ABSTRACT
This chapter considers how the diverse business strategies of matatu operators result in variations in regulatory compliance. Business strategies are everywhere shaped by both internal resources and the external institutional environment (Grant 1991; Oliver 1997; Peng 2002). Regulations are particular types of institutions that form part of the context within which matatus do business. As we shall see, the complex and sometimes confusing array of regulations and their problematic enforcement call for choices about the extent and forms of compliance. Furthermore, it appears that some business strategies are more likely than others to promote regulatory compliance.
