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1 – 10 of 149

Abstract

Purpose

The purpose of this study is to investigate the role of sales, as a proxy for size, in moderating the impact of institutional incongruence between formal and informal institutions on the formalization of microenterprises in middle-income countries in Latin America.

Design/methodology/approach

The paper uses a probit regression model to examine business formalization as a binary outcome of formal and informal institutions. Data was collected through interviews and surveys across 52 municipalities in the Metropolitan Region of Santiago, Chile. The study used a stratified sampling approach and was conducted between November 2022 and January 2023.

Findings

The results offer three key insights into the formalization of microenterprises in middle-income countries. First, we show that formal institutions do not significantly influence formalization decisions among microentrepreneurs in middle-income countries, challenging the traditional belief that formal institutions alone significantly influence formalization in these contexts. Second, we show that informal institutions are significant predictors of informality, especially among smaller microenterprises. Third, we highlight that the smaller the business, the stronger the negative effect of informal institutions on formalization, and thus, the institutional incongruence between formal and informal institutions decreases for larger businesses.

Originality/value

This paper contributes to management literature by shedding light on the drivers of formalization in middle-income countries, a departure from most formalization studies wherein the focus is primarily on low-income economies. The findings suggest that policymakers in middle-income countries should focus on enabling microenterprise growth through sales, rather than targeting specific demographic groups or relying solely on formal institutional enforcement to promote formalization.

Propósito

El objetivo de este estudio es investigar el papel de las ventas, utilizadas como un indicador de tamaño, en la mediación del impacto de la incongruencia institucional entre instituciones formales e informales en la formalización de microempresas en países de ingresos medios en América Latina.

Método

Utilizamos un modelo de regresión Probit para examinar la formalización empresarial como un resultado binario de instituciones formales e informales. Los datos se recopilaron a través de 110 entrevistas y encuestas en 52 municipios de la Región Metropolitana de Santiago, Chile. El estudio empleó un enfoque de muestreo estratificado y se llevó a cabo entre noviembre de 2022 y enero de 2023.

Hallazgos

Nuestros resultados ofrecen tres ideas clave sobre la formalización de microempresas en países de ingresos medios. Primero, demostramos que las instituciones formales no influyen significativamente en las decisiones de formalización entre las microempresas en países de ingresos medios; esto desafía la creencia tradicional de que las instituciones formales por sí solas influyen significativamente en la formalización en estos contextos. Segundo, nuestro estudio muestra que las instituciones informales son predictores significativos de la informalidad, especialmente entre las microempresas más pequeñas. Tercero, nuestro estudio destaca que el efecto negativo de las instituciones informales sobre la formalización es más fuerte para negocios de menor tamaño; por lo tanto, la incongruencia institucional entre instituciones formales e informales disminuye para negocios de mayor tamaño.

Originalidad

Este artículo contribuye a la literatura iluminando sobre los impulsores de la formalización en países de ingresos medios, a diferencia de la mayoría de los estudios de formalización en la región latinoamericana que se centran principalmente en países de bajos ingresos. Nuestros hallazgos sugieren que los responsables de políticas en países de ingresos medios deberían centrarse en impulsar el crecimiento de las microempresas a través de las ventas, en lugar de enfocarse en grupos demográficos específicos o depender únicamente del cumplimiento institucional formal para promover la formalización.

Propósito

O objetivo deste estudo é investigar o papel das vendas, usadas como um indicador de tamanho, na mediação do impacto da incongruência institucional entre instituições formais e informais na formalização de microempresas em países de renda média na América Latina.

Método

Utilizamos um modelo de regressão Probit para examinar a formalização empresarial como um resultado binário de instituições formais e informais. Os dados foram coletados por meio de 110 entrevistas e pesquisas em 52 municípios da Região Metropolitana de Santiago, Chile. O estudo empregou uma abordagem de amostragem estratificada e foi realizado entre novembro de 2022 e janeiro de 2023.

Resultados

Nossos resultados oferecem três ideias-chave sobre a formalização de microempresas em países de renda média. Primeiro, demonstramos que as instituições formais não influenciam significativamente as decisões de formalização entre as microempresas em países de renda média; isso desafia a crença tradicional de que as instituições formais, por si só, influenciam significativamente a formalização nesses contextos. Segundo, nosso estudo mostra que as instituições informais são preditores significativos da informalidade, especialmente entre as microempresas menores. Terceiro, nosso estudo destaca que o efeito negativo das instituições informais sobre a formalização é mais forte para negócios de menor porte; portanto, a incongruência institucional entre instituições formais e informais diminui para negócios de maior porte.

