A theory of entrepreneurship and institutional uncertainty

Bylund, Per L.; McCaffrey, Matthew

doi:10.1016/j.jbusvent.2017.05.006

Cited by 237 publications

(209 citation statements)

References 63 publications

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“…Second, entrepreneurship research has constantly emphasized that environmental uncertainty is fundamental to entrepreneurship, as it defines a common feature of business venturing (McKelvie, Haynie, & Gustavsson, 2011; McMullen & Shepherd, 2006;Townsend, McMullen, & Sarasvathy, 2018). The literature recognizes the pluralism of uncertainty in connection with different environments (Townsend et al, 2018), including uncertainty at the market level and uncertainty at the institutional level, and discusses their implications for entrepreneurial actions to exploit opportunities (Bylund & McCaffrey, 2017;Wu & Knott, 2006). While the effects of organizational learning are posited to be contingent on environmental contexts , little is known about the interplay between organizational learning and the different dimensions of environmental uncertainty in opportunity identification.…”

Section: Introductionmentioning

confidence: 99%

Identifying the tacit entrepreneurial opportunity of latent customer needs in an emerging economy: The effects of experiential market learning versus vicarious market learning

Bao

Wei

Benedetto³

2020

Strategic Entrepreneurship

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Research Summary Focusing on latent customer needs as the essential substance of entrepreneurial opportunities, this study examines the determinants of the identification of such opportunities. Based on organizational learning theory, we explore the effects of experiential market learning (EML) and vicarious market learning (VML), and the contingency of such effects on different dimensions of environmental uncertainty in an emerging economy: demand uncertainty of the task environment and legal inefficiency of the institutional environment. The model was tested through survey among 238 firms in China. We find that both EML and VML facilitate the identification of latent customer needs, while they interact with environmental uncertainty in different ways. This study makes substantial contributions to the extant literature on opportunity identification, strategic entrepreneurship, and the origin of entrepreneurial opportunities. Managerial Summary Latent customer needs, which customers are not aware of or unable to articulate, serve as a catalyst for firm growth and are integral to the business model design. How can firms identify such essential entrepreneurial opportunities? We investigate this question in an emerging economy in which latent needs are more frequently encountered and find that both learning from direct market experience (EML) and learning from other firms' market experience (VML) increase the likelihood of identifying latent needs, while VML is more influential than EML. Facing high demand uncertainty, firms should rely more on VML than EML to identify latent needs, whereas in an uncertain institutional environment with a weak legal system, firms should place less emphasis on VML and more on EML in the identification of latent needs.

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Section: Introductionmentioning

confidence: 99%

Identifying the tacit entrepreneurial opportunity of latent customer needs in an emerging economy: The effects of experiential market learning versus vicarious market learning

Bao

Wei

Benedetto³

2020

Strategic Entrepreneurship

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“…Informal constraints refer to the norms of social customs and are often referred to as "culture" whereas formal rules are created by the government and represent our laws we must abide by. Williamson (2000) illustrates these formal rules and informal sanctions using a conceptual framework in a four-level hierarchy, which has been recently applied to the institutional context of entrepreneurial action (Bylund & McCaffrey, 2017;Estrin, Korosteleva, & Mickiewicz, 2013;Misangyi, Weaver, & Elms, 2008;Pacheco, York, Dean, & Sarasvathy, 2010). This framework begins at the top (level one) with the informal constraints (i.e., customs, traditions, and norms).…”

Section: Institutional Theorymentioning

confidence: 99%

Shattering the Glass Ceiling? How the Institutional Context Mitigates the Gender Gap in Entrepreneurship

Boudreaux

Nikolaev

2018

SSRN Journal

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We examine how the institutional context affects the relationship between gender and opportunity entrepreneurship. To do this, we develop a multi-level model that connects feminist theory at the micro-level to institutional theory at the macro-level. It is hypothesized that the gender gap in opportunity entrepreneurship is more pronounced in low-quality institutional contexts and less pronounced in high-quality institutional contexts. Using data from the Global Entrepreneurship Monitor (GEM) and regulation data from the economic freedom of the world index (EFW), we test our predictions and find evidence in support of our model. Our findings suggest that, while there is a gender gap in entrepreneurship, these disparities are reduced as the quality of the institutional context improves.

