The Influence of Formal and Informal Institutional Voids on Entrepreneurship

Building new space for institutional theory, we propose how the severity of formal and informal institutional voids shapes the productivity of entrepreneurial activities within society. Our theory makes the key assumptions that voids can exist in both formal and informal institutions and that they a...

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Bibliographic Details
Published inEntrepreneurship theory and practice Vol. 44; no. 3; pp. 504 - 526
Main Authors Webb, Justin W., Khoury, Theodore A., Hitt, Michael A.
Format Journal Article
LanguageEnglish
Published Los Angeles, CA SAGE Publications 01.05.2020
Sage Publications, Inc
SAGE PUBLICATIONS, INC
Subjects
Entrepreneurs
Entrepreneurship
Informal economy
Institutional theory
Productivity
Social aspects
Sociological research
United States
informal economy
development
entrepreneurial objectives
entrepreneurial form
institutional voids
unproductive entrepreneurship
formal institutions
institutional theory
informal institutions
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Summary:Building new space for institutional theory, we propose how the severity of formal and informal institutional voids shapes the productivity of entrepreneurial activities within society. Our theory makes the key assumptions that voids can exist in both formal and informal institutions and that they are capable of hindering entrepreneurial behavior that is favorable to development progress. We extend new theoretical domains by conceptualizing informal institutional voids and proposing how both formal and informal institutional voids and their interaction influence two qualitative outcomes within localities: (1) the unique forms of entrepreneurial activity, and (2) the objectives underlying this entrepreneurial activity.
ISSN:1042-2587
1540-6520
DOI:10.1177/1042258719830310