Where Do Born Globals Come from? A Neoconfigurational Institutional Theory

2021 ◽  
Author(s):  
Stav Fainshmidt ◽  
Adam W. Smith ◽  
Ruth V. Aguilera

Born globals, recently established firms that obtain a substantial share of their revenue from foreign markets, can help strengthen countries’ economic vitality and increase innovation levels. The extent of born global formation varies considerably across countries, yet it is unclear why this is the case. Drawing on the neoconfigurational institutional perspective, we develop a typology of institutional contexts associated with high born global formation rates. We posit that high rates of born global formation occur where institutional features favorable to border-spanning activities complement institutional features conducive to entrepreneurial activity, thus forming an institutional configuration that enables, equips, and motivates more societal members to launch born globals. Accordingly, we hypothesize a primary institutional configuration where international transaction facilitators, entrepreneurial educational capital, and entrepreneurial norms combine to propel born global formation. Further, we draw on the internationalization literature to propose two alternative types of institutional configurations conducive to born global formation. These two types provide functional substitutes for the primary type and are distinctly propelled by (1) escapism from low-quality public governance institutions or (2) immigrant entrepreneurship. Fuzzy-set qualitative comparative analysis on data from 66 countries supports our typology and illustrates why born global activity may thrive even in contexts with institutional weaknesses. Our study develops a neoconfigurational model to advance a holistic understanding of the born global phenomenon’s theoretical drivers, contributing to research on comparative capitalism and international entrepreneurship.

2021 ◽  
Author(s):  
Pau Sendra-Pons ◽  
Sara Belarbi-Muñoz ◽  
Dolores Garzón ◽  
Alicia Mas-Tur

AbstractThis paper analyzes the drivers of female necessity entrepreneurship using a sample of 59 countries, with data sourced from the 2018–2019 global entrepreneurship monitor (GEM). It develops a theoretical framework describing how post-secondary education, startup skills, fear of failure, knowing another entrepreneur, entrepreneurial intentions, and hiring expectations act as drivers of female necessity entrepreneurship. Using qualitative comparative analysis, two models are tested to explain the presence and absence of female necessity entrepreneurship. This outcome is measured using the GEM indicator of total early-stage entrepreneurial activity.


2019 ◽  
Vol 25 (1) ◽  
pp. 112-128 ◽  
Author(s):  
Pedro Torres ◽  
Mário Augusto

Purpose The purpose of this paper is to better understand the connection between culture and entrepreneurship in proposing and testing complex configurations of culturally endorsed implicit leadership theories (CLTs) and cultural practices that lead to entrepreneurial behaviour by studying entrepreneurial intentions (EI) and early-stage entrepreneurial activity (TEA) separately. Design/methodology/approach Using data from Globe Leadership and Organizational Behavior Effectiveness (GLOBE) and Global Entrepreneurship Monitor (GEM) studies, a sample of 44 countries, and a fuzzy-set qualitative comparative analysis, several models for EI and TEA were developed. Findings The main findings provide a way of distinguishing between complex antecedent conditions that are required for each stage of the entrepreneurial realisation. The results empirically show that there is no ideal context – the path to stimulate entrepreneurship that works best for one country does not necessarily works the same for other countries. There are multiple paths to achieve the desired outcome. Research limitations/implications The data from the GLOBE study were not completely up to date, the effect of which was minimised by considering data from GEM that respects temporal ordering. Nevertheless, data from GEM suggest that there is a degree of stability in the data over time. Future research could replicate this study with a larger selection of countries and with new data, collected in a different way. Additionally, the inclusion of CLTs proposed in this study opens new opportunities for future research, by providing a new angle to look at the entrepreneurial realisation process. Practical implications This study advances research into the association of culture and entrepreneurship, and develops testable models using a configurational approach, thus confirming the suitability of asymmetric configuration analysis for entrepreneurial research. The results expand an understanding of the entrepreneurial process by showcasing the different complex antecedent conditions for EI and TEA. Depending on a country’s cultural profile, policy-makers should invest in the dimensions that enable their society to align with the model that best suits their own culture. The obtained models offer a framework for evaluating new interventions that aim to develop entrepreneurial behaviour in a specific country. Originality/value Different configurations showcase that there are alternative paths to achieving high levels of EI and TEA. The differences among the possible configurations for each stage of the entrepreneurial realisation are uncovered. Country profiles are identified, quantified, and then compared providing guidance for policy-makers.


Author(s):  
Ramiro Berardo ◽  
Jeffrey W. Hanlon

There is widespread consensus among environmental scientists that a holistic understanding of how natural resources are managed effectively at different scales requires a solid grasp on the functioning of governance institutions that link human users to the biophysical world in which they are embedded. Societies exist within complex social-ecological systems, in which the social and ecological components are tightly connected in systematic, but often hard to understand, ways. Institutions are, in essence, the lubricant that mediates the relationship between the two components; without the right institutions in place, no human society can tackle environmental problems successfully. Needless to say, the variation of societies and ecological systems around the world is vast and rich, which makes the study of institutional diversity and its effect on the management of natural resources both fascinating and daunting. From the rules to manage small-scale indigenous fisheries to the treaties to tackle global climate change, humans craft and enforce institutions to avoid “tragedies of the commons” that result when the prevalence of individual interests leads to the mismanagement (and sometimes sheer complete destruction) of resources that are open to multiple users. This article serves as an introductory guide for scholars and students with an interest in understanding how social scientists have researched institutions and their role in constraining human behavior in search of sustainable uses of natural resources. Sections cover research focusing on the definition, creation, development, evolution, and performance of institutions, as well as the operation of institutions at different scales and in different topic areas.


