The influence of informal institutions on informal sector entrepreneurship: a study of Nigeria's hand-woven textile industry

Ogunsade, Isaac A.; Obembe, Demola

doi:10.1080/08276331.2016.1202093

Cited by 32 publications

(23 citation statements)

References 48 publications

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“…The countries that make up the EMDEs come mainly from Africa, the Middle East, South East Asia, and South America (Gurtoo and Williams 2009;Warnecke 2016;Williams 2014). Most small businesses and local entrepreneurs in EMDEs tend to operate in the informal sector with limited funding and lack of human and social capital (Warnecke 2016;Ogunsade and Obembe 2016;Williams 2014). In some cases, the small and medium scale businesses (SMEs) in EMDEs are either unaware or lack the technical capabilities to implement the available state-of-the-art technologies (Abdullah 2002;Sookram and Watson 2008;Gurtoo and Williams 2009;Amiri and Woodside 2017).…”

Section: Introductionmentioning

confidence: 99%

Small business awareness and adoption of state-of-the-art technologies in emerging and developing markets, and lessons from the COVID-19 pandemic

Akpan

Udoh²,

Adebisi

2020

Journal of Small Business & Entrepreneurship

283

247

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Many challenges continue to hinder digital technologies' adoption by small and medium scale enterprises (SMEs) in developing economies. Comparatively, there are more success stories by SMEs in emerging markets. However, most SMEs operating in the informal sector in the emerging markets and developing economies (EMDEs) face similar challenges that inhibit the adoption of advanced technologies and innovations needed to improve business operations and re-engineer processes. This article evaluates the implementation and use of state-of-the-art technologies by SMEs in EMDEs to improve operations performance and create sustainable competitive advantages. Further, the papers in this Special Issue identify FinTech and analytical algorithms as some of the current technologies employed by SMEs in EMDEs to improve operations and processes in the manufacturing and service industries. The recognized technologies and technical innovations that seem novel in EMDEs have long existed in the advanced economies. Most state-of-the-art technologies, including cloud computing, 'big data', and predictive analytics that can improve operations and strategic decisions, are yet to make inroads in most EMDEs. Also, disruptive computing technologies, data analytics, and the Internet of Things (IoT) required to engineer new business models, reduce overheads, enhance competitive advantages, and digitize SMEs' business operations remain untapped. The absence and non-adoption of digital technologies in EMDEs explain why business activities in most EMDEs remain shut during the outbreak of SARS-CoV-2 and the community lockdown to contain the COVID-19 pandemic. The strategies to survive the 'new normal' imposed by COVID-19 and fierce global competition includes a successful adoption of advanced technologies. RÉSUMÉ De nombreux d efis continuent a entraver l'adoption des technologies num eriques par les petites et les moyennes entreprises (PME) dans les economies en d eveloppement. En comparaison, les PME ont plus de succ es dans les march es emergents. Cependant, la plupart de celles qui op erent dans le secteur informel des march es emergents et des economies en d eveloppement (MEED)

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Section: Introductionmentioning

confidence: 99%

Small business awareness and adoption of state-of-the-art technologies in emerging and developing markets, and lessons from the COVID-19 pandemic

Akpan

Udoh²,

Adebisi

2020

Journal of Small Business & Entrepreneurship

283

247

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“…Anecdotal evidence points to the fact that the majority of Nigerian SMEs choose to remain active in the informal economy because they do not perceive that they can benefit from the opportunities of formal exporting trade activities. In spite of the realisation that Nigeria happens to be a nation of traders, one of the major arguments used to justify Nigeria's slow development is a lack of focus on its informal sector (Arimah, 2001;Ogunsade and Obembe, 2016). At the economic level, a focus on the informal sector, would improve its economic potentials.…”

Section: Introductionmentioning

confidence: 99%

Trusting in indigenous institutions: exporting SMEs in Nigeria

Omeihe

Simba

Rae

et al. 2021

JSBED

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PurposeThe purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian context – a developing country in Western Africa. It advances new understanding on how Nigerian entrepreneurs trust in their indigenous institutions such as family ties, kinship, chieftaincy, religion, cooperatives and trade associations to resolve disputes arising from their exporting activities as opposed to dormant formal institutions in their country.Design/methodology/approachThis exploratory study adopts an interpretive research paradigm, and it utilises a case study strategy. Data collected through observations, archival records and qualitative conversations with 36 exporting Nigerian small and medium-sized enterprises (SMEs) is analysed by utilising a combination of within and cross-case analysis techniques. Doing so enabled an in-depth study of the methods their owner-managers use in order to take advantage of the relationships they established through their long-standing cultural institutions in the place of weak formal institutions in their country.FindingsIndigenous institutions have evolved to replace formalised institutions within the business environment in Nigeria. They have developed to become an alternative and trusted arbiter for solving SMEs' export issues because of weak/dysfunctional formal institutions in the Western African country. The owner-managers of exporting SMEs perceive formal institutions as representing a fragmented system that does not benefit their export businesses.Practical implicationsThe findings demonstrate that there is need for policymakers to consider the role of informal institutions in the Nigerian context. Such an approach is essential given the economic importance and increasing number of SMEs that trade and export their goods through informal structures in Nigeria.Originality/valueThe study indicates that it is not just the void or absence of institutions that exist in a developing country such as Nigeria, but weak/dysfunctional formal institutions have been replaced by culturally embedded informal institutions. Thus, the study provides a new theoretical avenue depicting the concept of trusting in indigenous institutions.

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“…Assessing perceptions of nascent entrepreneurs usually include interviews (Liao and Welsch, 2008), open-ended response questions (Ogunsade and Obembe, 2016), structured surveys (Butt et.al., 2015) and case studies (Würmseher, 2017). Entrepreneurship education should aim to prevent entrepreneurs from making faulty start-up decisions.…”

Section: Literature Reviewmentioning

confidence: 99%

Separating the Biased Perceptions from Lack of Knowledge on Entrepreneurship Through a Diagnostic Instrument: LEDI

Kalayci

Çiğdemoğlu

2018

isarder

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Students of entrepreneurship either have 'biased perceptions' and/or they lack knowledge. The literature states that biased perceptions can have lasting effect even after the training (von Graevenitz, et.al, 2010). Lack of knowledge hinders the decision making of nascent entrepreneurs when they rely on personal opinions or past experiences as heuristics derived from small samples or non-random samples. Currently entrepreneurship education is not designed to address the impact of biased perceptions and lack of knowledge. There is a need to separate biased perceptions from 'lack of knowledge' so that entrepreneurship training could be implemented on a more tailored manner. It is the goal of this paper to devise such an instrument in the lean start up context which is a widely used model of entrepreneurship training. The proposed instrument is tested on a convenience-based sample composed of 212 people. Employment of a three-tiered instrument in this context is a first of its kind. Knowledge or lack of knowledge is checked in the first tier, relevant reasoning is assessed in the second and certainty is evaluated in the third tier.

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The influence of informal institutions on informal sector entrepreneurship: a study of Nigeria's hand-woven textile industry

Cited by 32 publications

References 48 publications

Small business awareness and adoption of state-of-the-art technologies in emerging and developing markets, and lessons from the COVID-19 pandemic

Small business awareness and adoption of state-of-the-art technologies in emerging and developing markets, and lessons from the COVID-19 pandemic

Trusting in indigenous institutions: exporting SMEs in Nigeria

Separating the Biased Perceptions from Lack of Knowledge on Entrepreneurship Through a Diagnostic Instrument: LEDI

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