Skip to main content
SpringerLink
Log in

The Institutional Context of Community Entrepreneurship Behaviour in Nigeria: Lessons from Three Case Communities

  • Chapter
  • First Online:
The Palgrave Handbook of African Entrepreneurship

Abstract

This chapter seeks to construct a better theoretical understanding of how institutional factors impact on entrepreneurial behaviour at the collective community-based level. The data derives from the manifest entrepreneurial behaviours of members of three Nigerian community ventures, extracted using quantitative methods. It builds on earlier works of (Shane,.A General Theory of Entrepreneurship, Edward Elgar, 2003); (Stevenson, L. and Lundstrom, A.A. (2007) Dressing the emperor: The fabric of entrepreneurship policy In Audretsch D.B, Grilo, I. and Thurik A (eds.) Handbook of Research on Entrepreneurship Policy. Cheltenham, UK: Edward Elgar Publishing.); (Ben Letaifa and K, Goglio-Primard.,.Journal of Business Research 69:5128–5134, 2016), and Sommerville and McElwee (2011) among others. These entrepreneurs perceive the institutional environment within which they enact as being debilitating. These failures have created tensions in the way they interpret the formal institutional rules within which they must operate. On account of this, community entrepreneurs rely heavily on informal arrangements to navigate around the harsh conditions experienced. Ultimately, the author finds that institutional factors and their influences on community-based entrepreneurs are interpreted differently across communities, creating different typologies of institutional munificence. This offers the building blocks of a novel diagnostic model for evaluating environmental munificence of target entrepreneurial communities.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 249.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Acs, Z. J., & Audretsch, D. B. (1990). Innovation and small firms. Cambridge, MA: MIT Press.

    Google Scholar 

  • Acs, Z., & Karlsson, C. (2002). Introduction to institutions, entrepreneurship and firm growth: The case of Sweden. Small Business Economics,19, 63–67.

    Article  Google Scholar 

  • Adusei, M. (2016). Does entrepreneurship promote economic growth in Africa? African Development Review,28(2), 201–214.

    Article  Google Scholar 

  • Audretsch, D. B., Carree, M. A., & Thurik, A. R. (2001). Does entrepreneurship reduce unemployment? Tinbergen Institute Discussion Paper T1. Tinbergen Institute.

    Google Scholar 

  • Audretsch, D. B., & Keilbach, M. (2007). The localization of entrepreneurship capital: Evidence from Germany. Papers in Regional Science, Wiley Blackwell, 86(3), 351–365.

    Google Scholar 

  • Baum, J. R., & Locke, E. A. (2004). The relationship between entrepreneurial traits, skills, and motivation to subsequent venture growth. Journal of Applied Psychology,89(4), 587–598.

    Article  Google Scholar 

  • Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive.Journal of Political Economy, 98 (5, Part 1).

    Google Scholar 

  • Blanchflower, D. G. (2000). Self-employment in OECD countries. Labour Economics,7(5), 471–505.

    Article  Google Scholar 

  • Blanchflower, D. G., & Meyer, B. (1994). A longitudinal analysis of the young self-employed in Australia and the United States. Small Business Economics,6, 1–20.

    Article  Google Scholar 

  • Ben Letaifa, S., & Goglio-Primard, K. (2016). How does institutional context shape entrepreneurship conceptualizations? Journal of Business Research,69(11), 5128–5134.

    Article  Google Scholar 

  • Bourdieu, P. (1984). Distinction: A social critique of the judgment of taste. Harvard University Press.

    Google Scholar 

  • Bryman, A., & Bell, E. (2007). Business research methods. USA: Oxford University Press.

    Google Scholar 

  • Busenitz, L. W., Gomez, C., & Spencer, J. W. (2000). Country institutional profiles: Unlocking entrepreneurial phenomena. Academy of Management Journal,43, 994–1003.

    Article  Google Scholar 

  • Codd, J., Harker, R., and Nash, R. (Eds). (1985). Political issues in New Zealand education. Palmerston North.

