The article describes how some legitimate tanker companies that initially entered the market legally may have gradually been drawn into corrupt practices because corruption was the only way to win contracts. Explain how the three types of pressure could have simultaneously driven legitimate companies toward corruption according to institutional theory.

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Institutional pressures only apply to formally registered institutions, which are subject to regulatory oversight, and cannot explain the behaviour of informal criminal networks, such as mafias and the associated corrupt municipal officials aiding them.

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Coercive pressure was applied through threats of violence, imitative pressure when legitimate companies observed the success of the mafia companies, and normative pressure through the kickback procurement culture at the municipalities.

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Only coercive pressure is relevant — the mafias physically threatened legitimate companies into compliance when they refused to cooperate with their network.

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The three institutional pressures are mutually exclusive — in any given situation, only one can be the dominant explanation for institutional behaviour change and they cannot, therefore, be simultaneously applied.

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Only imitative pressure is relevant — legitimate companies observed and copied what the successful mafia-linked competitors were doing to win contracts.

Crowdly

The article describes how some legitimate tanker companies that initially entere...

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