Search results

This study examines whether institutional quality affects the relationship between income inequality and entrepreneurial activity. The authors specifically examine whether the greasing or sanding effect holds for the relationship between income inequality and entrepreneurship, while moderating for institutional quality. The greasing effects suggest that income inequality can promote entrepreneurial activity, while the sanding effects disincentivise it.

The authors examine this relationship using a sample of 100 advanced and developing countries from 2006 to 2018 using a dynamic panel estimator to control endogeneity and simultaneity. Additionally, the authors include an interaction term to estimate the marginal effects of income inequality, while moderating for institutional quality. Furthermore, the authors differentiate between six measures of institutional quality.

Overall, the authors find that institutional quality and income inequality have a positive and significant impact on entrepreneurial activity. However, when moderating for institutional quality, the findings show that the marginal impact of income inequality is negative for countries with low levels of institutional quality. The authors show that the rule of law and government effectiveness are effective moderators in terms of magnitude. Furthermore, the authors find that the sanding effect of income inequality is observed in developing economies, even when moderating for institutional quality.

The major limitation lies in the estimation of entrepreneurial activity, which is measured using new business formation. While this is commonly used, it focuses on formal entrepreneurial activities and overlooks the informal economy.

This study provides new empirical evidence on whether institutional quality can moderate and explain the puzzling link between entrepreneurial activity and income inequality.

This paper aims to suggest that foreign investment spurs entrepreneurial activity (i.e. new business formation) through various crowding-in mechanisms. Previous research also highlights the importance of production structures in developing a country’s absorptive capacity. Thus, the authors examined the extent to which sophisticated production structures can promote the crowding-in (positive) effects of foreign investment on new business formation.

This study uses an annual-level unbalanced panel dataset of 94 countries from 2006 to 2020. The authors use system Generalized Method of Moments estimator, which can control for endogeneity and simultaneity issues. Additionally, they split their sample data set to examine the effects on coastal and landlocked countries (which are economically at a disadvantage).

Using the economic complexity and economic diversification index as their measure of production structure, the authors find evidence that foreign investment is associated with greater entrepreneurial activities, and this effect is greater when production structures are more sophisticated. However, this complementary effect is not observed in the subsample of landlocked economies, which face impediments to global trade and other structural challenges.

The results imply that policymakers can promote new business formation by developing a country’s production structure in tandem with foreign investment in knowledge intensive sectors.

The authors empirically establish that production structures can promote the crowding-in effects of foreign direct investment on entrepreneurial activities using two measures of production structures, namely, economic complexity and economic diversification.

The global economic crisis triggered by the coronavirus disease 2019 (COVID-19) has caused the closure of countless ethnic minority businesses (EMBs) worldwide, partly due to the public policy responses. This paper investigates whether EMBs’ entrepreneurial orientation (EO) mediates the impact of public policy responses to COVID-19 on their survival.

Utilizing institutional theory, the authors developed a novel conceptual framework that divides policy responses to COVID-19 into aggressive (imposing restrictions on movement, e.g. lockdowns) and less aggressive policy responses (not imposing restrictions on movement, e.g. social distancing). The authors then surveyed intra-regional EMBs, specifically businesses owned by ethnic minorities in the Kano and Katsina provinces of Nigeria, and analysed the data using structural equation modelling and analysis of variance (ANOVA).

The authors found that intra-regional EMBs in developing countries are very vulnerable to the public policy responses imposed by governments to curb COVID-19. Aggressive policy responses have a more significant negative effect on the survival of intra-regional EMBs than their less aggressive counterparts. Furthermore, the authors found that EO as a crisis response strategy significantly supports intra-regional EMBs in managing their vulnerability to the hostile institutional environment, reduces the adverse effect of public policy responses and stimulates their survival during the COVID-19 pandemic.

This paper contributes to the institutional theory of small and medium-sized enterprises (SMEs)/entrepreneurship and the literature on EMBs by showing the role of EO in mediating the effects of COVID-19 institutional policies on the survival of intra-regional EMBs.

