edibili y o in o mal housing and exace -
ba ing he exclusion o he disad an aged g oups om u ban a eas. IRH's ins i u ional c edibili y is
con ingen upon no jus he endogenous ins i u ional unc ion, bu also on he in e play o he
unc ion and dys unc ion embedded in i s ins i u ional en i onmen .
1. In oduc ion
Exis ing s udies ha e shown housing inequali y in he con ex o China's housing e o m (Huang &Jiang, 2009;Li &Fan, 2020;Wu,
2019). The eal es a e e o m in China has b ough abou economic g ow h and housing inequali y (Wu, 2019). Wi h he g ow h o
economic unc ion and he weakening o social unc ion in o mal housing ins i u ion, he eme gence and g ow h o in o mal housing
ma ke has ollowed. In he a eas wi h high house p ices, he e is such a kind o housing whose acili ies and en i onmen a e dilap-
ida ed, bu i plays he impo an social unc ion, ha is, p o iding a o dable housing o low-income people. Examples o his ype o
housing include slums in India (Zhang, 2018), sub-di ided uni s (SDUs) in Hong Kong (Huang, 2017;Yau &Lau, 2018), and in o mal
en al housing (IRH) and small p ope y igh s housing (SPRH) in mainland China (Sun &Ho, 2018). In o mal housing in u ban illages
is a housing ins i u ion wi h “incomple e”p ope y igh s. Due o he u ban- u al dual s uc u e o China's land, he u ban land is
s a e-owned while he u al land is owned by he u al collec i es whose p ope y igh s do no include he legal ans e igh .
The e o e, housing de eloped upon China's u al collec i e land canno be o ficially egis e ed, ce ified, and ans e ed wi hou he
Abb e ia ions: IRH, In o mal en al housing; RFC, Rela ion- unc ion-c edibili y; SPRH, Small p ope y igh s housing; SRA, S a egic- ela ional
app oach.
* Co esponding au ho .
E-mail add esses: [email p o ec ed]u.hk (Z. Zhou), [email p o ec ed] (Y. Yau).
HOSTED BY Con en s lis s a ailable a ScienceDi ec
Jou nal o U ban Managemen
jou nal homepage: www.else ie .com/loca e/jum
h ps://doi.o g/10.1016/j.jum.2022.12.002
Recei ed 23 June 2022; Recei ed in e ised o m 7 No embe 2022; Accep ed 16 Decembe 2022
A ailable online 30 Decembe 2022
2226-5856/©2022 The Au ho s. Published by Else ie B.V. on behal o Zhejiang Uni e si y and Chinese Associa ion o U ban Managemen . This is
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Jou nal o U ban Managemen 12 (2023) 112–128
pe mission o he u ban go e nmen . On he land o iginally owned by he a me s in u al and u ban subu bs in mainland China, houses
buil o p ofi s o incomes by ans e ing usu uc igh a e called in o mal housing, including IRH and SPRH. Al hough he go -
e nmen has announced he ban o in o mal housing buil on u al land many imes, his ype o in o mal housing s ill pe sis s in ci ies.
The c edibili y hesis p o ides an explana o y amewo k o he pe sis ence o in o mal ins i u ions. I a gues ha in o mal ins i-
u ion pe sis s o i s endogenous unc ions in a specific pe iod and egion, which means i has c edibili y o ac o s (Ho, 2016). The
ins i u ion wi h high c edibili y should no be in e e ed. O he wise, he in e en ion will be ine ec i e and may e en cause ce ain
nega i e consequences. The hesis discusses he agg ega e unc ional pe o mance o an in o mal ins i u ion. I p oposes ha o ms
subo dina e unc ions, which explains, o a ce ain ex en , he eason why China's “public p ope y igh s ins i u ions”(i.e.
na ionally-owned land and collec i ely-owned land) ha e ueled China's economic g ow h o decades. The c edibili y hesis also makes
up o he gap ha p ope y igh s heo y emphasizes he decisi e e ec o ins i u ional o m. Howe e , he analysis o ins i u ional
unc ions using he c edibili y hesis only in e p e s he s a ic unc ions in a specific spa io- empo al loca ion. In he amewo k o
explaining ins i u ional changes, he c edibili y hesis is mo e de eloped in he discou se sys em o powe di e ences and ac o s'
in e ac ion, bu i lacks he in eg a ion o in e ac ions and games om a meso-le el unc ional pe spec i e.
The e o e, his s udy combines Me on's (1968) unc ional analysis pa adigm wi h he c edibili y hesis which p o ides a mid-le el
unc ional analysis pe spec i e ha can pa icipa e in he in e p e a ion o social dynamics. Mo eo e , we combine he ela ion
pe spec i e and cons uc i ism pe spec i e in Jessop's (2001) s a egic- ela ional app oach o p opose a ela ionship unc ion capabili y
analysis amewo k. This s udy belie es ha he meaning o he unc ion is cons uc ed in a complex en i onmen , a he han he
inhe en a ibu es o he ins i u ion. E en i he ins i u ional se ing i sel emains unchanged, i he en i onmen in which he ins i-
u ion is loca ed changes, he meaning o i s unc ion will also change. Acco ding o his analy ical amewo k, he esea ch aims o
explo e how he ac o s in he in o mal housing ins i u ion and he ac o s in he ex e nal en i onmen can achie e ins i u ional changes
h ough he cons uc ion o unc ions and ela ions. Taking wo IRH communi ies in Shenzhen as cases, we ca ied ou e hnog aphic
esea ch and conduc ed semi-s uc u ed in e iews wi h di e en ac o s. I is ound ha , unde he influence o u ban en ep eneu -
ialism, he compe i ion be ween ci ies and egions makes Shenzhen go e nmen y o comple e he indus ial land upg ading h ough
gen ifica ion s a egy. Di e en om he p e ious coe ci e in e en ion and he obus opposi ion o in o mali y, in he new
comp ehensi e eno a ion p ojec , he local go e nmen p o ide unc ional subs i u e o he illage collec i e, and he land dis ibu ion
conflic be ween go e nmen and he illage a me s' collec i e is ans o med in o a coope a i e ela ionship wi h complemen a y
goals. The coope a ion blu s he bounda y be ween he o mali y and in o mali y o he u al housing ins i u ion h ough go e nmen
endo semen . The in o mal housing ins i u ion in Shenzhen can be ans o med o fi he ac o s' objec i es, and he o ma ion logic o i s
c edibili y also changes. The o iginal IRH pe sis s and o ms i s c edibili y o i s dwelling unc ion o middle- and low-income s, while
he in e ened IRH changed and ebuilds i s c edibili y wi h he emained mani es unc ions, added unc ions, and la en dys unc ions
in he in e ac ion o ac o s.
