Informal institutions and technology use by entrepreneurs

2016 ◽  
Vol 11 (1) ◽  
pp. 57-71 ◽  
Author(s):  
Saurav Pathak ◽  
Andre O. Laplume ◽  
Emanuel Xavier-Oliveira
Keyword(s):  
Emerging Economies ◽  
Technology Use ◽  
Shadow Economy ◽  
Informal Institutions ◽  
Unique Contribution ◽  
Content Type ◽  
Negatively Associated ◽  
Individual Level ◽  
Country Level

Purpose – Given the increasing relevance of emerging economies in the global economy and the neoclassical argument that technological progress is the main driver of economic growth, the purpose of this paper is to investigate the under-researched role of informal institutions on the likelihood that individuals will enter into technology entrepreneurship in emerging markets. Design/methodology/approach – Since the authors combined individual-level and country-level observations, data were analyzed employing hierarchical linear modeling methods and random-effect logistic regressions to estimate the influence of country-level factors on the likelihood of individuals’ entry into techno-entrepreneurship. The data set comprised 10,280 observations for 18 emerging countries during the 2002-2008 period. Findings – The selected informal institutions relate to techno-entrepreneurship as follows: the size of the shadow economy has a U-shaped relationship; ethnic diversity is positively associated; and ethnic polarization is negatively associated, though the latter is not significant. Research limitations/implications – The authors did not theorize on cross-level mechanisms through which these informal institutions could influence individual-level attitudes, nor did the authors assess the role of such institutions on general entrepreneurship. However, this paper provides a base for more fine-grained studies. Originality/value – The authors disseminate novel insights into the particularities of emerging economies since all informal institutions studied here have been negatively associated with the overall economic experiences of developing and least developed countries. In addition, the authors provide a unique contribution by identifying a potential U-shaped relationship between the size of the shadow economy and the likelihood of individuals engaging in techno-entrepreneurship.

scholarly journals Beyond the formal/informal employment dualism: evaluating individual- and country-level variations in the commonality of quasi-formal employment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Colin Williams ◽  
Besnik Krasniqi
Keyword(s):  
Social Protection ◽  
Informal Institutions ◽  
Vulnerable Groups ◽  
The European Union ◽  
Content Type ◽  
Individual Level ◽  
Country Level ◽  
The United Kingdom ◽  
Formal Employment ◽  
The Individual

PurposeTo transcend the view of employment as either formal or informal, this paper evaluates the prevalence of quasi-formal employment where formal employers pay formal employees an unreported (“envelope”) wage in addition to their formal reported salary. To explain the individual-level variations in quasi-formal employment, the “marginalisation” thesis is evaluated that this practice is more prevalent among vulnerable groups and to explain the country-level variations, and a neo-institutionalist theory is evaluated that it is more prevalent where formal institutional failures lead to an asymmetry between the formal laws and regulations and the unwritten socially shared rules of informal institutions.Design/methodology/approachTo evaluate the individual- and country-level variations in the prevalence of quasi-formal employment, a multi-level logistic regression is provided of data from special 2019 Eurobarometer survey 92.1 involving 11,793 interviews with employees across 28 European countries (the 27 member states of the European Union and the United Kingdom).FindingsOf the 3.5% of employees (1 in 28) who receive under-reported salaries, the marginalisation thesis is supported that it is largely vulnerable population groups. So too is the neo-institutionalist explanation that quasi-formal employment is more common in countries where the non-alignment of formal and informal institutions is greater, with the formal institutional failings producing this identified as lower levels of economic development, less modernised state bureaucracies and lower levels of taxation and social protection.Practical implicationsThe policy implication is that tackling quasi-formal employment requires not only enforcement authorities to improve the risk of detection of this illegal wage practice but also governments to change wider macro-level structural conditions. These are outlined.Originality/valueContemporary new evidence is provided of the prevalence of quasi-formal employment along with how this illegal wage practice can be explained and tackled.

scholarly journals Formal institutions and the development of entrepreneurial activity – the contingent role of corruption in emerging economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arezou Harraf ◽  
Hasan Ghura ◽  
Allam Hamdan ◽  
Xiaoqing Li
Keyword(s):  
Emerging Economies ◽  
Corporate Entrepreneurship ◽  
Informal Institutions ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Formal Institutions ◽  
Business World ◽  
Content Type ◽  
Formal And Informal Institutions ◽  
Control Of Corruption

