Entrepreneurial activities in a developing country: an institutional theory perspective

Emiel L. Eijdenberg, Neil A. Thompson, Karen Verduijn, Caroline Essers

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Entrepreneurship research in the context of developing countries has typically investigated the ways in which culture, politics or economic institutions prohibit or enable entrepreneurial activities using macro-level surveys and deductive designs. In contrast, the purpose of this paper is to take a micro-institutional perspective to study these three institutions influencing entrepreneurial activities in such a context. Design/methodology/approach: The analysis is based on inductive, qualitative field data from a challenging institutional environment, Tanzania. This includes two focus groups, one with experts and one with entrepreneurs; and 24 individual interviews with entrepreneurs. Findings: Entrepreneurial activities in Tanzania are not constrained only by bureaucracy and arbitrary enforcement, access to capital, competition and consumer spending, but also by language barriers, negative media portrayals and gender disparity. In their favour, recent trade policy, opening up of borders and changing gender relations, has led to more opportunities, but just as important are traditional festivals, marital gift-giving and familial support. Entrepreneurs respond to institutional constraints in many creative ways, including undertaking entrepreneurial strategies, developing inner strength, joining associations, giving back to communities and skilfully managing relations with authorities. Originality/value: The fine-grained discussion of the findings of this study specifically contributes to theory by illustrating the constraining and enabling role of under-represented institutions, such as festivals and marriages, as well as entrepreneurial creative responses that define everyday entrepreneurial life in a developing country.

Original languageEnglish
Pages (from-to)414-432
JournalInternational Journal of Entrepreneurial Behaviour and Research
Volume25
Issue number3
DOIs
Publication statusPublished - Apr 2019

Fingerprint

Developing countries
Entrepreneurial activity
Institutional theory
Entrepreneurs
Tanzania
Enforcement
Entrepreneurship research
Gift giving
Design methodology
Language barriers
Authority
Institutional constraints
Economic institutions
Institutional perspective
Gender disparity
Marriage
Consumer spending
Bureaucracy
Focus groups
Trade policy

Keywords

  • Developing countries
  • Entrepreneurs
  • Institutional theory
  • Institutions
  • Small firms

Cite this

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Entrepreneurial activities in a developing country : an institutional theory perspective. / Eijdenberg, Emiel L.; Thompson, Neil A.; Verduijn, Karen; Essers, Caroline.

In: International Journal of Entrepreneurial Behaviour and Research, Vol. 25, No. 3, 04.2019, p. 414-432.

Research output: Contribution to JournalArticleAcademicpeer-review

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