The s uc u e o he a icle is as ollows. In he second sec ion, he c edibili y hesis is e iewed and combined wi h Me on's (1968)
unc ional analysis pa adigm and s a egic- ela ional app oach (SRA) o o m he concep ual amewo k o his s udy. Then, he
me hodology and he p ofile o housing in Shenzhen a e desc ibed. Two IRH cases in Shenzhen a e analyzed and he ela ional and
unc ional composi ion o in ui ional c edibili y in he wo cases a e explained in de ail a e wa ds. D awing on he findings o he
empi ical esea ch, his a icle discusses he concep ual amewo k o dynamic disequilib ium wi h e e ence o he in e ac ion o
unc ion and dys unc ion in ela ion econs uc ion. The las sec ion summa izes and eflec s on his esea ch.
2. Li e a u e e iew
2.1. In o mal housing in China: Fo ma ion and de elopmen in specific ins i u ional en i onmen
Unde he influence o neolibe alism and s a e de elopmen alism, China has ca ied ou he housing ma ke iza ion e o m, and
u ban housing has gone h ough h ee s ages o p ope y mechanism, indus ializa ion and financializa ion (Wu, 2019). The weal h
e ec and local economic g ow h b ough abou by hese changes ha e s imula ed he land exp op ia ion and land finance ca ied ou by
local go e nmen s o p omo e u baniza ion (Ding, 2007). A he same ime, in he con ex o China's u ban- u al dual land sys em, u al
land is owned by collec i es, bu he igh s a e limi ed o homes ead, ag icul u al p oduc ion and he de elopmen o collec i e en-
e p ises. The ans e igh is con olled by he u ban go e nmen . Using he land o p ofi able eal es a e de elopmen is illegal and
p ohibi ed by he s a e. The s a e no only monopolizes he p o ision o u ban land, bu also holds he igh o exp op ia e u al land
wi hou paying high compensa ion o he a ec ed a me s (Cai, 2003). Incomple e u al land p ope y igh s a e di ficul o ans e ,
limi ing he e ec i e alloca ion o ag icul u al esou ces (Zhu e al., 2006). The s a e has issued policies o es ic u al land planning
and housing cons uc ion. Ins i u ional disc imina ions agains u al a eas in e ms o land use igh s, income edis ibu ion,
decision-making p ocedu es and social wel a e sys ems ela ed o household egis a ion ha e p o ided an in e nal d i e o u al
collec i es o go beyond “ o mal”managemen p ocedu es o unde ake “in o mal”housing cons uc ion (Zhao, 2017). These in o mal
housing de elopmen s a e in an ad e sa ial ela ionship wi h he o mal housing in he o ficial discou se. The in o mali y o en ep-
esen s a dilapida ed li ing en i onmen , diso de ly ading ules, and con adic o y economic ela ions. Behind he cons uc ed
discou se sys em o he symbolic “in o mal”ins i u ional discussion is he “land s uggle”be ween he s a e- unded u baniza ion
de elopmen and he u al collec i e's opposi ion o land g abbing (He &Xue, 2014;Le ien &Pa e , 2012;Walke , 2006;Zhang &He,
2020).
Meanwhile, wi h he a ia ion o ins i u ional en i onmen and housing ma ke , he in o mal housing has also unde gone changes in
di e en s ages. Since he economic e o m in 1978, Chinese ci ies ha e expanded apidly. The imbalance be ween housing supply and
113
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
demand has become p ominen . Slum-s yle u ban illages ha e been buil and expanded in iola ion o he p e ailing egula ions. They
p o ide low- en li ing space o low-income s and mig an s, o ming an in o mal en al ma ke . The space ea u es mul i- amily li ing,
mixed pe sonnel, and diso de ly buildings. Du ing his pe iod, he ans o ma ion measu es o u ban illages was op-down demoli ion
and econs uc ion in he o m o u ban eal es a e de elopmen . The collec i e land was u ned in o s a e-owned land, which ma e-
ialized he land alue. Howe e , he op-down ans o ma ion p ojec s a e mo e likely o ake a long ime han hose implemen ed
h ough bo om-up ones (Yuan e al., 2021). They also ailed o add ess he undamen al needs o socie y and could no cu b he
p oli e a i e expansion o IRH in u ban illages. (Liu e al., 2010;Tian, 2008;Wu, 2016). In o mal housing has g adually de eloped in o
an a o dable housing ading ma ke wi h a ma u e ins i u ion (Liu e al., 2018;Zhang &He, 2020;Zhao, 2016;Zhao &Zhang, 2018).
These new in o mal housing communi ies usually co e a la ge a ea, consis o high-quali y buildings and li ing en i onmen s, and ha e
obus p icing mechanisms (He e al., 2019;Lai e al., 2017;Zhang &Zhao, 2018). Al hough he e is no p ope y ce ifica e ecognized
by he s a e and i is conside ed as “in o mal”small p ope y igh s house, he in o mal housing wo ks o i s ac o s, because in he
ansac ion p ocess he buye s anda dized economic ela ions by signing a con ac wi h he illage commi ee (Ho, 2018b). They also
es ablish a epu a ion sys em and nego ia ion ules on social ne wo ks o esol e dispu es a ising om owne ship (Zhang &He, 2020).
The in o mal housing ins i u ion o med by in o mal en al housing and small p ope y igh s housing on he homes ead eflec s he
impo an unc ion o he uzzy and symbolic in o mal land de elopmen igh in he egime o Keynesianism-neolibe alism wi h
Chinese cha ac e is ics, which p o ides empi ical e idence o eflec ion on he p ope y igh s heo y o ins i u ional economics.