PurposeThe paper aims to analyse the interplay between formal and informal institutions' and their impact on entrepreneurship rates in emerging economies.Design/methodology/approachThis study expands previous research in examining the moderating effect of control of corruption on the relationship between formal institutions and the development of the entrepreneurial activity. The study utilizes longitudinal analyses of a dataset from 41 emerging economies over 11 years (2006–2016).FindingsFindings provided robust support for the study's hypotheses. The results suggested lower levels of corruption positively moderate the effects of a country's number of procedures and education and training on the rates of entrepreneurial activity, while negatively moderating the effects of firm-level technology absorption on the rates of entrepreneurial activity.Research limitations/implicationsThe study has considered only one particular aspect of high-growth entrepreneurship, which is newly registered firms with limited liability. Although newly registered firms are recognized as one of the critical drivers of entrepreneurial activity. Future research should seek to examine other aspects of growth-oriented entrepreneurship such as activities involving a high level of innovation, corporate entrepreneurship or technology developments.Practical implicationsThis study advanced the existing theories in the field of entrepreneurship and institutional economics as it merged the two theories as a driving framework in the design of the study in the context of emerging economies.Social implicationsThe study tested a theoretical model by expanding the number of emerging economies in the study and found comparable findings that explain factors that may influence the likelihood of individuals entering entrepreneurship.Originality/valueThis article adds to the current literature as it highlights the importance of the interplay of formal and informal institutions in determining their impact on entrepreneurship rates in emerging economies. This is of particular importance to policy-makers, and the business world as the empirical results of this study show the benefits of control of corruption in boosting entrepreneurial rates in these economies, which strive for economic diversification in their developmental endeavours.

Business plan competitions in developed and emerging economies

2019 ◽  
Vol 11 (1) ◽  
pp. 81-97 ◽  
Author(s):  
Syed Awais Ahmad Tipu
Keyword(s):  
Emerging Economies ◽  
Business Plan ◽  
Integrated Approach ◽  
Future Research ◽  
Journal Articles ◽  
Research Gaps ◽  
Content Type ◽  
Individual Level ◽  
Academic Literature ◽  
The Individual

Purpose This paper aims to review the academic literature on business plan competitions in developed and emerging economies to assess the contribution to the knowledge so far and identify research gaps. Design/methodology/approach A variety of databases (such as ABI/Inform Global, Academic Search Complete, Business Source Premier and Emerald Full Text) were used to find peer-reviewed journal articles. Regardless of time, different search terms were used to find relevant journal articles such as business plan competitions, business plan contests, business plan teams, business plan judges, business plan development and business plan scores. After a careful review of the identified articles, a total of 22 articles were included in the final review. The articles in the final set were manually coded using the thematic codes. Findings Despite the popularity of business plan competitions, limited academic literature exists, particularly in the context of emerging economies. A total of 16 out of 22 studies are conducted in developed economies. The findings suggest that the literature on business plan competitions is largely centered on the structure of business plan competitions, the characteristics of the participating teams and the benefits of business plan competitions. The individual level benefits of business plan competitions include the development of entrepreneurial skills, opportunity for networking and access to mentors. Business plan competitions can be better aligned with public policy, particularly in case of emerging economies. Therefore, a more focused and integrated approach among industry, academia and government in encouraging business plan competitions could potentially make a far-reaching impact in establishing an enterprising society. While much is known about the structure and the benefits of business plan competitions, there are various research gaps which need to be addressed. Originality/value The current paper is the first identifiable review of the literature on business plan competitions. The proposed questions for future research will potentially help in addressing the identified research gaps.

scholarly journals Practice-theoretical possibilities for social marketing: two fields learning from each other

2017 ◽  
Vol 7 (2) ◽  
pp. 156-171 ◽  
Author(s):  
Fiona Spotswood ◽  
Tim Chatterton ◽  
Yvette Morey ◽  
Sara Spear
Keyword(s):  
Social Change ◽  
Social Marketing ◽  
Planning Process ◽  
Unique Contribution ◽  
Content Type ◽  
Individual Level ◽  
Behavioural Patterns ◽  
The Social ◽  
Total Process ◽  
Intervention Planning

Purpose This paper aims to introduce key concepts from practice theory (PT) to the social change agenda and draw on the unique contributions of the social marketing field. PT has underpinned a growing stream of research in pro-environmental studies seeking to reduce impacts of particular behaviours, but it remains theoretical. By drawing on social marketing’s applied roots, this paper introduces a practice-theoretical intervention planning process (P-TIPP) which frames the unique contribution of social marketing in behaviour change and foregrounds practice- not individual-level change. Design/methodology/approach The P-TIPP draws on the total process planning model, introducing the concept of “practice as entity” and “practice as performance” to frame intervention planning tasks. The process locates the contribution of social marketing within a transdisciplinary framework which emphasises transforming collective conventions. Findings This is a conceptual paper, but the possibility for PT to make a significant contribution to the world of social marketing is outlined. Research limitations/implications P-TIPP is untested. Also, practices can be difficult to identify and somewhat abstract. Finally, it can be challenging to introduce the approach to policy, funding and practitioner procedures. Practical implications The implications of P-TIPP are that social change interventions are devised, underpinned and planned using insights from PT, such as the way behavioural patterns fit into broader understandings of practice. The subsequent social change agenda will be inherently transdisciplinary, sustainable and reduce focus on individual power to change. Originality/value This paper is a first attempt at exploring what PT, and social marketing can learn from each other for the future effectiveness of social change activity.

