This paper presents a mixed-method study that explores the configuration of
human resource management (HRM) systems in “narco-terrorism” environments.
The quantitative analysis focuses on 204 news stories. In addition, 25 interviews
were conducted with managers and HR professionals at 20 firms in Mexico to
explore the direct and indirect impacts of narco-terrorism on firms. Our analysis
of firms’ responses in terms of HRM systems indicate that trust of formal and
informal institutions seems to shape HRM system in the focal firms. More
specifically, a combination of strict employee control, an emphasis on soft-skills
training and development, and a flexible work schedule seems to facilitate the
building of trust in narco-terrorism contexts. It seems that the role of firms as
social institutions integrate strategies, which seems to aim at avoid and
manipulate the institutional constraints. Our findings highlight the importance of
reinforcing values, such as trust, openness, and participation to develop a strong
HRM system in violent driven environments. We examine the various effects of
institutional contextual factors on the operation of HRM systems and practices.