Classical p ope y igh s heo is s belie e ha o mal and clea p ope y igh s a e he basis o imp o emen in land use e ficiency
(Alchian &Demse z, 1973;Coase, 1960). Along his line o hough , some schola s and go e nmen policies emphasize ha he ma -
ke iza ion le el o u al land can be imp o ed h ough he o maliza ion o u al land owne ship (de So o, 2000;Liu &Han, 2006;
Zhang, 2002;Zhu, 2004). Howe e , empi ical s udies in many coun ies show ha he o maliza ion has no played a posi i e ole in
p omo ing land ans e and economic pe o mance ( Monkkonen, 2012;Wa d e al., 2011). O he schola s emphasize ha ins i u ions
a e endogenous, and he de elopmen plan o in o mal housing canno be sepa a ed om he discussion o i s specific diach onic
ins i u ional en i onmen (Lai, 2018). The go e nmen should adop mo e flexible ea men me hods acco ding o specific poli ical,
economic, social and cul u al backg ounds. (Lai e al., 2017;No h &Thomas, 1973;Payne, 2004;Wang, Sun, &Li, 2014;Zhang e al.,
2016;Zhao, 2017;Zhao &Zhang, 2018). Unde he poli ical backg ound o China's decen aliza ion and he ise o an i-land g abbing
adicalism, as well as he economic backg ound o he in ensifica ion o he supply and demand o o mal housing, he exis ing esea ch
can be di ided in o he wo-aspec explo a ion o he dynamic p ocess and pe sis ence o he in o mal housing ins i u ion: one ocuses on
he in e p e a ion o ins i u ional changes, conflic s uggle and ela ional cons uc ion in he p ocess o o ma ion (Deng &Deng, 2021;
Zhang &He, 2020); he o he is o ocus on explaining he unc ions and social needs eflec ed by he pe sis ence and esilience esul s o
he ins i u ion (Ho, 2016;Sun &Ho, 2018). Al hough he c edibili y hesis and he SRA espec i ely p o ide analy ical amewo ks wi h
di e en emphases, hey a e also skep ical o a ionalism and emphasize he endogenous na u e o he ins i u ion. In essence, hey a e
no mu ually independen and mu ually exclusi e, bu ha e di e en deg ees o in e sec ion and o e lap. The e o e, his a icle a emp s
o es ablish a concep ual amewo k by combining he commonali ies o he wo o help us unde s and cohe en ly ins i u ional
pe sis ence and change.
2.2. Rela ion- unc ion-c edibili y (RFC) analy ical amewo k: c edibili y hesis and s a egic- ela ional app oach
The p ope y igh s heo y in ins i u ional economics emphasizes ha he o m o p ope y igh needs o be clea , p i a e, o mal
and comple e o alle ia ing he ex e nali y o he ma ke , educing ansac ion cos s, and o ming an incen i e mechanism o p omo e
he e ficiency o economy (Coase, 1937). China's public p ope y igh s ins i u ion o land may be conside ed “subop imal”, compa ed
wi h he p i a e, o mal, and secu e p ope y igh s by neo-libe al economis s (Paloma , 2002). On he o he hand, he c edibili y hesis
pu o wa d by Ho (2014) explains he economic p ospe i y b ough by China's p ope y igh s ins i u ions om he pe spec i e o
ins i u ional unc ion. I p emises ha ins i u ional unc ion a he han ins i u ional o m is he in e nal ac o ha de e mines he
pe o mance o he ins i u ion (Ho, 2014).
Mo eo e , he c edibili y hesis also explains ha in o mal housing can pe sis because o i s o e all ins i u ional unc ion o social
wel a e unde he cu en socio-economic backg ound (Ho, 2014). Specifically, wi h he inc easingly economic unc ion o o mal
housing, he social unc ion o o mal housing, namely, he unc ion o p o iding necessa y li ing space, has become di ficul o achie e
due o he e ec s o bo h he o iginal socialis ins i u ional a angemen s and ma ke mechanisms in Chinese ci ies, especially o
low-income people (Li &Fan, 2020). The e o e, IRH in u ban illages plays a ce ain egula o y ole in he p ocess o u baniza ion (Ho,
2014). I has been a gued in p e ious s udies on he c edibili y o China's in o mal housing ins i u ion ha IRH is economically, socially
and psychologically c edible o he low- and middle-income g oups wi hin a ce ain geog aphical and ime ange, so i should no be
in e e ed (Sun &Ho, 2018).
The c edibili y hesis opposes Pa sons (1951) and Me on’s (1951) s uc u al unc ionalism, and belie es ha hei s a ic in e -
p e a ion o unc ion and he p oposed equilib ium s a e o e emphasize consensus and s abili y, while igno ing changes, conflic s and
c ises in socie y (Ho, 2018a). Ho (2018a) con inued Lama ck's (1809) iew o unc ional e olu ion, belie ing ha change is a long- e m
s a e o ins i u ions o adap o he en i onmen , ins ead o s abili y, and ha his o y is a necessa y condi ion o unde s anding
ins i u ional unc ions. I pos ula es ha he ins i u ional c edibili y is comple ely endogenous, and ins i u ion can pe sis because o i s
ins i u ional unc ions. In e ms o ins i u ional change, he c edibili y hesis p oposes he concep o dynamic disequilib ium o
desc ibing he s a es o pe sis ence and change. The ins i u ional pe sis ence is also in dynamic disequilib ium a he han se ling
a ound equilib ium, bu he speed o change is impe cep ibly slow (Ho, 2018b). I also posi s ha changes and conflic s a e he d i ing
o ces o ac o s' in e ac ions (Ho, 2018b). The e o e, in he c edibili y hesis, he ins i u ional unc ion is defined as “ he ole o a se o
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
114
ules as i has endogenously e ol ed in con inuous adap ion o he en i onmen ”(Ho, 2018a, p. 645).
Fou co ne s ones unde pin he concep ualiza ion o “ins i u ional unc ion”. Fi s , a unc ion is inhe i ed o a “se o ules”. Second,
unc ion is endogenous so i is unin en ional. I is mainly because he ins i u ion is also unin en ional. Thi d, unc ion means con inuous
change because he ins i u ion is cons an ly adjus ing o i s en i onmen . Fo h, he unc ion o an ins i u ion is no based on he s abili y
o balance o powe , bu on he imbalance o cons an ba gaining, conflic and di ision. The e o e, he c edibili y hesis does no p emise
ha unc ion is a ac , bu an in e p e a ion o he influence o “a se o endogenous social ules”on ac o s (Ho, 2018a, p. 645).
In he explana ion o ins i u ional o ma ion, change, pe sis ence, Ho (2018a) main ains ha as long as ins i u ions pe o m a
unc ion, hey will appea s able. Al hough hey will change cons an ly, on he con a y, when hey canno pe o m his unc ion, hey
may suddenly change, sh ink o become ex inc . P e ious s udies ha e examined he ins i u ional unc ions unde specific ime and
space nodes and used hem o explain hei pe sis ence (Ho, 2018b;Sun &Ho, 2018). When discussing he dynamic p ocess o he
ins i u ion, p e ious wo k applied he his o ical ins i u ionalism o unde s and ac o s' in e ac ion and igno e he unc ional discou se
(Chen, 2022;Ho, 2018b;Wang &Liu, 2022), which ollows a simila spi i o Jessop's (2001) SRA, emphasizing he diach onic and
social embeddedness o ins i u ions, as well as he powe di e ences and in e ac ions be ween ac o s.
