“…: (781) 891-2198; e-mail: tmanolova@bentley.edu Surprisingly, empirical research to date has not yet come up with valid scales for measuring the complex effect of the institutional environment for unlocking entrepreneurial phenomena in emerging economies. A large part of the research has been either case-based (McCarthy, Puffer, & Naumov, 1997;Peng, 2001), or predominantly looked at the regulatory (formal) environment (Acs, Arenius, Hay, & Minniti, 2004;Djankov, La Porta, Lopez-de-Silanes, & Shleifer, 2002). This gap in extant research led to calls for the development of "good constructs and measures to capture countries' informal institutions (in addition to formal institutions)" (Meyer & Peng, 2005, p. 613; and see Hitt, Holmes, Miller, & Salmador, 2006).…”