Influence of the Institutional Environment on Entrepreneurial Intentions in an Emerging Economy

2013 ◽  
Vol 14 (3) ◽  
pp. 179-191 ◽  
Author(s):  
Boris Urban
Keyword(s):  
South Africa ◽  
Public Policy ◽  
Emerging Economies ◽  
Institutional Environment ◽  
Emerging Market ◽  
Emerging Economy ◽  
Entrepreneurial Intentions ◽  
Institutional Pressures ◽  
Regression Analyses ◽  
Policy Makers

Building on the literature on institutions, this paper examines the regulatory, normative and cognitive institutional dimensions that may influence entrepreneurial intentions in an emerging market context. Recognizing that idiosyncrasies and barriers in the institutional dimensions of emerging economies contrast with those of the developed market economies, hypotheses are formulated and tested using correlation and regression analyses. Results from a sample of 199 respondents indicate that perceptions of the different institutional dimensions are positively but not significantly correlated with entrepreneurial intentions. These findings suggest that public policy makers and market entrants need to be aware of the less than favourable conditions for entrepreneurship in South Africa, and of the numerous and often conflicting institutional pressures and constraints faced by potential entrepreneurs.

scholarly journals OVERVIEW OF THE ROLE-PLAYERS IN THE INVESTIGATION, PREVENTION AND ENFORCEMENT OF MARKET-ABUSE PROVISIONS IN SOUTH AFRICA

Obiter ◽  
2021 ◽  
Vol 34 (2) ◽  
Author(s):  
Howard Chitimira ◽  
Vivienne A Lawack
Keyword(s):  
South Africa ◽  
Public Policy ◽  
Financial Services ◽  
General Public ◽  
Policy Makers ◽  
Market Abuse ◽  
Role Players ◽  
Overview Analysis

This article analyses the role and effectiveness of selected key role-players primarily dealing with the investigation, prevention and enforcement of the market abuse prohibition in South Africa in order to increase awareness on the part of the general public, policy-makers and other relevant stakeholders. To this end, the article provides an overview analysis of selected role-players as well as their distinct functions in the investigation, prevention and combating of market-abuse practices in South Africa. This is done by discussing the roles of the Financial Services Board, the Directorate of Market Abuse and the Enforcement Committee.

Entrepreneurial intentions of university students in an emerging economy

2016 ◽  
Vol 8 (2) ◽  
pp. 162-179 ◽  
Author(s):  
Michael James Mustafa ◽  
Ernesto Hernandez ◽  
Christopher Mahon ◽  
Lai Kei Chee
Keyword(s):  
Emerging Economies ◽  
Education Institution ◽  
Emerging Economy ◽  
Concept Development ◽  
Proactive Personality ◽  
Entrepreneurial Intentions ◽  
Content Type ◽  
University Support ◽  
Development Support ◽  
The University

Purpose This paper aims to develop an empirical model that examines whether a student’s proactive personality or the university support environment (education support, concept development support and business development support) affects their entrepreneurial intentions. Additionally, the relative strengths of a student’s proactive personality and the university environment influences are compared. Design/methodology/approach A total of 141 students attending a well-established and internationally renowned Malaysian higher education institution completed a questionnaire survey. Results were based on correlation and regression analysis. Findings Results indicate that a proactive personality and concept development support have significant impact on students’ entrepreneurial intentions. Additionally, the results showed that a student’s proactive personality had a greater effect on their entrepreneurial intentions than that of the university support environment. Originality/value The paper demonstrates one of the few attempts to examine the effects of both a proactive personality and university support environment on entrepreneurial intentions in an emerging economy context. Specifically, we reconfirm students’ personality traits as a more important predictor of their entrepreneurial intentions than environmental factors in the Malaysian context. Additionally, by also demonstrating concept development support as a significant predictor of entrepreneurial intentions, we provide new insights into how universities in emerging economies can foster the entrepreneurial intentions of their students. This result adds to the academic literature on entrepreneurial intentions in emerging economies.

scholarly journals Returnee entrepreneurship: how home-country institutions, estrangement and support influence entrepreneurial intentions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jan Henrik Gruenhagen
Keyword(s):  
Emerging Economies ◽  
Structural Equation ◽  
Institutional Environment ◽  
Home Country ◽  
Tertiary Education ◽  
Contextual Factors ◽  
Equation Model ◽  
Entrepreneurial Intentions ◽  
Advanced Economy ◽  
Content Type