The c i ical ealism, de eloped by Jessop, B enne , &Jones (2008) based on he Ma xis iew o capi al as a social ela ion, ega ds
s a e powe as a social ela ion, and sol es he bina y opposi ion be ween economic educ ionism and class educ ionism in Ma xis s a e
heo y. He belie es ha he s a e o m is he p oduc o he “acciden al”conjunc ion o social ela ions, and he ealiza ion o his o m
in ol es he p ocess o di e sified capi al s a egy selec ion o ealize he inhe en unc ion o capi al accumula ion. F om he
pe spec i e o ela ion, SRA ocuses on he in e ac ion be ween s uc u e and ac o s' ini ia i e in combina ion wi h he s uc u e-agency
heo y o Giddens (1986) and o he schola s. This me hod emphasizes ha he s a egic- ela ional impo ance in a specific
spa io- empo al loca ion should be conside ed when analyzing he conjunc ion. The s a e s uc u e is aken as ha ing s a egic selec-
i i y in e ms o o m, con en and ope a ion, while he ac o s' ac ion is also s uc u ally es ic ed (Jessop and Mo gan, 2022). The
a ibu es, capi al and compu ing powe o agen s will es ic hei ac ions o o m a powe ela ionship (Jessop, 2001). This heo e ical
amewo k helps o in e p e he s a egies o indi iduals and collec i e agen s, o ganiza ions and ins i u ions in ol ed in con o e sial
poli ics, as well as mul i-dimensional social spa ial ela ions (Jessop, B enne , &Jones, 2008).
The e is no doub ha i p o ides he necessa y ela ional and cons uc i is pe spec i e o s eng hen he conc e e and heo e ical
unde s anding o he in e ac ion in u ban go e nance, he beha io o ac o s, and he changes in he poli ical and mul i-scale in e es
s uc u e, such as u ban wa e esou ce managemen (Io is, 2012), Sydney's hegemonic p ojec o “compe ing ci ies”(McGui k, 2004),
and he UK's u ban enewal p ojec (Pembe on, 2013). In he s udy o China's in o mal p ope y igh s ins i u ion, his ela ional and
cons uc i is pe spec i e also p o ides impo an explana o y powe . Combining he endogenous na u e o he ins i u ion and he
ela ional con ac heo y, Zhang and He (2020) explain how a me s and buye s can ensu e he use and ans e o p ope y h ough
independen ela ion cons uc ion wi hou legal suppo . Zhou (2005) pu s o wa d he heo y o ela ional p ope y igh s, which
ega ds p ope y igh s as a social ela ion a he han a powe bundle wi h exclusi eness. I emphasizes he in e ac ion wi h o he s in
p ope y igh ins i u ional a angemen s. F om he pe spec i e o ela ional p ope y igh s, Zhang e al. (2021) discusses he igh o
u al land de elopmen unde u baniza ion by analyzing he social ela ion o med by he di e sified p ope y igh s o in o mal housing
on u al land.
In his a icle, we ecognize he cons uc i e meaning o ins i u ional unc ions and he impo ance o s a egical ela ion con-
s uc ion in unc ional change. Based on he defini ion o ins i u ional unc ions by he c edibili y hesis, we also belie e ha Me on's
unc ional classifica ion ools is s ill meaning ul o unde s anding he issue o ins i u ional unc ions and he cons uc ion o he ela ion
be ween di e en in e es holde s. We edefine he concep ual ool and p o ide a mic o-meso-mac o pe spec i e connec ing ac o s,
ins i u ion and en i onmen . I s mani es and la en classifica ion can in eg a e he discussion o cul u al cons uc ion s a egies wi hin
unc ional analysis.
Me on (1968) emphasizes paying a en ion o he social ac s a he meso le el, and efines he concep ualiza ion o “ unc ion”by
di e en ia ing i in o “ unc ion”,“dys unc ion”,“mani es unc ion”, and “la en unc ion”. Based on he defini ion o “ins i u ional
unc ion”in he c edibili y hesis, he ou ypes o unc ions a e defined as ollows (Me on, 1968):
Func ion: he ole o a se o s a egically chosen ules by ac o s, as i has endogenously e ol ed in con inuous adap ion o he
en i onmen ;
Dys unc ion: he nega i e eedback o hind ance o a se o s a egically chosen ules by ac o s, as i has endogenously e ol ed in
con inuous adap ion o he en i onmen ;
Mani es unc ion: he unc ion publicly displayed and emphasize. The p ocess o mani es a ion may in ol e conscious discou se
cons uc ion and p opaganda; and
La en unc ion: he unc ion hidden unde he ins i u ion. I is no easy o de ec and i s la ency can be in en ionally o unin en-
ionally o med.
Fo example, he empi ical esea ch on he unc ion o social conflic s among child en finds ha i s mani es unc ion is o build a
small-g oup socie y and i s s uc u e, while i s la en unc ion is o de elop child en's sense o social s uc u e and ep oduce au ho i y,
iendship, and o he in e ac ional pa e ns (Mayna d, 1985). The mani es unc ion o he chu ch and he emple o immig an eligious
o ganiza ion is cul u al p ese a ion, and i s la en unc ion is p omo ing socioeconomic mobili y (Banks on &Zhou, 2000).
In a socie y, i is di ficul o objec i ely e alua e he ne alue be ween unc ions and dys unc ions so as o de e mine whe he a
sys em ul ima ely has posi i e ne alue and should be e ained. The c edibili y hesis emphasizes ha ins i u ional c edibili y ep e-
sen s he ne alue in he o e all sense, ha is, he agg ega e suppo ing pe cep ion o he ac o s (Ho, 2016). Howe e , much exis ing
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
115

c edibili y-based esea ch on in o mal ins i u ion only uses unc ions o in e nal ac o s o explain i s con inuous exis ence and applies
his o ical ins i u ionalism o in e p e ins i u ional changes in a long- e m pe spec i e (Chen, 2022;Ho, 2018a;Liu e al., 2018;Sun &
Ho, 2018,2020;Wang &Liu, 2022;Zheng &Ho, 2020). Howe e , di e ing om he pa h dependence in his o ical ins i u ionalism,
c edibili y hesis belie es ha i is he ins i u ional unc ion embedded in he complex en i onmen ha causes i o be di ficul o
in e ene and pe sis (Ho, 2018a). This u n seems o emind us ha he ac o s de e mining he a iabili y o in a iabili y o he
ins i u ion a e no he s eng h o ex e nal o ces and he ine ia om sel - ein o cemen mechanism, bu whe he he ac o s can pu sue
hei in e es s and whe he hey can mee he needs unde specific spa io- empo al con ex . The e o e, unde s anding ins i u ional
de elopmen necessi a es an examina ion o bo h s a ic and dynamic unc ional connec ions ac oss ins i u ions. We mus fi s unde -
s and he unc ions o an ins i u ion in o de o e o m i wi hou c ea ing se e e social o economic uphea al. Inc emen al change wi h
minimal nega i e consequences is judged easible i a new ins i u ion can consis en ly execu e he p e ious ins i u ion's unc ions.
