Institutions and Entrepreneurial Activity: The Interactive Influence of Misaligned Formal and Informal Institutions

We contribute to the institutions and entrepreneurship literature by examiningthe interactive influence of formal and informal institutions on new business creation,survival, and growth. Prior literature demonstrates how formal and informal institutionsshape the level of entrepreneurship. This paper...

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Detalles Bibliográficos
Autores: Skousen, Bradley, Cheng, Joseph, Eberhart, Robert, Eesley, Charles
Tipo de recurso: artículo
Fecha de publicación:2018
País:España
Institución:IE
Repositorio:Repositorio IE
OAI Identifier:oai:repositorio.ie.edu:20.500.14417/3753
Acceso en línea:https://doi.org/10.1287/stsc.2018.0060
https://hdl.handle.net/20.500.14417/3753
Access Level:acceso abierto
Palabra clave:Entrepreneurship
Institutional theory
International management
Entry strategies
53 Ciencias Económicas::5311 Organización y dirección de empresas
ODS 8 - Trabajo decente y crecimiento económico
Descripción
Sumario:We contribute to the institutions and entrepreneurship literature by examiningthe interactive influence of formal and informal institutions on new business creation,survival, and growth. Prior literature demonstrates how formal and informal institutionsshape the level of entrepreneurship. This paper extends this to examine the cases whenformal and informal institutions conflict with one another to cast an analytic eye on whycountries differ in the type of entrepreneurial activity in terms of entry, survival, andgrowth. We argue that national and regional differences can be better explained by theinteractive influence of formal and informal institutions. Moreover, we argue that infor-mal institutions dominate formal institutions due to the former’s characteristics of deepembeddedness and resistance to change over time. These ideas are presented and summa-rized into a typology of institutional effects on entrepreneurship activity depending on thecombination of formal and informal institutions. The paper concludes with implicationsfor future theory and research on the joint influence of different institutional effects andparticularly on the intersection between institutions and entrepreneurship.