A country-level institutional perspective on entrepreneurship productivity: The effects of informal economy and regulation

Ashkan Fredström, Juhana Peltonen*, Joakim Wincent

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

2 Citations (Scopus)

Abstract

Developing the concept of institutional incongruence and employing panel data from 60 countries, we outline an alternative view of the informal economy and the effects of regulative institutions on entrepreneurship productivity. We find evidence that the informal economy's size is, largely, negatively associated with entrepreneurship productivity, and that in the presence of a large informal economy, governmental efforts to improve governance quality can be counterproductive. Our results suggest policy interventions aimed at changing institutions to practice formal entrepreneurship should be implemented cautiously to avoid inducing institutional incongruence.
Original languageEnglish
Article number106002
Peer-reviewed scientific journalJournal of Business Venturing
Number of pages15
ISSN0883-9026
DOIs
Publication statusPublished - 21.02.2020
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • entrepreneurship productivity
  • opportunity-driven entrepreneurship
  • necessity-driven entrepreneurship
  • informal economy
  • regulative institutions
  • institutional incongruence
  • 511 Economics
  • 514,1 Sociology

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoHP: Strategic and entrepreneurial praxis
  • AoS: Leading for growth and well-being

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