Originalidade

Este artigo contribui para a literatura iluminando os impulsionadores da formalização em países de renda média, ao contrário da maioria dos estudos de formalização na região latino-americana, que se concentram principalmente em países de baixa renda. Nossos achados sugerem que os responsáveis pelas políticas em países de renda média deveriam focar em impulsionar o crescimento das microempresas por meio das vendas, em vez de se concentrar em grupos demográficos específicos ou depender exclusivamente do cumprimento institucional formal para promover a formalização.

Article
Publication date: 11 December 2023

Brenda Silupu and Sergio Reyes

In developing countries, women microentrepreneurs are characterized as being informal, creating a challenge for the sustainability of their businesses. The purpose of this study…

Abstract

Purpose

In developing countries, women microentrepreneurs are characterized as being informal, creating a challenge for the sustainability of their businesses. The purpose of this study is to analyze different businesses that adopt this form of operation arguing that formality is unnecessary because they are legitimate businesses (institutional reason). In addition, the role of gender in business management was incorporated, and the consistency of the results was validated in the context of COVID-19.

Design/methodology/approach

This study used data from the National Household Survey of Peru for the development of a compared analysis between the period 2018–2019 (pre-COVID-19), made up of a sample of 14,077 observations, and the period 2020–2021 (COVID-19), with 7,922 observations. The unit of analysis was the informal microenterprise with more than three years of operation, and the data was analyzed using a logistic model.

Findings

The probability of adopting informality for institutional reasons is more significant in the case of women in contrast to the men when it is a business belonging to the commerce sector and operating in a dwelling with basic services, while this probability decreases if the firm does not have a fixed location. These results are consistent in pre-COVID-19 and COVID-19 periods.

Originality/value

The purpose of this research was to contribute to closing gaps in the generation of evidence that helps to understand the behavior of informal microentrepreneurs in developing countries, allowing a better approach to this problem for the design and implementation of suitable public policies. All this will contribute to the accomplishment of the Sustainable Development Goals.

Propósito

En países en desarrollo, las mujeres microempresarias se caracterizan por ser informales generando un desafío para la sostenibilidad de sus negocios. La presente investigación analizó diferentes negocios que adoptan esta forma de operación con el argumento de que la formalidad no es necesaria porque son negocios legítimos (motivo institucional); además, se incorporó el rol del género en la gestión del negocio, y se validó la consistencia de los resultados en un contexto de COVID-19.

Diseño/metodología/enfoque

Se utilizaron datos de la Encuesta Nacional de Hogares de Perú para el desarrollo de un análisis comparado entre el período 2018–2019 (pre-COVID-19), compuesto por una muestra de 14.077 observaciones, y el período 2020–2021 (COVID-19), con 7.922 observaciones. La unidad de análisis es la microempresa informal con más de tres años de operación y los datos son analizados mediante un modelo logístico.

Hallazgos

Resulta mayor la probabilidad de adoptar la informalidad por motivos institucionales en el caso de las propietarias en contraste con los propietarios, cuando se trata de un negocio perteneciente al sector comercio y que funciona en una vivienda con servicios básicos, mientras que disminuye esta probabilidad si el negocio no posee un local fijo. Estos resultados son consistentes en tiempos de pre-COVID-19 y COVID-19.

Originalidad/valor

La investigación tiene por fin contribuir al cierre de brechas en la generación de evidencia que ayude a comprender el comportamiento de las mujeres microempresarias informales en países en desarrollo, permitiendo una mayor aproximación a esta problemática para el diseño e implementación de políticas públicas adecuadas. Todo esto contribuirá con los Objetivos de Desarrollo Sostenible.

Propósito

Nos países em desenvolvimento, as mulheres microempreendedoras caracterizam-se por serem informais, criando um desafio para a sustentabilidade dos seus negócios. A presente investigação analisou diferentes negócios que adotam essa forma de operação com o argumento de que a formalidade não é necessária por serem negócios legítimos (razão institucional); além disso, foi incorporado o papel do gênero na gestão empresarial e se validou a consistência dos resultados num contexto de COVID-19.

