EMPIRICAL EVIDENCE ON THE INFLUENCE OF THE INSTITUTIONAL ENVIRONMENT ON VENTURE INNOVATION PERFORMANCE IN SOUTH AFRICA

2016 ◽  
Vol 21 (02) ◽  
pp. 1650011 ◽  
Author(s):  
BORIS URBAN
Keyword(s):  
South Africa ◽  
Regression Analysis ◽  
Institutional Environment ◽  
Informal Institutions ◽  
Innovation Performance ◽  
Policy Implications ◽  
Institutional Conditions ◽  
Formal And Informal Institutions ◽  
Ict Industry ◽  
Country Specific

Researchers argue there is a strong case to be made that entrepreneurship is itself a consequence of the adoption and development of institutions that encourage entrepreneurial behavior. Previous research on institutions classified the formal and informal institutions that affect entrepreneurs into regulatory, normative and cognitive categories. This study builds in this direction by investigating how perceptions of these institutional profiles may influence venture innovation performance. Following a survey of ventures in the ICT industry, hypotheses are tested using regression analysis. The results reveal that regulatory and normative institutional dimensions explain a modest, yet significant, amount of variance in venture innovation performance. The results also have important policy implications, where the institutional framework in South Africa could be enhanced by developing a country-specific mix of entrepreneur-friendly regulations and normative institutional conditions.

Network centrality and innovation performance: the role of formal and informal institutions in emerging economies

2019 ◽  
Vol 34 (6) ◽  
pp. 1388-1400 ◽  
Author(s):  
Haifeng Wang ◽  
Yapu Zhao ◽  
Beilei Dang ◽  
Pengfei Han ◽  
Xin Shi
Keyword(s):  
Social Cohesion ◽  
Emerging Economies ◽  
Informal Institutions ◽  
Innovation Performance ◽  
Network Centrality ◽  
Entrepreneurial Firms ◽  
Content Type ◽  
Growth Enterprise Market ◽  
Formal And Informal Institutions ◽  
The Impact

Purpose The impact of network centrality on innovation performance is inconclusive. The purpose of this paper is to examine how formal and informal institutions affect the influence of network centrality on firms’ innovation performance in emerging economies by integrating social network theory and institutional theory. Design/methodology/approach Multisource and lagged data from 234 technology-based entrepreneurial firms listed on the Chinese Growth Enterprise Market were leveraged to test a proposed research model. Findings Results suggest that formal institutions (marketization) positively moderate the relationship between network centrality and innovation performance, whereas informal institutions (social cohesion) negatively moderate this relationship. Moreover, formal and informal institutions have a strong joint impact on such relationship, that is, the effect of network centrality on innovation performance is most positive when marketization is high and social cohesion is low. Originality/value This empirical research provides new insights into whether and how firms can grasp the innovation benefits of network centrality by exploring institutional contingencies. It further sheds on light the scope of the network centrality–innovation issue by extending its research context to Chinese entrepreneurial firms.

scholarly journals Informal Payments by Patients in Central and Eastern Europe during the COVID-19 Pandemic: An Institutional Perspective

2021 ◽  
Vol 18 (20) ◽  
pp. 10914
Author(s):  
Adrian V. Horodnic ◽  
Colin C. Williams ◽  
Răzvan Ionuț Drugă ◽  
Cristian Incaltarau
Keyword(s):  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Institutional Environment ◽  
Quality Of Healthcare ◽  
Healthcare Services ◽  
Informal Institutions ◽  
Public Healthcare ◽  
Institutional Perspective ◽  
Informal Payments ◽  
Formal And Informal Institutions

Confronted with a global pandemic, public healthcare systems are under pressure, making access to healthcare services difficult for patients. This provides fertile ground for using illegal practices such as informal payments to gain access. This paper aims to evaluate the use of informal payments by patients during the COVID-19 pandemic and the institutions that affect the prevalence of this practice. Various measurements of formal and informal institutions are here investigated, namely the acceptability of corruption, the level of trust, transparency, and performance of the healthcare system. To do so, a logistic regression of 10,859 interviews with patients conducted across 11 Central and Eastern Europe countries in October–December 2020 is employed. The finding is that there are large disparities between countries in the prevalence of informal payments, and that the practice is more likely to occur where there are poorer formal and informal institutions, namely higher acceptability of corruption, lower trust in authorities, lower perceived transparency in handling the COVID-19 pandemic, difficult access to, and poor quality of, healthcare services, and higher mortality rates due to the COVID-19 pandemic. These findings suggest that policy measures for tackling informal payments need to address the current state of the institutional environment.