Your network is your net worth: political ties and innovation performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Ali Raza ◽  
Abdul Waheed
Keyword(s):  
Partial Least Square ◽  
Innovation Performance ◽  
Least Square ◽  
Equation Modeling ◽  
Unique Contribution ◽  
Content Type ◽  
Net Worth ◽  
Political Ties ◽  
The Impact

PurposeBased on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive capacity (AC) and a moderation role of technology turbulence.Design/methodology/approachA hypothetico-deductive approach is adopted to test the hypotheses. Data were collected from the small and medium enterprises (SMEs) managers/owners through a structured questionnaire.FindingsPartial least square structural equation modeling technique is used to analyze the hypothesized relationships; the findings showed that political ties significantly impact the innovation performance, and this relationship is mediated by AC. Moreover, technological turbulence moderated the relationship between political ties and innovation performance.Originality/valueDespite the increasing attention to the role of networking in improving innovation, there is a scarcity of studies on the role of political ties, AC and technology turbulence in fostering organizational innovation; thus, this study is a unique contribution to literature.

Financial analysts' reaction to voluntary integrated reporting: cross-sectional variation in institutional enforcement contexts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francesca Rossignoli ◽  
Riccardo Stacchezzini ◽  
Alessandro Lai
Keyword(s):  
Institutional Setting ◽  
Institutional Characteristics ◽  
Unique Contribution ◽  
Integrated Reporting ◽  
Content Type ◽  
Institutional Settings ◽  
Country Level ◽  
Eu Directive ◽  
Sustainability Disclosure ◽  
Moderating Role

PurposeEuropean countries are likely to increasingly adopt integrated reporting (IR) voluntarily, after the 2014/95/EU Directive is revised and other initiatives are implemented. Therefore, the present study provides insights on the relevance of IR in voluntary contexts by exploring analysts' reactions to the release of integrated reports in diverse institutional settings.Design/methodology/approachDrawing on voluntary disclosure theory, a quantitative empirical research method is used to explore the moderating role of country-level institutional characteristics on the associations between voluntary IR release and analyst forecast accuracy and dispersion.FindingsIR informativeness is not uniform in the voluntary context and institutional settings play a moderating role. IR release is associated with increased consensus among analyst forecasts. However, in countries with weak institutional enforcement, a reverse association is detected, indicating that analysts rely largely on IR where the institutional setting strongly protects investors. Although a strong institutional setting boosts the IR release usefulness in terms of accuracy, it creates noise in analyst consensus.Research limitations/implicationsAcademics can appreciate the usefulness of voluntary IR across the institutional enforcement contexts.Practical implicationsManagers can use these findings to understand opportunities offered by IR voluntary release. The study recommends that policymakers, standard setters and regulators strengthen the institutional enforcement of sustainability disclosure.Originality/valueThis study is a unique contribution to recent calls for research on the effects of nonfinancial disclosure regulation and on IR “impacts”. It shows on the international scale that IR usefulness for analysts is moderated by institutional patterns, not country-level institutional characteristics.

Determinants of stock market reaction to cross-border acquisitions: evidence from emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samta Jain ◽  
Smita Kashiramka ◽  
P. K. Jain
Keyword(s):  
Emerging Economies ◽  
Value Creation ◽  
Global Economy ◽  
Emerging Market ◽  
Research Work ◽  
Abnormal Returns ◽  
Content Type ◽  
Cross Border ◽  
Country Level ◽  
Acquiring Firms

