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1 – 10 of over 35000The 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…
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.
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Jamie D. Collins, Dan Li and Purva Kansal
This study focuses on home country institutions as sources of variation in the level of foreign investment into India. Our findings support the idea that institutional voids found…
Abstract
This study focuses on home country institutions as sources of variation in the level of foreign investment into India. Our findings support the idea that institutional voids found in India are less of a deterrent to investments from home countries with high levels of institutional development than from home countries with similar institutional voids. Overall, foreign investments in India are found to be significantly related to the strength of institutions within home countries. The levels of both approved and realized foreign direct investment (FDI) are strongly influenced by economic factors and home country regulative institutions, and weakly influenced by home country cognitive institutions. When considered separately, the cognitive institutions and regulative institutions within a given home country each significantly influence the level of approved/realized FDI into India. However, when considered jointly, only the strength of regulative institutions is predictive of FDI inflows.
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Oğuz Kara, Levent Altinay, Mehmet Bağış, Mehmet Nurullah Kurutkan and Sanaz Vatankhah
Entrepreneurial activity is a phenomenon that increases the economic growth of countries and improves their social welfare. The economic development levels of countries have…
Abstract
Purpose
Entrepreneurial activity is a phenomenon that increases the economic growth of countries and improves their social welfare. The economic development levels of countries have significant effects on these entrepreneurial activities. This research examines which institutional and macroeconomic variables explain early-stage entrepreneurship activities in developed and developing economies.
Design/methodology/approach
The authors conducted panel data analysis on the data from the Global Entrepreneurship Monitor (GEM) and International Monetary Fund (IMF) surveys covering the years 2009–2018.
Findings
First, the authors' results reveal that cognitive, normative and regulatory institutions and macroeconomic factors affect early-stage entrepreneurial activity in developed and developing countries differently. Second, the authors' findings indicate that cognitive, normative and regulatory institutions affect early-stage entrepreneurship more positively in developed than developing countries. Finally, the authors' results report that macroeconomic factors are more effective in early-stage entrepreneurial activity in developing countries than in developed countries.
Originality/value
This study provides a better understanding of the components that help explain the differences in entrepreneurship between developed and developing countries regarding institutions and macroeconomic factors. In this way, it contributes to developing entrepreneurship literature with the theoretical achievements of combining institutional theory and macroeconomic indicators with entrepreneurship literature.
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Liridon Kryeziu, Besnik A. Krasniqi, Mehmet Bağış, Vjose Hajrullahu, Genc Zhushi, Donika Bytyçi and Mirsim Ismajli
This study aims to examine the impact of regulatory, normative and cultural cognitive institutions and firm and individual factors on entrepreneurial behavior.
Abstract
Purpose
This study aims to examine the impact of regulatory, normative and cultural cognitive institutions and firm and individual factors on entrepreneurial behavior.
Design/methodology/approach
Using the quantitative research method, the authors collected data from 316 micro, small and medium enterprises (MSMEs) in Kosovo, a transition economy, through a cross-sectional research design. The authors performed exploratory factor analyses, correlation and regression analyses on the data using SPSS 26 and STATA software.
Findings
The research findings indicate that, within transition economies, normative and cultural-cognitive institutions have a positive impact on entrepreneurial behaviors. The authors could not determine the effect of regulatory institutions on entrepreneurial behavior. The authors also discovered that young firms are more inclined toward entrepreneurial behavior than older firms, and micro firms display a stronger entrepreneurial behavior than small firms. Furthermore, family businesses showed a greater tendency for entrepreneurial behavior than nonfamily firms. Interestingly, when the rational decision-making interacts with regulatory institutions, the effect on entrepreneurial behavior is negative.
Research limitations/implications
This study employed a cross-sectional approach to investigate the influence of macro, meso, and micro-level factors on entrepreneurial behavior within a transitioning community across three industries. Future studies could replicate these findings within comparable institutional contexts, employing longitudinal studies that include additional variables beyond those considered in our present study.
Practical implications
Considering the importance of MSMEs for a country’s economic and sustainable development, the authors provide some policy implications. The authors recommend managers carefully evaluate the information gathered while they decide and also increase their capabilities concerning digitalization, which is crucial for their firm’s survival, growth and sustainable competitive advantage.
Originality/value
This paper contributes to the literature and shows and analyses entrepreneurial behavior at institutional (macro), firm-level factors (meso) and managers' rational decision-making (micro), providing evidence from a transition community.
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Federica Gasbarro, Francesco Rizzi and Marco Frey
The purpose of this paper is to illustrate how sustainable entrepreneurs (SEs) address the regulative, normative and cultural-cognitive institutional pillars when operating in…
Abstract
Purpose
The purpose of this paper is to illustrate how sustainable entrepreneurs (SEs) address the regulative, normative and cultural-cognitive institutional pillars when operating in conservative contexts. It aims to study in depth the use of sustainable innovation (SI) as a means of increasing legitimacy within the institutions, thus triggering an institutional change.
