IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/v13y2017i3d10.1007_s11365-016-0427-2.html
   My bibliography  Save this article

A comparative study of net entrepreneurial productivity in developed and post-transition economies

Author

Listed:
  • Djula Borozan

    (Josip Juraj Strossmayer University of Osijek)

  • Josip Arneric

    (University of Zagreb)

  • Ilija Coric

Abstract

The paper develops net entrepreneurial productivity (NEP) as a complex latent construct of second order composed of productive, unproductive and destructive entrepreneurial activity. Its parameters were estimated using the partial least squares structural equation modeling method in the selected 15 developed and 7 post-transition economies for the average values in the period 2006-2013. The results unveil the direct and indirect effects between entrepreneurial activities, and between entrepreneurial activities and NEP, as well as that the level of NEP and productive entrepreneurial activity in developed economies is at a higher level compared with post-transition economies. The results suggest that for NEP and productive entrepreneurship to take place, regardless of the group of economies considered, an effective institutional environment that supports human capital development, fair competition and transparency should be established and maintained before developing more specific entrepreneurial programs and policies.

Suggested Citation

  • Djula Borozan & Josip Arneric & Ilija Coric, 2017. "A comparative study of net entrepreneurial productivity in developed and post-transition economies," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 855-880, September.
    • Handle: RePEc:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0427-2
    DOI: 10.1007/s11365-016-0427-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-016-0427-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-016-0427-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    2. Sameeksha Desai & Zoltan J. Acs & Utz Weitzel, 2013. "A Model of Destructive Entrepreneurship," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 20-40, February.
    3. Jose Ernesto Amoros, 2009. "Entrepreneurship and Quality of Institutions: A Developing-Country Approach," WIDER Working Paper Series RP2009-07, World Institute for Development Economic Research (UNU-WIDER).
    4. Florida, Richard L. & Kenney, Martin, 1988. "Venture capital-financed innovation and technological change in the USA," Research Policy, Elsevier, vol. 17(3), pages 119-137, June.
    5. Harold J. Brumm, 1999. "Rent Seeking and Economic Growth: Evidence from the States," Cato Journal, Cato Journal, Cato Institute, vol. 19(1), pages 7-16, Spring/Su.
    6. Clotilde Champeyrache, 2018. "Destructive Entrepreneurship: The Cost of the Mafia for the Legal Economy," Journal of Economic Issues, Taylor & Francis Journals, vol. 52(1), pages 157-172, January.
    7. Sampsa Samila & Olav Sorenson, 2011. "Venture Capital, Entrepreneurship, and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 338-349, February.
    8. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    9. Diamantopoulos, Adamantios & Riefler, Petra & Roth, Katharina P., 2008. "Advancing formative measurement models," Journal of Business Research, Elsevier, vol. 61(12), pages 1203-1218, December.
    10. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    11. Christian Bjørnskov & Nicolai Foss, 2010. "Economic Freedom and Entrepreneurial Activity: Some Cross-Country Evidence," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 201-225, Springer.
    12. Aidis, Ruta & van Praag, Mirjam, 2007. "Illegal entrepreneurship experience: Does it make a difference for business performance and motivation?," Journal of Business Venturing, Elsevier, vol. 22(2), pages 283-310, March.
    13. David Smallbone & Friederike Welter, 2006. "Conceptualising entrepreneurship in a transition context," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 3(2), pages 190-206.
    14. Nicolai J. Foss & Peter G. Klein (ed.), 2002. "Entrepreneurship and the Firm," Books, Edward Elgar Publishing, number 2377.
    15. Estrin, Saul & Mickiewicz, Tomasz, 2010. "Entrepreneurship in Transition Economies: The Role of Institutions and Generational Change," IZA Discussion Papers 4805, Institute of Labor Economics (IZA).
    16. Robin Douhan & Magnus Henrekson, 2010. "Entrepreneurship and second-best institutions: going beyond Baumol’s typology," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 629-643, August.
    17. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    18. Harry P Bowen & Dirk De Clercq, 2008. "Institutional context and the allocation of entrepreneurial effort," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 768-768, June.
