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A comparative study of net entrepreneurial productivity in developed and post-transition economies

Djula Borozan (), Josip Arneric () and Ilija Coric ()
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Djula Borozan: Josip Juraj Strossmayer University of Osijek
Josip Arneric: University of Zagreb

International Entrepreneurship and Management Journal, 2017, vol. 13, issue 3, No 9, 855-880

Abstract: Abstract The paper develops net entrepreneurial productivity (NEP) as a complex latent construct of second order composed of productive, unproductive and destructive entrepreneurial activity. Its parameters were estimated using the partial least squares structural equation modeling method in the selected 15 developed and 7 post-transition economies for the average values in the period 2006-2013. The results unveil the direct and indirect effects between entrepreneurial activities, and between entrepreneurial activities and NEP, as well as that the level of NEP and productive entrepreneurial activity in developed economies is at a higher level compared with post-transition economies. The results suggest that for NEP and productive entrepreneurship to take place, regardless of the group of economies considered, an effective institutional environment that supports human capital development, fair competition and transparency should be established and maintained before developing more specific entrepreneurial programs and policies.

Keywords: Net entrepreneurial productivity; Entrepreneurial activity; Institutions; PLS method; Developed economies; Post-transition economies (search for similar items in EconPapers)
JEL-codes: C30 L26 O10 P59 (search for similar items in EconPapers)
Date: 2017
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