2019 ◽  
Vol 58 (4) ◽  
pp. 759-772 ◽  
Author(s):  
Danish Junaid ◽  
Zheng He ◽  
Amit Yadav ◽  
Lydia Asare-Kyire

Purpose While there are many studies on the impacts of formal institutions such as government financial supporting and tax preferential policies on women entrepreneurial entry, few attempted to explore how informal institutions causes cross-country differences in women entrepreneurship. The purpose of this paper is to investigate whether countries (Pakistan and Malaysia) with similar religious belief, political system and government policies exhibits similar level of women entrepreneurial activity from an informal institutional perspective. Design/methodology/approach This study used Global entrepreneurship monitor (GEM) data for the years 2010–2012 and employed probit regression analysis to examine the impacts of cultural-cognitive and social-normative institutions on women entrepreneurial activity. Findings The findings reveal profound differences of women’s entrepreneurial activities between Pakistan and Malaysia. While cultural-cognitive dimension shows substantial impact for both nations, social-normative dimension explains the main differences in women’s entrepreneurial activity. Practical implications This study proposes that policymakers may craft policies to enhance women skills, knowledge and networking as well as positive societal attitudes to foster women entrepreneurial activities. Originality/value This study shows that countries with the same religion and similar formal institutions can also exhibit different level of women entrepreneurial activity. In Pakistan, the negative societal attitudes in the form of deep rooted traditional beliefs as well as misinterpreted religious concepts for women role create formidable challenges and inhibit business opportunities for them. By contrast, favorable social perception and societal attitudes in Malaysia encourage women to pursue their entrepreneurial activities.


2016 ◽  
Vol 2016 (1) ◽  
pp. 10071
Author(s):  
Clyde Eiríkur Hull ◽  
Zhi Tang ◽  
Jintong Tang ◽  
Huajing Li

2007 ◽  
Vol 28 (10) ◽  
pp. 1523-1546 ◽  
Author(s):  
Patrick A. M. Vermeulen ◽  
Frans A. J. Van Den Bosch ◽  
Henk W. Volberda

Many product innovation studies have described key determinants that should lead to successful incremental product innovation. Despite numerous studies suggesting how incremental product innovation should be successfully undertaken, many firms still struggle with this type of innovation. In this paper, we use an institutional perspective to investigate why established firms in the financial services industry struggle with their complex incremental product innovation efforts. We argue that although the impact of micro institutional forces is often overlooked in innovation studies, these forces matter for innovation success. Our study complements the existing innovation literature and provides an additional explanation why incremental product innovation is highly complex and suffers from several liabilities in established firms. Using qualitative data from the Dutch financial services sector collected over the period 1997—2002, the paper illustrates how micro institutional forces at the business unit level affect complex incremental product innovation and how the interaction of these forces delivers their impact.


2007 ◽  
Vol 31 (4) ◽  
pp. 619-641 ◽  
Author(s):  
Dennis Hanlon ◽  
Chad Saunders

This article makes two contributions to our understanding of the core entrepreneurial activity of assembling resources to pursue an opportunity. First, a conceptual framework is presented to organize the research on resource mobilization. Second, a study is presented based upon interviews with a random sample of 48 entrepreneurs to identify the supporters whom the entrepreneurs considered to have been key to their success and the resources obtained from these individuals. Results indicate that maximizing the overall effectiveness of resource combinations is a complex undertaking involving trade–offs between the quantity and quality of available resources and the efficiency versus effectiveness of supporters.


2016 ◽  
Vol 26 (4) ◽  
pp. 446-471 ◽  
Author(s):  
Stephan Gerschewski ◽  
Valerie J. Lindsay ◽  
Elizabeth Rose

Purpose The purpose of this paper is to examine how entrepreneurial orientation (EO) is manifested in the context of born global firms. Specifically, the authors investigate the extent to which the EO dimensions of the influential Miller/Covin & Slevin scale are demonstrated in born globals. In addition, following calls in the literature, some as-yet unrecognised dimensions of EO in born globals are examined. Design/methodology/approach The authors use a qualitative research approach by conducting semi-structured, in-depth interviews with eight born global firms from New Zealand and Australia. Findings The authors find that the EO dimensions of proactiveness and innovativeness are strongly prevalent in these firms. In contrast to the extant literature, the results also indicate that these born global firms generally display a relatively low level of risk-taking. The authors find strong empirical support for two additional emerging dimensions of EO: passion and perseverance. Originality/value The study provides two key contributions to the area of international entrepreneurship by investigating how EO is prevalent in the context of born globals and by proposing the new dimensions of passion and perseverance.


Sign in / Sign up

Export Citation Format

Share Document