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Skilled workforces and Law-abiding organizational climates in emerging markets

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  • Mohammad, Shoeb
  • Husted, Bryan

Abstract

Scarcity of skilled workers in the emerging markets is considered a severe challenge facing organizations since it limits the quality and depth of their labour force. We explore an understudied problem associated with skilled worker scarcity, its impact on a firm’s adherence to the law. Drawing on the lens of anomie theory, we hypothesize that a skilled workforce positively impacts a firm’s law-abiding organizational climate. This is due both to ethical values associated with the education of skilled workers and their positive impact on an organization’s ability to adapt to its environment. Furthermore, we explain the impact that managerial ties have on this relationship, hypothesizing how ties with industry firms and ties with government influence a firm’s adherence to law-abiding norms. Hypotheses were tested with survey data collected from 150 Mexican companies. Our study contributes by shedding light on an understudied cause of the wide-spread illegality that plagues emerging markets.

Suggested Citation

  • Mohammad, Shoeb & Husted, Bryan, 2023. "Skilled workforces and Law-abiding organizational climates in emerging markets," Journal of Business Research, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:jbrese:v:158:y:2023:i:c:s014829632200995x
    DOI: 10.1016/j.jbusres.2022.113530
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