This article critically analyses how the entrepreneurial ecosystem and institutional environment influences the development of frugal innovation and informal entrepreneurship. There is a dearth of empirical research on African entrepreneurship ecosystems and complementors that produce innovations in the informal sector. We address this gap, by examining why and how informal businesses operate and evolve. Based on a qualitative approach, interviewing 20 business owners in Nigeria, two focus groups meeting with 5 and 7 business associations leaders, respectively, we examine the role of institutional environments, how entrepreneurs operate and overcome the barriers to entrepreneurship. The results reveal a model of determinants of frugal innovation and informal entrepreneurship ecosystem comprising formal/informal rules, access to market, and family as important elements that act as a means to effective knowledge flows, networking, capital, and resources sharing.
In today's global marketplace, small‐ and medium‐sized enterprises (SMEs) are increasingly looking at internationalisation strategies to boost growth, profitability, and competitiveness. However, challenges, such as, sociocultural differences, political institutions, limited resources, competitive challenges, market threats, and economic and technological barriers all hinder SMEs from entering and competing favourably in the international markets. Considering the important link between lack of resources and internationalisation of SMEs, this study examined economic and technology‐related barriers of SMEs internationalisation from a neglected yet emerging market context in Bangladesh. To compare the relative importance of these two particular categories of barriers, this study developed and validated a partial least square‐based structural equation model (PLS‐SEM) with primary data gathered from questionnaires from 212 Bangladeshi SMEs. The findings of the paper suggest that technology‐related barriers seem slightly more influential than economic barriers. As the difference is very low, importance should be given to both types of barriers as found. Conceptually, this study extends this area of research by reframing economic and technology‐related barriers of internationalisation as a hierarchical reflective model within an emerging economy context. Empirically, it confirms that PLS‐SEM can be used to compare the relative importance of these two types of barriers. Practically, policy makers can give slightly more priorities on the technology‐related barriers where it is not possible to give equal importance to both because of limited resource and research neglect on developing economies.
Despite internationalization theory's recognition that place and policy constitute fundamental barriers for the internationalization of small and medium enterprises (SMEs), research into rural‐based firms from the developing world is a much underdeveloped and neglected area. To address the need to examine this gap, the purpose of this study is to identify and compare place and policy challenges of rural SMEs' internationalization in Nigeria. We have developed a model that extends internationalization theory's overemphasis on the structural aspects of these barriers and thereby provide a resolution tool for managers. By using partial least squares (PLS) path modeling methodology, we also administered 403 questionnaires in six of Nigeria's geopolitical zones. Our three‐stage analyses reveal findings that the physical and geographical (or place barrier) challenges account for 90% whilst the traditionally neglected aspects of legal and regulatory barriers score 85%. Therefore, place related barriers should be given slightly higher priority if it is not possible to be given equal recognition in internationalization theory. These findings provide new insights into a more complex picture of SMEs' internationalization in emerging economies. It is recommended that our Human‐centric Hierarchical Model could help inform managers' decision‐making processes on what human aspects they need to prioritize when faced with policy and place barriers. It is also recommended that our model adds social value to SME businesses and provides a new lens for scholars to investigate place and policy related barriers to rural Nigeria's SMEs.
Drawing on behavioural theory of the firm, this study examines internationalisation of rural small-and-medium enterprises (SMEs) in Nigeria and its impacts on social and organisational development. To examine how SME internationalisation affects societal and organisational development, the study collects cross-sectional data using a structured questionnaire from 304 rural SMEs drawn from several sectors in Nigeria.Applying a partial least square based structural equation modelling, we tested the social and organisational impact of rural SMEs internationalisation. The results showed that there is a significant positive relationship between societal and organisational performances and internationalisation of SMEs. Both scores were significantly positively correlated with the internationalisation of SMEs in rural Nigeria.The study argues that internationalisation of rural SMEs' reflects on organisational progress and societal progress in terms of improving rural people's life. The findings of the study will act as the reference point to academicians and policymakers by which they could assess how internationalisation of rural SMEs matters for rural people's life and can strive to achieve inclusive and sustainable growth.
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