IDEAS home Printed from https://ideas.repec.org/a/ids/ijeven/v13y2021i5p425-442.html
   My bibliography  Save this article

The role of trust in government and institutional environment in future business climate

Author

Listed:
  • Gentjan Çera
  • Edmond Çera
  • Humberto Nuno Rito Ribeiro
  • Sadik Maloku

Abstract

Though numerous studies have focused on the relationship between institutional environment shape entrepreneurship, yet it is not clear enough the effects of institutional constraints and institutional trust on future business climate. This study aims to investigate these relationships in the context of a transition country. The research combines two perspectives: institution theory and institutional trust. The data are collected using a face-to-face survey. Three ordinal regressions were performed in a dataset of 393 small and medium-sized enterprises from Albania. The results contribute into understanding the nature of entrepreneurship in a transition setting. After controlling for firm characteristics, analyses revealed that future business climate is negatively influenced by legal environment-related constraints, and positively by trust in government. Thus, favourable business climate can be achieved by applying not heavily business legislation and regulation framework, and by building trust in institution. This paper offers insights for scholars studying entrepreneurship and institutional environments.

Suggested Citation

  • Gentjan Çera & Edmond Çera & Humberto Nuno Rito Ribeiro & Sadik Maloku, 2021. "The role of trust in government and institutional environment in future business climate," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 13(5), pages 425-442.
    • Handle: RePEc:ids:ijeven:v:13:y:2021:i:5:p:425-442
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=119143
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mina Nikolaeva Angelova & Daniela Dobreva Pastarmadzhieva & Aleksandar Tsvetanov Naydenov, 2022. "Determinants of the Entrepreneurial Initiative during a Pandemic: The Case of Plovdiv," Sustainability, MDPI, vol. 14(21), pages 1-28, October.
    2. Sitinjak, Charli & Simic, Vladimir & Ismail, Rozmi & Musselwhite, Charles & Bacanin, Nebojsa, 2024. "Psychometric components of the social acceptance toward end-of-life vehicles policy: A case study of Indonesia," Transport Policy, Elsevier, vol. 148(C), pages 206-218.
    3. Lushi Isuf & Çera Gentjan & Murrja Arif & Ujkani Sead, 2023. "Linking Farmers’ Bargaining Power in Trade to their Plans for Future Economic Activities," South East European Journal of Economics and Business, Sciendo, vol. 18(2), pages 173-185, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijeven:v:13:y:2021:i:5:p:425-442. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=123 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.