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Journal of International Entrepreneurship

, Volume 12, Issue 4, pp 314–330 | Cite as

Institutional environment and entrepreneurship: An empirical study across countries

  • Rakesh SambharyaEmail author
  • Martina Musteen
Article

Abstract

Drawing on institutional theory, we synthesize previous literature that examined the impact of the regulatory, normative, and cognitive dimension of local institutional environment on entrepreneurship. We then test and replicate the link between the institutional environment and two types of entrepreneurial activities—opportunity-driven and necessity-driven entrepreneurship—using recent data on 43 countries. Consistent with prior literature, we find that countries characterized by less market openness, greater power distance, and collectivism tend to have higher levels of necessity-driven entrepreneurship and regulatory quality, and uncertainty avoidance do not seem to have a profound impact on this type of activity. On the other hand, countries with less market openness and regulatory quality, and smaller power distance are associated with opportunity-driven entrepreneurship.

Keywords

Institutional environment Opportunity-driven entrepreneurship Necessity-driven entrepreneurship Regulation Market openness Culture 

Abstrakt

Basierend auf institutioneller Theorie fassen wir die existierende Literatur zusammen, welche die Einflüsse regulatorischer, normativer und kognitiver Dimensionen des lokalen institutionellen Umfelds auf Unternehmertum untersucht hat. Anschließend testen und reproduzieren wir—basierend auf aktuellen Daten aus 43 Ländern—die Verbindung zwischen dem institutionellem Umfeld und zwei Arten von Unternehmertum: Gelegenheitsgetriebenem und notwendigkeitsgetriebenem Unternehmertum. Übereinstimmend mit existierender Literatur kommen wir zu dem Schluss, dass Länder, die durch eine geringe Marktoffenheit, größere Machtdistanz, sowie Kollektivismus geprägt sind, zu einem höheren Level an notwendigkeitsgetriebenen Unternehmertum tendieren. Die Qualität des regulatorischen Umfelds und Ungewissheitsvermeidung scheinen keinen starken Einfluss auf diese Art des Unternehmertums zu haben. Andererseits sind Länder mit geringer Marktoffenheit und einem schlechteren regulatorischen Umfeld, sowie geringer Machtdistanz durch gelegenheitsgetriebenes Unternehmertum geprägt.

Notes

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.Management & International Business, School of BusinessRutgers University–CamdenCamdenUSA
  2. 2.Management Department, College of Business AdministrationSan Diego State UniversitySan DiegoUSA

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