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Business perceptions of regulative institutions in Central and Eastern Europe

Nir Kshetri (Bryan School of Business and Economics, University of North Carolina, Greensboro, North Carolina, USA)

Baltic Journal of Management

ISSN: 1746-5265

Article publication date: 14 September 2010

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Abstract

Purpose

The purpose of this paper is to investigate, theoretically and empirically, how entrepreneurial firms' perceptions of formal institutions differ across Central and Eastern European (CEE) economies.

Design/methodology/approach

The paper uses data from the World Bank Group's World Business Environment Survey (WBES) compare entrepreneurial firms' perceptions of changes in different components of regulative institutions in Latin and orthodox CEE economies. The data used in this paper capture a decade's progress in the development of regulative institutions in these economies.

Findings

It was found that the state's regulatory, participatory, and supportive roles are more favorable to businesses in the Latin countries than in the orthodox countries. The findings provide support for the notion that informal institutions influence the degree of generalizeability and replicability of Western political and economic institutions' success in driving firms' entrepreneurial behavior in emerging economies.

Research limitations/implications

The first limitation is that the data used were collected about a decade ago. Another limitation relates to a lack of coverage of many former Soviet republics and some other CEE countries in the WBES.

Practical implications

The findings point to the need of strategic planning and various degrees of adaptation of business strategies across the CEE economies. Second, businesses may differ in terms of the relative importance of regulatory, participatory, and supportive roles of the government in their operations. Finally, some CEE economies can be influenced more than others by international pressures.

Originality/value

This paper's greatest value stems from the fact that it uses internationally comparable firm‐level data to empirically examine entrepreneurial firms' perceptions of regulative institutions in CEE economies.

Keywords

Citation

Kshetri, N. (2010), "Business perceptions of regulative institutions in Central and Eastern Europe", Baltic Journal of Management, Vol. 5 No. 3, pp. 356-377. https://doi.org/10.1108/17465261011079758

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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