Purpose Policymakers, academics and practitioners have recognised the potential of returnee entrepreneurs for the transfer of advanced knowledge to emerging and developing countries. Yet what factors determine the decisions to start a business – and what type of business – upon returning to the home country is relatively unclear. This paper aims to reveal to what extent different contextual factors influence the intention to return home to start a venture. In addition to overall intentions to start a returnee business, this study covers intentions towards starting businesses with different orientations. Design/methodology/approach This study builds upon a sample of 273 individuals originating from emerging economies who are on track to complete their overseas tertiary education in an advanced economy. Using primary survey data obtained from the participants, a structural equation model (SEM) based on our theoretical model was defined for hypothesis testing. Findings Findings suggest that the perception of a stable institutional environment stimulates returnee entrepreneurship, and that the perception of estrangement negatively affects the intention to start a new venture in the home country. The results further show that the availability of support may reduce perceived estrangement, thereby exerting an indirect, positive effect on returnee entrepreneurship. Importantly, the findings confirm that these effects vary across intentions to start ventures with different orientations. Originality/value This study extends previous literature on the phenomenon of returnee entrepreneurs which has primarily investigated returnee-owned ventures that are already in operation. In particular, the authors provide theoretical links between institutions and other contextual factors affecting returnee entrepreneurial intentions, and this study highlights that it is meaningful to consider not only the strength but also different types of intentions. Thereby, this paper provides refined perspectives on the assumed beneficial impact of returnee entrepreneurs on the economic and societal development of emerging economies.

scholarly journals Emerging Economy Inward and Outward Foreign Direct Investment: A Bibliometric and Thematic Content Analysis

2021 ◽  
Author(s):  
Keilla Dayane da Silva-Oliveira ◽  
Edson Keyso de Miranda Kubo ◽  
Michael J. Morley ◽  
Rodrigo Médici Cândido
Keyword(s):  
Foreign Direct Investment ◽  
Performance Analysis ◽  
Emerging Economies ◽  
Thematic Analysis ◽  
Direct Investment ◽  
Institutional Environment ◽  
Emerging Economy ◽  
Future Research ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi

AbstractResearch examining emerging economy inward and outward foreign direct investment (FDI) flows is on a significant upward trajectory. In this bibliometric analysis covering 806 articles published between 1994 and 2019, we map key aspects of its contours. Our analysis proceeds in two sequential phases involving a performance analysis, followed by a thematic analysis. Our performance analysis unveils fundamental elements of the structure of the knowledge base. Our subsequent thematic analysis identifies three focal topics arising from identifiable shared qualities characterizing this literature. Firstly, we distinguish scholarship focused on inward FDI into emerging economies formed by two particular classes, namely ‘innovative FDI’ and ‘capital flows’. Our second theme covers outward FDI from these emerging economies and also comprises two specific classes referring to the ‘institutional environment’ and the ‘theoretical framework deployed’. Our final theme relates to an integrated body of knowledge explicating aspects of the location choice decision. Building on this analysis, we isolate a number of opportunities for future research.

Growth of Global Corporate Debt: Main Facts and Policy Challenges

2021 ◽  
Author(s):  
Facundo Abraham ◽  
Juan J. Cortina ◽  
Sergio Schmukler
Keyword(s):  
Emerging Economies ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Debt Financing ◽  
Corporate Debt ◽  
Policy Makers ◽  
Developed Economies ◽  
Emerging Market Firms ◽  
Global Economic Growth ◽  
The Global Financial Crisis

There has been substantial debate about the expansion of global non-financial corporate debt after the global financial crisis (GFC) of 2008–2009. But the main facts and policy challenges discussed in the literature are yet to be uncovered and summarized. Understanding the trends and issues can help readers gauge how large the growth of this type of financing has been, as well as the risks that more non-financial corporate debt might entail. Non-financial corporate debt steadily increased after the GFC, especially in emerging economies. Between 2008 and 2018, corporate debt rose from 56 to 96% of gross domestic product (GDP) in emerging economies whereas it grew at the same rate as GDP in developed economies. Non-financial corporate debt after the crisis was mainly issued through bond markets, and its growth can be largely attributed to accommodative monetary policies in developed economies. Although the growth in debt financing has some positive aspects for emerging market firms in terms of expanding financing and diversifying financing sources, it also amplified solvency risks and firms’ exposure to changes in market conditions. Slower global economic growth worldwide as a result of the COVID-19 pandemic could impose significant costs to emerging market firms that increased reliance on debt financing. Policy makers in emerging economies face challenges to mitigate overall risks and to contain corporate vulnerability in the non-financial sector. Because capital markets have an important role in the expansion of financial activity and are not as regulated as banks, policy makers have limited tools to alleviate the risks of growing non-financial corporate debt.

