Abstract
This chapter describes the concepts of entrepreneurship and institutions and reviews and categorizes the different types of institutions and entrepreneurship. After this, the factors influencing entrepreneurship are identified and classified into two categories—institutional and non-institutional. It is also known that economic, legal, managerial, educational, social, cultural, and political environments affect entrepreneurship. In this chapter, only institutional factors are taken into account, and their theoretical relationship is examined. The conclusion is that institutions are important in the entrepreneurial process. Entrepreneurs can also play an important role in the process of institutional change; thus, a bidirectional causal relationship is found between institutions and entrepreneurship. In the empirical section, the status of institutional quality, the entrepreneurial environment, and the relationship between them in Middle East and North Africa (MENA) countries are analysed. It is concluded that the status of these variables is inadequate and opportunity-driven entrepreneurs can create institutional changes in these countries.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
To further study the differences, see Nelson and Sampat (2001) p. 31ff.
- 2.
To further study this area, see Lin and Nugent (1995).
- 3.
For causes of this forgetfulness, see Ripsas (1998).
- 4.
To read more about these concept and types, see the references listed in Table 2.
- 5.
To read more, see Naudé (2010, p. 87–90).
- 6.
See Greenfield and Strickon (1981).
- 7.
See Bosma et al. (2005).
- 8.
- 9.
To further study the four theories, see Acemoglu et al. (2003).
- 10.
- 11.
Li et al. (2006) believe that facilitating an institutional change is the most attractive practice that can be pursued by an entrepreneur. But it should be noted that the entrepreneur in this case, in addition to market risk, is also facing institutional risk (the risk of failure of institutional change) and thus needs political understanding and skills.
- 12.
Some researchers like Van der Steen and Groenewegen (2009) distinguish between Institutional, Policy, and Political entrepreneurship, but others like Henrekson and Sanandaji (2011) consider them to be the same. Some researchers also like Henrekson and Sanandaji (2011) consider business and market entrepreneurship equivalent to Schumpeterian entrepreneurship, which is different from political entrepreneurship.
References
Acemoglu D (2006) Introduction to economic growth. MIT Press, Cambridge
Acemoglu D, Johnson S, Robinson J, Thaicharoen Y (2003) Institutional causes, macroeconomic symptoms: volatility, crises and growth. J Monet Econ 50:49–123
Acemoglu D, Johnson S, Robinson J (2005) Institution as the fundamental cause of long-run growth. In: Aghion P, Durlauf S (eds) Handbook of economic growth. Elsevier, Amsterdam
Acs ZJ, Desai S, Hessels J (2008) Entrepreneurship, economic development and institutions. Small Bus Econ 31:219–234
Aidis R, Estrin S, Mickiewicz T (2009) Entrepreneurial entry: which institutions matter? IZA Discussion Paper 4123, 2–45
Amoros Espinosa J (2009) Entrepreneurship and Quality of Institutions. United Nations University, World Institute for Development Economics Research, 1–23
Angulo-Guerrero M-J, Perez-Moreno S, Abad-Guerrero I-M (2017) How economic freedom affect opportunity and necessity entrepreneurship in the OECD countries. J Bus Res 73:30–37
Anokhin S, Schulze WS (2009) Entrepreneurship, innovation, and corruption. J Bus Ventur 24:465–476
Aoki M (2007) Endogenizing institutions and institutional changes. J Inst Econ 3(1):1–31
Aparicio S, Urbano D, Audretsch D (2016) Institutional factors, opportunity entrepreneurship and economic growth: panel data evidence. Technol Forecast Soc Chang 102:45–61
Apergis N, Payne JE (2014) The oil curse, institutional quality, and growth in MENA countries: evidence from time-varying cointegration. Energy Econ 46:1–9
Auplat CA, Zucker LG (2014) Institutional entrepreneurship dynamics: evidence from the development of nanotechnologies. Ann Econ Stat, No. 115–116 (Special issue on Knowledge capital in nanotechnology and other high technology industries), 197–220
Azmat A, Samaratunge R (2009) Responsible entrepreneurship in developing countries: understanding the realities and complexities. J Bus Ethics 90(3):437–452
