Firm Dynamics and Institutional Participation: A Case Study on Informality of Micro Enterprises in Peru

Abstract

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Competitive Strategy and Performance in Mexico, Peru, and the United States

“…Such differences exist throughout Mexico, particularly when one compares the developing industrial cities along the U.S. border and the nation's capital with smaller, more isolated cities and small communities in outlying regions. This problem is particularly pervasive in Peru, however, where management practice is difficult to encapsulate because of substantial differences across geographical regions, firms, and industries (Jackle & Li, 2006). Indeed, formal human resource practices only became apparent last decade, and are most visible in large firms in Lima (Sully de Luque & Arbazia, 2005).…”

“…Indeed, small and large firms, as well as those in different industries, plan and execute strategies differently (Verreynne, 2006). This is a particular concern in Latin America where substantial qualitative differences exist between large global firms and small domestic ones (Jackle & Li, 2006). For example, it is possible that for domestic firms in stable industries, low cost strategies may yield the highest performance levels.…”

Economic Growth and Poverty: Does Formalisation of Informal Enterprises Matter?

“…Thus, younger firms (the majority being informal) may choose not to participate in all (or some) societal institutions due to the uncertainty surrounding their future (Levenson and Maloney, 1998;Jaeckle and Li, 2003).…”

“…Jaeckle and Li (2003) argue that the line of business or sector in which firms are involved seems to determine their level of participation in societal institutions.…”

“…2 See Morrisson (1995), Arimah (2001), Kappel et al (2004), and Klein 2003 on limited financial services; Yu (2002), Ishengoma (2005), and Morrisson (1995) on poor business location and high cost of utilities. 3 De Soto (1992), Loayza (1997); Djankov et al (2002), Levenson and Maloney (1998), IBRD/World Bank (2005), Jaeckle and Li (2003), and Ishengoma (2005).…”