Exploring the link between institutional pressures and the timeliness of corporate internet reporting: the case of an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahade Hasan ◽  
Shah Md Taha Islam
Keyword(s):  
Multinational Corporations ◽  
Institutional Environment ◽  
Stock Exchange ◽  
Emerging Economy ◽  
Annual Reports ◽  
Institutional Pressures ◽  
Multiple Sources ◽  
Content Type ◽  
Corporate Websites ◽  
Isomorphic Pressures

Purpose The purpose of this study is to examine the role played by coercive, normative and mimetic pressures in stimulating timeliness of corporate internet reporting (TCIR). Design/methodology/approach This study uses content analysis technique to track the TCIR practices of top 100 non-financial companies listed on the Dhaka Stock Exchange. A disclosure index of 14 items is developed to capture the extent of TCIR. The authors collected the relevant data from multiple sources, such as corporate websites, monthly review reports and corporate annual reports for the year-end 2019. This study uses Poisson regression models to explore the association between institutional pressures and TCIR. Findings Consistent with the predictions of institutional isomorphism theory, the authors find that coercive isomorphic pressures through ownership by foreign investors, government, general public and connection with parent multinational corporations have positive associations with TCIR. The authors also find that normative pressures resulting from cross-directorships have positive influence on TCIR. The authors provide evidence of mimetic pressures through industry memberships (i.e. companies operating in technology-based industry) positively impacting TCIR. The additional analysis suggests that institutional pressures are rather associated with the extent of voluntary TICR and to a lesser extent to regulatory TICR. Originality/value To the best of the authors’ knowledge, this study is the first to show the positive impacts of coercive, normative and mimetic isomorphic pressures on TCIR in an emerging economy characterized by weak institutional environment and mixed prospects for TCIR.

Internationalisation of Central and Eastern European small firms

2016 ◽  
Vol 23 (1) ◽  
pp. 105-121 ◽  
Author(s):  
M. Cristina Stoian ◽  
Alex Rialp ◽  
Josep Rialp ◽  
Robin Jarvis
Keyword(s):  
Process Model ◽  
Small Firms ◽  
Institutional Environment ◽  
Emerging Market ◽  
Foreign Market ◽  
Policy Makers ◽  
Content Type ◽  
Uppsala Model ◽  
Business Partners ◽  
Network Building

Purpose – The purpose of this paper is to investigate the internationalisation of small firms from a Central and Eastern Europe (CEE) country with an emerging market economy, while accounting for the constantly changing institutional framework as well as resource (un)availability which may influence their involvement in foreign market operations. In doing so, it supports the applicability of the revised Uppsala internationalisation process model (2009), which highlights the key role of networks for international activity. Design/methodology/approach – This study is based on a qualitative approach leading to multiple case studies. The main source of data is semi-structured, in-depth interviews conducted within six small firms. Findings – The revisited Uppsala model proves to be generally valid for the small firms analysed in this study. Networks play a crucial role for knowledge creation and exchange, and frequently represent the most reliable resource at firms’ disposal. Trust is an indispensable ingredient that shapes network relationships. Institutional changes acted as push factors for small firms’ internationalisation. Research limitations/implications – Policy-makers and entrepreneurs should direct their efforts at encouraging international network building and the formation of partnerships. Specific policy-driven actions should facilitate the connection between (international) entrepreneurs and potential foreign business partners. Originality/value – This study brings insights to the revised Uppsala model, particularly considering the continuous and relatively rapid changes within the institutional environment that interact with the experiential learning curve and resource accumulation and subsequent commitment to foreign markets. Furthermore, it is one of the few studies that address the internationalisation of small firms from a CEE economy.

scholarly journals Responding to the rising power “threat”