Baez B, Abolafia MY (2002) Bureaucratic entrepreneurship and institutional change: a sense-making approach. J Public Adm Res Theory 12(4):525–552
Baker T, Gedajlovic E, Lubatkin M (2005) A framework for comparing entrepreneurship processes across nations. J Int Bus Stud 36(5):492–504
Bakhshi-Dastjerdi R, Dallali-Isfahani R (2011) Equity and economic growth, a theoretical and empirical study: MENA zone. Econ Model 28:694–700
Bastian B, Zali MR, Mirzaei M (2015) Institutional framework conditions and entrepreneurial attitudes and motivations. In: Nicoló D (ed) Start-ups and start-up ecosystems: theories, models and case studies in the mediterranean area. ASERS Publishing, Craiova, Romania. https://doi.org/10.14505/sse.2015.ch2
Baumol WJ (1990) Entrepreneurship: productive, unproductive, and destructive. J Polit Econ 98(5):893–921
Bhattacharya R, Wolde H (2010). Constraints on growth in the MENA region. IMF Working Paper, WP/10/30. International Monetary Fund, Washington
Bjerregaard T, Lauring J (2012) Entrepreneurship as institutional change: strategies of bridging institutional contradictions. Eur Manag Rev 9(1):31–43. https://doi.org/10.1111/j.1740-4762.2012.01026.x
Bosma N, De Wit G, Carree M (2005) Modelling entrepreneurship: unifying the equilibrium and entry/exit approach. Small Bus Econ 25(1, Special Issue on, Organizational Determinants of Small Business Performance):35–48
Bowen HP, De Clercq D (2008) Institutional context and the allocation of entrepreneurial effort. J Int Bus Stud 39(4):747–767
Brixiova Z, Egert B (2017) Entrepreneurship, institutions and skills in low-income countries. Econ Model 67:381–391. https://doi.org/10.1016/j.econmod.2017.02.020.S
Brown C (2005) Is there an Institutional theory of distribution? J Econ Issues 39(4):515–931
Bruton GD, Ahlstrom D, Li H-L (2010) Institutional theory and entrepreneurship: where are we now and where do we need to move in the future? Enterp Theory Pract 34(3):421–440. https://doi.org/10.1111/j.1540-6520.2010.00390.x
Busenitz LW, Gómez C, Spencer JW (2000) Country institutional profiles: unlocking entrepreneurial phenomena. Acad Manag J 43(5):994–1003
Castaño M-S, Mendez MT, Galindo MA (2015) The effect of social, cultural, and economic factors on entrepreneurship. J Bus Res 68(7):1496–1500
Chan S, Clark C, Davis DR (1990) State entrepreneurship, foreign investment, export expansion, and economic growth: Granger causality in Taiwan’s development. J Conflict Resolut 34(1):102–129
Cheah H-B (1990) Schumpeterian and Austrian entrepreneurship: unity within duality. J Bus Ventur 5:341–347
Cho Y, Honorati M (2014) Entrepreneurship programs in developing countries: a meta regression analysis. Labour Econ 28:110–130
Chong A, Zanforlin L (2004) Inward-looking policies, institutions autocrats, and economic growth in Latin American: an empirical exploration. Public Choice 121:335–361
Cuervo A, Ribeiro D, Roig S (2007) Entrepreneurship: concepts, theory and perspective. Springer, Berlin
D’Agostino G, Dunne JP, Pieroni L (2016) Corruption and growth in Africa. Eur J Polit Econ 43:71–88
Dau LA, Cuervo-Cazurra A (2014) To formalize or not to formalize: entrepreneurship and pro-market institutions. J Bus Ventur 29(5):668–686
Djankov S, Miguel E, Qian Y, Roland G, Zhuravskaya E (2005) Who are Russia’s entrepreneurs? J Eur Econ Assoc 3(2/3), Papers and proceedings of the nineteenth annual congress of the European economic association, 587–597
Dopfer K (1991) Toward a theory of economic institutions: synergy and path dependency. J Econ Issues 25(2):535–555
Dutta S (2012) Entrepreneurship & global competitiveness: a study on India. Indian J Ind Rel 47(4):617–633
El Harbi S, Anderson AR (2010) Institutions and the shaping of different forms of entrepreneurship. J Socio-Econ 39(3):436–444
Ellis PD (2011) Social ties and international entrepreneurship: opportunities and constraints affecting firm internationalization. J Int Bus Stud 42(1):99–127
Estrin S, Korosteleva J, Mickiewicz T (2013) Which institutions encourage entrepreneurial growth aspirations? J Bus Ventur 28(4):564–580
Etemad H, Lee Y (2003) The knowledge network of international entrepreneurship: theory and evidence. Small Bus Econ, Special Issue: Internationalizing SMEs 20(1):5–23