Desenho/metodologia/abordagem

Se utilizaram dados da Pesquisa Nacional de Domicílios do Peru para desenvolver uma análise comparativa entre o período 2018–2019 (pré-COVID-19), composto por uma amostra de 14.077 observações, e o período 2020–2021 (COVID-19), com 7.922 observações. A unidade de análise é a microempresa informal com mais de três anos de operação e os dados são analisados através de um modelo logístico.

Descobertas

Resulta maior a probabilidade de adoção da informalidade por motivos institucionais no caso das proprietárias em contraste com os proprietários, quando se trata de um negócio pertencente ao setor do comércio e que funciona numa casa com serviços básicos, enquanto esta probabilidade diminui se o negócio não tem local fixo. Estes resultados são consistentes em tempos pré-COVID-19 e COVID-19.

Originalidade/valor

A pesquisa tem como objetivo contribuir no fechamento de brechas na geração de evidências que ajude a compreender o comportamento dos microempreendedores informais nos países em desenvolvimento, permitindo uma melhor abordagem desta problemática para o desenho e implementação de políticas públicas adequadas. Tudo isto contribuirá para o cumprimento dos Objetivos de Desenvolvimento Sustentável.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1536-5433

Keywords

Open Access
Article
Publication date: 18 May 2020

Marwa Sobhy Montaser

This paper aims at contributing to our understanding of how self-settled Syrian refugees (registered and non-registered) use informal practices to forge their non-political agency…

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Abstract

Purpose

This paper aims at contributing to our understanding of how self-settled Syrian refugees (registered and non-registered) use informal practices to forge their non-political agency and how this agency could be considered as political acts.

Design/methodology/approach

This paper was conducted per the qualitative data analysis (in-depth interviews and participant observation), attributed to the critical ethnographic approach, through which refugees’ everyday struggle is explored, additionally, that was incorporated with the analysis of Syrians’ Facebook groups and formal sources.

Findings

The research paper concluded that everyday struggle strategies are considered as political acts by acquiring rights that many self-settled Syrian refugees are stripped of by international humanitarian agencies and host government. Hence, registered and unregistered refugees equally forge what is called “informal citizenship” through their presence via a blend of agency forms ranging from hidden agency to explicit one and via their incorporating into the informal contexts, leading them to carve a position of semi-legality that help them to circumvent the formal structural hardship.

Originality/value

This paper endeavors to study how urban refugees as change agents can convert their illegal presence to “probably refugeeness” to unsettle the prominent recognition of them as illegal non-citizens in southern cities.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 15 April 2024

Umar Mohammed

This study aims to analyze the factors driving Syrian refugees into the informal labor market in Türkiye despite the existence of regulations and programs to facilitate their…

Abstract

Purpose

This study aims to analyze the factors driving Syrian refugees into the informal labor market in Türkiye despite the existence of regulations and programs to facilitate their integration into the formal labor market.

Design/methodology/approach

This study presents results from a literature review of secondary sources and primary data collection through semi-structured interviews with key stakeholders and Syrian refugees.

Findings

The study shows that the implementation of policies and programs to boost formal employment among refugees has yielded limited results. Many refugees continue to operate within the informal economy. This informality is due to various socio-economic challenges, including anti-refugee sentiments, geographical restrictions and economic crises. The 2023 twin earthquakes have further exacerbated the vulnerable situation of refugees, intensifying the difficulty of achieving self-reliance.

Research limitations/implications

The study’s drawbacks include a small sample size. This implies that the sample is not representative; therefore, results may lack generalizability.

Practical implications

The study’s findings could stimulate greater engagement in public policy, facilitate the management of public perceptions regarding refugees and provide support to the private sector, all to enhance the integration of Syrian refugees into the formal labor market.

Originality/value

This study addresses crucial areas previously unexplored, including the impact of economic and natural disaster crises on the labor market integration of refugees. To the best of the author’s knowledge, by investigating these factors for the first time, this study offers novel insights into their influence on refugees’ labor market integration.