    Google Scholar 

  • Covin, J. A., & Slevin, D. P. (1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship: Theory and Practice, 7–25.

    Google Scholar 

  • Coase, R. H., & Wang, N. (2011). The industrial structure of production: A research agenda for innovation in an entrepreneurial economy. Entrepreneurship Research Journal, 1(2), 1–11.

    Google Scholar 

  • Creswell, J. W. (1998). Qualitative inquiry and research design. Sage Publications.

    Google Scholar 

  • Dana, L. P., & Ratten, V. (2017). International entrepreneurship in resource landlocked African countries. Journal of International Entrepreneurship, 15(4), 416–435.

    Google Scholar 

  • Dana, L. P. Ratten, V., & Honyenuga, B. Q. (2018). Introduction to African entrepreneurship. In L. P. Dana., V. Ratten & B. Honyenuga (Eds.), African entrepreneurship. Palgrave Studies of Entrepreneurship in Africa. Palgrave Macmillan.

    Google Scholar 

  • Davidsson, P. A. (2005). Researching entrepreneurship. Springer.

    Google Scholar 

  • Davidsson, P. A., & Wiklund, J. (1997). Values, beliefs and regional variations in new firm formation rates. Journal of Economic Psychology,18(2), 179–199.

    Article  Google Scholar 

  • Davidsson, P., Hunter, E., & Klofsten, M. (2006). Institutional forces: The invisible hand that shapes venture ideas? International Small Business Journal, 24(2).

    Google Scholar 

  • De Bruin, A., & Dupuis, A. (1995). A closer look at New Zealand’s superior economic performance: Ethnic employment issues. British Review of New Zealand Studies,8, 85–87.

    Google Scholar 

  • De Bruin, A. A., & Power, T. (2001). The role of community employment creation: Lessons and challenges for a new era. In P. Morrison (Ed), Labour employment and work in New Zealand. Proceedings of the Ninth Conference. Victoria University Wellington.

    Google Scholar 

  • Dia, M. (1996). Africa’s management in the 1990s and beyond: Reconciling indigenous and transplanted institutions (2nd ed.). World Bank.

    Book  Google Scholar 

  • DiMaggio, P. J., & Powell, W. (1983). The iron cage revisited institutional isomorphism and collective rationality in organisational fields. American Sociological Review,48(1983), 147–160.

    Article  Google Scholar 

  • Fadahunsi, A., & Rosa, P. (2002). Entrepreneurship and illegality: Insights from the Nigerian cross—Border trade. Journal of Business Venturing,17(5), 397–429.

    Article  Google Scholar 

  • Frese, M. (2000). Success and failure of micro business owners in Africa: A psychological approach. Quorum Books.

    Google Scholar 

  • Gartner, W. (1985). A conceptual framework for describing the phenomenon of new venture creation. The Academy of Management Review, 10.

    Google Scholar 

  • Gnyawali, D., & Fogel, D. (1994). Environments for entrepreneurship development: Key dimensions and research implications. Entrepreneurship: Theory and Practice, 18(4), 43–62.

    Google Scholar 

  • Harper, D. A. (1996). Entrepreneurship and the market process: An enquiry into the growth of knowledge. Routledge.

    Book  Google Scholar 

  • Harper, D. A. (1997). Institutional conditions for entrepreneurship. Advances in Austrian Economics,5, 241–275.

    Google Scholar 

  • Hayton, K. (1995). Community involvement in economic regeneration lessons from North East England. Community Developement Journal,30(2), 169–179.

    Article  Google Scholar 

  • Hayton, K. (1996). A critical examination of the role of community business in urban regeneration. Town Planning Review,67(1), 1–20.

    Article  Google Scholar 

  • Hayton, J., Gerard, G., & Shaker, Z. (2002). National culture and entrepreneurship: A review of behavioral research. Entrepreneurship Theory and Practice.,26, 33–52.

    Article  Google Scholar 

  • Heftier, R. W. (2006). Slamic economics and global capitalism. Society,44(1), 16–22.

