The cognitive pillar that supports informal institutions does so through:
A)The way in which values and norms of the relevant players influence firm behavior.
B)The taken-for-granted values and beliefs that guide individual and firm behavior.
C) The way in which laws and regulations influence firm behavior.
D) Formal institutions.

Question

The cognitive pillar that supports informal institutions does so through:
A)​The way in which values and norms of the relevant players influence firm behavior.
B)​The taken-for-granted values and beliefs that guide individual and firm behavior.
C) ​The way in which laws and regulations influence firm behavior.
D) ​Formal institutions.

Quizplus · Accepted Answer

The cognitive pillar that supports informal institutions is based on the taken-for-granted values and beliefs that guide individual and firm behavior, such as trust, social norms, and informal networks. This can be seen in how firms conduct business in certain cultures or societies where these informal institutions are strong. The other options do not directly relate to the cognitive pillar of informal institutions.

The Cognitive Pillar That Supports Informal Institutions Does So Through