Institutional Environment for Entrepreneurship: Evidence From the Developmental States of South Korea and United Arab Emirates

Abstract

The purpose of this research is to examine country institutional profile for encouraging entrepreneurial activity in two developmental states: South Korea and United Arab Emirates. Data was collected from business students in the two countries to examine the favorability of their institutional environment for entrepreneurship. Confirmatory factor analysis indicated high reliability, construct validity and internal consistency for the Korean and Arabic language versions of the questionnaire instrument in the respective countries. Results revealed important cross-national differences between the two countries in the regulatory, cognitive and normative dimensions of the institutional environment. Implications, limitations and future research directions are discussed.

The Influence of Family Moral Support and Personal Problems on Firm Performance: The Case of Korean Female Entrepreneurs

“…Additionally, they are more successful at accumulating capital once in the United States as compared to Filipino immigrants (Fawcett and Gardner, 1994). A comparative study between Korea and the United Arab Emirates (UAE) found that neither country was very conducive for entrepreneurship (Gupta et al, 2012). Using a country institutional profile by Busenitz et al (2000) to understand the environment for entrepreneurial activity, Korea was found to be lower than the UAE in their overall institutional (policies, rules, laws) availability of entrepreneurship knowledge and skills training, and overall societal attitudes toward entrepreneurship (Busenitz et al, 2000;Gupta et al, 2012).…”

The Concept of Entrepreneurial Orientation

“…Specifically, they conceived cognitive institutions as "knowledge and skills possessed by the people in a country pertaining to establishing and operating a new business," normative as the extent to "which a country's residents admire entrepreneurial activity and value creative and innovative thinking," and regulatory as encompassing "laws, regulations, and government policies that provide support for new businesses, reduce the risks for individuals starting a new company, and facilitate entrepreneurs' efforts to acquire resources." These three dimensions of the institutional environment have been examined in several countries, such as transitional countries of Eastern Europe , rapidly emerging major economies (REMEs) [Gupta et al, 2014c], and developmental societies [Gupta et al, 2012b].…”

Developing successful entrepreneurial ecosystems

“…Second, while there has been recognition for some time that institutional factors are tightly linked to an economy's entrepreneurial performance (Busenitz et al, 2000;Spencer and Gomez, 2004;Chiles et al, 2007;Kshetri, 2007;Gupta et al, 2012), little theoretical or empirical work has attempted to specify the exact nature of institutions that lead to an economy's entrepreneurial success. Moreover, while some researchers have examined the effects of institutional environment on entrepreneurial development, they have mainly focussed on the regulatory environment (Manolova et al, 2008).…”