Institutional Pressures and Business Goals

ABSTRACT

Neo-institutional theory suggests that companies and managers are affected by three major pressures-coercive, mimetic and normative, which results in the isomorphism of economic actors subjected to similar institutional environments. In this paper we attempt to uncover corresponding dimensions underlying the business goals of managers working in developed and transition economies. We find empirical support for the coercive and normative dimensions and demonstrate that, despite substantial progress made by transition economies towards the establishment of market institutions, managers in transition and developed economies still exhibit unique differences in business goals.

Key Words:

• Institutional theory
• business goals
• transition economies
• cross-cultural management