Unde s anding he dynamic disequilib ium p ocesses be ween ins i u ions in ansi ion equi es due conside a ion o he subs i u abili y
o an ins i u ion's ac i i ies (Zhou &Yau, 2021).
As Va ley (1987) sugges s, p ope y igh s a e socially cons uc ed, no comple ely dicho omous, and hei unc ions should be
unde s ood acco ding o specific ci cums ances. Combining he ins i u ional unc ion pe spec i e o c edibili y hesis and he ela ion
pe spec i e o SRA, his a icle ocuses on he econs uc ion o unc ions and ela ions in he p ocess o he change o he IRH ins i u ion
in China's u ban illages, and ies o answe he ques ion how he in o mal housing ins i u ion can achie e he change in o m in o
public housing h ough he cons uc ion o ela ions and unc ions. Based on Chen's (2022) analy ical amewo k on ins i u ional
change, we de elop ou c edibili y hesis amewo k by inco po a ing he analysis on he econs uc ion o ins i u ional unc ions and
ela ions. In his ega d, an analy ical amewo k o ela ion- unc ion-c edibili y (RFC), which is g aphically shown in Fig. 1, is p oposed
o u he explain ins i u ional changes. The RFC amewo k is use ul in p obing di e se a emp s o in e ene in he in o mal housing
ins i u ion.
3. Me hodology and desc ip ion o housing in Shenzhen
Wi h e e ence o he concep ual amewo k o he esea ch, we conduc ed e hnog aphic field in es iga ion on he selec ed cases,
namely, Shangcun and Shuiwei. Specifically, we would like o answe he wo esea ch ques ions –“how do ela ion and unc ion shape
c edibili y”and “how do ac o s econs uc he ela ion wi h unc ional in e ac ion o eshape c edibili y”. In his ega d, i is necessa y
o selec wo di e en cases o compa ison. One case is a ypical unmodified u ban illage wi h IRH, which helps o explo e he eason
o he pe sis ence o IRH, o he logic o i s c edibili y o ma ion. Ano he case needs o be he ans o med IRH. Th ough he com-
pa ison o he wo cases, we can explo e he way in which i s c edibili y can be eshaped in he ans o ma ion p ocess. The fi s case was
andomly selec ed om mo e han 1000 u ban illages in Shenzhen, as a ypical IRH communi y sample. The second case needs o be
chosen om he ans o med IRH. IRH ans o ma ion in Shuiwei is a amous pilo p ojec . Among he u ban illages ans o med in he
ecen en yea s, his ans o ma ion p ojec ook no iceably sho e ime, expe ienced less conflic , and had highe e ficiency. The e o e,
i is selec ed as a sample case o s udy he emodelling p ocess o c edibili y.
Fig. 1. The RFC analy ical amewo k (c ea ed by he fi s au ho ).
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
116
Since he aim o his s udy is o analyze he o ma ion and emodelling mechanism o c edibili y om a unc ional and ela ional
pe spec i e, quali a i e esea ch me hods a e used. Compa ed wi h hei quan i a i e coun e pa s, quali a i e esea ch me hods
enable collec ion o iche , mo e de ailed, and comp ehensi e in o ma ion o explo ing he in e nal logic o he p ocess. Mean-
while, acco ding o Ho's (2016) ope a ionalisa ion, “measu emen ”o ins i u ional c edibili y in ol es ac o s' pe cep ions on
ins i u ion, conflic s, and ins i u ional change. The e o e, we used in-dep h in e iews a he han ocus g oup. I can educe he
social p essu e om g oup consensus, so as o explo e he esponden s' inne hough s and iews on he in o mal ins i u ion,
especially he conflic s.
Finally, we conduc ed in-dep h in e iews wi h 26 esponden s on wo IRH cases: eigh enan s and wo owne s a Shangcun and
ele en enan s, h ee illage commi ee membe s, one en e p ise s a and one go e nmen o ficial a Shuiwei. To conduc he in-
e iews, we fi s con ac ed he illage commi ees. Wi h hei help, we me he andomly sampled enan s, snowball sampled IRH
owne s, and he ele an go e nmen o ficial and en e p ise s a . To ensu e he inclusi eness o he esea ch, we selec ed he
snowball sampled esponden s conside ing hei gende s and ages. The p ofiles o he in e iewees a e p esen ed in Table 1.Fo he
p o ec ion o esponden s’p i acy, he ages o wo esponden s we e shown as age anges only. In e iew ques ions we e specifically
designed o di e en g oups. Responden s we e asked ques ions ela ed o h ee opics, namely he c edibili y o IRH and eno a ed
IRH, he unc ions and dys unc ions o IRH, and he in e ac ions be ween ac o s. Fo example, he enan s and owne s o IRH we e
asked some ques ions like “how do you hink abou he owne ship and land lease o he IRH”,“wha we e he main objec i es o li e
in o en ou he IRH”,“wha was he p ocess o en ing he IRH”,“wha ole does he IRH play o you”and “wha p oblems and
conflic s ha e you expe ienced o ha e happened in his IRH communi y”. Mo eo e , he go e nmen o ficial and en e p ise s a
we e asked “how can he c edibili y o he eno a ed ins i u ion be ensu ed”,“wha we e he main objec i es o implemen he
eno a ion p ojec ”,“how does he eno a ed IRH unc ion o you objec i es”,“wha we e he policies o guiding he eno a ion o
IRH”,“wha is he implemen a ion p ocess o he eno a ion p ojec ”,“wha is he p ocess o nego ia ion be ween ac o s in he
comp ehensi e eno a ion p ojec ”,“wha a e he p oblems he eno a ion p ojec expe ienced in he implemen a ion s age and in
ecen days”.
In he p ocess o da a collec ion, we had in o med consen om all pa icipan s. Thei p i acy was p o ec ed, and he confiden iali y
o he esea ch da a was ensu ed. In addi ion, we also conduc ed a physical inspec ion on he su ounding esiden ial and comme cial
en i onmen , p o iding iangula ion o he in o ma ion desc ibed by he esponden s. Va ious second-hand ma e ials we e also
collec ed om a wide a ay o sou ces including news epo s, go e nmen documen s on u ban illage planning, and ele an esea ch
a icles.
