Perception of formal and informal institutions by entrepreneurs in China, Morocco, and Germany – A cross-cultural pilot study

Busch Rainer, Gassemi Karim, Papastamatelou Julie (), Unger Alexander and May Christian
Additional contact information
Busch Rainer: University of Business and Society Ludwigshafen, Ludwigshafen am Rhein, Germany
Gassemi Karim: Ecole Nationale de Commerce et de Gestion de Casablanca, Casablanca, Morocco.
Papastamatelou Julie: University of Business and Society Ludwigshafen, Ludwigshafen am Rhein, Germany.
Unger Alexander: University of Business and Society Ludwigshafen, Ludwigshafen am Rhein, Germany
May Christian: MayConsult Worms, Germany

International Journal of Management and Economics, 2020, vol. 56, issue 4, 324-338

Abstract: Introduction and AimsEntrepreneurship and the business environment, in general, are being influenced by the existence of formal and informal institutions. This study focuses on the negative versus positive perceptions of Moroccan, Chinese, and German entrepreneurs to formal and informal institutions, and the associations of these perceptions with self-efficacy and market versus network orientation of the business environment.MethodsIn a sample of n = 319 female and male entrepreneurs, we have examined similarities and differences in the perception of informal and formal institutions and their effects on self-efficacy and business strategy, while conducting t-tests and linear regressions.ResultsIn all three cultural contexts, both formal and informal institutions play a significant role because of different reasons.ConclusionThe nature of entrepreneurship is complex as both formal and informal institutional factors are differently associated with businesses. The results could enhance the understanding regarding the coexistence of formal or informal institutions within the business environments of different countries and the connections between business orientation and self-efficacy.

Keywords: formal institutions; informal institutions; self-efficacy; network orientation; market orientation (search for similar items in EconPapers)
JEL-codes: D02 D23 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/ijme-2020-0026 (text/html)

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:vrs:ijomae:v:56:y:2020:i:4:p:324-338:n:2

DOI: 10.2478/ijme-2020-0026

Access Statistics for this article

International Journal of Management and Economics is currently edited by Mariusz Próchniak

More articles in International Journal of Management and Economics from Warsaw School of Economics, Collegium of World Economy
Bibliographic data for series maintained by Peter Golla ().