New IE Articles

International Entrepreneurship and Management Journal – Volume 20, pg. 1377–1400

Institutional entrepreneurs’ roles in the international market expansions: evidence from the ride-hailing platforms

Chee Wei Cheah, Vladimír Kraj?ík & Kian Yeik Koay 

Drawing on the institutional theory-legitimacy theoretical lens, we explore how culture shapes the ride-hailing service industry and how the ignorance of cultural-cognitive legitimacy impacts digital platforms’ survival and their foreign market exploration. We employed a qualitative case study method that involved 22 respondents from a multi-category of industry actors. The in-depth interview is supported by the vignette derived from secondary data. Findings reveal that international market exploration causes uncertainties due to the local consumption culture and consumers’ expectations. Thus, ride-hailing operators must consistently adapt to local culture while offering new services abroad. Additionally, we reveal two opposing directions of the legitimation process within the ride-hailing industry, which differ from the past literature. Our key message to service industry practitioners is to recognize that consumers are active agents in shaping the new market. Also, the importance of recognizing cultural heterogeneity in the East and West; and within Asia.

European Journal of International Management – DOI: 10.1504/EJIM.2022.10050370

A spatio-temporal analysis of human capital, economic and institutional quality as determinants of international formal entrepreneurship   

Wided Ragmoun 

The purpose of this study examines the spillover effects of macroeconomics, financial and the institutional variable for formal entrepreneurship in 98 developed countries during the period 2006-2018 and demystify the investigation of entrepreneurial choice in response to each determinants and its nature. Using a spatial Durbin panel model, the results show a significant level of externality in terms of formal entrepreneurship, which means that an increase in one country’s formal entrepreneurship rate leads to an increase in this rate in its nearest neighbours. The spillover effect exists and differs from one factor to another. Direct, indirect, and total effects were identified for each determinant (macroeconomic, financial, and institutional variables). The unemployment rate seems to have a direct and indirect nonlinear impact on formal entrepreneurship. Foreign direct investment and financial development exert a negative spillover effect on the formal entrepreneurship of local countries.

European Journal of International Management – DOI: 10.1504/EJIM.2022.10052768

Institutions and international entrepreneurship: the role of regulatory, normative and cognitive congruence  

Bruno Brandão Fischer, Celia Torrecillas, Michelle Olivero-Tallaj, Maribel Guerrero 

In this article, we address the impacts of institutions (regulatory, normative and cognitive) on the country-aggregate propensity to engage in export-oriented entrepreneurship. Using a panel-data of 88 countries from 2006 to 2017, we estimated the direct and moderate effects of institutions on international entrepreneurship. Although a positive institutional environment effect on international entrepreneurial activity has been observed, the nature of this effect is not consistent across models and is especially concentrated in developed economies. These findings provide insights into the complexity of institutional conditions and their impacts on export- oriented entrepreneurship. Through a multidimensional approach, our research offers novel evidence in the context of entrepreneurial internationalisation by analysing the institutional congruence hypothesis in the context of international entrepreneurship as an outcome. Indeed, we observed the lack of association between some institutional conditions and export-oriented entrepreneurship in developing economies. Key implications emerged regarding how to improve regulatory, cognitive and normative conditions in business environments by considering the notion of institutional alignment (a central issue in integrating global value chains).