scholarly journals Infrastructure Support for the Development of Small Businesses

2019 ◽  
Vol 8 (3) ◽  
pp. 6430-6433
Keyword(s):  
Sustainable Development ◽  
Small Businesses ◽  
Institutional Environment ◽  
Informal Institutions ◽  
Economic Mechanism ◽  
Institutional Approach ◽  
Institutional Infrastructure ◽  
Formal And Informal Institutions ◽  
Institutional Actors ◽  
The Impact

For the purpose of sustainable development of small businesses, it is necessary to pay special attention to the formation of infrastructure for small businesses. This study uses an institutional approach which involves assessing the impact of formal and informal institutions on the development of small businesses. The author introduces the concept of the “frontier” institution as an institution, the operation of which is governed by the prescriptions of laws and established regulations, but the performance of certain functions is based on informal rules. This allows such an institution to more effectively perform the functions of a formal institution and makes it more capable and competitive in the market in a specific period of time. Furthermore, the study identifies the concepts of the institutional environment and institutional infrastructure. The author defines the institutional environment as a set of rules of conduct and institutional infrastructure as a set of institutions that form the rules of conduct and have an impact on small businesses. The impact is understood as the formation by institutional actors of rules of conduct that have incentive and disincentive effects on small businesses. This makes it possible to identify the causes of positive or negative deviations in the development of small businesses and to develop solutions aimed at solving the problems encountered. The article studies the organizational and economic mechanism that reflects the functioning of formal and informal institutions through which institutional infrastructure influences small businesses in order to achieve their goals.

How Institutions Influence the Appointment of Women to High Courts

2021 ◽  
pp. 96-123
Author(s):  
Maria C. Escobar-Lemmon ◽  
Valerie J. Hoekstra ◽  
Alice J. Kang ◽  
Miki Caul Kittilson
Keyword(s):  
United States ◽  
South Africa ◽  
Selection Process ◽  
The United States ◽  
Informal Institutions ◽  
Informal Networks ◽  
Electoral Accountability ◽  
High Courts ◽  
Formal And Informal Institutions ◽  
Do So

Chapter 5 sets out the formal and informal institutions that, collectively, comprise the selection process for the highest courts in five countries (Canada, Colombia, Ireland, South Africa, and the United States). Limiting the focus to formal rules of selection overlooks informal institutions (norms and practices) that constrain and enable the choices of selectors. Selection often rests on identifying a list of potential nominees based on informal networks, which have historically been composed of men. Across country cases, gendered networks and gendered ideas about qualifications often act as filters to hinder the appointment of women. When selectors or their key advisors decide to do so, they can disrupt reliance on these traditional networks by looking beyond the usual suspects as they draw up their shortlists. The chapter also illuminates the contexts in which electoral accountability and incentives matter. When selectors perceive electoral benefit from selecting a woman, and can be held accountable by their electorate, they are more likely to do so. In the context of pressure to select a woman, judicial nominating commissions and affirmative legal language can also increase women’s representation.

scholarly journals Modernity imperatives impact on the Russian coal industry enterprises institutional environment

2021 ◽  
Vol 315 ◽  
pp. 04018
Author(s):  
Valeriy Bobrikov ◽  
Nikita Ravochkin ◽  
Elena Sedelnikova ◽  
Rinat Gilyazov ◽  
Ammar Jamous
Keyword(s):  
Institutional Environment ◽  
Mutual Influence ◽  
Informal Institutions ◽  
Coal Industry ◽  
Modern World ◽  
Innovative Development ◽  
New Combinations ◽  
Formal And Informal Institutions ◽  
Technological Paradigms

