Fostering sustainability in Mexican SMEs: Understanding the interplay of institutional forces

Purpose: This study aims to explore the interplay between regulatory, normative and cultural-cognitive factors in the context of sustainability-driven organisational change in Mexican small and medium-sized enterprises (SMEs). Design/methodology/approach: Using qualitative research methods, data were collected through interviews with key stakeholders from eight SMEs in Mexico. Thematic analysis was conducted to explore how regulatory, normative and cultural-cognitive forces influence sustainability initiatives within these organisations. Findings: The findings reveal a dynamic relationship between regulatory frameworks and broader societal norms, with SMEs strategically aligning with evolving expectations to drive sustainability. Influenced by consumer preferences, normative forces play a pivotal role in shaping internal and external organisational norms. Cultural-cognitive forces, including organisational values and leadership practices, further reinforce this interplay, highlighting the importance of organisational culture in driving sustainable practices. Research limitations/implications: This study contributes to understanding institutional dynamics driving sustainability initiatives among SMEs, particularly in the Mexican context. Explaining the complex interactions among regulatory, normative and cultural-cognitive forces offers a holistic framework for comprehending the complexities of sustainability-driven organisational change. Practical implications: The findings provide practical insights for SMEs seeking to navigate sustainability initiatives. Emphasising the proactive role of regulatory compliance, fostering a culture of sustainability and leveraging collaborative opportunities within industries are recommended strategies for driving meaningful organisational change towards sustainability. Originality/value: This study’s value lies in its development of a conceptual framework illustrating the complex interactions among regulatory, normative and cultural-cognitive forces driving sustainability-driven organisational change in Mexican SMEs. Elucidating these dynamics provides a nuanced understanding of how these forces intertwine, offering valuable insights for navigating sustainability initiatives for SMEs in Mexico.