Informal institutions and leadership behavior in a developing country: A comparison between rural and urban areas

Abstract

This paper explores the extent to which informal institutions influence leadership behavior in Mexico, distinguishing between urban and rural areas. Using the institutional approach and through logistic regression models with data obtained from the National Institute of Statistics and Geography (INEGI), the main results of the study show that transformational behaviors, social capital, and resilience are relevant informal institutions for leadership. However, the effect of social capital on leadership is stronger in urban areas than in rural ones, whereas transformational behaviors and resilience are salient characteristics that are mostly observed in rural zones. The theoretical, policy, and managerial implications from these findings could contribute to advancing leadership research through the institutional lens.