In recent years, there has been an increase in the influence of the imperatives of the modern world on the institutional environment of the national economy, which not only creates qualitatively new combinations of challenges, but also contributes to the emergence of multiple institutional gaps. The Russian coal industry is a representative example of an asymmetric institutional environment based on different technological paradigms. In the article, the authors analyze the inconsistencies of the institutional environment of the Russian coal industry with the requirements of the modern world and propose ways to overcome the revealed institutional gaps. The phenomenon of institutions is considered and their significance for the economic sphere is determined. The main institutions of the market economy are presented. The influence of the imperatives of our time on the institutional breaks of the coal industry is indicated. The importance of improving the quality of the institutional environment has been substantiated. The state of the institutional environment of the Russian coal industry is critically analyzed. The directions of corrections of the identified problem areas are proposed for the purpose of innovative development of the domestic coal industry. The mutual influence of formal and informal institutions was clarified. The importance of the innovative development of the Russian coal industry in conjunction with investments in human capital is determined. Finally, the main results of the study are summarized.

scholarly journals CERTIFICATION OF AGRARIAN ENTERPRISES-PRODUCERS OF ORGANIC PRODUCTS IN ORDER TO ENTER EUROPEAN MARKETS

2018 ◽  
Vol 4 (4) ◽  
pp. 209-216
Author(s):  
Larisa Marmul ◽  
Elena Krukovskaya
Keyword(s):  
Institutional Environment ◽  
Practical Importance ◽  
Synthesis Method ◽  
Institutional Support ◽  
Informal Institutions ◽  
Organic Production ◽  
The State ◽  
Development Environment ◽  
Organic Products ◽  
Formal And Informal Institutions

The objective of the article is to consider the actual issues of institutional support for the development of agrarian enterprises producing organic products in Ukraine, as well as the definition of formal and informal institutions for the regulation of organic products market. Methodology. While the study, the following methods were used: analytical method – to identify the basic rules and procedures for the development of organic production and the structuring of its institutional environment; synthesis method – to assess the state of development of institutes and infrastructure of the industry; abstracting and logical modelling of the system of interconnections and regulating and stimulating influences of environmental elements on the development of organic production. Results. The article deals with topical issues of institutional support for the development of agrarian enterprises producing organic products in Ukraine. There were established formal and informal institutions for regulating the organic products market. The features of placement and specialization of agrarian enterprises for the production of organic products are revealed. Certain institutions of certification of production and products are described as separate institutions. The further prospects of development of agrarian enterprises producing organic products on the basis of improvement of institutional regulation and certification are substantiated. Practical importance. The results of the study can be taken into account and used for the development of state and industry programs for the development of organic production. Scientific novelty. The systematic vision of the development environment of organic production in Ukraine is substantiated, which, in contrast to the existing views, is interpreted as an interconnected and interdependent set of elements regulated by managerial influences of the state and industry levels.

scholarly journals INTRODUCTION

Africa ◽  
2016 ◽  
Vol 86 (1) ◽  
pp. 33-36
Author(s):  
Sarah-Jane Cooper-Knock ◽  
George H. Karekwaivanane
Keyword(s):  
South Africa ◽  
Social Order ◽  
Informal Institutions ◽  
Colonial Period ◽  
Diverse Range ◽  
Legal Professionals ◽  
Formal And Informal Institutions ◽  
Postcolonial Africa ◽  
Ordinary Citizens

From the colonial period onwards, there has been a marked expansion in the range of formal and informal institutions enforcing regimes of law and social order across Africa. At the same time, practices and ideas about law, justice, policing and professionalism have proliferated, drawing on a diverse range of influences. This themed part issue explores the lived realities of law and social order in colonial and postcolonial Africa. Building on a rich and growing literature, the articles examine how diverse actors such as ‘ordinary’ citizens, the police and legal professionals understand, enact and contest ideas about law and social order. The articles that follow adopt different disciplinary perspectives and draw on fieldwork from Nigeria, South Africa and Zimbabwe. The papers also illustrate how thinking about law and social order can cast a light on important themes for Africanist scholars, such as processes of formal and informal institutionalization on the continent and the public's investment in such institutions.

