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Another day, another dollar: Enterprise resilience under terrorism in developing countries

Oana Branzei and Samer Abdelnour
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Oana Branzei: Richard Ivey School of Business, The University of Western Ontario, Ontario, Canada
Samer Abdelnour: Richard Ivey School of Business, The University of Western Ontario, Ontario, Canada

Journal of International Business Studies, 2010, vol. 41, issue 5, 804-825

Abstract: This study extends the literature on entrepreneurship in developing countries by offering a two-stage explanation for the paradoxical observation that enterprise activities often flourish under extreme adversity. Our findings complement the base-of-pyramid and peace-through-commerce attention to the growing role of business in international development by fleshing out the functions of enterprise resilience under terrorism. We first explain how terrorism conditions (outbreak, escalation, and reduction) may create psychological incentives for enterprise resilience; then we show that, controlling for ex ante terrorism conditions, enterprise resilience yields more favorable economic payoffs at higher levels of terrorism, especially for informal entrepreneurs.

Date: 2010
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