Understanding the role of institutions and economic context on entrepreneurial value creation choice

Julián Andrés Diaz Tautiva, Erica Salvaj Carrera, Felipe Vásquez-Lavín and Roberto Daniel Ponce Oliva
Additional contact information
Julián Andrés Diaz Tautiva: Universidad Del Desarrollo, Chile
Erica Salvaj Carrera: Universidad Del Desarrollo, Chile; Universidad de San Andre´s, Argentina
Felipe Vásquez-Lavín: Universidad Del Desarrollo, Chile; Center of Applied and Sustainability (CAPES), Chile
Roberto Daniel Ponce Oliva: Universidad Del Desarrollo, Chile; Center of Applied and Sustainability (CAPES), Chile
Authors registered in the RePEc Author Service: Felipe Antonio Vásquez Lavín

Oeconomia Copernicana, 2023, vol. 14, issue 2, 405-447

Abstract: Research background: The observable discrepancies in entrepreneurship activity across countries have motivated both researchers and policymakers to comprehend the sources of these variations. Certain scholars have suggested that the answer to this empirical puzzle lies in the macrolevel processes that influence entrepreneurial endeavours. Purpose of the article: As the understanding of macrolevel processes that shape entrepreneurial behaviour is limited, this research aims to answer how institutions and the economic context influence entrepreneurial value creation choices (i.e., for-profit, non-profit, and mixed). Methods: Using a cross-country sample of 7,891 entrepreneurs in 58 countries, we employ a multilevel ordered probit to evaluate a novel conceptual framework. Our analysis models the direct impact of the regulative framework, the normative pillar, and the cultural pillar, alongside the moderating influence of income inequality and economic uncertainty on value creation choices. Findings & value added: Our findings show that the regulative framework has a positive marginal effect on for-profit and mixed-value creation, but a negative effect on non-profit value creation. Meanwhile, the normative pillar has a negative marginal effect on for-profit and mixed-value creation, but a positive effect on non-profit value creation. The cultural pillar has a negative marginal effect on for-profit and mixed-value creation, but a positive effect on non-profit value creation. Furthermore, income inequality moderates positive the relationship between normative pillar and for-profit and mixed-value creation, while economic uncertainty moderates negative the relationship between normative pillar and for-profit and mixed-value creation. Our research contributes to the literature by providing a nuanced understanding of how institutional pillars can act as drivers or barriers for different entrepreneurial forms, evidence of how uncertainty interacts with institutional forces to shape value creation decisions, and insights into the distinctive attributes of different entrepreneurial forms. Our findings have implications for public policy development.

Keywords: value creation; economic uncertainty; income inequality; entrepreneurial choice; macro processes, sustainable entrepreneurship (search for similar items in EconPapers)
JEL-codes: F63 L25 L26 L31 M13 (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://dx.doi.org/10.24136/oc.2023.011 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pes:ieroec:v:14:y:2023:i:2:p:405-447

Access Statistics for this article

Oeconomia Copernicana is currently edited by Adam P. Balcerzak and Michal Moszynski

More articles in Oeconomia Copernicana from Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Adam P. Balcerzak ( this e-mail address is bad, please contact ).