Etemad H (2014) The institutional environment and international entrepreneurship interactions. J Int Entrep 12:309–313
Eunni RV (2010) Institutional environments for entrepreneurship in emerging economies: Brazil Vs. Mexico. World J Manag 2(1):1–18
Folta TB, Delmar F, Wennberg K (2010) Hybrid entrepreneurship. Manag Sci 56(2):253–269
Freeman JR (1982) State entrepreneurship and dependent development. Am J Polit Sci 26(1):90–112
Fuentelsaz L, Gonzalez C, Maicas JP, Montero J (2015) How different formal institutions affect opportunity and necessity entrepreneurship. Bus Res Q 18(4):246–258
Greener I (2009) Entrepreneurship and institution-building in the case of childminding. Work Employ Soc 23(2):305–322
Greenfield M, Strickon A (1981) A new paradigm for the study of entrepreneurship and social change. Econ Dev Cult Chang 29(3):467–499
Greenwood R, Suddaby R (2006) Institutional entrepreneurship in mature fields: the big five accounting firms. Acad Manag J 49(1):27–48
Hechavarria DM, Renko M, Matthews CH (2012) The nascent entrepreneurship hub: goals, entrepreneurial self-efficacy and start-up outcomes. Small Bus Econ 39(3):685–701
Henrekson M (2007) Entrepreneurship and institutions. Res Inst Ind Econ (IFN) 707:1–28
Henrekson M, Sanandaji T (2011) The interaction of entrepreneurship and institutions. J Inst Econ 7:47–75
Hitt MA, Ireland RD, Camp SM, Sexton DL (2001) Guest editors’ introduction to the special issue strategic entrepreneurship: entrepreneurial strategies for wealth creation. Strateg Manag J, Special Issue: Strategic Entrepreneurship: Entrepreneurial Strategies for Wealth Creation 22(6/7):479–491
Hjerm M (2004) Immigrant entrepreneurship in the Swedish welfare state. Sociology 38(4):739–756
Hodgson GM (2006) What are institutions? J Econ Issues 40(1):1–25
Kalantaridis C, Fletcher D (2012) Entrepreneurship and institutional change: a research agenda. Entrep Reg Dev 24(3–4):199–214
Kent CA, Rushing FW (1999) Coverage of entrepreneurship in principles of economics textbooks: an update. J Econ Educ 30(2):184–188
Kirchheimer DW (1989) Public entrepreneurship and subnational government. Polity 22(1):119–142
Kozul-Wright R, Reyment P (1997) The institutional hiatus in economies in transition and its policy consequences. Camb J Econ 21(5):641–661
Krzyzanowska O (2008) Patterns of self-employment: an empirical comparison of Young People’s Entrepreneurial Pursuits in Poland and Ireland. Polish Sociol Rev 164:417–435
Kuchar P (2015) Entrepreneurship and institutional change: the case of surrogate motherhood. J Evol Econ. https://doi.org/10.1007/s00191-015-0433-5
Kuchar P (2016) Entrepreneurship and institutional change: the case of surrogate motherhood. J Evol Econ 26(2):349–379. https://doi.org/10.1007/s00191-015-0433-5
Levie J, Autio E, Acs Z, Hart M (2014) Global entrepreneurship and institutions: an introduction. Small Bus Econ 42:437–444
Li DD, Feng F, Jiang H (2006) Institutional entrepreneurs. Am Econ Rev 96(2):358–362
Lin JY, Nugent JB (1995) Institution and economic development. Handb Dev Econ 3(38):2301–2370
Lacetera N (2009) Academic entrepreneurship. Manag Decis Econ 30(7):443–464
Lee SH, Peng MW, Barney JB (2007) Bankruptcy law and entrepreneurship development: a real option perspective. Acad Manag Rev 32(1):257–272
Lucas DS, Fuller CS (2017) Entrepreneurship: productive, unproductive, and destructive—relative to what? J Bus Ventur Insights 7:45–49
Mair J, Battilana J, Cardenas J (2012) Organizing for society: a typology of social entrepreneuring models. J Bus Ethics 111(3, Social Entrepreneurship in Theory and Practice):353–373
Marinov M, Marinova S (1996) Characteristics and conditions of entrepreneurship in Eastern Europe. J East Eur Manag Stud 1(4):7–24
Marmor TR (1986) Entrepreneurship in Government: an American study. J Publ Policy 6(3):225–253
McDougall PP, Oviatt BM (2000) International entrepreneurship: the intersection of two research paths. Acad Manag J 43(5):902–906
McMullen JS, Plummer LA, Acs ZJ (2007) What is an entrepreneurial opportunity? Small Bus Econ 28:273–283
Meir A, Baskind A (2006) Ethnic business entrepreneurship among urbanizing Bedouin in the Negev, Israel. Nomad People, New Series 10(1):71–100
