The Influence of Formal and Informal Institutional Voids on Entrepreneurship

Justin W. Webb, Theodore A. Khoury and Michael A. Hitt

Entrepreneurship Theory and Practice, 2020, vol. 44, issue 3, 504-526

Abstract: 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.

Keywords: institutional voids; development; formal institutions; informal institutions; institutional theory; unproductive entrepreneurship; informal economy; entrepreneurial objectives; entrepreneurial form (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (46)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:44:y:2020:i:3:p:504-526

DOI: 10.1177/1042258719830310

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