The global recession caused by the COVID-19 pandemic has led to the closure of thousands of village-owned enterprises (VOEs), which are community-managed enterprises that operate in the hostile rural areas in emerging economies. Thus, considering that a Schumpeterian view of economic downturn sees recessions as times where old products/services decline while new products/services emerge, this paper aims to explore the specific innovation-based diversification strategies that matter for the survival of emerging economy VOEs in recession periods to develop new theoretical insights.

The study is based on multiple-case studies of 13 leading VOEs operating in the rural areas of Java Island in Indonesia, an emerging economy. The data was analysed using within-case and cross-case analyses.

Overall, a number of major novel findings have emerged from the analysis, based on which the authors developed several new propositions. First, from the perspectives of both new product and new service diversification, “unrelated diversification” is the primary resilience strategy that seems to be associated with the survival of VOEs in the COVID-19 recession, over and above “related diversification”. Second, from an industrial sector diversification perspective, the most dominant resilient strategy for surviving the recession is “unrelated diversification into tertiary sectors (service sector)”, over and above diversification into the primary sector (agriculture, fisheries and mining) and secondary sector (manufacturing and construction).

The authors contribute to the literature on entrepreneurship in emerging economies by identifying the resilience diversification strategies that matter for the survival of VOEs in recession.

The purpose of this paper is to investigate the relationship between culture and entrepreneurial orientation (EO) in informal enterprises and the moderating role of their survival intent.

This paper used Hofstede's national culture framework and theory of EO to develop a novel conceptual framework. The data were collected using a survey from a sample of 385 informal enterprises and analyzed using partial least square structural equation modelling.

The findings of this paper confirmed that power distance, uncertainty avoidance and normative orientation negatively affect EO in contrast with the positive effect of individualism and masculinity. Although power distance and uncertainty avoidance negatively affect an EO, the findings showed that survival intent weakens the negative nexus between these variables and strengthens the positive effect of individualism and masculinity on EO.

Although this study examined how survival intent moderates the nexus between national culture and EO across informal enterprises in emerging economies, the data were collected in Nigeria only. This study also examined EO in aggregate and considered only one sector.

This study recommends that policymakers and practitioners understand the important links between firms' characteristics, culture and EO while designing training programs, policies and procedures. Doing so will support the successful implementation of entrepreneurship programs, address the prevailing entrepreneurial needs and cultural deficits across enterprises and promote the efficient allocation of resources.

This paper extends Hofstede's framework of national culture and EO in the context of informal enterprises in emerging economies by examining the nexus between national culture and EO, moderated by survival intent.

This paper aims to assess the current and future dynamics of land cover transitions and analyze the vegetation conditions in Abuja city since its establishment as the capital of Nigeria in 1991.

A random forest classifier embedded in the Google Earth Engine platform was used to classify Landsat imagery for the years 1990, 2001, 2014 and 2020. A post-classification comparison was used to detect the dynamics of land cover transitions. A hybrid simulation model that comprised cellular automata and Markovian was used to model the probable scenario of land cover changes for 2050. The trend of Normalized Difference Vegetation Index was examined using Mann–Kendall and Theil Sen’s from 2014 to 2022. Nighttime band data from the National Oceanic and Atmospheric Administration were obtained to analyze the trend of urbanization from 2014 to 2022.

The findings show that built-up areas increased by 40%, while vegetation, bare land and agricultural land decreased by 27%, 7% and 8%, respectively. Vegetation had the highest declining rate at 3.15% per annum. Built-up areas are expected to increase by 17.1% between 2020 and 2050 in contrast with other land cover. The proportion of areas with moderate vegetation improvement is estimated to be 15.10%, while the proportion of areas with no significant change was 38.10%. The overall proportion of degraded areas stands at 46.8% due to urbanization.

The findings provide a comprehensive insight into the dynamics of land cover transitions and vegetation variability induced by rapid urbanization in Abuja city, Nigeria. In addition, the findings provide valuable insights for policymakers and urban planners to develop a sustainable land use policy that promotes inclusivity, safety and resilience.

Tackling structural and emergent problems in the labour market, valorising skilled human capital (HC) for opportunity creation, economic development and growth, are some of the key drivers for graduate entrepreneurship. This paper aims to examine developments in Africa, focusing on the significance of improving human capital through graduate entrepreneurship to meet the Millennium Development Goals (MDGs) in Nigeria.