Shenzhen is a fi s - ie ci y in sou he n China. Acco ding o he da a o he se en h census (Shenzhen Municipal Bu eau o S a is ics,
2020), Shenzhen's popula ion has inc eased om 10,424,000 in 2010 o abou 17,560,000 in 2020, becoming he ci y wi h he la ges
popula ion inc ease in China in he pas decade. A he same ime, he housing s ock s uc u e in Shenzhen has been unbalanced, and
comme cial housing in he ci y has long been in sho supply. In 2014, he e we e 11.9 million pe manen esiden s in Shenzhen and
he e was a o al o 10.41 million housing uni s in he ci y. Wi hin he exis ing housing s ock, 1.8 million we e comme cial houses
(17%), 0.4 million we e social houses (4%), 5 million we e small p ope y igh s houses in u ban illages (48%), 0.55 million we e
sel -buil houses by wo king uni s (5%), 1.8 million we e suppo ing do mi o ies in he indus ial zones (18%) and 0.86 million we e
o he houses (8%) (Huang, 2018).
Despi e i s in o mali y, in o mal housing accommoda ed nea ly 67% o Shenzhen's popula ion in 2016 (Shi e al., 2018). I has
played an impo an ole in se lemen o he middle- and low-income s and floa ing popula ion in Shenzhen. Shangcun is such a ypical
u ban illage in Shenzhen, whe e he IRH owne s p o ide cheap en al housing o mig an wo ke s and ea n conside able income.
Shuiwei used o be an u ban illage wi h simila ope a ion pa e n, bu a pa o i has been changed in o a public housing unde he
egula ion o go e nmen . The wo cases ha e simila i ies in e ms o hei o ms o housing owne ship, land leases, and a o dable
p ices; hey a e di e en in ac o s, ins i u ional a angemen , and some o he unc ions and dys unc ions. The e o e, hese wo cases
we e chosen o in es iga ing he change p ocess o ins i u ion, ins i u ional unc ions, ela ion cons uc ion be ween ac o s and he
o ma ion o c edibili y.
Table 1
Cha ac e is ics o he esponden s o in-dep h in e iews.
Case Role Numbe Cha ac e is ic Dis ibu ion
Shangcun Owne s 2 Male: 1 (50%); Female: 1 (50%)
Age: 38–44 yea s old
Tenan s 8 Male: 3 (37.5%); Female: 5 (62.5%)
Age: 22–46 yea s old
Shuiwei Commi ee membe s 3 Male: 2 (66.6%); Female: 1 (33.3%)
Age: 35–50 yea s old
En e p ise s a 1 Male: 1 (100%)
Age: >40 yea s old
Go e nmen o ficial 1 Male: 1 (100%)
Age: >40 yea s old
Tenan s 11 Male: 5 (45.5%); Female: 6 (54.5%)
Age: 26–33 yea s old
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
117
4. Compa a i e case s udy
4.1. Shangcun: empo a y dwelling unc ion h ough in o mal housing ma ke
Shangcun is loca ed in Guangming Dis ic which is a newly de eloped a ea app o ed by he S a e Council in 2018. Fa om he
Shenzhen's cen al business dis ic , Shangcun is 1 km away om Songbai highway, co e ing an a ea o 7.93 km
2
which includes a
housing a ea o abou 2.1 million m
2
. The o al popula ion is abou 68,000, and he e a e mo e han 1500 egis e ed u al esiden s. 301
ac o ies and en e p ises a e si ed in he illage. The unc ion o IRH in Shangcun is o p o ide a o dable housing o he s a o ac o ies
in he su ounding. Acco ding o he in o ma ion p o ided by Shangcun Village Commi ee, he en o IRH in he communi y is
ela i ely cheape han hose in o he a eas in Shenzhen, wi h an a e age o abou 29 CNY/mon h/m
2
. The en al le el o a single oom
anges om 180 CNY/mon h o 1500 CNY/mon h. This is a ypical old u ban illage in Shenzhen ha has no been ans o med. Fo i s
low land cos , en e p ises a e a ac ed o se up ac o ies he e. A he same ime, mig an wo ke s employed in he ac o ies nea by
spon aneously li e in IRH in he illage o he low en s.
As he numbe o middle- and low-income s inc eases, he supply o a o dable se lemen ails o mee he demand. Gi en ha he e
is huge economic alue embedded in u ban illages in Shenzhen, he phenomenon o “housing plan ing”exis s in Shangcun. “Housing
plan ing” eflec s he ac ha , in he illages nea ac o ies and en e p ises, u al esiden s end o build mo e and alle se lemen
blocks o en ing ou o ea n mo e p ofi s. The e o e, he buildings in he illage a e ela i ely all and c owdedly packed oge he . Mos
o hese buildings ha e ele a o s. The newly buil Subway Line No. 6 enhances he accessibili y o he illage, and hus pushes up he
house p ices he e. Hence, in ecen yea s, local illage s ha e been ushing o build IRH. The buildings ge e en close han be o e, and
wo buildings a e o en only abou 1 m apa , as shown in Fig. 2. Na ow public oads and o e c owded buildings a e he ypical spa ial
cha ac e is ics o u ban illages in Shenzhen.
A e he in-dep h in e iews wi h he enan s and landlo ds o IRH nea an indus ial zone in Shangcun, we lea ned al hough he e is
no s a e-app o ed p ope y ce ifica e, he enan s and landlo ds, as use s and owne s o IRH, ansac h ough an in o mal eal es a e
ma ke . In he in o mal eal es a e ma ke , he con ac ual ela ion be ween enan s and landlo ds is assumed by a p incipal con ac
acco ded by bo h pa ies and a s able in o mal ela ion wi h a hi d pa y. The housing owne ship and economic ela ion be ween he
Fig. 2. Spa ial cha ac e is ics o Shangcun (pho os aken by he fi s au ho ).
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
118
owne s and he illage commi ee a e cla ified in he o m o in e nally ecognized documen s. Unde his ela ion s uc u e, he
c edibili y o he in o mal housing ins i u ion is o med in he in e ac ion be ween unc ions and dys unc ions o di e en ac o s.
Specifically, o enan s, in he con ex o u ban-cen e de elopmen alism, wo king in he fi s - ie ci ies, like Shenzhen, is a s a egy
o apidly achie e capi al accumula ion. Howe e , he nea by comme cial housing is una o dable. Acco ding o he in e iewees and
he da a om en al pla o m, he en o comme cial housing is abou 1.6 imes o ha o IRH. Low en and sho commu ing dis ance
a e majo ac o s in choosing se lemen . Mo eo e , he su ounding public acili ies can also mee he basic needs o daily li e, which
also play an impo an ole, when he esponden s choose esidence. These findings om in e iews a e simila o he ac o s conside ed
by low-income enan s in Hong Kong when choosing SDU o en , such as dis ance o MTR s a ions, accessibili y o communi y acili ies
and pa k (Huang, 2017). The old deco a ion and un idy house design ha e li le impac on hei choice o se lemen , because IRH a e
jus a empo a y place o sleep o he middle- and low-income enan s.
