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What is Institutional Pressures

Handbook of Research on Economic Growth and Technological Change in Latin America
Legal and illegal demands from the institutions to comply with certain mandates.
Published in Chapter:
Entrepreneurs' Responses to Illegitimate Institutional Pressures in Monterrey, Mexico
Jacobo Ramirez (Copenhagen Business School, Denmark)
DOI: 10.4018/978-1-4666-6224-7.ch011
Abstract
The mass media can play an important role in capturing the dynamic between social groups and the institutional environment. To investigate entrepreneurs' responses to the impact of organized crime and violence on Small and Medium-Sized Enterprises (SMEs) in Monterrey, Mexico, a deductive Content Discourse Analysis (CDA) was developed. The sample was constructed by integrating international newspapers available in the database FACTIVA and Mexican newspapers from 2006 to 2012. The results made it possible to observe the dynamic between informal and formal institutions in the emergence of adaptation of SMEs' business model. The adaptations observed tend to respond to the change in the behavior of social groups in Monterrey, Mexico, as a consequence of organized crime and violence. This chapter explores this CDA.
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More Results
Environmental Drivers of E-Business Strategies Among SMEs
According to the Institutional Theory, institutions work as forces upon individuals and organizations by creating social pressures and restrictions, setting boundaries for what is accepted and what is not. Such an influence can be in the form of normative, coercive, and mimetic pressures (Davidsson, Hunter, & Klofsten, 2006). Normative pressures consist of social pressures on organizations and its members to conform to certain norms. Coercive pressures are often thought of as formal institutions of regulations or laws but can also be informal expectations on organizations (e.g., technical standards imposed by someone exerting power over another actor, as in a parent-subsidiary relationship). Mimetic pressures represent demands towards imitation of other organizations to cope with uncertainty.
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External Pressures for Adoption of ICT Services Among SMEs
Element of the macro-institutional environment where the firm plays that can influence, through norms and habits, the firm’s decisions
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