Based on a unique Education Partnerships in Africa (EPA) project the paper adopts a conceptual and exploratory approach to understand the institutional, cultural and economic dimensions of change and the specific role of graduate entrepreneurship education and training in enabling productive outcomes, using an illustrative case study of the project to develop the arguments.

Knowledge creation lies at the heart of entrepreneurship development in developing economies such as Nigeria. Knowledge creation (KC) for entrepreneurship (E) is based on human capital (HC) development. In circumstances of uneven growth in developing economies HC development is the only constant. Harnessing HC for entrepreneurship can be based on three sets of propositions derived from an examination of the relationship between KC, HC and E, which locate graduate entrepreneurship's role within a holistic, institutional framework.

The paper's originality lies in the development of a model for promoting and evaluating a holistic approach to graduate entrepreneurship in developing countries based on the targeting of MDGs. It offers new insights into the role of graduate entrepreneurship in economic and social development.

This study examines whether Internet penetration has a complementary effect on the relationship between financial access and new business formation in 57 developing economies from 2006 to 2018.

Using the generalised least squares estimator, the authors employ a framework that allows us to distinguish between the marginal impact of financial access on new business formation in developing economies with high and low levels of Internet penetration rates. Furthermore, the authors distinguish between financial institutions and financial markets.

The authors find that increased accessibility for financial institutions promotes entrepreneurial activity, while financial market access has a negative relationship with new business formation. Furthermore, the authors find that the marginal impact of financial institution access increases in magnitude as Internet penetration increases. The effect does not hold for financial markets.

The major limitation lies in the measurement of new business formation, as it focuses on the formal entrepreneurial sector and overlooks the informal economy and entrepreneurs operating as sole proprietors.

Policymakers should continue to promote the development of the information communication and technology sector and digitalisation policy while increasing financial accessibility in the financial system.

This study provides new empirical evidence on the greasing role of technology to leverage the impact of financial access on new business formation. Furthermore, the study distinguishes this effect by differentiating between financial institutions and markets.

In light of the growing emphasis on sustainability in higher education, this paper aims to explore the effectiveness of sustainability university rankings, specifically focusing on sustainable development (SD), to understand their impact on advancing universities’ sustainability goals and address gaps in practical implications and limitations.

This study examines sustainability rankings in higher education (HE) through document analysis. Chosen for significance, these rankings were evaluated for regional participation, criteria and the top 20 universities. The method involved scrutinising official ranking websites for diverse perspectives on sustainability. The results are classified into three categories: regional participation, assessment criteria and top universities in the latest iterations.

The findings show that sustainability rankings are widely spread, and their existence has led to an increased motivation for universities to further engage in efforts in the field of SD. This study offers suggestions for optimising the role of promoting SD principles and practices in HE.

This comprehensive assessment sheds light on rankings’ operations and success levels. It makes a significant contribution to the literature, providing an unprecedented overview of analysed rankings and on sustainability assessment and their impact. This analysis will be valuable for universities towards the integration of SD principles and practices into the HE environment.

While it has been speculated for some time that technology market development at the bottom of the pyramid (BOP) will create millions of new entrepreneurs in developing countries, as the BOP is the largest untapped market, to date, there is hardly any macro‐level cross‐country study investigating the extent to which such market development at the BOP influences new business formation “rates” in developing countries. The purpose of this paper is to examine the role of technology market development at the BOP in the information and communications technology (ICT) sector in influencing new business formation rates in developing countries.

The study draws on cross‐country data from developing countries from World Resources Institute and the World Bank. Several steps were taken to ensure robustness.

First, a connection is established between a developing country's level BOP market for ICT and the county's “rate” of new business formation. Second, it is suggested that the level of industry specialization in a developing country enhances the relationship between BOP markets for ICT and new business formation in a developing country. Third, the empirical analysis is based upon a rigorously‐collected authoritative multi‐country data from World Bank that answers the concern voiced by researchers. Fourth, the results suggest that the established link between ICT and economic growth in developing countries may be occurring through “new business formation” acting as a mediator between the two.

Implications are drawn for policy and further research.

The study establishes a macro‐level connection between a developing country's level of BOP market for ICT and its “rate” of new business formation.