Details

International Journal of Migration, Health and Social Care, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-9894

Keywords

Article
Publication date: 15 January 2024

Tommaso Aguzzi, Rodica Ianole-Calin and Susanne Durst

This paper aims to investigate whether Kazakh small- and medium-sized enterprises (SMEs) that claim to compete with the informal sector are more likely to invest in innovation…

Abstract

Purpose

This paper aims to investigate whether Kazakh small- and medium-sized enterprises (SMEs) that claim to compete with the informal sector are more likely to invest in innovation than their competitors who do not perceive such pressure.

Design/methodology/approach

Logistic regression and classification trees are performed on the Business Environment and Enterprise Performance Survey (2018–2020) to examine whether the degree of informal competition correlates with a firm's propensity to innovate.

Findings

The findings show that informal sector competition is a critical factor that shapes the organizational behaviour of Kazakh SMEs. There is a stimulating positive effect of informal competition on both product and process innovation, depending on its perceived intensity.

Originality/value

This study challenges conventional thinking that still views informal sector competition as a barrier to innovation and entrepreneurship by assessing whether innovation is compatible with informal entrepreneurial practice.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 27 November 2023

Antonio-Martín Porras-Gómez

Informal housing stands out as a major challenge surrounding the massive reconstruction of Syrian cities, devastated by a bloody war and a terrible earthquake. The purpose of this…

Abstract

Purpose

Informal housing stands out as a major challenge surrounding the massive reconstruction of Syrian cities, devastated by a bloody war and a terrible earthquake. The purpose of this article is to assess the adequacy of the Syrian Law to adequate provide a solution to this problem.

Design/methodology/approach

With the purpose of informing the question, this paper offers a legal-institutional analysis of the informal housing phenomenon and the corresponding regulatory responses in Syria. A literature review is conducted, and functional analysis of the legal texts and their effective implementation is provided.

Findings

First, informal housing in Syria has been fostered by the existence of an erratic regulation, particularly burdened by the incoherence of passing repressive provisions against informal housing while master plans were conspicuously absent or incomplete. Second, the regulatory policy seems to be leaning toward the urban renewal option, indicating a supply-oriented housing approach that may face serious challenges due to the scarcity of capital. In this context, regulation should not underestimate any policy tools at hand (renewal and upgrading; with the contribution of public, private and cooperative sectors).

Originality/value

Although there have been several studies on informal housing in Syria, none has taken a legal institutionalist approach. Furthermore, this study offers an up-to-date account of the problem, taking into account the problematic after the 2023 earthquake and the content of Law 2/2023.

Details

Journal of Property, Planning and Environmental Law, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9407

Keywords

Article
Publication date: 4 April 2024

Aldo Salinas and Cristian Ortiz

The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.

Abstract

Purpose

The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.

Design/methodology/approach

The study employs econometric techniques for panel data covering the period from 2002 to 2017 and considering 17 Latin American countries. The evidence presented is based on the informal economy data generated by Medina and Schneider (2018) who estimate the size of the informal economy using a structural equation model and the share of manufacturing in total employment as a measure of the size of the manufacturing sector. Also, the study addresses the possible endogeneity bias in the relationship studied and makes the conclusions more robust, thus avoiding spurious correlations that weaken the findings.

Findings

The results indicate that most industrialized Latin American countries are associated with a smaller size of the informal economy.

Practical implications

The findings have important policy implications, as they suggest that Latin American economies need to switch the structure of the economy toward more sophisticated productive structures if they want to reduce the size of the informal economy. Thus, more efforts should be deployed to policies to diversify and upgrade economies.

Originality/value

The study contributes to the literature on the informal economy by connecting the country’s productive structure and informality. Specifically, the results show that the productive structure of countries is a plausible explanation for the size of the informal economy.

Details

Journal of Entrepreneurship and Public Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 27 March 2024

Toan Khanh Tran Pham and Quyen Hoang Thuy To Nguyen Le

The purpose of this study is to explore the relationship between government spending, public debt and the informal economy. In addition, this paper investigates the moderating…

Abstract

Purpose

The purpose of this study is to explore the relationship between government spending, public debt and the informal economy. In addition, this paper investigates the moderating role of public debt in government spending and the informal economy nexus.

Design/methodology/approach

By utilizing a data set spanning from 2000 to 2017 of 32 Asian economies, the study has employed the dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). The study is also extended to consider the marginal effects of government spending on the informal economy at different degrees of public debt.

Findings

The results indicate that an increase in government spending and public debt leads to an expansion of the informal economy in the region. Interestingly, the positive effect of government spending on the informal economy will increase with a rise in public debt.