Milenkovic N, Vukmirovic J, Bulajic M, Radojicic Z (2014) A multivariate approach in measuring socio-economic development of MENA countries. Econ Model 38:604–608
Mitchell DT, Campbell ND (2009) Corruption’s effect on business venturing within the United States. Am J Econ Sociol 68(5):1135–1152
Montgomery AW, Dakin PA, Dacin MT (2012) Collective social entrepreneurship: collaboratively shaping social good. J Bus Ethics 111(3, Social Entrepreneurship in Theory and Practice):375–388
Montiel I, Husted BW (2009) The adoption of voluntary environmental management programs in Mexico: first movers as institutional entrepreneurs. J Bus Ethics 88(Supplement 2: Central America and Mexico: Efforts and Obstacles in Creating Ethical Organizations and an Ethical Economy):349–363
Muralidharan E, Pathak S (2016) Informal institutions and international entrepreneurship. Int Bus Rev 26(2):288–302. https://doi.org/10.1016/j.ibusrev.2016.07.006
Murphy PJ, Coombes SM (2009) A model of social entrepreneurial discovery. J Bus Ethics 87(3):325–336
Naqvi O (2011) Entrepreneurship in the Middle East and North Africa: opening the floodgates. Innovations 7(2):11–17
Naudé W (2010) Entrepreneurship in the field of development economics. In: Urban B (ed) Frontiers in entrepreneurship, perspectives in entrepreneurship (Chap. 4). Springer, Berlin, Heidelberg, pp 85–114
Nelson RR (1984) Incentives for entrepreneurship and supporting institutions. Weltwirtschaftliches Arch 120(4):646–661
Nelson RR, Sampat BN (2001) Making sense of institutions as a factor shaping economic performance. J Econ Behav Organ 44:31–54
Ngunjiri I (2010) Corruption and entrepreneurship in Kenya. J Lang Technol Entrep Africa 2(1):93
North DC (1990) Institutions, institutional change and economic performance. Cambridge University Press, Cambridge
North DC (2005) Understanding the process of economic change. University Press, Princeton
Nystrom K (2008) The institutions of economic freedom and entrepreneurship: evidence from panel data. Public Choice 136(3–4):269–282
Otahal T (2012) Institutional entrepreneurship: productive or destructive? Available at SSRN 2003747, 1–30
Özcan S, Reichstein T (2009) Transition to entrepreneurship from the public sector: predispositional and contextual effects. Manag Sci 55(4):604–618
Parker SC (2004) The economics of self-employment and entrepreneurship. Cambridge University Press, Cambridge
Pring C (2016) People and corruption: MENA survey 2016. Global Corruption Barometer, www.transparency.org
Rath J, Kloosterman R (2000) Outsiders’ business: a critical review of research on immigrant entrepreneurship. Int Migr Rev 34(3):657–681
Ripsas S (1998) Toward an interdisciplinary theory of entrepreneurship. Small Bus Econ 10(2):103–115
Rodrik D, Subramanian A, Trebbi F (2004) Institutions rule: the primacy of institutions over geography and integration in economic development. J Econ Growth 9:131–165
Ruttan V, Hayami Y (1984) Toward a theory of induced institutional innovation. J Dev Stud 20(4):203–223
Saha S, Ben Ali MS (2017) Corruption and economic development: new evidence from the middle Eastern and North African countries. Econ Anal Policy 54:83–95
Samadi AH (2008) Property rights and economic growth: an endogenous growth model. Unpublished Ph.D. Dissertation, Isfahan University, Isfahan
Sambharya R, Musteen M (2014) Institutional environment and entrepreneurship: an empirical study across countries. J Inst Entrep 12(4):314–330
Sautet F (2005) The role of institutions in entrepreneurship: implications for development policy. Mercatus Center
Schneider M, Teske P (1992) Toward a theory of the political entrepreneur: evidence from local government. Am Polit Sci Rev 86(3):737–747
Schumpeter JA (1934) The theory of economic development. Harvard University Press, Cambridge, MA
Searle JR (2005) What is an institution? J Inst Econ 1(1):1–22
Shibayama S, Walsh JP, Baba Y (2012) Academic entrepreneurship and exchange of scientific resources: material transfer in life and materials sciences in Japanese universities. Am Sociol Rev 77(5):804–830
Simon-Moya V, Revuelto-Taboada L, Guerrero RF (2013) Institutional and economic drivers of entrepreneurship: an international perspective. J Bus Res 67(5):715–721
Smith E (2012) Explaining public entrepreneurship in local government organizations. State Local Gov Rev 44(3):171–184
