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.

The Influence of Formal and Informal Institutional Voids on Entrepreneurship

2019 ◽  
Vol 44 (3) ◽  
pp. 504-526 ◽  
Author(s):  
Justin W. Webb ◽  
Theodore A. Khoury ◽  
Michael A. Hitt
Keyword(s):  
Institutional Theory ◽  
Informal Institutions ◽  
Entrepreneurial Activity ◽  
Institutional Voids ◽  
Entrepreneurial Behavior ◽  
Formal And Informal Institutions ◽  
New Space ◽  
Entrepreneurial Activities

Building new space for institutional theory, we propose how the severity of formal and informal institutional voids shapes the productivity of entrepreneurial activities within society. Our theory makes the key assumptions that voids can exist in both formal and informal institutions and that they are capable of hindering entrepreneurial behavior that is favorable to development progress. We extend new theoretical domains by conceptualizing informal institutional voids and proposing how both formal and informal institutional voids and their interaction influence two qualitative outcomes within localities: (1) the unique forms of entrepreneurial activity, and (2) the objectives underlying this 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.

Structural Modeling of Institute of Entrepreneurship in Russia

2019 ◽  
pp. 34-48
Author(s):  
Svetlana L. Sazanova
Keyword(s):  
Global Economy ◽  
Structural Model ◽  
Institutional Environment ◽  
Small And Medium Enterprises ◽  
Structural Modeling ◽  
Entrepreneurial Activity ◽  
Pattern Modeling ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

Entrepreneurship plays an important role in the modern global economy; the share of products of small and medium enterprises in the gross product and exports not only of the developed but also of developing countries is growing. Innovation processes cover all sectors of the economy, and more and more people are involved in entrepreneurial activity, which contributes to the penetration of entrepreneurial thinking and business values in all areas of the socioeconomic life of society. The Institute of Entrepreneurship plays an increasingly prominent role in the institutional environment of socio-economic systems. This actualizes the problem of studying the relationship of the institution of entrepreneurship with the institutions of law, culture, management. This requires a methodology that allows you to explore the impact on the institute of entrepreneurship not only economic, but also non-economic factors. The methodology of the “old” institutionalism possesses such a tool, it is structural modeling (pattern modeling), which allows to explore the diversity of interrelationships of the institution of entrepreneurship with other components of the institutional and economic environment. The article explored the features of the development of the institution of entrepreneurship in Russia, established the relationship between the institution of entrepreneurship, values, motives and incentives for entrepreneurial activity, built a structural model of the institution of entrepreneurship based on the methodology of the old institutionalism (pattern modeling). The structural model of the institution of entrepreneurship reveals the relationship between the institution of entrepreneurship, the values of entrepreneurial activity, its motives and incentives; as well as the relationship between the institution of entrepreneurship with the institutions of governance, cultural and religious institutions, legal institutions and society.

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.

Overcoming the Dark Side of Closed Networks in Cultural Tourism Clusters: The Importance of Diverse Networks

2017 ◽  
Vol 59 (3) ◽  
pp. 239-256 ◽  
Author(s):  
Ángela Martínez-Pérez ◽  
Marie-Michele Beauchesne
Keyword(s):  
Social Capital ◽  
Developed Countries ◽  
Cultural Tourism ◽  
Dark Side ◽  
Negative Effects ◽  
Firm Level ◽  
Firm Innovation ◽  
Closed Networks ◽  
The World ◽  
The Relationship

Despite the recognized importance of tourism as an engine of economic growth in developed countries, research on the antecedents of innovation in this sector has been sparse, especially in the context of tourism clusters. Scholars have suggested that social capital is a key determinant of firm innovation in the context of tourism clusters, but empirical evidence has been lacking. The aim of this article is to empirically study the interplay between social capital and innovation in the context of tourism clusters at firm level. More specifically, we analyzed the effects of closed networks and diverse networks on firm innovation using a sample of 215 hospitality and tourism firms located in the World Heritage Cities of Spain. Results showed an inverted-U-shaped relationship between closed networks and firm innovation. Consistent with existing literature, these findings suggest that whereas a certain degree of strength and density helps to promote innovation, a critical point may exist beyond which innovation stabilizes or deteriorates when the information of the network becomes too redundant. In addition, we found that diverse networks positively moderated the relationship between closed networks and firm innovation. In other words, structural holes appear to mitigate the negative effects arising from excess strength and density and encourage the development of innovations beyond what a firm relying solely on closed networks could achieve. In practice, these results suggest firms in tourism clusters should not exclusively focus on typical closed networks but also create connections with diverse agents to maximize their potential for innovation.

Il pensiero di Kenneth Boulding, economista irenico. Relazioni sociali tra scambio, dono e coercizione

2009 ◽  
pp. 5-30
Author(s):  
Raul Caruso
Keyword(s):  
Social Capital ◽  
Economic Development ◽  
Social Interactions ◽  
Informal Institutions ◽  
Relational Goods ◽  
Economic Theories ◽  
Economic Development And Growth ◽  
Formal And Informal Institutions

- The aim of this essay is the ‘triangular theory of social interactions as expounded by Kenneth Boulding. Rediscovering the theoretical reflections of Kenneth Boulding about social interactions is even more important nowadays when economists are emphasizing the role of both formal and informal institutions in economic development and growth. In fact, he pioneered the study of elements which are commonly considered in the economic theories of institutions, social capital, reciprocity and relational goods.