    Google Scholar 

  • Hindle, K. (2010). How community context affects entrepreneurial process: A diagnostic framework. Entrepreneurship and Regional Development,22(7), 599–647.

    Article  Google Scholar 

  • Hofstede, G. N. (1984). The cultural relativity of the quality of life concept. Academy of Management Review, 9(3), 389–398. Also, In G. Redding (Eds), International cultural differences, 1995.

    Google Scholar 

  • Hofstede, G. N. (1994). Management scientists are human. Management Science,40(1), 4–13.

    Article  Google Scholar 

  • Hofstede, G. N. (2001). Cultures consequences. Effect of cultural values and ESE on intentions (2nd ed). Sage.

    Google Scholar 

  • Hofstede, G. N. (2004). Culture’s role in entrepreneurship: Self-employment out of dissatisfaction. In T. E. Brown & J. Ulijn (Eds.), Innovation, entrepreneurship and culture: The interaction between technology, progress and economic growth. Edward Elgar Publishing.

    Google Scholar 

  • Hofstede, G. N., & McCrae, R. R. (2004). Personality and culture revisited: Linking traits and dimensions of culture. Cross-Cultural Research,38(1), 52–88.

    Article  Google Scholar 

  • Jennings, P. D., Greenwood, R., Lounsbury, M. D., & Suddaby, R. (2013). Institutions, entrepreneurs, and communities: A special issue on entrepreneurship. Journal of Business Venturing,28(1), 1–9.

    Article  Google Scholar 

  • Julien, P. A. (2007). A theory of local entrepreneurship in the knowledge economy.

    Google Scholar 

  • Kallon. (1990). The economics of Sierra Leonean entrepreneurship. University of America press.

    Google Scholar 

  • Khan, A. (2006). The interaction between sharia and international law in arbitration. Chicago Journal of International Law,6(2), 791–802.

    Google Scholar 

  • Kiggundu, M. N. (2002). Entrepreneurs and entrepreneurship in Africa: What is known and what needs to be done. Journal of Developmental Entrepreneurship,7, 239–258.

    Google Scholar 

  • Klapper, L., Lewin, A., & Delgado, J. M. Q. (2009). The impact of business environment on the business creation process, The World Bank Policy. Research Working Paper Series 4937.

    Google Scholar 

  • Kinunda-Rutashobya, L. (1999). African entrepreneurship and small business development: Emerging research issues. In L. Rutashobya. & D. Olomi (Eds.), African entrepreneurship and small business development (pp. 19–52). Dar es sallam University Press.

    Google Scholar 

  • Kleymeyer, C. (1994) Introduction. In C. Kleymeyer (Ed.), Cultural expression and grassroots development. Lynne Rienner Publishers.

    Google Scholar 

  • Koveos, P. A. (2006). Shaping the field of developmental entrepreneurship. Journal of Developmental Entrepreneurship (JDE),11(4), 275–276.

    Article  Google Scholar 

  • Luthans, F., Stajkovic, A., & Ibrayeva, E. (2000). Environmental and psychological challenges facing entrepreneurial development on transitional economies. The Journal of World Business,35(1), 95–110.

    Article  Google Scholar 

  • Manolova, T., Eunni, R., & Gyoshev, B. (2008). Institutional environments for entrepreneurship: Evidence from emerging economies in eastern Europe. Entrepreneurship Theory and Practice, 32, 203–218.

    Google Scholar 

  • Martinez, M. A., Yang, T., & Aldrich, H. E. (2011). Entrepreneurship as an evolutionary process: Research progress and challenges. Entrepreneurship Research Journal, 1(1) Article 4.

    Google Scholar 

  • McGrath, R. G., MacMillan, I. C., Yang, E. A., Tsai, W. (1992). Does culture endure, or is it malleable? Issues for entrepreneurial economic development. Journal of business venturing, 7, 115–135.

    Google Scholar 

  • Morris, M. H., Davis, D. L., & Allen, J. W. (1994). Fostering corporate entrepreneurship: Cross-cultural comparisons of the importance of individualism versus collectivism. Journal of International Business Studies,25(1), 65–89.

