From ideals to institutions : institutional entrepreneurship in Mexican small business finance

Abstract

Through a combination of in-depth research and unique loan-level data, this dissertation explores the mechanisms of intentional institutional change. It argues that current accounts of institutions and institutional change require but do not provide a systematic understanding of the role of individuals in processes of change. It then uses two in-depth case studies to explore the mechanisms through which individuals can initiate institutional change. One case is the activation of the small business credit market in Mexico. The second is the expansion of micro credit in the country. Through these cases, the dissertation proposes that, contrary to conventional thinking, institutional change is not rare because institutional entrepreneurs are scarce. In fact, they are quite prevalent. Rather, what is scarce is the required combination of an opportunity for change, individuals who can recognize this opportunity, have the capabilities and skills to pursue it, and are situated in the right structural position to drive a change process. It further argues that successful institutional entrepreneurs are usually situated in positions of middle management, which provide the right balance between a motivation to experiment, access to sufficient resources, and discretion to diverge from norms. Additionally, institutional entrepreneurs tend to have mixed backgrounds with diverse professional trajectories, which allow them to detect opportunities, cross borders, and learn the different languages required to brokerage experimental efforts.