Abstract
The post-apartheid era presented a complex institutional environment for enterprises, characterised by evolving regulatory frameworks and socio-economic transformation. Understanding how firms navigate this landscape is critical for assessing sustainable business development. This study aimed to explore the specific institutional challenges and strategic opportunities perceived by business leaders operating within the contemporary South African economy, focusing on their adaptive strategies. A qualitative, interpretive design was employed, using in-depth, semi-structured interviews with 24 senior executives from diverse sectors. Data were analysed through reflexive thematic analysis. A dominant theme was the perceived tension between progressive broad-based black economic empowerment (B-BBEE) policies and operational agility, with over two-thirds of participants describing compliance as a significant, dual-edged strategic burden. Concurrently, firms developed nuanced relational strategies to engage with state institutions. Business adaptation is fundamentally shaped by a negotiated engagement with institutional pressures, where regulatory compliance is simultaneously a constraint and a catalyst for innovative local partnership models. Policymakers should consider streamlining B-BBEE verification processes to reduce administrative burdens. Firms are advised to develop dedicated institutional capabilities for stakeholder engagement and long-term relationship management. institutional theory, qualitative research, business environment, corporate strategy, economic transformation This paper provides novel empirical evidence of the micro-level strategic behaviours firms employ to manage macro-institutional pressures, contributing a nuanced behavioural perspective to institutional analysis in emerging markets.