    Article  Google Scholar 

  • Murithi, W. (2019, 9–13th August). Dynamics of family businesses and their implications on creation of social value: Evidence from Kenya a Sub-Saharan Africa country. 79th Annual Meeting of the Academy of Management: Understanding Inclusive Organisation.

    Google Scholar 

  • North, D. C. (1990). Institutions. Institutional Change and Economic Performance. New York: Cambridge University Press.

    Google Scholar 

  • North, D. C. (2005). Understanding the process of economic change. University Press.

    Book  Google Scholar 

  • Ogunsade, I. A., & Obembe, D. (2016). The influence of informal institutions on informal sector entrepreneurship: A study of Nigeria’s hand-woven textile industry. Journal of Small Business & Entrepreneurship, 28, 1-17.

    Google Scholar 

  • Ojo, S., Nwankwo, S., & Gbadamosi, A. (2013). African diaspora entrepreneurs navigating entrepreneurial spaces in ‘home’ and ‘host’ countries. Entrepreneurship and Innovation,14(4), 289–299.

    Article  Google Scholar 

  • Peredo, A. M., & Chrisman, J. J. (2006). Toward a theory of community-based enterprise. Academy of Management Review,31(2), 309–328.

    Article  Google Scholar 

  • Portes, A., & Jensen, L. (1989). The enclave and the entrants: Patterns of ethnic enterprise in Miami before and after Mariel. American Sociological Review.,54, 929–949.

    Article  Google Scholar 

  • Portes, A., Fernandez-Kelly, P., & Haller, W. (2005). Segmented assimilation on the ground: The new second generation in early adulthood. Ethnic and Racial Studies,28, 1000–1040.

    Article  Google Scholar 

  • Ramachandran, V., & Shah, M. K. (1999). Minority entrepreneurs and firm performance in Sub- Saharan Africa. Journal of Development Studies, Taylor & Francis Journals,36(2), 71–87.

    Google Scholar 

  • Rees, H., & Shah, A. (1986). An empirical analysis of self-employment in the UK. Journal of Applied Econometrics,1, 95–108.

    Article  Google Scholar 

  • Sackmann, S. A., & Phillips, M. E. (2004). Contextual influences on culture research: Shifting assumptions for new workplace realities. International Journal of Cross-Cultural Management,4, 370–390.

    Google Scholar 

  • Schumpeter, J. A. (1947). Capitalism, socialism and democracy. New York: Harper & Brothers Publishers.

    Google Scholar 

  • Shane, S. (1994). Are champions different from non-champions? Journal of Business Venturing, Elsevier,9(5), 397–421.

    Article  Google Scholar 

  • Shane, S. (2003). A general theory of entrepreneurship. Edward Elgar.

    Book  Google Scholar 

  • Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review,25(1), 217–469.

    Google Scholar 

  • Singh, K., & Mitchell, W. (1995). The effect of partner performance on business survival in the U.S. hospital software systems industry, 1961–1991.

    Google Scholar 

  • SMEDAN. (2007). Public presentation of draft national policy on MSME in Kano and Lagos (Online). Available at: https://smedan.gov.ng/downloads/. Accessed 17 June 2019

  • SMEDAN. (2019). National policy on MSMEs (Online). Available at: https://smedan.gov.ng/downloads/. Accessed 17 June 2019.

  • Smith, K., Baum, J., & Locke, E. (2001). A multi-dimensional model of venture growth. The Academy of Management Journal, 44(10).

    Google Scholar 

  • Somerville, P., & McElwee, G. (2011, June). Situating community enterprise: A theoretical exploration.Entrepreneurship & Regional Development, 23(5–6), 317–330

    Google Scholar 

  • Steensma, H. K. (2000). Attitudes toward cooperative strategies: A cross cultural analysis of entrepreneurs. Journal of International Business Studies,31, 591–609.

