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Do contextual factors matter for new start-ups? Institutional theory and entrepreneurial intention: a proposed model

Author

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  • Yagoub Gangi
  • Bomediene Kebaili

Abstract

The institutional environment is very important for entrepreneurship, as it exerts a powerful influence not only on entrepreneurial entry rates but also on the ensuing trajectories of entrepreneurial initiatives. This paper endeavours to advance the institutional theory by proposing a conceptual model that encompasses institutional factors that have received minimal attention from researchers. The proposed model is developed based on the Global Competitiveness Report (GCR) 2015, published by the World Economic Forum (WEF), and includes seven factors, namely: economical dimension, legal dimension, ethical dimension, technological dimension, educational dimension, infrastructure development, and financial market development. The study suggests seven propositions linking the institutional factors with entrepreneurship intention. This is an exploratory investigation and no quantitative analysis has been conducted. Future research could adopt or adapt the current study's conceptual framework and empirically test it. Furthermore, empirical studies could be applied in different contexts and accommodate different institutional conditions.

Suggested Citation

  • Yagoub Gangi & Bomediene Kebaili, 2020. "Do contextual factors matter for new start-ups? Institutional theory and entrepreneurial intention: a proposed model," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 16(4), pages 415-429.
    • Handle: RePEc:ids:wremsd:v:16:y:2020:i:4:p:415-429
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