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Reports and experiences suggest that several developing African economies are faced with entrepreneurial-impeding forces such as lengthy bureaucratic processes and poor regulatory space. The study examines a general trend in “doing business performance” among selected African countries and uses the case of Ghana to explore how particular indicators or forces affect the development and deployment of small and medium-sized enterprise (SME) policies.

Comparative analysis of six African economies on their ease of doing business score. This is followed by a critical review of the literature to develop a six-point explanatory framework to explore the relative position of the six countries on the ease of doing business scores. Using Ghana as a critical case study, the authors deploy an in-depth case study analysis via in-depth interviews of relevant stakeholders to validate the information from secondary sources.

The study observes that the nature of leadership, socio-cultural imperatives, economic structure and policy and the role of domestic institutional players and international players have implications for the extent to which the state creates an enabling environment for SMEs and entrepreneurial activities. The role of supportive cultural software that will help drive SME and entrepreneurial growth has been established. The study contends that different aspects of national culture do have implications for the tendency for people to be business-minded or to have the ability to take risks. The demand and supply sides are crucial in promoting SME growth.

The study develops a framework that helps explore elements to help explain ease of doing business scores and the viability of SMEs in Africa. These elements were validated through qualitative interviews as well.

Information and communication technologies (ICT) are indispensable tools for Knowledge Management (KM) practices in today’s knowledge-intensive and globally interconnected marketplace. This paper seeks to investigate the impact of family ownership on ICT investments in an emerging economy (EE) context.

This empirical paper uses data from 300 large Indian listed firms with 2,650 observations in the period 2008–2017, to test its hypothesis.

The results indicate that family firms are not favourably inclined towards ICT investments for formalizing their KM practices. However, under certain contexts, such as higher foreign institutional ownership or business group affiliation, they are more willing to invest in ICT resources.

This study establishes a nuanced understanding of how family firms approach ICT investments and KM practices. This research can help family owners/managers to commit sufficient resources on ICT projects.

Literature on KM has largely emanated from developed countries. This is one of the first papers from an EE context that studies the impact of family ownership on ICT investments and subsequent KM practices. In this way, this paper offers specific insights into the context of Indian family firms and offers some interesting findings that can contribute to the literature, policy and practice.

The purpose of this study was to explore the motives (especially the agency motives) for corporate diversification from the perspective of corporate executives who make such strategic decisions and manage the diversified firms daily.

A qualitative research approach was adopted, and 12 chief executive officers (CEOs) of diversified firms in Nigeria were interviewed for their perspectives on the motives for corporate diversification.

Stewardship motives – diversification to use excess capacities in assets and resources to exploit opportunities in the market and defend against adverse environmental developments – were the most cited reasons for diversification. The relevant agency problem related to corporate diversification motive in Nigeria is the principal–principal (majority shareholder-minority shareholder) one. CEOs with substantial holdings in their firms indicated that they use diversification to reduce their investment risk and retain control of their portfolio.

The findings suggest that in corporate environments such as Nigeria that feature blockholding prominently, the corporate strategy-related agency problem that policymakers should pay greater attention to is the principal–principal conflict rather than the traditional agent–principal problem that has influenced corporate governance over the years. There is also a need to revise the dominant view that diversification is a value-destroying strategy motivated by the self-seeking behavior of managers who have little or no shares in the companies they manage.

The few studies on motives for corporate diversification that incorporated the perspectives of corporate executives did not address the agency motives of diversification. To the best of the authors’ knowledge, this is the first study that has done so.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Immigrant integration through entrepreneurship is hindered by the prevalent informality of their ventures. This study aims to examine the factors influencing the formalisation of immigrant entrepreneurship, with special focus on those who are under the impact of the host country.

The study is based on a series of focus groups conducted among a total of 59 Ukrainian immigrants in Poland. Based on coding into first-order categories, second-order themes and aggregate dimensions, the authors created a model of immigrant entrepreneurship formalisation.

The results of the research included in the model show the groups of factors influencing the formalisation of immigrant entrepreneurship. Immigrants bring both their personal attitudes and embeddedness in their country of origin during immigration. Then, factors of the host country’s institutions, interactions between local authorities and local communities and the need for a new place of belonging interact in the formalisation process. Formal entrepreneurs, as a new identity for immigrants, are the result of the formalisation process.

