Institutional and individual determinants of entrepreneurial intentions: evidence from developing and transition economies

Abstract

This study aims to examine the effect of institutions on entrepreneurial intentions, the mediation of individual motives in this relationship, and the moderating effect of the country. We tested a sample of 678 questionnaires using quantitative research methods. We used confirmatory factor, correlation, multiple regression, mediation, and moderated mediation analyses to analyze the data. Findings show that normative institutions affect entrepreneurial intentions in Turkey and Kosovo. They also reveal that the personal attitude, subjective norm, perceived behavioral control, and need for achievement have a full mediation relationship between regulatory institutions and entrepreneurial intentions and a partial mediation relationship between normative and cultural-cognitive institutions and entrepreneurial intentions. Finally, we found no moderating effect of the country in the relationship between institutions and entrepreneurial intentions. The study contributes to the literature and provides policy and managerial implications on the macro and micro factors that affect entrepreneurial intentions in developing and transition economies.

The effects of institutions, firm-level factors and rational decision-making on entrepreneurial behaviors of MSMEs: lessons and opportunities for transition communities

“…We performed an exploratory factor analysis to verify the appropriateness of the data with the subscales used in our research. The results, as shown in Table 2, indicate that the KMO coefficient is 0.874, which signifies that the sample size is suitable for the study (Bağış et al , 2023a; Bağış et al , 2023b; Kryeziu et al , 2022a). The Barlett test of sphericity shows a statistically significant p -value of less than 0.01 ( p = 0.000), further affirming the data’s multiple normal distribution criteria (Bağış et al , 2023b) as validated by the factor loadings.…”

“…The final version of our institutional scale comprises seven items, each for the regulatory and normative dimensions and four for the cultural-cognitive dimensions. This scale has been applied in various recent studies (Bağış et al , 2023a).…”

“…In recent years, there has been an increasing call from scientists for research on entrepreneurial behavior in countries with varying levels of development and from multiple levels of analysis (Kim et al , 2016; Sun et al , 2020; Schade and Schuhmacher, 2022; Xu et al , 2021). Furthermore, research on this topic garners growing scientific curiosity (Boudreaux et al , 2019; Dileo and García Pereiro, 2019; Bağış et al , 2023a; Bağış et al , 2023b). Based on these discussions, we argue that institutional, firm and individual variables will contribute to a deeper understanding of the entrepreneurial behavior of MSMEs.…”

Institutions and macroeconomic indicators: entrepreneurial activities across the world

“…Studies have questioned the relationship between entrepreneurial intentions and behaviors (Liñán et al ., 2011; Arabiyat et al ., 2019). Research shows that the effects of cognitive-cultural institutions on entrepreneurial intentions differ in developing and transition economies (Bağış et al ., 2023a). Similarly, another study conducted in Spain and Taiwan confirmed that culture significantly differentiates entrepreneurial intentions (Liñán and Chen, 2009).…”

“…These studies' limitations in terms of time and variables prompt us to scrutinize this relationship over a more extended timeframe and with a broader set of variables. This endeavor is further supported by recent calls for research and existing studies that advocate institutional explanations for variations in entrepreneurial activity between developed and developing economies (Cao and Shi, 2021; De Mello et al ., 2022; Li et al ., 2021; Sethuram et al ., 2021; Bağış et al ., 2023a).…”