How effective is institutional quality for the creation of small &amp; medium enterprises (SMEs) in Indonesia?

Digdowiseiso, Kumba; Sugiyanto, Eko

doi:10.14254/2071-789x.2021/14-1/17

Cited by 10 publications

(9 citation statements)

References 14 publications

(18 reference statements)

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“…This finding sheds light on an important but virtually unexplored question in the context of India. The results of this study complement the findings reported in some recent studies on China (Rodríguez‐Pose & Zhang, 2019, 2020), Indonesia (Digdowiseiso & Sugiyanto, 2021), and Africa (Iddawela et al., 2021). As noted earlier, the bulk of the literature focuses on developed economies where contextual varieties are very limited or involve multiple countries within specific regions.…”

Section: Discussionsupporting

confidence: 90%

“…It has been argued that governance quality impacts innovation, depending on the extent to which it acts as a facilitator or a barrier (Boudreaux, 2017; Vecchi et al., 2015). Properly designed institutions can stimulate innovative behaviors, while weak institutions can have the opposite effect (Digdowiseiso & Sugiyanto, 2021; Iddawela et al., 2021; Rodríguez‐Pose & Zhang, 2019, 2020; Tebaldi & Elmslie, 2013). Variables used to study the influence of institutions on innovation include rule of law, democratic institutions, regulatory quality, corruption (Barasa et al., 2017; Butkiewicz & Yanikkaya, 2006; Rodríguez‐Pose & Zhang, 2020), responsiveness of the government to its people, government stability, bureaucracy quality, government unity, legislative strength, and popular support (Lee & Law, 2017).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

“…regions, states, provinces, cities) of emerging economies within a single country is scant but growing (Crescenzi & Rodríguez-Pose, 2017;Rodríguez-Pose & Zhang, 2019). Examples of recent studies include Digdowiseiso and Sugiyanto (2021) on Indonesia, Iddawela et al (2021) on Africa, and Fan et al (2013), Rodríguez-Pose and Zhang (2019), and Rodríguez-Pose and Zhang (2020) on China. These studies point to the need for a deeper understanding of how contextual varieties in emerging economies, particularly in single-economy contexts, influence firm-level innovation and the extent to which findings from developed economies apply to developing economies (Rodríguez-Pose & Zhang, 2020;Vecchi et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

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Institutional varieties, governance quality, and firm‐level innovation in emerging economies: Case of India

Persaud

Zare

2022

Growth and Change

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This study examines how institutional varieties at the subnational (state) level influence firm‐level innovation in an emerging economy—India. Knowledge of how institutional varieties influence firm‐level innovation is derived principally from country‐level studies involving multiple developed countries. Research on emerging economies is sparse and tends to follow country‐level approaches involving multiple countries. Research involving a single emerging economy where there are substantial institutional varieties between regions is thin. The institutional varieties of some emerging countries are so striking that they can be viewed as several countries within a country, for example, India, China. This study contributes to the innovation literature on the role of institutional varieties on firm‐level innovation by focusing on a different level of analysis—a single, emerging economy with substantial institutional varieties across the different states of India. Innovation in emerging economies is a topic of increasing academic interest. A multilevel study involving regional‐ and firm‐level factors is employed. Firm‐level data are from the World Bank Enterprise Survey and regional‐level data are from statistical agencies in India. The results confirm that institutional varieties have major impacts on firm‐level innovation. The research, policy, and managerial implications are discussed.

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Section: Discussionsupporting

confidence: 90%

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Institutional varieties, governance quality, and firm‐level innovation in emerging economies: Case of India

Persaud

Zare

2022

Growth and Change

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“…Institutional and international business theories affirm that the institutional environment influences the international firm's activities in home and host environments (Rask & Servais, 2015) and the quality of institutions is essential for the firms' internationalisation and growth (Cheng & Yu, 2012, Dorozynski, Dobrowolska, & Kuna-Marszalek, 2020. The institutional environment also affects entrepreneurship (Elert & Henrekson, 2017;Bag & Omrane, 2021), however, for the different extent in different countries considering their level of development (Khaki & Akin, 2020), governance quality and informal relations spread (Digdowiseiso & Sugiyanto, 2021;Mishchuk et al, 2020), peculiarities of labor supply (Bilan et al, 2020). Excessive institutional pressures may draw entrepreneurs' focus to short-term daily business problems instead of business planning in the long run (Welter, 2005) and even limit their participation in domestic economic activity (Mair & Marti 2009).…”

