Subsistence Entrepreneurs and Formal Institutions: Semi-Formal Governance Among Ghanaian Entrepreneurs

Godfrey, Paul C.; Dyer, Gibb

doi:10.4324/9781315757445-15

Cited by 6 publications

(5 citation statements)

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“…Semiformal institutions have mixed rules and norms that are partially formalized and codified and partially tacit shared rules that contain the characteristics of both formal and informal institutions (Batjargal, 2020). Research on semiformal institutions in emerging economies illustrates that they have positive effects on acquisitions by Chinese firms in developed economies (Torres de Oliveira & Rottig, 2018), subsistence entrepreneurs' survival strategies in Ghana (Godfrey & Dyer, 2015), revitalizing the entrepreneurs' access to the financial resources of rural Mexico (Paxton, 2007), and the economic well‐being of households in rural Vietnam (Truong, Le, & Phan, 2020).…”

Section: Institutions and Entrepreneurship: Clarifying Past Insightsmentioning

confidence: 99%

Institutions and entrepreneurship in a non‐ergodic world

Dan

Hitt

Batjargal

et al. 2021

Global Strategy Journal

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Research Summary This special issue advances the global strategy and entrepreneurship fields by providing a better understanding of the linkage between institutions and entrepreneurship. We provide an overview of existing literature in three key research areas: (a) the impact of institutions (types and complexity) on entrepreneurship, (b) the effect of institutional evolution (overall evolution and interplay among institutions) on entrepreneurship, and (c) the coevolution of institutions and entrepreneurship. We introduce the eight articles appearing in this special issue, examine the relationship between institutions and entrepreneurship in a non‐ergodic world, and highlight meaningful and promising avenues for future research in each of the three key research areas in the domain of institutions and entrepreneurship. Managerial Summary This study clarifies the complex relationship between institutions (the rules and norms that govern economic transactions) and entrepreneurship. Our discussion of existing literature, special issue articles, institutions and entrepreneurship in a world of significant change, and several promising avenues for future research highlights to entrepreneurs and their stakeholders the critical role that institutions play in entrepreneurial strategies and actions in three ways. First, the types of institutions and their complexity in a location alter entrepreneurs' incentives and ability to create new ventures. Second, the continued changes in institutions ‐ some in favor of free‐market relationships and others restricting them ‐ alter entrepreneurs' behaviors. Third, the entrepreneurial spirit and the creation of new ventures can drive the transformation of institutions that govern future market transactions.

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Section: Institutions and Entrepreneurship: Clarifying Past Insightsmentioning

confidence: 99%

Institutions and entrepreneurship in a non‐ergodic world

Dan

Hitt

Batjargal

et al. 2021

Global Strategy Journal

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“…A range of studies have estimated the prevalence of entrepreneurship in the informal sector in specific countries (e.g., Chepurenko, 2016;Godfrey and Dyer, 2015;London et al, 2014;Yu and Bruton, 2015). There are also a range of small crosscountry studies of its prevalence.…”

Section: Commonality Of Informal Sector Competitionmentioning

confidence: 99%

Explaining Variations in the Commonality of Informal Sector Competition Across Latin American and the Caribbean Countries

Williams

Liu

2019

J. Dev. Entrepreneurship

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To advance understanding of the relationship between entrepreneurship and the informal sector, the aim of this paper is to evaluate and explain variations in the extent to which formal enterprises witness competition from unregistered or informal enterprises across Latin American and Caribbean countries. Reporting World Bank Enterprise Survey (WBES) data on 31 Latin American and Caribbean countries, this reveals that two-thirds (65.5 percent) of formal enterprises witness competition from informal sector enterprise. To explain the cross-country variations, four competing theories are evaluated, which variously view the prevalence of the informal sector to be determined by either: economic under-development (modernization theory); high taxes and state over-interference (neo-liberal theory); too little state intervention (political economy theory), or an asymmetry between the laws and regulations of formal institutions and the unwritten socially shared rules of informal institutions (institutional theory). A probit regression analysis confirms the modernization, political economy and institutional theories, but not the neo-liberal theory. Beyond economic under-development, therefore, it is too little state intervention and whether the laws and regulations developed by governments are in symmetry with the norms, values and beliefs of entrepreneurs. The paper concludes by discussing the theoretical and policy implications of these findings.

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“…Numerous small-scale and national-level studies have been previously conducted that estimate the prevalence of informal entrepreneurship in individual countries (e.g., Chepurenko, 2016;Godfrey and Dyer, 2015;London et al, 2014;Williams and Martinez-Perez, 2014;Yu and Bruton, 2015). There are also some small-scale, cross-national comparisons.…”

Section: Prevalence Of Informal Entrepreneurshipmentioning

confidence: 99%

Explaining Cross-National Variations in the Prevalence of Informal Sector Entrepreneurship: Lessons From a Survey of 142 Countries

Williams

Kedir

2018

J. Dev. Entrepreneurship

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The aim of this paper is to evaluate four competing theoretical perspectives that explain cross-national variations in the level of informal sector entrepreneurship. Scholarship has until now argued that informal entrepreneurship is a result of either: economic under-development and a lack of modernization of governance (modernization theory); high taxes and state over-interference (neo-liberal theory); inadequate state intervention to protect workers from poverty (political economy theory) or the asymmetry between the laws and regulations of formal institutions and the unwritten socially shared rules of informal institutions (institutional theory). Reporting the World Bank Enterprise Survey (WBES) on the varying prevalence of informal entrepreneurship across 142 countries, the finding is that neo-liberal theory is refuted but the tenets of the modernization, political economy and institutional theories are confirmed. Informal entrepreneurship is found to be significantly higher when there is economic under-development, a lack of modernization of governance, inadequate state intervention to protect workers from poverty and greater asymmetry between the formal and informal institutions. The paper concludes by discussing the theoretical and policy implications of these findings.

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Subsistence Entrepreneurs and Formal Institutions: Semi-Formal Governance Among Ghanaian Entrepreneurs

Cited by 6 publications

References 0 publications

Institutions and entrepreneurship in a non‐ergodic world

Institutions and entrepreneurship in a non‐ergodic world

Explaining Variations in the Commonality of Informal Sector Competition Across Latin American and the Caribbean Countries

Explaining Cross-National Variations in the Prevalence of Informal Sector Entrepreneurship: Lessons From a Survey of 142 Countries

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