    19. Marcus Ruge, 2010. "Determinants and Size of the Shadow Economy - A Structural Equation Model," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 511-523.
    20. Sobel, Russell S., 2008. "Testing Baumol: Institutional quality and the productivity of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 641-655, November.
    21. Yaron Zelekha, 2013. "The Effect of Immigration on Entrepreneurship," Kyklos, Wiley Blackwell, vol. 66(3), pages 438-465, August.
    22. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    23. Sameeksha Desai & Zoltan J. Acs, 2007. "A Theory of Destructive Entrepreneurship," Jena Economics Research Papers 2007-085, Friedrich-Schiller-University Jena.
    24. Steven F. Kreft & Russell S. Sobel, 2005. "Public Policy, Entrepreneurship, And Economic Freedom," Cato Journal, Cato Journal, Cato Institute, vol. 25(3), pages 595-616, Fall.
    25. Saul Estrin & Tomasz Mickiewicz, 2012. "Shadow Economy and Entrepreneurial Entry," Review of Development Economics, Wiley Blackwell, vol. 16(4), pages 559-578, November.
    26. Wim Naudé, 2008. "Entrepreneurship in Economic Development," WIDER Working Paper Series RP2008-20, World Institute for Development Economic Research (UNU-WIDER).
    27. Kirsten Foss & Nicolai J. Foss, 2002. "Economic Organization and the Trade-offs between Productive and Destructive Entrepreneurship," Chapters, in: Nicolai J. Foss & Peter G. Klein (ed.), Entrepreneurship and the Firm, chapter 6, Edward Elgar Publishing.
    28. Christopher J. Coyne & Peter T. Leeson, 2004. "The Plight of Underdeveloped Countries," Cato Journal, Cato Journal, Cato Institute, vol. 24(3), pages 235-249, Fall.
    29. Magnus Henrekson & Robin Douhan (ed.), 2008. "The Political Economy of Entrepreneurship," Books, Edward Elgar Publishing, volume 0, number 3704.
    30. M. Sanders & U. Weitzel, 2013. "Misallocation of Entrepreneurial Talent in Postconflict Environments," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 41-64, February.
    31. Roy Thurik & Ingrid Verheul & Isabel Grilo & Reena Bhola, 2006. "Explaining engagement levels of opportunity and necessity entrepreneurs," Scales Research Reports H200610, EIM Business and Policy Research.
    32. Peter J. Boettke & Ennio Piano, 2016. "Baumol’s productive and unproductive entrepreneurship after 25 years," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(2), pages 130-144, August.
    33. Ismail M.Cole & M. Arshad Chawdhry, 2002. "Rent Seeking and Economic Growth:Evidence from a Panel of U.S.States," Cato Journal, Cato Journal, Cato Institute, vol. 22(2), pages 211-228, Fall.
    34. Smallbone, David & Welter, Friederike, 2001. "The Distinctiveness of Entrepreneurship in Transition Economies," Small Business Economics, Springer, vol. 16(4), pages 249-262, June.
    35. Arnis Sauka, 2008. "Productive, Unproductive and Destructive Entrepreneurship: A Theoretical and Empirical Exploration," William Davidson Institute Working Papers Series wp917, William Davidson Institute at the University of Michigan.
    36. Szirmai, Adam & Naude, Wim & Goedhuys, Micheline (ed.), 2011. "Entrepreneurship, Innovation, and Economic Development," OUP Catalogue, Oxford University Press, number 9780199596515.
    37. David Smallbone & Friederike Welter, 2012. "Entrepreneurship and institutional change in transition economies: The Commonwealth of Independent States, Central and Eastern Europe and China compared," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(3-4), pages 215-233, April.
    38. Douhan, Robin & Henrekson, Magnus, 2007. "The Political Economy of Entrepreneurship: An Introduction," Working Paper Series 688, Research Institute of Industrial Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Boban Melović & Slavica Mitrović Veljković & Dragana Ćirović & Tamara Backović Vulić & Marina Dabić, 2022. "Entrepreneurial decision-making perspectives in transition economies – tendencies towards risky/rational decision-making," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1739-1773, December.
    2. Irina A. Morozova & Elena G. Popkova & Tatiana N. Litvinova, 2019. "Sustainable development of global entrepreneurship: infrastructure and perspectives," International Entrepreneurship and Management Journal, Springer, vol. 15(2), pages 589-597, June.
    3. Su, Zhongfeng & Li, Jiatao & Wei, Shihao & Wu, Zhan, 2024. "Effect of inward foreign direct investment on entrepreneurship productivity in emerging markets," Journal of International Management, Elsevier, vol. 30(1).