Sobel RS (2008) Testing Baumol: institutional quality and the productivity of entrepreneurship. J Bus Ventur 23(6):641–655
Spencer JW, Gómez C (2004) The relationship among national institutional structures, economic factors, and domestic entrepreneurial activity: a multicounty study. J Bus Res 57:1098–11071100
Stenholm P, Acs ZJ, Wuebker R (2013) Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity. J Bus Ventur 28:176–193
Stephen FH, Urbano D, Van Hemmed S (2005) The impact of institutions on entrepreneurial activity. Manag Decis Econ 26(7, Corporate Governance: An International Perspective):413–419
Sud M, VanSandt CV, Baugous AM (2009) Social entrepreneurship: the role of institutions. J Bus Ethics 85(Supplement 1: 14th Annual Vincentian International Conference on Justice for the Poor: A Global Business Ethics):201–216
Szivas E (2001) Entrance into tourism entrepreneurship: a UK case study. Tour Hosp Res 3(2):163–172
Tanimoto K (2008) A conceptual framework of social entrepreneurship and social innovation cluster: a preliminary study, Hitotsubashi. J Commerce Manag 42(1):1–16
Thai MTT, Turkina E (2014) Macro-level determinants of formal entrepreneurship versus informal entrepreneurship. J Bus Ventur 29(4):490–510. https://doi.org/10.1016/j.jbusvent.2013.07.005
Thomas AS, Mueller SL (2000) A case for comparative entrepreneurship: assessing the relevance of culture. J Int Bus Stud 31(2):287–301
Troilo M (2011) Legal institutions and high-growth aspiration entrepreneurship. Econ Syst 35(2):158–175
Urbano D, Alvarez C (2014) Institutional dimensions and entrepreneurial activity: an international study. Small Bus Econ 42:703–716
Urbano D, Toledano N, Soriano DR (2010) Analyzing social entrepreneurship from an institutional perspective: evidence from Spain. J Soc Entrep 1(1):54–69
Valdez ME, Richardson J (2013) Institutional determinants of macro-level entrepreneurship. Enterp Theory Pract 37(5):1149–1175
Van der Steen M, Groenewegen J (2009) Policy entrepreneurship: Empirical inquiry into policy agents and institutional structures. J Innov Econ 2(4):41–61
Veciana JM (2007) Entrepreneurship as a scientific research program. In: Cuervo Á, Ribeiro D, Roig S (eds) Entrepreneurship. Springer, Berlin, Heidelberg, pp 23–71
Veciana JM, Urbano D (2008) The institutional approach to entrepreneurship research. Introduction. Int Entrep Manag J 4(4):365–379
Webb JW, Tihanyi L, Ireland RD, Sirmon DG (2009) You say illegal, i say legitimate: entrepreneurship in the informal economy. Acad Manag Rev 34(3):492–510
Welter F, Smallbone D (2008) Women’s entrepreneurship from an institutional perspective: the case of Uzbekistan. Int Entrep Manag J 4:505–520
Wennekers S, Thurik R (1999) Linking entrepreneurship and economic growth. Small Bus Econ 13(1):27–55
Wennekers S, Van Wennekers A, Thurik R, Reynolds P (2005) Nascent entrepreneurship and the level of economic development. Small Bus Econ 24(3):293–309
Westland H, Bolton R (2003) Local social capital and entrepreneurship. Small Bus Econ 21(2):77–113
Williams N, Vorley T (2015) Institutional asymmetry: how formal and informal institutions affect entrepreneurship in Bulgaria. Int Small Bus J 33(8):840–861
Williamson OE (2000) The new institutional economics: taking stock, looking ahead. J Econ Lit 38(3):595–613
Yu YT (2001) An entrepreneurship perspective of institutional change. J Constit Polit Econ 12:217–236
Zahra SA (1996) Governance, ownership, and corporate entrepreneurship: the moderating impact of industry technological opportunities. Acad Manag J 39(6):1713–1735
Zhou M (2004) Revisiting ethnic entrepreneurship: convergences, controversies, and conceptual advancements. Int Migr Rev 38(3: Conceptual and Methodological Developments in the Study of International Migration):1040–1074
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Samadi, A.H. (2018). Institutions and Entrepreneurship in MENA Countries. In: Faghih, N., Zali, M. (eds) Entrepreneurship Ecosystem in the Middle East and North Africa (MENA). Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-75913-5_3
Download citation
DOI: https://doi.org/10.1007/978-3-319-75913-5_3
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-75912-8
Online ISBN: 978-3-319-75913-5
eBook Packages: Business and ManagementBusiness and Management (R0)