Institutional environments and entrepreneurial start-ups: an international study

Abstract

Purpose

The purposes of this research are to examine how individuals' cognition is related to the rate of entrepreneurial start-ups and how this relationship can be modified by three institutional pillars.

Design/methodology/approach

Drawing upon a multilevel analysis and a global context comprising 67 countries, cross-level analyses are performed to assess the joint effects of entrepreneurial cognition and institutions on the rate of entrepreneurial start-ups.

Findings

The findings confirm the role of entrepreneurial cognition (i.e. self-efficacy, risk attitude and opportunity perception) in individuals' decisions to start new businesses and reveal how this relationship can be diversely influenced by country-level institutional pillars.

Practical implications

This paper could be useful for designing policies to promote entrepreneurial activity through institutions in different countries.

Originality/value

The results contribute to the development of theoretical and knowledge bases by offering a multilevel perspective on how entrepreneurial cognition and institutional environments operate as interacting determinants that influence entrepreneurship.

Citation

Li, T. (2021), "Institutional environments and entrepreneurial start-ups: an international study", Management Decision, Vol. 59 No. 8, pp. 1929-1953. https://doi.org/10.1108/MD-01-2020-0031