Section: Institutions and Institutional Pressuresmentioning

confidence: 99%

Exploring the institutional pressures that affect international new ventures

Butkeviciene¹,

Sekliuckienė²

2022

EBER

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This article aims to identify the link between institutional pressures and strategic responses of international new ventures (INVs). Research Design & Methods: This article reviews and theoretically synthesises extensive literature from the institutional and international entrepreneurship theories. The discussion leads to the formulation of four research propositions. Findings: The relationship between institutions and entrepreneurial firms' activities remains lacking in relevant research. Thus, given the constraints of INVs, the suggested propositions assist in identifying the nature of the institutional pressures exerted on entrepreneurial firms. Through the breakdown of the institutional pressure determinants, three groups of pressures are discussed. The text suggests that coercive, normative, and mimetic pressures evoke more active strategic responses of INVs, as internationally oriented, entrepreneurial, technology-driven firms. The institutions and INVs strategic responses may have a bidirectional relationship. At the same time, legitimacy constraints to INVs may involve more than one scenario of how the INVs behave, which converts to a set of various responses to institutions, which lead to embedded relationships with institutions. Implications & Recommendations:The formulated research propositions illuminate numerous practical implications, leading to future research agendas. Researchers studying international entrepreneurship and entrepreneurs will benefit from reflecting on the proposed framework's dimensions and interactions. International new ventures need to legitimise themselves in various institutional environments. However, they can be active partners in forming their institutional context through progressive involvement. Another input is aimed at policymakers looking to shape the institutional environment. Contribution & Value Added:The theoretical contribution of this article lies in its introduction of a set of research propositions that explain the relationship between the institutional pressures and strategic responses of INVs and set a future research directions. The value-added consists in exploring institutional pressures that lead to more active responses of INVs because of entrepreneurial firms' specifics and emphasising the role of INVS in the building of institutions.

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“…The European Union (EU), over the years, outlined measures and drew programs to organise economic aid to support small-and medium-sized enterprises (SMEs) in the assumption of keeping the economic machine running [1][2][3]. This support has taken on different characteristics over the various years as it is affected by the economic policy guidelines that follow one another over time, giving rise to different regulatory interventions.…”

Section: Introductionmentioning

confidence: 99%

Supporting Agri-Food SMEs in Italy in the Post-COVID-19 Context: From Horizon 2020 to Horizon Europe

et al. 2022

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In recent decades, European policy has targeted specific measures towards SMEs. The recently concluded Horizon 2020 Programme, under the Europe 2020 Strategy, has provided economic support to stimulate competitiveness and boost the economy of member states by focusing on innovation. The SME Instrument, through a structure of multiple calls, constituted the vehicle for SMEs to access the funds made available by the European Union with disruptive innovation proposals. The initial structure of the SME Instrument, developed in phases and along the lines of the US Small Business Innovative Research (SBIR) Programme, was afterwards simplified in the design of its successor, the EIC Accelerator Pilot. The success of the above mentioned economic instruments led the European institutions to develop a new instrument, the EIC Accelerator, supported by the current Horizon Europe programme. After outlining the main features of this transition and the novelties introduced, this paper aims to ascertain the extent to which SMEs in the agri-food sector in Italy have had the ability and opportunity to intercept funds by measuring participation in the SME Instrument. Furthermore, it intends to verify which type of firms in the agri-food sector, divided into agricultural and industrial enterprises, intercepted more of the examined funds, and which organisational phase, productive or commercial, the enterprises have been oriented towards, also giving relevancy to the specific objects of the winning projects.

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How effective is institutional quality for the creation of small & medium enterprises (SMEs) in Indonesia?

Cited by 10 publications

References 14 publications

Institutional varieties, governance quality, and firm‐level innovation in emerging economies: Case of India

Institutional varieties, governance quality, and firm‐level innovation in emerging economies: Case of India

Exploring the institutional pressures that affect international new ventures

Supporting Agri-Food SMEs in Italy in the Post-COVID-19 Context: From Horizon 2020 to Horizon Europe

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