The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies

2010 ◽  
Vol 19 (1) ◽  
pp. 85-101 ◽  
Author(s):  
Dirk De Clercq ◽  
Wade M. Danis ◽  
Mourad Dakhli
Keyword(s):  
Emerging Economies ◽  
Institutional Context ◽  
Moderating Effect ◽  
Business Activity ◽  
New Business ◽  
The Relationship

scholarly journals Governance quality, foreign direct investment, and entrepreneurship in emerging markets

2019 ◽  
Vol 26 (2) ◽  
pp. 238-264
Author(s):  
Nam Hoai Tran ◽  
Chi Dat Le
Keyword(s):  
Emerging Economies ◽  
Institutional Context ◽  
Emerging Countries ◽  
Entrepreneurial Activity ◽  
Outward Fdi ◽  
Content Type ◽  
Necessity Entrepreneurship ◽  
Governance Quality ◽  
The Relationship

Purpose The purpose of this paper is to thoroughly investigate the interplay between institutions, foreign direct investment (FDI) and entrepreneurship in the context of emerging markets (EMs). Design/methodology/approach The authors argue that the impact of FDI on entrepreneurial activity depends on different natures of capital flow and entrepreneurial motivation and relates to the quality of institutional environment. First, the roles of inward and outward FDI are examined in connection with the new firm creation by opportunity- and necessity-motivated entrepreneurs. Second, the integrated influences of (inward/outward) FDI and governance quality (GQ) on (opportunity/necessity) entrepreneurship are tested. This nexus of relationships is analyzed through segmented regressions using the GEM data of 39 EMs over the 2004–2015 period. Findings It is evidenced that the quality of governance infrastructure affects the relationship between FDI and entrepreneurship: in emerging countries with low GQ, opportunity entrepreneurship is stimulated by inward FDI and diminished by outward FDI; and in emerging countries with high GQ, necessity entrepreneurship is discouraged by inward FDI and promoted by outward FDI. Practical implications This research has implications for the institutional context-based execution of public policy in emerging economies. As the entrepreneurial effects of inward and outward FDI are pronounced differently under the two types of entrepreneurship and the two extremes of GQ, public policy makers who recognize the catalytic role of FDI in domestic business development should take the distinct institutional context of their country into consideration. Originality/value The paper contributes to the extant literature on international entrepreneurship in emerging economies by making a breakdown on the roles played by different types of FDI in the entrepreneurial activity, analyzing the mediating effects of GQ on the relationship between inward/outward FDI and entrepreneurship, and interpreting the capital and institutional determinants of entrepreneurship in terms of entrepreneurial motivations by opportunity and necessity.

scholarly journals The Pitfalls of Using Location Quotients to Identify Clusters and Represent Industry Specialization in Small Regions

2021 ◽  
Vol 2021 (1329) ◽  
pp. 1-25
Author(s):  
Mariya Pominova ◽  
◽  
Todd Gabe ◽  
Andrew Crawley ◽  
◽  
...  
Keyword(s):  
Small Towns ◽  
Business Activity ◽  
Location Quotient ◽  
Small Cities ◽  
Industry Specialization ◽  
Industry Location ◽  
Level Data ◽  
New Business ◽  
Population Sizes ◽  
The Relationship

This paper examines the use of location quotients, a measure of regional business activity relative to the national benchmark, as an indicator of sectoral agglomeration in small cities and towns, and as a measure of industry specialization that might impact the number of new business startups in these places. Using establishment-level data on businesses located in Maine, our findings suggest that the addition of one "hypothetical" establishment in very small towns leads to a dramatic change in the magnitude of the region-industry location quotient. At population sizes of about 4,100 or more people, however, location quotients are reasonably stable. Regression results from an analysis of the relationship between new business activity and regional industry specialization show that the effect of location quotients on business startups switches from "inelastic" to "elastic" at a population size cutoff of about 2,600 residents. Overall, our findings suggest that researchers and practitioners should exercise caution when using location quotients to study small regions.

scholarly journals The moderating effect of corruption on the relationship between formal institutions and entrepreneurial activity

2019 ◽  
Vol 12 (1) ◽  
pp. 58-78 ◽  
Author(s):  
Hasan Ghura ◽  
Arezou Harraf ◽  
Xiaoqing Li ◽  
Allam Hamdan
Keyword(s):  
Institutional Economics ◽  
Institutional Environment ◽  
Moderating Effect ◽  
Point Of View ◽  
Entrepreneurial Activity ◽  
Formal Institutions ◽  
Content Type ◽  
New Business ◽  
Communist Countries ◽  
The Relationship

Purpose Corruption has been shown to discourage entrepreneurship in both developed and developing countries. However, it is less clear to what extent corruption affects the development of institutions’ impact on entrepreneurial activity in the context of emerging economies, such as those in the post-communist countries. The purpose of this study is to use institutional economics as a conceptual framework to analyse the moderating effect of control of corruption (informal institution) on the relationship between formal institutions (such as the number of procedures, education and training [TEDU], access to finance and technology absorption) and entrepreneurial activity. Design/methodology/approach The study used panel data of 14 post-communist countries and different secondary databases from the years 2006-2016. Findings The main findings showed the importance of the institutional environment (formal and informal) on encouraging the rates of entrepreneurial activity. Overall, corruption showed that it behaves as a moderator between formal institutions and entrepreneurship. In particular, the evidence from this study showed that formal institutions, such as the number of procedures and TEDU, are more likely to encourage individual’s choice to become an entrepreneur and start a new business activity in post-communist economies that have a perception of lower levels of corruption. Originality/value This study has several implications from both theoretical perspectives (advancing the application of institutional economics for the study of entrepreneurship) and from the practical point of view (providing insights for governmental policies interested in fostering higher levels of entrepreneurial activity).

The role of human capital outcomes in generating business ideas

2019 ◽  
Vol 50 (1) ◽  
pp. 163-183 ◽  
Author(s):  
Donata Sobakinova ◽  
Yan Zhou ◽  
Dilawar Khan Durrani
Keyword(s):  
Human Capital ◽  
Self Efficacy ◽  
Moderating Effect ◽  
Content Type ◽  
Knowledge And Skills ◽  
New Business ◽  
Entrepreneurial Knowledge ◽  
The Relationship ◽  
Entrepreneurial Human Capital

Purpose Despite the existence of a vast body of research on entrepreneurship, little is known about why some entrepreneurs are able to generate and realize more business ideas than others. This study aims to present a prospective answer to this question by empirically examining the relationships among human capital outcomes (entrepreneurial knowledge and skills) and the number of business ideas generated and implemented. Additionally, the authors examined the moderating effect of the entrepreneurial self-efficacy on the proposed relationships. Design/methodology/approach A statistical analysis on a sample of 340 Russian entrepreneurs was conducted. Findings The results from the analysis indicated that human capital outcomes (entrepreneurial knowledge and skills) are positively related to the number of generated and implemented ideas. Furthermore, it was seen that entrepreneurial self-efficacy significantly moderates the relationship between human capital outcomes and the number of implemented ideas. However, self-efficacy has no significant moderating effect on the relationships among human capital outcomes and the number of generated ideas. Finally, the results showed that the number of ideas generated mediates the relationships among human capital outcomes and the number of ideas implemented. Originality/value To the best of the authors’ knowledge, no previous study has investigated the combination of such variables as entrepreneurial human capital outcomes, entrepreneurial self-efficacy and the number of new business ideas. This paper investigates this gap in the literature with an empirical analysis of the relations between the mentioned variables based on data collected from Russian entrepreneurs.

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