This research aims to investigate the various direct and indirect impacts of
organized violence and crime on small and medium-sized enterprises (SMEs),
as well as entrepreneurs’ responses to violent acts. A mixed-method design
based on a quantitative content analysis of 204 news stories found in the
international press and a multi-case study covering 10 SMEs operating in
Monterrey, Mexico, is used to explore entrepreneurs’ responses to the direct
and indirect effects of violent acts. The results highlight the dynamic between
informal and formal institutions in SMEs’ attempts to survive in complex
institutional contexts. Future studies based on the results of this research
could enhance the literature on SMEs and entrepreneurs in emerging markets.
The results, which illustrate entrepreneurs’ responses to violent acts, enhance
our understanding of the emerging operational and managerial strategies of
SMEs operating in complex institutional contexts. The findings highlight the
emerging process of social change in Mexican society among members of the
middle class, and various attempts to fight back against organized violence
and crime in a non-violent manner. SMEs are important in Mexico and Latin
America. However, the understanding of the direct and indirect impacts of
organized crime and violence on SMEs is limited. This research identifies and
analyzes the emerging responses of entrepreneurs to these institutional
constraints.