Social Capital and Micro-Entrepreneurship

2020 ◽  
pp. 133-156
Keyword(s):  
Social Capital ◽  
Economic Development ◽  
Competitive Advantage ◽  
Social Capital Theory ◽  
Capital Theory ◽  
Standards Of Living ◽  
The Status ◽  
The Relationship ◽  
Micro Enterprises

Social capital has been proven in many studies to correlate with economic development and increment in standards of living in a collective manner. This chapter presents a brief description regarding social capital and micro-enterprises that narrowly focuses on the relationship between social capital theory and entrepreneurship. The chapter further portrays the varied dimensions of social capital followed by the status of social capital from the Malaysian perspective. Finally, the chapter ends with a discussion on the effect of social capital on competitive advantage, which has been presumed to be the most important aspect for micro-enterprises.

scholarly journals The Gender Issue in Entrepreneurship Activity: the Current Perception of Entrepreneurs

2020 ◽  
pp. 42-52
Author(s):  
A. Kharlamova ◽  
A. Stavytskyy
Keyword(s):  
New Technologies ◽  
Developed Countries ◽  
Creative Industries ◽  
Point Of View ◽  
Entrepreneurial Activity ◽  
Econometric Methods ◽  
Entrepreneurial Activities ◽  
Maximum Similarity ◽  
The Impact ◽  
Gem Data

Today, the issue of gender and equal opportunities for women and men is raised more and more often. That is despite the fact that in developed countries there are very massive feminization trends. Нowever, the development of new technologies, the transition to online life brings gender issues to the fore in the context of new geoeconomic challenges, such as the development of creative industries, digitalization, rising unemployment, growing social and economic inequality. Looking to the future is impossible without understanding the impact of the past. This paper examines three countries, principle economic partners of Ukraine, which had a socialist past, although formed in different socio-cultural vectors, and those that show different rates of development and use different economic models. The working hypothesisis as follows: whether gender entrepreneurship differs in these countries. The database is taken from the Global Entrepreneurship Monitoring (GEM) and investigated using statistical and econometric methods. The results showed that with the maximum similarity of perceptions of entrepreneurs in analyzed countries, the gender difference still exists in the direction of greater entrepreneurial activity of women in the country, which shows higher economic performance today. It should be noted that the main problem and limitation of this study is the source of data, which is based on monitoring, which does not cover all countries of the world, so in particular it does not contain data on Ukraine. In addition, from the point of view of the input data collected by GEM, we have almost equal proportions of surveyed men and women, both in general and those engaged in entrepreneurial activities. But this is not fully representative. Because demographic composition in these countries differs. It is also worth noting that the GEM data is a survey conducted by a trusted institution in the country, which is not fully representative for cross-country comparison.

scholarly journals Creating a Favorable Business Environment: Case Study on Firm Registration Process in Uzbekistan

2015 ◽  
Vol 1 (4) ◽  
pp. 59-72
Author(s):  
Gofurov Ubaydulla
Keyword(s):  
Developed Countries ◽  
Business Environment ◽  
State Regulation ◽  
Entrepreneurial Activity ◽  
Registration Process ◽  
Special Value ◽  
Business Entities ◽  
State Registration ◽  
Entrepreneurial Activities

The development of national economy in many respects depends on conditions such as freedom and guarantees, privileges and preferences so that entrepreneurial activities prosper within a better entrepreneurial environment. While the development extent of entrepreneurial environment is defined by several indexes, the processes and documentation as a part of state registration of entrepreneurial activity have a special value among them. In this article, in consideration of exemplary entrepreneurial environment practices in different developed countries, the successes and shortcomings of Uzbek experience and some important theoretical rules on the creation of such favorable and friendly entrepreneurship conditions are discussed. We find that in order to increase the share of small business and entrepreneurship there is a need to systematically improve the mechanisms of state regulation of organization and registration processes of business entities. A system of incentives should be introduced in the registration process such as optimization of its time, increasing the number of business entities.

scholarly journals Exploring Women's Entrepreneurship and Poverty: Necessity versus Opportunity Motivations

2020 ◽  
Vol 27 ◽  
Author(s):  
Simone Hall
Keyword(s):  
United States ◽  
Economic Growth ◽  
Developed Countries ◽  
The United States ◽  
New Venture ◽  
Opportunity Entrepreneurship ◽  
Business Opportunity ◽  
Necessity Entrepreneurship ◽  
Entrepreneurial Activities ◽  
The Relationship

What is the relationship between entrepreneurship, economic growth, and poverty? Women choose to become entrepreneurs or self-employed for different reasons in developed countries such as the United States and Sweden, with varying effects on poverty and economic growth. This paper explores the motivations behind entering the entrepreneurial space for women, differentiating between opportunity (taking actions to create a new venture following a perceived business opportunity despite other options to earn a living) and necessity (becoming involved in entrepreneurial activities due to a lack of other options to earn a living) motivations. It also highlights entrepreneurship's relationship with poverty and economic growth, while providing recommendations on how to encourage opportunity entrepreneurship and reduce poverty while discouraging necessity entrepreneurship.

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