    4. Weiqi Dai & Yang Liu & Mingqing Liao & Qiao Lin, 2018. "How does entrepreneurs’ socialist imprinting shape their opportunity selection in transition economies? Evidence from China’s privately owned enterprises," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 823-856, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aleksandrova, E. & Verkhovskaya, O., 2015. "Institutional determinants of necessity-driven entrepreneurship," Working Papers 6434, Graduate School of Management, St. Petersburg State University.
    2. Besnik A. Krasniqi & Sameeksha Desai, 2016. "Institutional drivers of high-growth firms: country-level evidence from 26 transition economies," Small Business Economics, Springer, vol. 47(4), pages 1075-1094, December.
    3. Sorgner, Alina & Wyrwich, Michael, 2022. "Calling Baumol: What telephones can tell us about the allocation of entrepreneurial talent in the face of radical institutional changes," Journal of Business Venturing, Elsevier, vol. 37(5).
    4. Magnus Henrekson & Mikael Stenkula, 2022. "William J. Baumol: Innovative Contributor to Entrepreneurship Economics," Research in the History of Economic Thought and Methodology, in: Research in the History of Economic Thought and Methodology: Including a Symposium on the Work of William J. Baumol: Heterodox Inspirations and Neocla, volume 40, pages 107-131, Emerald Group Publishing Limited.
    5. Farzana Chowdhury & David B. Audretsch & Maksim Belitski, 2019. "Institutions and Entrepreneurship Quality," Entrepreneurship Theory and Practice, , vol. 43(1), pages 51-81, January.
    6. Alexandre Padilla & Nicolás Cachanosky, 2016. "Indirectly productive entrepreneurship," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(2), pages 161-175, August.
    7. Marcus Box & Karl Gratzer & Xiang Lin, 2020. "Destructive entrepreneurship in the small business sector: bankruptcy fraud in Sweden, 1830–2010," Small Business Economics, Springer, vol. 54(2), pages 437-457, February.
    8. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.
    9. Trubnikov, Dmitrii, 2021. "What entrepreneurship is really “productive”? An alternative view on Baumol's typology," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    10. Christopher J. Boudreaux & Boris Nikolaev, 2019. "Capital is not enough: opportunity entrepreneurship and formal institutions," Small Business Economics, Springer, vol. 53(3), pages 709-738, October.
    11. Robin Douhan & Magnus Henrekson, 2010. "Entrepreneurship and second-best institutions: going beyond Baumol’s typology," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 629-643, August.
    12. Roberto Ganau & Andrés Rodríguez‐Pose, 2019. "Do high‐quality local institutions shape labour productivity in Western European manufacturing firms?," Papers in Regional Science, Wiley Blackwell, vol. 98(4), pages 1633-1666, August.
    13. Bylund, Per L. & McCaffrey, Matthew, 2017. "A theory of entrepreneurship and institutional uncertainty," Journal of Business Venturing, Elsevier, vol. 32(5), pages 461-475.
    14. repec:ekd:006356:6689 is not listed on IDEAS
    15. Dong, Zhiqiang & Wang, Xiaobing & Zhang, Tianhua & Zhong, Yuejun, 2022. "The effects of local government leadership turnover on entrepreneurial behavior," China Economic Review, Elsevier, vol. 71(C).
    16. Bei Luo & Terence Tai-Leung Chong, 2017. "Entrepreneurial activities and institutional environment in China," Economic and Political Studies, Taylor & Francis Journals, vol. 5(2), pages 179-194, April.
    17. Monika Mühlböck & Julia-Rita Warmuth & Marian Holienka & Bernhard Kittel, 2018. "Desperate entrepreneurs: no opportunities, no skills," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 975-997, December.
    18. Fritsch, Michael & Sorgner, Alina & Wyrwich, Michael, 2019. "Self-employment and well-being across institutional contexts," Journal of Business Venturing, Elsevier, vol. 34(6).
    19. Daniel L. Bennett, 2021. "Local economic freedom and creative destruction in America," Small Business Economics, Springer, vol. 56(1), pages 333-353, January.
    20. Elert, Niklas & Stenkula, Mikael, 2020. "Intrapreneurship: Productive, Unproductive, and Destructive," Working Paper Series 1367, Research Institute of Industrial Economics.
    21. Marcus Dejardin & Helene Laurent, 2014. "Greasing the wheels of entrepreneurship? A complement according to entrepreneurial motives," Working Papers 1402, University of Namur, Department of Economics.

    More about this item

    Keywords

    Net entrepreneurial productivity; Entrepreneurial activity; Institutions; PLS method; Developed economies; Post-transition economies;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P59 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Other

    Statistics

    Access and download statistics

    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:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0427-2. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.