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Book part
Publication date: 8 June 2012

Kai Xu and Michael A. Hitt

This chapter contributes to the existing literature on institutional theory and international business research by integrating the concepts of polycentrism and institutional…

Abstract

This chapter contributes to the existing literature on institutional theory and international business research by integrating the concepts of polycentrism and institutional learning to examine how MNEs from emerging economies invest in developed countries. We argue that equity-based market entry modes and non-equity-based modes create different needs for learning about economic, regulatory and political institutions; entry modes with or without local partners lead to different levels of institutional embeddedness and institutional learning speeds. Finally, the content of institutional knowledge also determines its transferability and adaptability. We emphasize the importance of recognizing the integrated nature of economic, regulatory and political institutions from a polycentric perspective and discuss their change in different situations.

Details

Institutional Theory in International Business and Management
Type: Book
ISBN: 978-1-78052-909-7

Article
Publication date: 1 September 2023

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.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 19 February 2018

Birton J. Cowden and Joshua S. Bendickson

Many factors influence entrepreneurs, some of which influence the level of innovation (i.e. innovative or imitative) of new products or services pursued. The purpose of this paper…

Abstract

Purpose

Many factors influence entrepreneurs, some of which influence the level of innovation (i.e. innovative or imitative) of new products or services pursued. The purpose of this paper is to explore the impact of the psychological motivations of the entrepreneurs and their institutional setting on the innovativeness of the new venture they pursue. Through this exploration, we can gain a better understanding of how innovative new ventures still occur in varying institutional environments.

Design/methodology/approach

In order to deliver the authors’ propositions as they pertain to innovation, the authors review the literature on entrepreneurs’ default regulatory focus (i.e. promotion or prevention seeking) and the strength of the institutions in which they are operating.

Findings

The authors theorize that promotion focus enhances innovativeness of ventures while prevention focus enhances imitativeness of ventures. The authors also provide a conceptual framework for the interplay among institutions and regulatory focus and provide a typology for how these varying combinations impact innovativeness or imitativeness of venture type.

Originality/value

In this study, the authors discuss and unpack the entrepreneurial mindset in order to bridge gaps between institutions and cognitive motivations of entrepreneurs as they pertain to innovativeness of venture type. By synthesizing several areas of research, the authors shed light on entrepreneurs’ innovativeness by proposing how these factors work together in determining whether an entrepreneur’s venture is more or less innovative based on regulatory disposition and in different institutional settings.

Details

Management Decision, vol. 56 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 14 May 2020

İlayda İpek and Mustafa Tanyeri

Anchored mainly on the institutional theory and resource-based view, this study endeavors to investigate the interplay between home country institutional environment (economic…

Abstract

Purpose

Anchored mainly on the institutional theory and resource-based view, this study endeavors to investigate the interplay between home country institutional environment (economic, regulatory and socio-cultural environment), export market orientation and export performance. Besides, this study also aims to examine the moderating role of firm resources (knowledge-based and managerial resources) in the associations between home country institutions and export market orientation.

Design/methodology/approach

Drawing on data from a sample of 221 exporting firms in Turkey, the conceptual model is empirically examined by structural equation modeling.

Findings

The findings reveal that regulatory environment is conducive to the improvement of export market orientation, which is instrumental in cultivating export performance. Importantly, empirical evidence also proves that higher levels of knowledge-based and managerial resources strengthen the linkage between home country institutions and export market orientation.

Originality/value

Integrating institutional theory with the resource-based view, this research considerably contributes to the current understanding of the export market orientation phenomenon by filling the knowledge gap on the differential impacts of home country’s economic, regulatory and socio-cultural environment on export market orientation. Moreover, this study provides worthwhile insights into the moderating effect of knowledge-based and managerial resources on home country institutions and export market orientation and the interrelationship between export market orientation and export performance in an emerging economy.

Details

International Journal of Emerging Markets, vol. 16 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 18 July 2017

George Joseph

This paper presents an institutional theory framework integrating normative, regulatory and cognitive-cultural pillars (Scott, 2008) to depict an interinstitutional system within…

Abstract

This paper presents an institutional theory framework integrating normative, regulatory and cognitive-cultural pillars (Scott, 2008) to depict an interinstitutional system within which professions operate and develop. The pillars highlight the trade-offs between institutions leading to conflicts of interest that also impact the stability of the system and the ability of the profession to self-regulate. To illustrate the framework, the paper uses selected accounting-based professions and their alignment with the institutional pillars. Drawing from examples emerging from the Enron experience, the paper delves more deeply into the regulatory profession and professionals as agents to explore implications of their role in interpreting and in some instances developing institutions. Further, the paper highlights the potential fissures that emerge in a competitive environment between the public interest and market-based cognitive-cultural pillars that tends to erode public trust and weaken the institutional system, leading to the need for increased regulation to maintain the stability of the pillars. Overall, the framework presents a unique perspective on the role of public interest as a component of the normative pillar in aligning and thereby, stabilizing the functioning of the interinstitutional system. This perspective provides a basis to contextualize and articulate a public interest perspective for the accounting profession in an interinstitutional system.

