IE Repository | Browsing by Author "Eesley, Charles"

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Institutions and Entrepreneurial Activity: The Interactive Influence of Misaligned Formal and Informal Institutions
(Informs, 2018-06-15) Skousen, Bradley; Cheng, Joseph; Eberhart, Robert; Eesley, Charles; https://ror.org/02jjdwm75
We contribute to the institutions and entrepreneurship literature by examiningthe interactive inﬂuence of formal and informal institutions on new business creation,survival, and growth. Prior literature demonstrates how formal and informal institutionsshape the level of entrepreneurship. This paper extends this to examine the cases whenformal and informal institutions conﬂict with one another to cast an analytic eye on whycountries diﬀer in the type of entrepreneurial activity in terms of entry, survival, andgrowth. We argue that national and regional diﬀerences can be better explained by theinteractive inﬂuence of formal and informal institutions. Moreover, we argue that infor-mal institutions dominate formal institutions due to the former’s characteristics of deepembeddedness and resistance to change over time. These ideas are presented and summa-rized into a typology of institutional eﬀects on entrepreneurship activity depending on thecombination of formal and informal institutions. The paper concludes with implicationsfor future theory and research on the joint inﬂuence of diﬀerent institutional eﬀects andparticularly on the intersection between institutions and entrepreneurship.