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Rapid Institutional Shifts and the Co–evolution of Entrepreneurial Firms in Transition Economies

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  • David Ahlstrom
  • Garry D. Bruton

Abstract

Economies in transition such as Russia's are among the world's fastest growing. Entrepreneurial firms in an environment like Russia's face rapid and dramatic shifts in the institutional environment. These shifts represent significant challenges to entrepreneurial firms as they seek not only to survive but also to prosper in that environment by rapidly co–evolving with institutional changes. Prior research has focused on institutional change and its impact in developed economies. But the rate of evolution of institutions in transition economies tends to be faster and less predictable. This article reports a longitudinal study of high technology entrepreneurial firms in Russia employing a grounded theory methodology to understand how entrepreneurial ventures co–evolve with rapid institutional changes and still manage to prosper.

Suggested Citation

  • David Ahlstrom & Garry D. Bruton, 2010. "Rapid Institutional Shifts and the Co–evolution of Entrepreneurial Firms in Transition Economies," Entrepreneurship Theory and Practice, , vol. 34(3), pages 531-554, May.
    • Handle: RePEc:sae:entthe:v:34:y:2010:i:3:p:531-554
    DOI: 10.1111/j.1540-6520.2010.00373.x
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    2. Rodríguez, Alicia & Hernández, Virginia & Nieto, María Jesús, 2022. "International and domestic external knowledge in the innovation performance of firms from transition economies: The role of institutions," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    3. García-Cabrera, Antonia M. & Durán-Herrera, Juan J. & Suárez-Ortega, Sonia M., 2019. "Multinationals’ political activity for institutional change: Evidence from Spain during the international crisis of 2008," European Management Journal, Elsevier, vol. 37(5), pages 541-551.
    4. Mengli Zhao & Jinxin Liu & Chengli Shu, 2021. "Pursuing sustainable development through green entrepreneurship: An institutional perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4281-4296, December.
    5. Hao, Yunping & Zhang, Bing, 2024. "The impact of digital financial usage on resident’s income inequality in China: An empirical analysis based on CHFS data," Journal of Asian Economics, Elsevier, vol. 91(C).
    6. Marcel Boyer & Hicham El Moussaoui & Valentin Petkantchin, 2024. "Le microentrepreneuriat et l’accès à l’eau potable dans les quartiers précaires d’Abidjan (Côte d’Ivoire)," CIRANO Working Papers 2024s-05, CIRANO.
    7. Garry D. Bruton & Shaker A. Zahra & Li Cai, 2018. "Examining Entrepreneurship Through Indigenous Lenses," Entrepreneurship Theory and Practice, , vol. 42(3), pages 351-361, May.
    8. García-Cabrera, Antonia M. & Durán-Herrera, Juan J., 2016. "MNEs as institutional entrepreneurs: A dynamic model of the co-evolutionary process," European Management Journal, Elsevier, vol. 34(5), pages 550-563.
    9. Zahra, Shaker A., 2021. "International entrepreneurship in the post Covid world," Journal of World Business, Elsevier, vol. 56(1).
    10. Istipliler, Baris & Bort, Suleika & Woywode, Michael, 2023. "Flowers of adversity: Institutional constraints and innovative SMEs in transition economies," Journal of Business Research, Elsevier, vol. 154(C).

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