An In e iewee in IRH, who li es in a 10 m
2
single oom wi h a mon hly lease o 300 CNY, said:
“I wo k in he ac o y mos o he day. I’m i ed when I come back and only sleep o a ew hou s in he oom, so how he oom en i onmen
is ac ually does no ha e much impac , because i is jus a place o sleep.”(In e iewee 6, Tenan o Shangcun)
I can be seen ha al hough IRH p o ides a place o low-income enan s, his esidence is empo a y, and ac o s canno ge a long-
e m se lemen . Lack o sense o belonging in IRH is one o i s dys unc ions. Fo he enan s o IRH in Shangcun, he impo an ac o
ha may make hem no longe choose IRH is he “unsa e”condi ions o he in o mal housing. Besides psychological unsa e y, he unsa e
condi ions include dange ous li ing condi ions and unp o ec ed igh s and in e es s. Li ing condi ions mainly include fi e haza d, noise,
c ime isk, and o he issues abou public secu i y. The igh s and in e es s ha canno be sa egua ded include un easonably ising en s
and addi ional ees cha ged by landlo ds. Howe e , esponden s said ha hese nega i e e ec s ha e no ye occu ed on hemsel es,
which is s ill unce ain o la en . The in o mal ela ional ne wo k o he enan s who success ully signed he en al con ac s h ough he
in oduc ion o acquain ances also p o ides hem wi h flexibili y o nego ia ion when hei igh s and in e es s a e in inged. This kind
o in o mal ela ional ne wo k o en comes om s able and las ing social ela ions, such as being colleagues and ellow illage s, as well
as he eedback mechanism p o ided by he ne wo k pla o m like Douban. The e o e, o enan s, he isk o equi y damage is
con ollable. Risk pe cep ion is closely ela ed o haza d e en s and he p ope y alue (Huang e al., 2020). Since he isk pe cep ion o
IRH enan s is a low le el, wi h he mani es ly low- en dwelling place and sho commu ing dis ance, IRH is he s a egical choice o
hem o keep he job oppo uni ies in u ban a eas. Because o he a o dabili y, en ing IRH is a empo a ily a ional me hod o sa e
money o seeking a long- e m se lemen in spi e o i s in o mali y.
Fo he landlo ds (i.e. he in es men owne s) o IRH, al hough IRH is in o mal and no p o ec ed by he law and o mal egula ion,
bu h ough he egis a ion o in e nally ecognized houses in he illage collec i e, i is enough o e ec i ely cla i y he economic
ela ionship. Thus, he landlo ds belie e ha he p ope y igh belongs o hemsel es and he e is no con adic ion in economic e-
la ions. IRH is hei own esidence on he one hand. On he o he hand, he income de i ed om he IRH en al is conside able. Thus,
e en hough i is no p o ec ed by law, he e u n makes i wise o de elop such economically p ofi able oppo uni y in he backg ound
o con adic ion be ween housing supply and demand unde land finance. Meanwhile, due o i s low p ice, i has been in sho supply in
he en al ma ke , and he dilapida ed li ing condi ions wi h po en ial sa e y haza ds o IRH ha e been con inued. In o de o main ain
i s low p ice, he landlo d is no mo i a ed o spend he cos o imp o e he li ing condi ions o he en al house. The ou da ed physical
condi ions also inc ease he possibili y o he go e nmen 's app o al o u ban enewal p ojec s in his a ea, and he subs an ial de-
moli ion compensa ion in u ban enewal is a c ucial way o illage s and IRH owne s o ge ich quickly. The only dys unc ion o IRH
o he owne s is i s ex a-legali y, which may lead o he conflic wi h u ban go e nmen . As he iden ifica ion o he ex a-legal ac i i y
akes high cos , IRH owne s can usually ge subs an ial compensa ion o educing conflic s. Fo he IRH owne s, he in o mal housing
ins i u ion wo ks o i s economic alue o he owne s.
The c edibili y hesis emphasizes he unc ion o i s in e nal ac o s in a specific ime and space when analyzing he ins i u ional
c edibili y. P e ious s udies ha analyze he unc ions o IRH end o ocus on i s unc ions o buye s, and a gue agains s a e in e -
en ion (Sun &Ho, 2018). Howe e , he s a egic- ela ional app oach p o ides a pe spec i e o a mul i-scale in e es s uc u e. In-
clusion o he pe cep ion o in o mal housing ins i u ion om ex e nal g oups in he analy ic amewo k is help ul o unde s and he
in e ac ion be ween he in o mal housing ins i u ion and he ins i u ional en i onmen .
Unde he influence o s a e de elopmen alism and u ban en ep eneu ialism, in o de o ealize indus ial ans o ma ion and
upg ading, Shenzhen go e nmen igo ously ca ied ou alen in oduc ion plan in 2010 and ac i ely sol ed he p oblem o indus ial
land sho age h ough land acquisi ion and ans e . In 2015, a e he in oduc ion o he Measu es o he Residence o Talen s (Rencai
anju plan), he go e nmen ca ied ou alen housing cons uc ion o sol e he housing p oblem o he popula ion wi h highe educa ion
qualifica ions (i.e. hose wi h a bachelo 's deg ee o abo e). In o de o achie e his economic de elopmen goal, he go e nmen
ac i ely seeks li ing space o alen s o upda e indus ies. Howe e , his is hinde ed by he ac ha u al land and in o mal housing
accoun o a conside able sha e. In addi ion, he fi e and c ime isks in u ban illages wi h poo building condi ions and en i onmen
a e ela ed o he esponsibili y and pe o mance o go e nmen managemen . The e o e, al hough he go e nmen does no di ec ly
pa icipa e in he in o mal housing ins i u ion, i s exis ence plays a dys unc ional ole in he go e nmen 's poli ical and economic goals,
which o ms a conflic be ween he local go e nmen and he u al collec i e in he dis ibu ion o land esou ces. In Shangcun Village,
he occu ence o such a conflic was pos poned because he legi imacy o he execu i e powe was impac ed by he fie ce esis ance o
long- e m ac i is s o land exp op ia ion. Unde he guidance o he cen al go e nmen , he local go e nmen also needs o main ain a
balance be ween economic de elopmen and social s abili y. The e o e, his conflic o en needs o be alle ia ed by he high amoun o
land acquisi ion compensa ion p o ided by he go e nmen . As he p ope y alues in he u ban a eas we e pushed up by he land
finance, he u ban enewal p ojec s in Shenzhen ha e en e ed he s age o eflec ion and slow de elopmen . Such conflic s among
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
119
changing and conflic ing p ocess. In he c edibili y hesis, Me on's unc ionalism is c i icized o igno ing he e ec o conflic s on social
change (Ho, 2018a). The dys unc ion is unde s ood as he socially dis up i e e ec o cause abe a ion and social change. I is belie ed
ha he conflic and ins abili y as he no mali y a e also d i ing o ce he social change. Howe e , some imes dys unc ion is also ela ed
o he conflic and ins abili y, and i can be applied o unde s and he change wi hou social dis up ion.
