The influence of institutions on early-stage entrepreneurial activity: a comparison between men and women in Saudi Arabia

Abstract

Purpose To date, insufficient research has been conducted on gender differences in entrepreneurial activity among entrepreneurs in developing countries. This study aims to analyse the influences of formal and informal institutional factors on entrepreneurial activity among men and women in the context of Saudi Arabia. Design/methodology/approach This research involves a quantitative analysis of recently collected primary data. Hypotheses are formulated and tested using the Mann–Whitney U test and a binomial logistic regression analysis. Also, the present study draws on institutional economics as a framework to explore how formal and informal institutional factors influence whether Saudi Arabian men and women become entrepreneurs. Findings The results revealed that compared to the effects of formal institutional factors, the effects of informal institutional factors are more reliable predictors of women’s entrepreneurship behaviour. Specifically, women are more likely than men to be stereotyped and more likely to benefit from networking. Practical implications Regarding policy implications, this study suggests several checks for different institutions to increase entrepreneurship among each gender. Originality/value The findings presented here advance entrepreneurial research by empirically examining factors that influence men’s and women’s desires to become entrepreneurs in a fast-growing emerging economy. The findings show a substantial shift in the institutional environment and indicate an extremely collectivist society. This study provides a basis for future studies on factors within the institutional environment and their impacts on whether men and women become entrepreneurs in Eastern nations. Regarding policy implications, this study suggests several ways for different institutions to increase entrepreneurship among each gender.

How socio-cultural transition helps to improve entrepreneurial intentions among women?

“…Finally, the findings of this study enhance the generalisability of theories developed in the West to Eastern contexts and to the Middle East. In this way, the findings of this study supports/extend the research agenda proposed by numerous recent studies, for instance, Aljarodi et al. (2022), Ghorfi and Girancourt (2022), Konsy and Piotrowska (2019), Nandamuri (2013), and Quagrainie et al.…”

The digitalisation as gender equaliser? The import and export of digitally delivered services in shaping female entrepreneurship in European countries

“…Generally, entrepreneurs are stereotyped as risk-takers, while women's risk-taking preferences are lower and their fear of failure is higher than men's; women tend to underestimate their entrepreneurial skills and opportunities (Xie et al ., 2021). Women entrepreneurs are more likely to be stereotyped than men entrepreneurs and more affected by informal institutions than formal ones (Aljarodi et al ., 2022).…”

Personal Characteristics and Strategic Entrepreneurial Behaviour of Rural Female Entrepreneurs: Insights From Oman

“…It needs to be stressed that to understand dynamics of female entrepreneurship, both internal and external factors are critical (Hasan et al, 2023). In this concern, scholars (e.g., Aljarodi et al, 2022;Amine & Staub, 2009;Su et al, 2017) have referred to institutional theory as a useful lens for the analysis of relevant external factors for female entrepreneurship as it conceptually incorporates both formal and informal dimensions of institutions. Hence, the scholars using institutional theory lens have studied factors associated with government (especially regulations), institutional support including financial support for female entrepreneurs, culture, social networks, and family ties (and associated dynamics) as a form of informal institutional mechanisms (e.g., Aljarodi et al, 2022;Bruton et al, 2010).…”