New IE Articles — November 2021

Global Strategy Journal – Volume 11 (4): pp. 521-795: https://onlinelibrary.wiley.com/toc/20425805/2021/11/4

Special Issue on “Entrepreneurship and Institutions”

Edited by Dan Li, Michael A. Hitt, Bat Batjargal, R. Duane Ireland, Toyah L. Miller, and Alvaro Cuervo-Cazurra 

This special issue advances the global strategy and entrepreneurship fields by providing a better understanding of the linkage between institutions and entrepreneurship. We provide an overview of existing literature in three key research areas: (a) the impact of institutions (types and complexity) on entrepreneurship, (b) the effect of institutional evolution (overall evolution and interplay among institutions) on entrepreneurship, and (c) the coevolution of institutions and entrepreneurship. We introduce the eight articles appearing in this special issue, examine the relationship between institutions and entrepreneurship in a non-ergodic world, and highlight meaningful and promising avenues for future research in each of the three key research areas in the domain of institutions and entrepreneurship.

International Journal of Entrepreneurial Behavior & Research – DOI: https://doi.org/10.1108/IJEBR-05-2020-0329

Entrepreneurial sensing capabilities: the stimulating role of cross-cultural experience

Pidduck, R.J. and Zhang, Y

Drawing on image theory, the authors investigate how and when cross-cultural experience cultivates two core entrepreneurial sensing capabilities: opportunity recognition and creative behavior. The authors develop and test a second-stage moderated mediation model across two studies. Study 1 consists of a sample of prospective entrepreneurs from the UK using perceptual scale measures (n = 153). Building on this, core findings are replicated using task-based measures on a sample of US participants (n = 342). Results show that cross-cultural experience is positively related to both entrepreneurial sensing capabilities through the mediating role of self-image fluidity. No support is found for the moderating role of regulatory focus orientations.

Entrepreneurship & Regional Development – Volume 33 (7-8): pp.  668-687

How does informal entrepreneurship influence the performance of small formal firms? A cross-country institutional perspective

Panagiotis Piperopoulos, Mario Kafouros, Murod Aliyev, Emma Yan Liu, and Alan Au

We advance understanding of how competition from informal entrepreneurial firms influences the performance of small formal (registered) firms. We also investigate the role of tax and law related institutions in shaping differently the performance outcomes of the competition between informal and formal firms. Empirical evidence from the analysis of 11,988 observations in 110 emerging countries indicates that, on average, informal firms affect adversely the performance of small formal firms. These negative effects however are stronger in institutional environments with burdensome courts of law but tend to be weaker in environments with burdensome tax regulations. Our analysis extends the rational exit perspective of informality and shows how competition from informal firms affects the performance of small formal firms. It also specifies how contingencies associated with law- and tax-specific institutions across emerging countries influence this relationship.