Details

Parables, Myths and Risks
Type: Book
ISBN: 978-1-78714-534-4

Keywords

Article
Publication date: 21 May 2019

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…

1128

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.

Details

Journal of Enterprise Information Management, vol. 32 no. 3
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 28 April 2014

Aidan O’Connor, Francisco J. Santos-Arteaga and Madjid Tavana

The purpose of this paper is to propose a game-theoretical model for commercial bank foreign direct investment strategy, government policy and domestic banking industry…

1170

Abstract

Purpose

The purpose of this paper is to propose a game-theoretical model for commercial bank foreign direct investment strategy, government policy and domestic banking industry interactions in emerging market economies and demonstrate the application of this strategy to the banking system. Government policy and domestic banking industry interactions in emerging market economies and demonstrate the application of this strategy to the banking system.

Design/methodology/approach

The paper develops a game-theoretical model to analyze the optimality of the limiting entry strategy followed by a given domestic institutional sector when considering the entry applications of foreign banks in the domestic financial system. The model analyzes the strategic options available to an emerging market country with a relatively underdeveloped banking system when deciding whether or not and to what extent allow for the entrance of better reputed and more technologically advanced foreign banks in its domestic financial system.

Findings

The paper shows that the progressive liberalization of entry restrictions would define the perfect Bayesian equilibria of the subsequent set of continuation games and the respective payoffs derived from this liberalization as the domestic economy integrates and competes within the global financial system.

Originality/value

Banks operating in the international financial market have incentives to invest directly in emerging market economies and governments have incentives in allowing foreign banks entry to their market. As banking systems in these economies are generally underdeveloped, opening the financial system to foreign competitors could lead to a decrease in the market share of local banks. Eventually foreign banks could control the banking system and could de facto control the money supply.

Details

International Journal of Bank Marketing, vol. 32 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 27 November 2023

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.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 July 2014

Xin Li and Jens Gammelgaard

This paper aims to critically review the ownership, location and internalization (OLI) model and the Uppsala internationalization process (UIP) framework. We suggest that the…

1908

Abstract

Purpose

This paper aims to critically review the ownership, location and internalization (OLI) model and the Uppsala internationalization process (UIP) framework. We suggest that the inclusion of concepts such as corporate entrepreneurship, host country institutions and regulatory focus in an integrated framework helps to explain firm internationalization.

Design/methodology/approach

This paper is based on a review of the literature on the OLI and UIP models. In addition, it presents a conceptual model that encompasses corporate entrepreneurship, regulatory focus and institutions.

Findings

The OLI and the UIP models fail to include corporate entrepreneurship and managerial psychology in their analyses. We suggest that regulatory focus theory unifies the managerial strategic choice between position logic and opportunity logic. In addition, host country institutions affect this managerial choice with regard to internationalization.

Practical implications

Regulatory focus theory originates from managerial psychology. The model is, therefore, relevant for managers, and it shows how the outcomes and processes of corporate entrepreneurial activity should manifest themselves in managerial decision-making related to further internationalization. The strength of host country institutions also affects such decision-making.

Originality/value

This paper is the first to present the concept of regulatory focus in relation to firm internationalization. In addition, it shows that most entrepreneurship-related models of internationalization focus on international entrepreneurship and start-up firms. In contrast, this paper focuses on corporate entrepreneurship and the internationalization of established firms.

Article
Publication date: 19 June 2009

Christos Alexakis and Alexandros Tsikouras

The purpose of this paper is to provide an overview of the regulatory framework and key regulatory institutions and industry associations in Islamic finance today and highlight…

12294

Abstract

Purpose

The purpose of this paper is to provide an overview of the regulatory framework and key regulatory institutions and industry associations in Islamic finance today and highlight areas that merit increased attention.

Design/methodology/approach

A wide range of bibliography was reviewed, with particular focus on the standards published by the Islamic Financial Services Board and the Accounting and Auditing Organization for Islamic Financial Institutions. Regulatory topics of particular interest in the Islamic financial world are reviewed. An overview of the main Islamic regulatory institutions is provided. The paper ends with a set of hypotheses requiring further research.

Findings

The paper finds that the growth of the Islamic finance sector may be impacted by the: increased involvement in Islamic finance by Western regulators, as well as credit rating agencies; existence of sound accounting procedures; increased protection of stakeholders of Islamic Financial Institutions.

Originality/value

This paper provides useful information on the current status of the regulatory framework in Islamic finance and highlights areas for further research for academics and professionals alike.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 2 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

1 – 10 of over 36000