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Article
Publication date: 29 April 2014

Gil Avnimelech, Yaron Zelekha and Eyal Sharabi

The purpose of this paper is to focus on the relationship between corruption and productive entrepreneurship in general and whether it depends on countries’ specific…

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Abstract

Purpose

The purpose of this paper is to focus on the relationship between corruption and productive entrepreneurship in general and whether it depends on countries’ specific characteristics in particular.

Design/methodology/approach

The authors used a unique data set of entrepreneurial activity within 176 countries, collected from the professional networking site LinkedIn. The authors used OLS regression to estimate the level of entrepreneurship. The main independent variable was the CPI score (Transparency International). In addition, two sub-samples were used, 70 less-developed countries and 34 OECD countries, and numerous control variables.

Findings

The paper makes three important contributions to the field. First, it proposes worldwide empirical evidence that countries with high levels of corruption usually face low levels of productive entrepreneurship. Second, the paper suggests that the negative effect is much more significant in developed countries than in developing countries. Third, the paper explores whether the negative effect of corruption depends on country-specific economic characteristics.

Research limitations/implications

While there is significant value in using LinkedIn data in entrepreneurship research, there are limitations to this database. Therefore, significant robustness tests were employed and further research, for instance using longitudinal LinkedIn data, could be valuable. Moreover, using different entrepreneurs’ data sets might increase the validation of the results. Finally, further examination of the influence of corruption on different types of entrepreneurial activities and their interaction with different characteristics of the country is still required.

Originality/value

The results stress the need to fight corruption not only in developing countries and suggests significant gains from anti-corruption efforts even and maybe especially in the western developed world.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 20 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 16 August 2024

Tarun Kanti Bose, Ayvi Hossain Bonna, Jannatul Ferdous Bristy and Roger Moser

This study investigates the rise of online female entrepreneurship in emerging economies from institutional perspectives and the resource-based view (RBV). The research also…

Abstract

Purpose

This study investigates the rise of online female entrepreneurship in emerging economies from institutional perspectives and the resource-based view (RBV). The research also explores how choosing online entrepreneurship affects the performance of female entrepreneurs.

Design/methodology/approach

Data were collected through surveys, and quantitative data analysis was used to test the hypotheses.

Findings

The results indicate that women entrepreneurs perceive online platforms as rare, valuable, imperfectly imitable and non-substitutable resources. Furthermore, the impact of informal institutions on choosing online platforms is supported, but the influence of formal institutions remains unclear. Additionally, the study finds that opting for online platforms helps entrepreneurs achieve financial and stakeholder relationship goals but does not significantly contribute to strategic and learning goals.

Originality/value

Our research highlights how transitioning from a physical to an online business platform can become a valuable resource for marginalized, deprived and struggling entrepreneurs, particularly women, operating within challenging institutional contexts, often prevalent in emerging economies.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 7
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 26 May 2022

Wided Ragmoun

This paper aims to analyse the impact of institutional quality, economic factors and unemployment on entrepreneurial activity. The dynamic approach adopted in this study permits…

Abstract

Purpose

This paper aims to analyse the impact of institutional quality, economic factors and unemployment on entrepreneurial activity. The dynamic approach adopted in this study permits to evaluate the simultaneous influence of specific factors on total entrepreneurial activity.

Design/methodology/approach

A quantitative approach through a panel vector autoregression analysis was adopted to take into account possible endogeneity issues, and a short-run Granger test was used to test causality between variables to fill the theoretical and empirical gap about the joined and dynamic effect of institutional quality, economic factors and unemployment on total entrepreneurship activity as a dependent variable.

Findings

The use of a dynamic estimation approach demonstrates that three kinds of relative effects exist: durable and positive effects between industrial production index (IPI), stability and self-employment, a limited positive effect which exists during a predeterminant period between dimensions of institutional quality and unemployment rate (UR) and finally negative effects between IPI and UR.

Research limitations/implications

In general, this study identifies three main effects: negative, temporary positive and perpetual positive. This is the same conclusion for the link between self-employment rates (SER) and institutional quality, measured by six dimensions. Three of these dimensions are especially important: political stability and the absence of violence, governmental effectiveness and regulatory quality.

Practical implications

In light of this study’s results and contrary to the idea admitted about the negative effect of unemployment on entrepreneurial activity, it seems that a relatively positive effect exists. By relative, the author means during a determinant period. It also has to be remembered that entrepreneurial activity was appreciated by the SER according to the recommendation of many previous researchers discussed at the beginning of this paper. Based on the model, three levels of relations emerge. This permits this study to dress a hierarchical list of alternatives to promote entrepreneurial activity. Economic policymakers have to reconsider the importance of the UR as the best occasion to create firms if good institutions and economic support are provided. Good governance and stability are the most important institutional determinants with a long positive effect. This conclusion suits Glaeser and Saks (2006) as well as Ojeka et al. (2019).

Social implications

This research offers considerable scientific evidence to make decisions and orient decisions-makers about policies adopted to increase institutional quality, reducing unemployment and stimulate economic activity, but it is still necessary to reconsider these results for developing countries. It is hoped that future researchers enrich and reinforce the model to provide a critical pathway for successful entrepreneurship activity in this new normal. In the end, this crisis can be also treated as a good occasion to innovate and reconsider the thinking process to manage and operate in the economic world.

Originality/value

This study’s contribution is to help and assist economic policymakers to be aware of the relative importance of such determinants at the country level. The introduction of the relative importance of time is in agreement with the concept of entrepreneurial opportunity.

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