    Article  Google Scholar 

  • Stevenson, L., & Lundstrom, A. A. (2007). Dressing the emperor: The fabric of entrepreneurship policy. In D. B. Audretsch, I. Grilo, & A. Thurik (Eds.), Handbook of research on entrepreneurship policy. Edward Elgar Publishing.

    Google Scholar 

  • Tan, W. L. (2002). Entrepreneurship challenges ahead for Singapore. Extrepreneurship in Asia expert workshop, Hong Kong, 28 June 2002. Research Collection Lee Kong Chian School Of Business.

    Google Scholar 

  • Themba, G., Chamme, M., Phambuka, C. A., & Makgosa, R. (1999). A framework for understanding the role of culture in Sub-Sahara Africa. Journal of Business Venturing,8, 91–98.

    Google Scholar 

  • Thurik, R., Lorraine, U., & Jan, H. (2002). Post-Materialism as a cultural factor influencing entrepreneurial activity across nations. EIM Business and Policy Research, Scales Research Reports.

    Google Scholar 

  • Tiessen, J. H. (1997). Individualism, collectivism and entrepreneurship: A framework for international comparative research. Journal of Business Venturing,12, 367–384.

    Article  Google Scholar 

  • Triandis, H. C. (1994). Cross-cultural industrial and organisational psychology. In H. C. Triandis, M. D. Dunette & L. M. Hough. (Eds.), Handbook of industrial and organisational psychology. (Vol. 4, pp. 103–172).

    Google Scholar 

  • Trompenaar, A., & Hampen-Turner, C. (1997). Riding the waves of culture: Understanding diversity in global business. Irwin Professional (burr Ridge, III).

    Google Scholar 

  • UNCTAD. (2012). Development-centred globalization: Towards inclusive and sustainable growth and development.

    Google Scholar 

  • Venkataraman, S. (1997). The distinctive domain of entrepreneurship research: An editor’s perspective. In J. A. Katz & R. H. Brockhaus (Eds.), Advances in entrepreneurship, firm.

    Google Scholar 

  • Vershinina, N., Woldesenbet, B. K., & Murithi, W. (2017). How does national culture enable or constrain entrepreneurship? Exploring the role of Harambee in Kenya. Journal of Small Business and Enterprise Development,25(4), 687–704.

    Article  Google Scholar 

  • Welter, F. (2011). Contextualizing entrepreneurship—Conceptual challenges and ways forward. Entrepreneurship Theory and Practice,35(1), 165–184.

    Article  Google Scholar 

  • Wennkers, A. R. M., Uhlaner, L. M., & Thurik, A. R. (2002). Entrepreneurship and its conditions: A macro perspective. International Journal of Entrepreneurship Education,1(1), 25–64.

    Google Scholar 

  • World Bank. (2020). Nigeria’s macroeconomic data (Online). Available at: https://data.worldbank.org/. Accessed 25 August 2020.

  • Yin, R. K. (2003). Case study research: Design and methods (3rd ed.). Sage.

    Google Scholar 

  • Zahra, S. (1993). A conceptual model of entrepreneurship as firm behaviour: A critique and extension. Entrepreneurship: Theory and Practice, 17(4), 5–21.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Nottingham Trent University, Nottingham, UK

    Rotimi Olaniyan

Authors
  1. Rotimi Olaniyan
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Rotimi Olaniyan .

Editor information

Editors and Affiliations

  1. Department of Management & Entrepreneurship, De Montfort University, Leicester, UK

    Oluwaseun Kolade

  2. Department of Management & Entrepreneurship, De Montfort University, Leicester, UK

    David Rae

  3. De Montfort University, Leicester, UK

    Demola Obembe

  4. De Montfort University, Leicester, UK

    Kassa Woldesenbet Beta

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Olaniyan, R. (2022). The Institutional Context of Community Entrepreneurship Behaviour in Nigeria: Lessons from Three Case Communities. In: Kolade, O., Rae, D., Obembe, D., Woldesenbet Beta, K. (eds) The Palgrave Handbook of African Entrepreneurship. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-75894-3_6

Download citation

Publish with us

Policies and ethics

Search

Navigation