Informal institutions in the management of Ukrainian agricultural enterprises: challenges and opportunities

Introduction. The management of agricultural enterprises in Ukraine is an extremely dynamic and multifaceted process influenced by numerous factors. Among them, not only formally established institutions—such as laws, regulations, state programs, contracts, and governance structures—play a significant role. Alongside these, and sometimes as a determining force shaping the trajectory of agribusiness development and functioning, informal institutions operate. These unwritten rules, entrenched behavioural norms, deeply rooted traditions, extensive social ties, and informal agreements create a unique managerial landscape. They permeate all levels of interaction—from local communities to national markets—significantly affecting the efficiency, transparency, competitiveness, and even stability of the agricultural sector under continuous challenges. Methodology. This study employs a comprehensive set of methods, including: a systems approach that views agribusiness management as a complex open system where formal and informal elements intersect; institutional analysis to identify specific informal institutions (traditions, norms, informal networks), their functions, and interactions with formal governance mechanisms; the comparative-historical method to trace the evolution of institutional practices in Ukraine’s agrarian sector, particularly the legacy of the Soviet past; case study analysis to illustrate specific examples of interaction between formal and informal institutions at the enterprise or community level; and empirical analysis based on the synthesis of secondary research findings, sociological surveys, sectoral statistics, and interviews with agricultural enterprise managers and experts. Results. Informal institutions play a critically important role in the management of agricultural enterprises in Ukraine, functioning as adaptive mechanisms in response to institutional instability, legal uncertainty, and weak state regulation. These include not only informal agreements, customs, and personal arrangements, but also deeper elements such as trust, reputation, mutual support networks, and social leadership. In the context of contemporary institutional theory, informal institutions do not necessarily conflict with formal ones. On the contrary, they can complement and enhance the effectiveness of formal governance, especially in transitional economies. Ukraine demonstrates a hybrid institutional order where formal norms coexist with informal practices, forming unique local governance models.