Entrepreneurial capability (EC) environment in ASEAN-05 emerging economies

Abstract

Purpose The entrepreneurial capability (EC) environment refers to the general social and economic settings of a given local/regional entrepreneurship environment. The primary purpose of this study is to uncover key indicators of the EC milieu and test these components empirically within the context of the Association of South East Asian Nations (ASEAN)-5 economies to elucidate the current state of their EC environments, at the regional and national levels. To this end, the aim of this study is twofold. First, this work endeavors to explicate the determinants of EC, with aims of elucidating its association to commercial opportunities in (ASEAN)-5 economies, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Next, this study applies the developed theory, including the identified determinants of EC to empirically test the efficiency and imperative coefficients of variables that have an impact on perceived entrepreneurial capabilities within a given environment. Design/methodology/approach This research applies two frontier models, namely, the consistent estimation of fixed-effects and linear transformation stochastic frontier models, to assess the coefficients of significant EC variables for the panel sample. Data corresponding to the assessed variables were retrieved from the databases of the Global Entrepreneurship Monitor (GEM) – 2016 and the World Competitiveness Yearbook (WCY) – 2016, for the period, 2010-2016. Findings The attained results suggest that factors corresponding to the variables “Entrepreneurship as a good career choice” and “perceived opportunities” have played a significantly positive role on the EC environment of ASEAN 05, although findings suggest both factors may still be improved upon. Conversely, the “fear of failure rate” factor was shown to have exerted a negative impact on the efficiency of the EC environment of ASEAN 05. Other important variables – such as intellectual property rights, university education and knowledge transfer rate – were shown to generate a positive impact on the EC environment of these economies. Originality/value This study makes an important contribution to the entrepreneurship literature and can stimulate policymakers to rethink the EC settings of ASEAN-05 in their pursuit of an innovation-driven region.

Entrepreneurial knowledge, skills, competencies and performance

“…This form of networking platforms is not readily available for micro level players, thus efforts to be placed to the creation of platforms for micro-entrepreneurs to network. Perhaps education institutions promoting entrepreneurship should be involved in these joint efforts, as in enhancing entrepreneurial capabilities, entrepreneurial universities play are major role in knowledge transfer (Afzal et al , 2018). Regarding the limitation of this study, other possible factors were not included to predict enterprise performance.…”

Japan's digital advance policy towards performance in multilateral ASEAN's innovation business

“…With its population of 267 million, Indonesia is identified as one of Japan's key markets. To succeed and mitigate business risks it is essential to establish business partnerships with leading domestic companies with established supply chain networks (Munshi et. al., 2018).…”

“…Moreover, in 2019 Japan reclaimed its status as Southeast Asia's top trade partner (Li, 2019). Japan's FDI policies have taken an increasingly long-term view, focusing on development of strategic infrastructure that will drive business growth (Afzal et al, 2018). The focus of FDI is also gradually shifting from the ASEAN-5 countries toward the CLMV countries (Cambodia, Laos, Burma, and Vietnam) (ODI, 2019).…”