It is Not Just About The Law!

Salvi, Esther ; Gimenez Jimenez, Daniela Alejandra and Hechavarria, Diana Maria (2023): It is Not Just About The Law! A New Theoretical Framework of Informal Entrepreneurship Emergence. In: Academy of Management Proceedings, Vol. 2023, No. 1

Abstract

Given the transition toward increasingly formalized, market-driven, capitalistic economies, recent management and international business literatures have witnessed great theoretical advances relating the role of formal institutions shaping various forms of new ventures. New institutional frameworks account for a multiplicity of formal institutions, such as the role of governance quality, state fragility, intellectual property rights, and premarket reforms. Nevertheless, formal institutions do not act alone, and their interaction with informal institutions becomes critical to understand how informal new ventures emerge, especially in fragile countries. Through the analysis of 40 countries across 12 years, we build a new theoretical framework to explain how distinct institutional interactions between formal and informal institutions lead to informal entrepreneurship across countries. Based on these findings, we point to more culturally aware theory and policy approaches.

• Item Type: Journal article
• Keywords: Informal entrepreneurship; formal institutions; informal institutions; fragility, culture
• Faculties: Munich School of Management > Professor of Innovation, Entrepreneurship & Sustainability
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 310 Statistics; 300 Social sciences > 320 Political science; 300 Social sciences > 330 Economics; 300 Social sciences > 340 Law; 300 Social sciences > 380 Commerce, communications and transportation; 300 Social sciences > 390 Customs, etiquette and folklore
• ISSN: 0065-0668
• Language: English