PurposeThe global economy has witnessed an exponential increase in cross-border acquisitions (CBAs) by emerging market companies (EMCs), demanding a relook at their internationalization strategy. The purpose of the study is to investigate whether the announcement of CBAs by EMCs creates value for the equity-holders of acquiring firms and identify factors affecting the valuation of acquiring companies.Design/methodology/approachThe paper investigates the announcement impact of CBAs of CNX Nifty 500 Indian and SSE 380 Chinese companies. The event study analysis of 553 Indian and 125 Chinese acquisitions supports the contention that CBAs are indeed a strategic choice of EMCs for value creation.FindingsCBAs generate positive and statistically significant abnormal returns for shareholders of both Indian and Chinese acquirers. The markets, however, differ in terms of their motivations; country-level factors have been observed to exert significant influence on the returns of Indian acquirers. Indian companies experience larger value creation on acquiring firms established in developed, institutionally closer and/or economically distant markets. The findings support the asset-seeking motive of Indian companies.Originality/valueThe research work contributes to the evolving stream of CBAs literature with a focus on the globalization strategies of EMCs. The present study is a modest attempt to lay the foundation for a new theoretical framework (asset-seeking perspective) of overseas acquisitions from emerging economies. The existing studies on emerging economies have emphasized, in isolation, either Indian CBAs or international acquisitions by Chinese firms. Being so, the study is unique and original in the sense that it is a comparative study of India and China.

Cognitive and social mechanisms: the role of emotions in creativity through work-based learning from a functionalist perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wei Liu ◽  
Jing Wei Li ◽  
Qi Wei Zhou
Keyword(s):  
Positive Emotions ◽  
Negative Emotions ◽  
Employee Creativity ◽  
Learning Mechanisms ◽  
Mediation Effects ◽  
Content Type ◽  
Negatively Associated ◽  
Chinese Company ◽  
Positive And Negative Emotions

Purpose From a functionalist perspective, this study aims to examine empirically how positive and negative emotions can exert influence on creativity in the workplace. This study built and tested a theoretical framework that delineates the effect of emotions on employee creativity through different learning mechanisms. Design/methodology/approach Field surveys were conducted in a Chinese company and data were collected from 340 employee-supervisor dyads. Findings The results indicate that positive emotions were positively related to task-related learning and interactional learning, both of which promote employee creativity. Task-related learning mediated the association between positive emotions and creativity. Nevertheless, negative emotions hindered employees from interactional learning and were negatively associated with creativity. Interactional learning mediated the association between negative emotions and creativity. Moreover, the interaction between positive and negative emotions was negatively associated with task-related learning. Originality/value This study contributes to the literature on emotions and employee learning by demonstrating the value of using a functionalist perspective through different procedural mechanisms for employee outcomes and exploring the mediation effects of different learning behaviors in promoting creativity.

Retail atmospherics and retail store patronage of supermarkets in emerging economies: mediating role of perceived service quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Dokcen ◽  
Vincent Obedgiu ◽  
Gideon Nkurunziza
Keyword(s):  
Service Quality ◽  
Emerging Economies ◽  
Retail Store ◽  
Content Type ◽  
Perceived Service Quality ◽  
Patronage Behavior ◽  
Store Patronage ◽  
Retail Atmospherics ◽  
The Relationship

PurposeThe purpose of the study is to establish the mediating role of Perceived Service Quality on the relationship between Retail Atmospherics and Retail Store Patronage of Supermarkets in Emerging Economies using empirical evidence from Uganda.Design/methodology/approachThe study used a cross-sectional research design and quantitative approach to understand stand the structured reality of Retail Store Patronage of supermarkets in context of emerging economies. In the context of this study, the data were drawn from Uganda's supermarkets. A sample of 1,504 customers were selected from 136,270 customers. Data was collected from supermarket customers using closed ended questionnaire. Descriptive and inferential statistics were derived to describe the behavior of customers and draw conclusions on population using sample statistics. Correlation analysis was used to establish the degree of association between the variables. Hierarchical regression was applied to assess the unique contribution of each variable; control variables-income and age, predictor variables – Retail Atmospherics and Perceived Service Quality on dependent variable – Retail Store Patronage. Mediation was done following the four-step procedures of mediation of Baron and Kenny (1986).FindingsThe results revealed significant positive relationship between Retail Atmospherics, Perceived Service Quality and Retail Store Patronage, confirming the direct hypotheses. Perceived Service Quality partially mediated the relationship between Retail Atmospherics and Retail Store Patronage. The findings depict that Retail Store Patronage is influenced directly by Retail Atmospherics and indirectly through Perceived Service Quality as a mediating variable. However, in situations where the atmospherics is good but perceived service quality is poor, Retail Store Patronage may not be fully realized.Originality/valueThe study provides information that is relevant for filling the practical and theoretical gap in the Retail Store Patronage in Ugandan supermarkets. Previous research studies investigated patronage behavior of shoppers in single retail units yet there is paucity of research on patronage behavior across different retail formats in the world. This study can be generalized and have strategic implications to developing economies that seek to grow and sustain their businesses. It points to the gaps that are normally overlooked and could lead business failure. The focus of most previous studies were on developed economies more especially Europe and America. This study in particular focused on the role of perceived service quality in the relationship between retail atmospherics and customer retail store patronage in emerging economies like Uganda as a testing ground.

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