2015 ◽  
Vol 11 (3/4) ◽  
pp. 285-300 ◽  
Author(s):  
Rory Horner
Keyword(s):  
South Africa ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Institutional Environment ◽  
Patent Law ◽  
Content Type ◽  
Civil Society Organisations ◽  
Patent Laws ◽  
Pharmaceutical Patent ◽  
Rising Power

Purpose – This paper aims to explore how established multinational enterprises (MNEs) have responded to the perceived threat from rising power firms by seeking to alter the intellectual property institutional environment in key emerging economies. Design/methodology/approach – The key place of emerging economies in the efforts of established MNEs to seek patent law change is discussed. Two case studies review developments related to pharmaceutical patents in India and South Africa, highlighting the influence of MNEs in driving policy change and the contested nature of their actions. Findings – While India and South Africa both present evidence of MNEs seeking to influence pharmaceutical patent laws, distinct differences emerge. In India, most MNE pressure has been in response to the emergence of an active domestic industry and a patent law oriented towards generic entry, while the MNE priority in South African has been geared towards maintaining MNE dominance and a system which leads to generous granting of patents. Practical implications – Managers and decision-makers seeking to invest in emerging economies must take account of a plethora of institutions present, which may be better suited towards local industrial and consumer interests and may prompt resistance to any established MNE-led attempt at institutional change. Originality/value – The article offers a comparative perspective on pharmaceutical patent laws in India and South Africa, which have been subject to significant contestation by policymakers, civil society organisations and both rising power and established MNEs. The comparison explores and questions the increasingly widespread “institutional void” thesis in international business.

Multinational Advantages of Chinese Business Groups: A Theoretical Exploration

2011 ◽  
Vol 7 (2) ◽  
pp. 249-277 ◽  
Author(s):  
Daphne W. Yiu
Keyword(s):  
Institutional Environment ◽  
Emerging Market ◽  
Business Groups ◽  
Multinational Enterprise ◽  
Organizational Form ◽  
Future Research ◽  
Policy Makers ◽  
Chinese Business ◽  
New Organizational Forms ◽  
Latecomer Firms

Prior research on the internationalization of emerging market firms focused either on established incumbent firms or peripheral latecomer firms. However, an increase in outward foreign direct investment from emerging markets such as China has benefitted from a new organizational form – business groups. Given that new organizational forms pose fundamental challenges to existing theories on multinational enterprise, an examination of business group internationalization will bring the literature of multinational enterprise theories forward. Adopting an organizational approach, I propose that business groups, an organizational form that emerged to substitute market imperfections in China, constitute a micro-institutional environment for generating ownership, location, and internalization advantages, as well as for capitalizing on the linkage, leverage, and learning opportunities for internationalization. I posit that Chinese business groups facilitate such an internationalization process via their unique attributes including internal market, inward linkages, and institutional support. The article aims to provide a theoretical framework that generates insights for China's policy makers and managers, and to guide future research.

Impact of Institutional Environment on Inward FDI: A Case of Select Emerging Market Economies

2019 ◽  
Vol 21 (5) ◽  
pp. 1279-1301 ◽  
Author(s):  
Niti Bhasin ◽  
Shilpa Garg
Keyword(s):  
Emerging Economies ◽  
Fixed Effects ◽  
Institutional Environment ◽  
Emerging Market ◽  
Composite Index ◽  
Principal Component ◽  
Negative Coefficient ◽  
Emerging Nations ◽  
Stage Of Development ◽  
The Impact

The tremendous amount of foreign direct investment (FDI) flowing into emerging nations has attracted worldwide attention. These economies are at a same stage of development with similar social, economic and other conditions, but their institutional environment can act as a differentiator in affecting FDI location within these emerging economies. So, this article examines the role of institutional mechanisms in influencing their inward FDI by employing broad-based indicators of institutional environment. The article employs panel data regression (fixed effects) to test the impact of institutional indicators and other variables on FDI inflows and stock of 23 emerging economies from 2006 to 2015. Three indices have been constructed for this purpose, using the methodology of principal component analysis and composite index, from 24 institutional variables. All the three indices, representing three institutional pillars turned significant: ‘Rule of law’ (negative coefficient), ‘Regulatory efficiency’ (positive coefficient) and ‘normative institutional environment’ (negative coefficient). This implies that one of the main motivations for foreign investors to make investment in emerging economies is to take advantage of their weak laws, norms and values. But they also seek a basic enabling environment with minimum burdens as far as the efficiency of regulations is concerned.

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