E en hough gen ifica ion is also una oidable in IRH eno a ion, i should be ecognized ha compa ed wi h he u ban enewal
model, comp ehensi e eno a ion incu s lowe ansac ion cos s and is mo e aligned wi h he goal o sus ainable de elopmen . U ban
enewal can b ing one- ime huge incomes o he illage s h ough demoli ion compensa ions, financial incomes o he local go e nmen
h ough land ans e s, g ea e p ofi s o he eal es a e de elope s h ough he sale o houses, p o ide mo e b and-new houses and
c ea e conside able economic alue. Howe e , wha ollows a e he ising house p ices, he in ensifica ion o housing inequali y, he
exclusion o mo e low- and middle-income g oups, and he was e o esou ces in he p ocess o demoli ion and cons uc ion. Al hough
IRH ec ifica ion has also caused gen ifica ion and educed economic g ow h o a ce ain ex en , i is an inno a i e pilo wo k ha fi s
mo e wi h social goal a he han economic goal han he u ban enewal model wi h demoli ion in sus ainable de elopmen . I is a kind
o ad ancemen , bu in he long un mo e ca e ul e iew should be acked.
6. Conclusion
F om he p ope y igh s heo y o he c edibili y hesis, he concep o ins i u ional unc ion has o e ed an essen ial pe spec i e o
unde s and he pe sis ence o an in o mal and subop imal ins i u ion. Coupled wi h he SRA and meso-le el analysis o he unc ions, we
can see ha he ins i u ional unc ions a e di e sified, and e en conflic ing. How hese unc ions pe o m depends on he specific spa io-
empo al con ex , which e en ually influences he ins i u ional c edibili y and ac o s' s a egical choice. The p ope y igh s ins i u ion
o mula ed by he go e nmen is o mal and clea . Ye , wi h he inc easing popula ion and limi ed esou ces, his o mal ins i u ion loses
i s social unc ion and g adually uns in o dys unc ions. This condi ion is i idly illus a ed by he g owing una o dabili y o o mal
housing and social inequali y. Thus, mo e o ms o p ope y igh s ins i u ion eme ge in he housing ma ke . IRH is such an ins i u ion o
p o ide a o dable se lemen o he middle- and low-income g oups. Shangcun is a ypical u ban illage wi h IRH in Shenzhen,
in ol ing ac o s like illage s and enan s. The c edibili y o IRH in Shangcun comes om i s mani es dwelling and income unc ions o
he ac o s. These unc ions a e pe o med h ough he in o mal en al housing ma ke . Howe e , as he popula ion inc ease and he need
o a o dable housing su ges in Shenzhen, IRH shows an inc easing economic alue and i s densi y has inc eased apidly, o ming
ad e se spa ial ea u es like o e c owding buildings and na ow public oads which pose imminen fi e haza ds on he building oc-
cupan s. Wi h s a u o y backup, he in o mal housing ins i u ion also canno p o ec he enan s' igh s. To alle ia e he dys unc ions and
achie e hei goals, he go e nmen and s a e-owned en e p ise in es in he IRH ins i u ion in Shuiwei and y o o malize he in o mal
p ope y igh s wi hin en yea s by leasing he small p ope y igh s houses ou as public housing fla s o a ac ing alen s esou ces.
The eno a ed IRH is ins i u ionally c edible due o i s secu e p ofi unc ion o en e p ises, and he IRH owne s a e subjec o he
go e nmen 's egula ion. Such IRH p o ides dwellings o qualified enan s and gen ifies he a ea.
This esea ch compa ed wo IRH cases in Shenzhen o figu e ou why and how he ins i u ional unc ion amewo k is eshaped in he
ins i u ional change p ocess. I is a gued ha he o ma ion and e o ma ion o ins i u ion and i s c edibili y should be unde s ood wi h
due conside a ion o he in e ac ion o unc ion and dys unc ions in specific spa io- empo al con ex . Ins i u ions e en wi h same o m
can unc ion di e en ly in di e en en i onmen s. Acco ding o he pe o mance o unc ions o dys unc ions, he ins i u ional c edi-
bili y a ies, so ac o s make s a egic choices and es uc u e ela ions. When he new ela ional s uc u e can main ain o e en imp o e
he o iginal unc ions, and he dys unc ions a e la en , he new ins i u ion is o med and becomes c edible. Mani es unc ions and la en
dys unc ions con ibu e o he ins i u ional c edibili y. Func ional subs i u ion plays a c ucial ole in he pe o mance o ins i u ional
change. Exis ing s udies on ins i u ional c edibili y mainly ocus on he pe sis ence o ins i u ion om he unc ional pe spec i e bu
unde s and he changes as his o ical ins i u ionalism, igno ing he discou se o unc ion and ela ion. This esea ch con ibu es o he
en ichmen o he c edibili y hesis by illus a ing he dynamics o ins i u ional unc ions and ela ions in ins i u ional changes and
o e ing mo e empi ical e idence o unde s and dynamic disequilib ium.
Meanwhile, he e a e also some limi a ions o he esea ch, including he po en ial bias om subjec i i y, sample me hod, and small
sample size. Fi s ly, in he in-dep h in e iews, he na a ion o he in e iewees and he unde s anding o he in e iewees may bo h
ha e subjec i i y, and he da a collec ed a e he pe cep ion o ac o s on specific occasions. Whe he his iew is las ing o no may lead o
bias. The e o e, he esea che confi ms he esponden s’pe cep ion du ing he in e iew o educe he unde s anding e o caused by
subjec i i y. Mo eo e , because he a ge popula ion lis is no a ailable, he snowball sampling o esponden s can educe he
ep esen a i eness, bu a he same ime, di e en g oup cha ac e is ics a e gua an eed as much as possible in he p ocess o sc eening
and analysis, so as o pu sue he ichness o da a. Finally, he limi ed sample size o in e iews may also lead o biased in e ence.
The e o e, he gene alizabili y o he conclusion o his s udy is limi ed, and he conclusion should be used wi h cau ion when explaining
o he cases. As he c edibili y hesis and SRA emphasize, ins i u ions a e de eloped based on specific ime and space and a e diach onic.
The e o e, he case o Shenzhen may no ep esen he na ional si ua ion.
Decla a ion o compe ing in e es
None.
Z. Zhou, Y. Yau Jou nal o U ban Managemen 12 (2023) 112–128
126

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This esea ch ecei ed no ex e nal unding.
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