scholarly journals EVALUATING INSTITUTIONAL THEORIES OF INFORMAL SECTOR ENTREPRENEURSHIP: SOME LESSONS FROM ALBANIA

2019 ◽  
Vol 24 (02) ◽  
pp. 1950009 ◽  
Author(s):  
COLIN C. WILLIAMS ◽  
BRUNILDA KOSTA
Keyword(s):  
Regression Analysis ◽  
Institutional Theory ◽  
Informal Sector ◽  
Strong Association ◽  
Informal Institutions ◽  
Policy Implications ◽  
Third Wave ◽  
Red Tape ◽  
Informal Entrepreneurship ◽  
Second Wave

This paper evaluates three waves of institutional theory that have variously explained participation in informal sector entrepreneurship. The first wave of institutional theory explains informal entrepreneurship as resulting from formal institutional failures. This second wave of theory explains it as resulting from an asymmetry between the laws and regulations of formal institutions and the unwritten socially shared rules of informal institutions. Finally, a third wave of theory as resulting from a lack of both vertical and horizontal trust has explained informal entrepreneurship. To evaluate these waves of institutional theory, this study reports evidence from a 2015 survey of businesses in Albania. This finds that 30 percent of turnover of Albanian businesses is under-reported and that this percentage is higher in smaller firms. In terms of the institutional failures that explain participation in informal entrepreneurship, the regression analysis reveals a strong association between annual under-reporting of turnover and the red tape involved in dealing with the tax administration and the frequent visits of tax inspectors. Moreover, it shows both vertical and horizontal trust are strongly associated with participation in informal entrepreneurship. The paper concludes by discussing the theoretical and policy implications.

scholarly journals Exploring the Relationship between Formal and Informal Institutions, Social Capital, and Entrepreneurial Activity in Developing and Developed Countries

2019 ◽  
Vol 11 (2) ◽  
pp. 550 ◽  
Author(s):  
Diana Escandon-Barbosa ◽  
David Urbano-Pulido ◽  
Andrea Hurtado-Ayala
Keyword(s):  
Social Capital ◽  
Institutional Environment ◽  
Developed Countries ◽  
Informal Institutions ◽  
Social Capital Theory ◽  
Entrepreneurial Activity ◽  
Access To Credit ◽  
Formal And Informal Institutions ◽  
Entrepreneurial Activities ◽  
The Relationship

Most research on entrepreneurial activities and institutions focuses on identifying certain relationships between formal and informal institutions and entrepreneurship across economies. In this study, we advance entrepreneurship research by examining how social capital as a characteristic of the institutional environment affects the relationship between formal and informal institutions and entrepreneurial activities, differentially, in developing and developed economies. Supporting institutional theory and social capital theory, the results from our sample of 39 countries from 2001 to 2014, which contains over 30,000 identified individuals, indicate that social capital has a stronger influence in the relations between institutions and entrepreneurship. In developing countries, this influence is greater in the relationship between property rights, access to credit, subjective insecurity, and entrepreneurial activity. In developed countries, the greater effect of social capital is on the relationship between corruption and entrepreneurial activity.

scholarly journals Institutional System of Human Development and Institutional Environment: Relationship Features

2019 ◽  
Vol 67 ◽  
pp. 06049
Author(s):  
Olena Stryzhak
Keyword(s):  
Sustainable Development ◽  
Correlation Analysis ◽  
Human Development ◽  
Institutional Environment ◽  
Informal Institutions ◽  
Multilevel System ◽  
Formal And Informal Institutions ◽  
Institutional System ◽  
The Relationship

The article considers the features of human development in the context of the concept of sustainable development. The need to study the institutional system of human development as regulated multilevel system of interconnected formal and informal institutions is justified. The relationship between the level of human development and the quality of the institutional environment is determined using the methods of correlation analysis. Analyse covers 214 countries and territories for 2017. The results of the correlation analysis show that there is a strong direct interconnection between HDI and WGI. The correlation ranges from significant to very strong one. This gives grounds for conclusion that there is influence of the quality of institutional environment on the level of human development.

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