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Institutions and Entrepreneurial Activity: The Interactive Influence of Misaligned Formal and Informal Institutions

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dc.contributor.authorSkousen, Bradley
dc.contributor.authorCheng, Joseph
dc.contributor.authorEberhart, Robert
dc.contributor.authorEesley, Charles
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-04-24T11:24:42Z
dc.date.available2025-04-24T11:24:42Z
dc.date.issued2018-06-15
dc.description.abstractWe 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.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationEesley, C. E., Eberhart, R. N., Skousen, B. R., & Cheng, J. L. (2018). Institutions and entrepreneurial activity: The interactive influence of misaligned formal and informal institutions. Strategy Science, 3(2), 393-407. https://doi.org/10.1287/stsc.2018.0060.
dc.identifier.doihttps://doi.org/10.1287/stsc.2018.0060
dc.identifier.issn2333-2077
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3753
dc.issue.number2
dc.journal.titleStrategy Science
dc.language.isoen
dc.page.final407
dc.page.initial393
dc.page.total15
dc.publisherInforms
dc.relation.departmentEntrepreneurship
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/deed
dc.subject.keywordEntrepreneurship
dc.subject.keywordInstitutional theory
dc.subject.keywordInternational management
dc.subject.keywordEntry strategies
dc.titleInstitutions and Entrepreneurial Activity: The Interactive Influence of Misaligned Formal and Informal Institutions
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/publishedVersion
dc.volume.number3
dspace.entity.typePublication
relation.isAuthorOfPublicationfdfdeb66-8a4b-4712-995b-bc6b0a20be86
relation.isAuthorOfPublication.latestForDiscoveryfdfdeb66-8a4b-4712-995b-bc6b0a20be86
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