Originality/value

This study stresses the role of government spending and public debt on the informal economy in Asian nations. To the best of the authors' knowledge, this study pioneers to explore the moderating effect of public debt in the public spending-informal economy nexus.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 29 March 2024

Tamer K. Darwish, Osama Khassawneh, Muntaser Melhem and Satwinder Singh

This paper aims to explore the strategic and evolving role of human resource management (HRM) directors within the context of underdeveloped institutional arrangements. The study…

Abstract

Purpose

This paper aims to explore the strategic and evolving role of human resource management (HRM) directors within the context of underdeveloped institutional arrangements. The study focuses on India and conducts a comparative analysis of the roles of HRM directors in both multinational enterprises (MNEs) and domestic firms.

Design/methodology/approach

Survey-based data from the HRM directors of 252 enterprises were gathered for the comparative analysis, including both multinational and domestic enterprises.

Findings

HRM directors in MNEs lack the proficiency required to effectively fulfil their strategic role. In addition, there has been a notable shift in the responsibilities of HRM directors in MNEs, with increased emphasis on labour movements and trade union negotiations, as opposed to traditional human resource (HR) activities. This shift suggests that the role of HRM in MNEs operating in India has been influenced by local isomorphic forces, rather than following a “pendulum swing” between home and host country institutional pressures. The prevalence of informality in the Indian institutional arrangements may act as a strong counterforce to integrating the strategic agency of MNEs' home country HRM directors into the organizational structure. Despite facing resistance from the local institutional context, HRM directors in MNEs are responding with a pushback, prioritizing labour movements and trade union negotiations over core HRM activities.

Research limitations/implications

The study highlights the broader implications for theory and practice, shedding light on the challenges faced by HRM directors in navigating incoherent institutional arrangements. It emphasizes the need for a deeper understanding of local forces in shaping HRM practices within multinational settings.

Originality/value

We contribute to the comparative HRM literature by elaborating on power struggles that HRM directors face amid the dichotomies of formal power and authority that are encoded in the organizational structure versus culturally contingent power that can be accrued from engaging in informality. We also highlight their engagement in prolonged institutional mediation and change, which serves as a compensatory mechanism for the institutional shortfalls they encounter within the context of emerging markets.

Details

Employee Relations: The International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 6 November 2023

Abel Dula Wedajo, Shagufta Tariq Khan, Mohd Abass Bhat and Yousuf Mohamed Zahran Al Balushi

The study examines the characteristics and development trends of female entrepreneurship publications, cooperation networks between countries, journals and individuals…

Abstract

Purpose

The study examines the characteristics and development trends of female entrepreneurship publications, cooperation networks between countries, journals and individuals, intellectual structure of female entrepreneurship studies in Africa and hot research topics. Future comparative studies in different contexts and interdisciplinary collaboration can enrich the understanding about female entrepreneurship research.

Design/methodology/approach

The authors used text mining to analyze 130 peer-reviewed articles published from 1975 to 2022 for keywords and classify them into eight main classes: (1) Paradoxical space and informality, (2) work–family conflict, (3) women's entrepreneurial identity and networking, (4) rural women's entrepreneurial activities in the agricultural sector, (5) religious belief and women's entrepreneurial practice, (6) financial trap and environmental challenges, (7) women's entrepreneurial intentions and capacity building and (8) women in cultural entrepreneurship.

Findings

Female entrepreneurship publications develop significantly. Since 1975, African female entrepreneurship study has grown. Results show 130 publications from 1975 to 2023, with two papers published yearly in 2006–2011 and 23 in 2023, indicating growing interest. Paradoxical space and informality, work–family conflict, women's entrepreneurial identity and networking, religious belief and practice, financial trap and environmental challenges and entrepreneurial intentions and capacity building were hot topics identified by topic modeling analysis.

Practical implications

Female entrepreneurs have looser intellectual networks. Nation, organization and researcher communication is inadequate. Collaborating researchers from different universities and countries may develop the field.

Originality/value

This study is more data-driven and less biased than earlier reviews because it is based on thousands of citation data rather than a small number of papers pre-selected by the researchers. Displaying the field's structure and evolution enhances previous reviews.

Details

Management & Sustainability: An Arab Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2752-9819

Keywords

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