Country Institutional Environments in Promoting Entrepreneurship: Assessment Based on Developing Economies in Asia

Abstract

Previous studies have shown that institutional environments play an important role in explaining entrepreneurship in a given country. Yet, most of the extant studies focus on samples derived from developed-economies. While some attentions have been given to countries in developing economies, the focus was mainly on a few rapidly developing countries whereas others remain largely under-explored. Moreover, developing countries in the Asian region provides a compelling context to be studied as it espouses different institutional logics.To address these issues, we assess the perceptions of the regulatory, cognitive, and normative institutional dimensions that may promote entrepreneurship in a sample of 701 business students from three Asian's developing economies: Malaysia, Bangladesh, and China. In general, the overall institutional environments level for Malaysia and China are perceived as favorable for entrepreneurship whereas Bangladesh is perceived as relatively less favorable for entrepreneurship. Moreover, results suggest that there are significant differences in the country's institutional environments between Bangladesh and Malaysia, as well as between Bangladesh and China. These results revealed important cross-national differences and invariance between the three countries in the same Asian region. Implications for future research and practice are discussed.

International business entry modes and consumer ethnocentrism: A multi country perspective

“…Beyond their sheer size, these countries are enticing due to their improving economic performances, as indicated in Tables 1 and 2. In recent years, there has been a noteworthy increase in the purchasing power of consumers in both China and India, making them even more appealing to international firms offering a diverse range of products and services (Cheng et al, 2021; Hong et al, 2023).…”

“…Additionally, firms from both countries have demonstrated success in foreign markets, with a considerable number of Emerging Market Multinationals (EMMs) originating from China and India (Hong et al, 2023; Luo et al, 2019). These developments have contributed significantly to changes in the domestic market and consumer preferences in these countries, providing a compelling research landscape (Cheng et al, 2021; Karoui & Khemakhem, 2019). Therefore, the combination of a substantial market size, increasing dominance in the international market, the purchasing power of domestic consumers, and shifts in economic indicators (Hong et al, 2023) make China and India exceptionally well‐suited for our research.…”

“…Malaysia is consistently recognized as a model for economic development, boasting a large base of interested consumers (Othman et al, 2016; Suffian, 2019). This allure makes the country a consistently lucrative destination for foreign companies (Cheng et al, 2021). Moreover, Malaysia shares many similarities with the Western world, particularly in terms of purchasing and consuming patterns and lifestyle (Cheng et al, 2021).…”

“…This allure makes the country a consistently lucrative destination for foreign companies (Cheng et al, 2021). Moreover, Malaysia shares many similarities with the Western world, particularly in terms of purchasing and consuming patterns and lifestyle (Cheng et al, 2021). This resemblance has been perpetuated over time due to a significant number of Malaysians living abroad and engaging with Western societies (Othman et al, 2016; Suffian, 2019).…”

“…The dynamic nature of research on International Business (IB) modes (Nambisan et al, 2019) and the involvement of multiple stakeholders, including international consumers (Rosado‐Serrano et al, 2018), have spurred the development of new theoretical and conceptual frameworks (Zhao et al, 2017), as evident in recent literature (Brouthers et al, 2022; Cheng et al, 2021). Scholars are now advocating for IB mode research to address a spectrum of issues related to the development of dynamic capabilities (Bose, 2016; Brouthers & Brouthers, 2003), robustness, and sustainable competitive advantages (Dickel et al, 2019; Slangen, 2013).…”