Design/methodology/approach
The paper opted for an exploratory study on the Tuscan geothermal heat pumps market, which presents a promising but still largely unexploited sustainability potential despite its low institutional support, using the open-ended approach of grounded theory. The data include interviews and archive data, such as newspapers, magazines.
Findings
The paper provides empirical insights on how sustainable institutional entrepreneurs (SIEs) have developed innovative business models based on direct relationship with the final customers and strategic partnerships as a means of increasing legitimacy within the normative and cultural-cognitive institutions, and subsequently in the regulative institutions, through: innovative value propositions aimed at changing industry norms and social beliefs; increasing the private benefit of innovative sustainable business models in order to trigger imitation dynamics; inter-sector strategic partnerships sharing the same sustainability objectives; the inclusion of the relevant actors in relation to the social norms and cultural-cognitive barriers in a value proposition. On the basis of these findings a model has been developed.
Research limitations/implications
The study enriches the sustainable entrepreneurship research stream by providing empirical evidence on how SEs foster changes in the three institutional pillars with SI. It also contributes to the institutional entrepreneurship research by extending the results of previous studies regarding institutional tactics.
Practical implications
The paper could help SIEs prioritizing changes in value propositions and strategic partnerships to create market-based coalitions, as a means of institutional legitimization for SI.
Originality/value
The study illustrates the relationship between the sustainable institutional entrepreneurial practices and each institutional pillar, including the cultural-cognitive institutions, which have been neglected in previous research. This allows formulating five key propositions that guide SEs in succeeding as both sustainable and institutional entrepreneurs.
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George Okello Candiya Bongomin, Charles Akol Malinga, John C. Munene and Joseph Mpeera Ntayi
The purpose of this paper is to establish the relationship between institutional framework of regulative (formal rules), normative (informal norms) and cultural-cognitive…
Abstract
Purpose
The purpose of this paper is to establish the relationship between institutional framework of regulative (formal rules), normative (informal norms) and cultural-cognitive (cognition), and their effects on financial intermediation by microfinance deposit taking institutions (MDIs) in developing economies like Uganda.
Design/methodology/approach
Data collected from a total sample of 400 poor households and 40 relationship officers located in rural Uganda were processed using statistical package for social sciences and analysis of moment structures to establish the relationship between institutional framework of regulative, normative and cultural-cognitive, and their effects on financial intermediation by MDIs in developing economies.
Findings
The results showed that the three dimensions of regulative (formal rules), normative (informal norms) and cultural-cognitive (cognition) significantly affect financial intermediation by MDIs in developing economies like Uganda. In addition, as a unique finding, two new dimensions of procedural and declarative cognition emerged from cultural-cognitive framework to determine financial intermediation among MDIs in developing economies, specifically in Uganda.
Research limitations/implications
The study collected data from only poor households and relationship officers located in rural Uganda. It ignored peri-urban and urban areas in Uganda. In addition, the study focused only on MDIs and ignored other financial institutions. Besides, the study was purely quantitative, therefore, further research through interviews may be useful in future. Furthermore, the study was carried out in rural Uganda as a developing economy. Thus, future research using the same variables in other developing economies may be useful.
Practical implications
Managers of financial institutions and policy makers should know that market functions of financial intermediaries in developing economies are promoted by institutional framework of regulative, normative and procedural and declarative cognition that lowers transaction cost and promotes information sharing. Therefore, more efforts should be directed towards strengthening the existing institutional framework of regulative, normative and cognition to promote financial intermediation by financial institutions such as MDIs.
Originality/value
This paper is the first to test the relationship between institutional framework and their effects on financial intermediation by MDIs in developing economies. The results revealed existence of two new factor structures of procedural and declarative cognition in explaining financial intermediation by MDIs in developing economies like Uganda. This is sparse in financial intermediation literature and theory.
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Chengmeng Chen, Yongchun Huang and Shangshuo Wu
The purpose of this paper is to examine the gender differences in entrepreneurship driven by configurations of institutional environment and entrepreneurial cognition, and provide…
Abstract
Purpose
The purpose of this paper is to examine the gender differences in entrepreneurship driven by configurations of institutional environment and entrepreneurial cognition, and provide theoretical guidance and practical reference for promoting female and male entrepreneurship.
Design/methodology/approach
Based on a configuration perspective, six antecedents of institutional environment and entrepreneurial cognition are integrated to explore multiple concurrent factors and causally complex relationships affecting female and male entrepreneurship.
Findings
This study indicates that the configurations of institutional environment and entrepreneurial cognition can achieve high female and male entrepreneurship. There are similarities and differences between female and male entrepreneurship from a configuration perspective. Perceived opportunity plays an important role in entrepreneurship for both women and men, and the absence of fear of failure is also important for male entrepreneurship. There is a complementary effect among entrepreneurial cognitions in the absence of institutional environment. In the configurations of institutional environment and entrepreneurial cognition, female entrepreneurship benefits more from informal institutions, whereas regulative and cognitive institutions play a greater role in male entrepreneurship.