The results not only focus on social capital or the institutional failures of formal and informal institutions in transforming immigrants into formal entrepreneurs, but we also recognise the individual aspect of the new identity as formal entrepreneurs and a new place of belonging. In addition, the authors distinguish the importance and interactions between local communities and local authorities in this process. The paper contributes to the theory of entrepreneurship, migrant study and institutional theory.

To overcome economic hardship and survival, informal entrepreneurs must continually activate specific resilience capabilities and reassess their entrepreneurial intentions (EI). Accordingly, they may develop transformational characteristics to design a model supporting intersectorial business growth. This study aims to examine the EI ecosystem of change resulting from the above endeavors and proposes an entrepreneurial intention transformation model (EITM).

Using the EI questionnaire developed by Liñán and Chen, data was collected from street vendors in the main markets of the Cameroonian capital (N = 307) to capture the determinants of behavior reflecting the propensity to activate entrepreneurial events within informal ventures.

It was uncovered that perceived collective support, resilience, orientation capability and inferred policies influence the dynamics of EI in the informal sector. Additionally, while revisiting current entrepreneurial lifecycle models, the study distinguished between the entrepreneurial events of “renegare” and formalization. Furthermore, the construction of an informal entrepreneurial lifecycle model confirms the need to acknowledge the formalization and “deformalization” processes as integrative parts of an intersectorial entrepreneurial lifecycle model.

This study extends existing research by proposing an intersectorial entrepreneurial lifecycle to recognize the dynamics of EI on ventures’ formalization. The EITM encompasses the EI dynamic process model and the proposed entrepreneurial lifecycle.

This study aims to analyze the short-, medium- and long-term impacts of natural-resources-seeking foreign direct investment (FDI) in the form of foreign multinational enterprise (MNE) land acquisitions on agricultural labor productivity in developing countries. The authors analyze if these land acquisitions disrupt fair and decent rural labor productivity or if the investments provide opportunities for improvement and growth. The influence of different country characteristics, such as economic development levels and governmental protection for the rural population, are acknowledged.

The study analyzes 570 land acquisitions across 90 countries between 2000 and 2015 via a generalized least squares regression. It distinguishes short- and long-term implications and the moderating role of a country’s economic development level and government effectiveness in implementing government protection.

The results suggest that natural resource-seeking FDI harms agricultural labor productivity in the short term. However, this impact turns positive in the long term as labor markets adjust to the initial disruptions that result from land acquisitions. A country’s economic development level mitigates the negative short-term impacts, indicating the possibility of finding alternative job opportunities in economically stronger countries. Government effectiveness does have no influence, presumably as the rural population in which the investment is partaking is in many developing countries, not the focus of governmental protectionism.

The findings provide interesting insights into the impact of MNEs on developing countries and particularly their rural areas that are heavily dependent on natural resources. The authors identify implications on employment opportunities in the agricultural sector in these countries, which are negative in the short term but turn positive in the long term.

Moreover, the findings also have utility for policymakers. The sale of land to foreign MNEs is not a passive process – indeed, developing country governments have an active hand in constructing purchase contracts. Local governments could organize multistakeholder partnerships between MNEs, domestic businesses and communities to promote cooperation for access to technology and innovation and capacity-building to support employment opportunities.

The authors urge MNE managers to establish new partnerships to ease transitions and mitigate the negative impacts of land acquisitions on agricultural employment opportunities in the short term. These partnerships could emphasize worker retraining and skills upgrading for MNE-owned land, developing new financing schemes and sharing of technology and market opportunities for surrounding small-holder farmers (World Bank, 2018). MNE managers could also adopt wildlife-friendly farming and agroecological intensification practices to mitigate the negative impacts on local ecosystems and biodiversity (Tscharntke et al., 2012).

The authors contribute to the debate on the positive and negative impact of FDI on developing countries, particularly considering temporality and the rural environment in which the FDI is partaking.

This study investigates how the degree of internationalization (DOI) affects the financial performance of emerging market companies by making the distinction between export intensity and multinationality (i.e. foreign direct investment). The authors argue that the different DOI-performance patterns in the literature relate to different internationalization approaches, which are moderated in distinct ways by formal institutions in the home country.

