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Business failure and institutions in entrepreneurship: a systematic review and research agenda

Author

Listed:
  • Chong Kyoon Lee

    (James Madison University)

  • Johan Wiklund

    (Syracuse University)

  • Alejandro Amezcua

    (IESEG, LEM-CNRS 9221)

  • Tae Jun Bae

    (Hanyang University)

  • Almantas Palubinskas

    (Emlyon Business School)

Abstract

Because entrepreneurship entails uncertainty, business failure is a common outcome for entrepreneurs. When entrepreneurs encounter business failure, they carry a financial, social, and emotional burden associated with the failure. However, the magnitude of this burden differs by institutions, influencing entrepreneurial decisions and behaviors. Although institutions governing the rules of business failure are a topic for a rapidly growing field of research, research on this topic is highly fragmented. Therefore, the purpose of this systematic review is to unpack the relationships between institutions—governing the rules of business failure—and entrepreneurial decisions/behaviors. The paper provides a fine-grained and comprehensive review of the relevant literature and develops an agenda to guide future research.

Suggested Citation

  • Chong Kyoon Lee & Johan Wiklund & Alejandro Amezcua & Tae Jun Bae & Almantas Palubinskas, 2022. "Business failure and institutions in entrepreneurship: a systematic review and research agenda," Small Business Economics, Springer, vol. 58(4), pages 1997-2023, April.
    • Handle: RePEc:kap:sbusec:v:58:y:2022:i:4:d:10.1007_s11187-021-00495-4
    DOI: 10.1007/s11187-021-00495-4
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