Purpose The purpose of this paper is to improve understanding of how different aspects of the national institutional environment may influence the extent of innovative entrepreneurial activities across countries. Several institutional and conductive factors affecting a country’s capacity to support innovative entrepreneurship are explored. Design/methodology/approach Institutional theory is used to examine the national regulatory, normative, cognitive and conducive aspects that measure a country’s ability to support innovative entrepreneurship. A cross-national institutional profile is constructed to validate an entrepreneurial innovation model. The impacts of country-level national institutions on innovative entrepreneurial activity as measured by Global Entrepreneurship Monitor data are assessed through structural equation modeling. Findings Knowledge about the influence of specific institutional aspects on innovative entrepreneurship, and hence of institutional structures within and across countries, is enhanced. For new innovative enterprises, conductive and regulatory aspects seem to matter most. All conductive factors have a significant and positive impact on entrepreneurial activity rates. Research limitations/implications Results could support policy makers and practitioners in evaluating government policies’ effects on innovative entrepreneurship. Interventions should target both individual attributes and context. Future research could include longitudinal designs to measure the direction of causality. Practical implications Aspects such as regulatory institutions, and conductive factors such as information communication technology use and technology adoption, are important for innovation entrepreneurship development. Originality/value The literature on institutional theory and innovative entrepreneurship is highly limited. This study complements growing interest in empirical analysis of the effects of national institutions on innovative entrepreneurial activities and substantiates previous empirical work.
Purpose -The purpose of this paper is to analyze the impact of tax structures on economic growth in Jordan over the period 1980-2015 using error correction techniques. It provides empirical evidence that the tax structure itself, comprising direct taxes, indirect taxes and total tax revenues, is an insufficient indicator for policymakers, whereas when each tax was included separately in the model, it was found that income tax, corporate taxes and personal taxes influenced per capita income growth negatively and that all of them were distortionary taxes. They greatly reduced both short and long-term per capita growth, while tariffs and consumption taxes were found to influence per capita income growth positively. The study also shows that relying heavily on increasing total taxes without taking into consideration the tax structure of the country would lead to a reduction in per capita income, in contrast to other tax structures that showed positive and neutral effects on per capita income. Tax reform and shifting from income taxes toward consumption taxes and tariffs would therefore enhance the well-being of individuals and increase their share of output. Design/methodology/approach -This study uses an analytical approach in the framework of an error correction model. This approach allows us to overcome many problems in time series data such as non-stationary, serial correlation and endogeneity of variables, which have been ignored in many published studies dealing with time series data. Findings -The analysis shows that consumption and tariffs have a positive effect on per capita gross domestic product growth, whereas income taxes negatively influenced this growth measure. This implies that attention must be paid to a preference for consumption and tariffs to provide sustained growth. The authors recommend that the government objective should shift from raising revenues to achieving social justice and efficiency. Research limitations/implications -There are two main limitations inherent this study. The first limitation in regard to the missing data in the series for labor force and average years of schooling, interpolation method used to overcome this shortage. While the second limitation is about the importance of the tax structure itself and its direct impact on such patterns of investment which have been considered but within narrow limits. Practical implications -The relationship between taxes and economic growth is a controversial aspect of economics, because of its high impact on the decisions made by individuals and institutions, along with its direct influence on the economy as a whole. The authors recommend that the Jordanian government's objective should shift from raising revenues to achieving social justice and efficiency. Furthermore, Jordan's weak tax performance and ineffective tax structure indicate the importance for policymakers of focusing more closely on enhancing future per capita growth, which can be done by shifting from income tax toward consumption and trade taxes. On another level, polic...
Numerous researchers argued that the goal of many technology parks and the factors driving innovation success are still a mystery. In addition, it is argued that the problem with analyzing technology parks and cluster building is that recent studies analyze "the most celebrated case studies… to 'explain' their success" and ignore the less successful ones especially in developing countries. This study uses intensive interviewing to explore obstacles to success of technology parks in Jordan. It identified the following obstacles: 1. absence of a culture of entrepreneurism, 2. lack of autonomy and independence from university officials and government bureaucrats, 3. lack of a critical mass of companies that allows for synergies within parks and, 4. lack of a shared vision among parks' stakeholders. The study also found that the education system is unable to instill a culture of entrepreneurism among graduates therefore reducing the number of entrepreneurs and start-ups in Jordan.
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