Based on data of Brazilian firms in several industries and with different internationalization patterns including 100 exporting firms and 30 multinational companies with varying degrees of multinationality over a period of five consecutive years, the authors test their hypotheses using an unbalanced panel data with 346 firm-year observations. In order to test how the quality of formal institutions moderate the DOI-performance relationships, the authors estimate the changes in the slope of the regression line by adding and subtracting one standard deviation to the Worldwide Governance Indicators (WGI) variables.

A positive and linear association between export intensity-performance (EI-P) highlights the location specific comparative advantages of exporting Brazilian firms, while the multinationality-performance (M-P) relationship points to a horizontal S-shape pattern which conforms to the theoretical assumptions of the three-stage internationalization process. Formal institutions moderate positively the EI-P relationship, but moderate negatively each of the three stages of the M-P relationship.

The findings from this study provide critical insights that contribute to the ongoing debate on how formal institutions in the home country affect the DOI-performance relationship of emerging market companies (EMCs). However, the authors consider that it has limitations as they focused exclusively on formal institutions captured by governance institutions in the Brazilian context.

This study provides relevant insights to managers and policy makers. Findings reveal that strong formal institutions in the home country make it easier (cheaper) for EMCs to invest abroad, and, at the same time, increase the efficiency of exporting firms and positively influence financial performance. Moreover, results show that during downturns in their domestic markets, multinational EMCs outperform domestic firms. In that sense, while policy makers can promote the internationalization and competitiveness of EMCs by implementing more supportive formal institutions, managers should consider a proactive approach and invest abroad when conditions in the home country are favorable.

By making the distinction between export intensity and multinationality this study contributes to the literature on the DOI-performance of EMCs providing a more nuanced view on how formal institutions in the home country moderate the EI-P and M-P relationships in different ways.

In recent decades, emerging market multinational enterprises (EMNEs) have predominantly adopted a big step internationalization strategy to expand their business overseas. This study aims to examine the effect of big step internationalization on the speed of subsequent foreign direct investment (FDI) expansion for EMNEs. The authors also investigate the potential boundary conditions.

The authors use the random effects generalized least squares (GLS) regression following a hierarchical approach to analyze the panel data set conducted by a sample of publicly listed Chinese firms from 2001 to 2012.

The findings indicate that implementing big step internationalization in the initial stages accelerates the speed of subsequent FDI expansion. Notably, the authors find that this effect is more pronounced for firms that opt for acquisitions as the entry mode in their first big step internationalization and possess a board of directors with strong political connections to their home country’s government. In contrast, the board of director’s international experience negatively moderates this effect.

This study provides insights into our scholarly and practical understanding of EMNEs’ big step internationalization and subsequent FDI expansion speed, which offers important implications for firms’ decision-makers and policymakers.

This study extends the internationalization theory, broadens the international business literature on the consequences of big step internationalization and deepens the theoretical and practical understanding of foreign expansion strategies in EMNEs.

Digital technologies over time are becoming increasingly pervasive and relatively affordable, finding a large diffusion in Small and Medium Enterprises (SMEs) also for internationalization purposes. However, less is known about the specific mechanisms by which this can be achieved. Specifically, we focus on how SMEs can face the international environment, leveraging digital technologies and thanks to their intellectual capital (IC).

We analyze the relationship between digital technologies and the internationalization of SMEs, exploring the mediating role of IC in its three dimensions: human, relational and innovation capital, and assessing the possible moderating effects posed by international institutional conditions, specifically the Sino-US trade frictions. The relationships are tested using a sample of companies listed on China’s A-share Growth Enterprise Market (GEM) from 2010 to 2021.

Digital technologies help to internationalize SMEs. However, this positive relationship is affected (mediated) by the presence of an already consolidated IC. In addition, the institutional conditions of the international market, such as the Sino-US trade friction, moderate the components of IC differently. Specifically, the overall mediating effect of human and relational capital is boosted, while this does not happen for innovation capital.

First, this study contributes to the literature on organizational resilience, especially digital resilience, confirming its validity in the context of internationalization and, in particular, those processes adopted by SMEs. Second, we clarify the mechanisms through which digital technologies exert their impact on the process of internationalization and in particular the prominent necessity of having IC. Third, our conclusions enrich the understanding of how IC components react to turbulence in international markets.