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“…The definition of entrepreneurship can be viewed from an economic perspective, sociology, psychology, perspective management, social perspectives (Bula, 2012). Entrepreneurship is developing as a discipline (Bylund and McCaffrey, 2017).…”

Section: Advances In Economics Business and Management Research Volmentioning

confidence: 99%

“…Therefore, the importance of implementing strategies of policymakers to promote and create greater access to microfinance as a capability to reduce poverty improves the welfare of poor communities in the Philippines. However, according to Bylund and McCaffrey (2017) the relationship between institutions and entrepreneurship is not unidirectional. The relationship comprises more of a choice between productive, unproductive, and destructive activity within an institutional framework.…”

Section: Entrepreneurs Processmentioning

confidence: 99%

Analyzing The Entrepreneur Process of Motivation, Resource Allocation, and Institutional for Poor Households in Rural West Sumatera

Sentosa¹,

Ariusni²

2018

Proceedings of the First Padang International Conference on Economics Education, Economics, Business and Management, Accounting

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Poverty is a problem in the development of rural areas in the Province of West Sumatra. The government has implemented various programs to reduce poverty, but the number of poor people in rural areas tends to increase. The purpose of this study is to analyze the entrepreneur process in terms of: 1) motivation of sociology perspective, 2) allocation of resources, and 3) institutional role. The sampling method used was multistage cluster sampling. The sample size of poor household heads in rural areas was 133 people. Some important results of the study are as follows. First, the respondents' perception on motivation in terms of sociological perspective has an average value that is in good enough category. Motivation results have the highest average value compared with social motivation and economic motivation. Second, the respondents' perception on the entrepreneurial process in terms of allocation of resources is in good enough category. However, indicators of resource allocation and agglomeration strategies are in the bad category. Third, the average value of respondents' perception of entrepreneurial processes in terms of institutional roles is in fairly good category. The average value for the role of exploitation facilitation opportunities is in the less favorable category.The poor in rural areas mostly work in the agricultural sector (Sentosa, et al., 2016: World Bank, 2016. The cause of poverty from farmers is 50% by structuralistic, almost 30% by individualistic, and by 20% by hold fatalistic attitudes (Hayati and Karami, 2005). Chen et al (2011) found that poverty in rural areas is lack of information. Information needs of farmers are not met, farmers' information right cannot be realized properly. Then Baye (2017) found that rural poverty was due to the effect of religion and culture on the thinking and working habit of the people. Besides, poverty is caused by the presence of unproductive groups, lack of capital, lack of infrastructure, lack of market access, lack of skilled labor, land degradation, population pressure, religion, culture, forestry, regime and policy ownership and lack of land management practices. Some of the above findings can be seen that many factors are causing poverty for the rural population, so there is a need for poverty reduction programs that are relevant to poverty conditions. In the context of rural poverty reduction, rural poverty reduction programs have been and are being implemented by the Indonesian government especially the West Sumatera Provincial Government, such as:

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A theory of entrepreneurship and institutional uncertainty

Cited by 237 publications

References 63 publications

Identifying the tacit entrepreneurial opportunity of latent customer needs in an emerging economy: The effects of experiential market learning versus vicarious market learning

Identifying the tacit entrepreneurial opportunity of latent customer needs in an emerging economy: The effects of experiential market learning versus vicarious market learning

Shattering the Glass Ceiling? How the Institutional Context Mitigates the Gender Gap in Entrepreneurship

Analyzing The Entrepreneur Process of Motivation, Resource Allocation, and Institutional for Poor Households in Rural West Sumatera

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