“…For example, the decline in GDP and persistently high unemployment rates contributed to the decline in real earnings in the early transition, affecting the prospects of entrepreneurship (Earle & Sakova, ), and therefore leading to depressed demand for goods and services and thus limited SME growth potential. Evidence from Bulgaria suggests that inadequate government policies contributed to the number of loss‐making enterprises exceeding the number of profitable enterprises for SMEs (Bartlett & Rangelova, ). Thus, this discussion leads to the hypotheses H4 The likelihood that individuals have growth aspirations is positively related to the presence of resource‐related barriers . H5 The likelihood that individuals have growth aspirations is positively related to the higher presence of market condition‐related constraints .…”
Section: Entrepreneurial Growth Aspirations: Theory and Hypothesesmentioning
The role of formal and informal institutions is crucial in forming growth aspirations. Firms use their resources and personal network, trusting to overcome or compensate for inadequate informal institutions. Transition countries can unlock their growth potential by targeting entrepreneurs with high growth aspiration through policy measures (increasing their level of human capital through a higher quality of educational system, aligning formal and informal institutions, promoting well‐functioning and impartial courts). Entrepreneurs use the informal institutions to complement deficient or inadequate formal institutions. Firm size as an indicator of better access to resources moderates positively the effects of informal institution barriers by having a positive influence on growth aspiration. Training, networking, and trust have a positive effect on growth aspiration and entrepreneurs use these practices in response to institutional deficiencies (inadequate educational systems, inefficient courts and other formal institutions). Policy initiatives should consider small firms as being affected by formal institutions.
“…For example, the decline in GDP and persistently high unemployment rates contributed to the decline in real earnings in the early transition, affecting the prospects of entrepreneurship (Earle & Sakova, ), and therefore leading to depressed demand for goods and services and thus limited SME growth potential. Evidence from Bulgaria suggests that inadequate government policies contributed to the number of loss‐making enterprises exceeding the number of profitable enterprises for SMEs (Bartlett & Rangelova, ). Thus, this discussion leads to the hypotheses H4 The likelihood that individuals have growth aspirations is positively related to the presence of resource‐related barriers . H5 The likelihood that individuals have growth aspirations is positively related to the higher presence of market condition‐related constraints .…”
Section: Entrepreneurial Growth Aspirations: Theory and Hypothesesmentioning
The role of formal and informal institutions is crucial in forming growth aspirations. Firms use their resources and personal network, trusting to overcome or compensate for inadequate informal institutions. Transition countries can unlock their growth potential by targeting entrepreneurs with high growth aspiration through policy measures (increasing their level of human capital through a higher quality of educational system, aligning formal and informal institutions, promoting well‐functioning and impartial courts). Entrepreneurs use the informal institutions to complement deficient or inadequate formal institutions. Firm size as an indicator of better access to resources moderates positively the effects of informal institution barriers by having a positive influence on growth aspiration. Training, networking, and trust have a positive effect on growth aspiration and entrepreneurs use these practices in response to institutional deficiencies (inadequate educational systems, inefficient courts and other formal institutions). Policy initiatives should consider small firms as being affected by formal institutions.
Using the resource‐based view and knowledge spillover, this study investigates the direct effects of Internet capabilities (communication, platform, and connection capabilities) on product and process innovation across 10 Balkan countries from 2007 to 2019. The study examines the role of foreign technology licensing in moderating these relationships. In line with findings from developed countries, the empirical results show that Internet capabilities positively influence product and process innovation. Surprisingly, foreign technology licensing was unable to enhance the positive effects of Internet capabilities on process and product innovation due to the overlapped benefits and the potential costs and risks involved in the Balkan countries. As a result, our study enhances the literature's understanding of Internet capabilities' effects on innovation and the role of foreign technology licensing, enriching current knowledge and providing practical implications for the developing context of the Balkan countries.
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