Practical implications
Policymakers and individuals should take a holistic and complex view of the impact of institutional environment and entrepreneurial cognition, and differentiated measures should be taken for female and male entrepreneurship.
Originality/value
This research responds to the call for multilevel transnational entrepreneurship research, enriches research on institutional environment and entrepreneurial cognition, deepens the application of fuzzy-set qualitative comparative analysis to the field of entrepreneurship and strengthens the understanding of the similarities, differences and complexities of female and male entrepreneurship.
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Joseph Mpeera Ntayi, Henry Mutebi, Susan Kamanyi and Kenneth Byangwa
The purpose of this study is to examine institutional framing for entrepreneurship in a sub‐Saharan context and provide policy input required in solving the daunting problem of…
Abstract
Purpose
The purpose of this study is to examine institutional framing for entrepreneurship in a sub‐Saharan context and provide policy input required in solving the daunting problem of the existing low levels and high failure rate of business start‐ups in Uganda.
Design/methodology/approach
Data were collected from a sample of 659 SMEs from two districts of Uganda in Jinja and Mukono which were scientifically selected for this study. Appropriate analytical data techniques were applied.
Findings
Results reveal the presence of implicit regulative, explicit regulative, constitutive cognitive and normative institutions which affect entrepreneurial activities in Uganda. These findings and their policy implications are fully discussed in the paper.
Originality/value
This research parallels the Global Entrepreneurship Monitor (GEM) 2004 study that reports high total entrepreneurship activity (TEA) from Uganda and presents the importance of understanding the institutional framing for entrepreneurship. There is a paucity of research addressing institutional framing for entrepreneurship from a sub‐Saharan context, creating a need to study and systematically document the prevailing supporting institutions as a framework for promoting entrepreneurship in Uganda.
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Danish Junaid, Zheng He, Amit Yadav and Lydia Asare-Kyire
While there are many studies on the impacts of formal institutions such as government financial supporting and tax preferential policies on women entrepreneurial entry, few…
Abstract
Purpose
While there are many studies on the impacts of formal institutions such as government financial supporting and tax preferential policies on women entrepreneurial entry, few attempted to explore how informal institutions causes cross-country differences in women entrepreneurship. The purpose of this paper is to investigate whether countries (Pakistan and Malaysia) with similar religious belief, political system and government policies exhibits similar level of women entrepreneurial activity from an informal institutional perspective.
Design/methodology/approach
This study used Global entrepreneurship monitor (GEM) data for the years 2010–2012 and employed probit regression analysis to examine the impacts of cultural-cognitive and social-normative institutions on women entrepreneurial activity.
Findings
The findings reveal profound differences of women’s entrepreneurial activities between Pakistan and Malaysia. While cultural-cognitive dimension shows substantial impact for both nations, social-normative dimension explains the main differences in women’s entrepreneurial activity.
Practical implications
This study proposes that policymakers may craft policies to enhance women skills, knowledge and networking as well as positive societal attitudes to foster women entrepreneurial activities.
Originality/value
This study shows that countries with the same religion and similar formal institutions can also exhibit different level of women entrepreneurial activity. In Pakistan, the negative societal attitudes in the form of deep rooted traditional beliefs as well as misinterpreted religious concepts for women role create formidable challenges and inhibit business opportunities for them. By contrast, favorable social perception and societal attitudes in Malaysia encourage women to pursue their entrepreneurial activities.
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Talah S. Arabiyat, Metri Mdanat, Mohamed Haffar, Ahmad Ghoneim and Omar Arabiyat
The purpose of this paper is to improve understanding of how different aspects of the national institutional environment may influence the extent of innovative entrepreneurial…
Abstract
Purpose
The purpose of this paper is to improve understanding of how different aspects of the national institutional environment may influence the extent of innovative entrepreneurial activities across countries. Several institutional and conductive factors affecting a country’s capacity to support innovative entrepreneurship are explored.
Design/methodology/approach
Institutional theory is used to examine the national regulatory, normative, cognitive and conducive aspects that measure a country’s ability to support innovative entrepreneurship. A cross-national institutional profile is constructed to validate an entrepreneurial innovation model. The impacts of country-level national institutions on innovative entrepreneurial activity as measured by Global Entrepreneurship Monitor data are assessed through structural equation modeling.
Findings
Knowledge about the influence of specific institutional aspects on innovative entrepreneurship, and hence of institutional structures within and across countries, is enhanced. For new innovative enterprises, conductive and regulatory aspects seem to matter most. All conductive factors have a significant and positive impact on entrepreneurial activity rates.
Research limitations/implications
Results could support policy makers and practitioners in evaluating government policies’ effects on innovative entrepreneurship. Interventions should target both individual attributes and context. Future research could include longitudinal designs to measure the direction of causality.
Practical implications
Aspects such as regulatory institutions, and conductive factors such as information communication technology use and technology adoption, are important for innovation entrepreneurship development.
Originality/value
The literature on institutional theory and innovative entrepreneurship is highly limited. This study complements growing interest in empirical analysis of the effects of national institutions on innovative entrepreneurial activities and substantiates previous empirical work.
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