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Entrepreneurship in Emerging Markets

Author

Listed:
  • Paul Tracey

    (University of Cambridge)

  • Nelson Phillips

    (Imperial College Business School)

Abstract

This paper focuses on the importance of the institutional context in shaping the nature of entrepreneurship in emerging markets. More specifically, the paper argues that while the high degree of institutional uncertainty in emerging markets often acts as a barrier to entrepreneurship, it can also provide important opportunities for entrepreneurs. We argue for the usefulness of recent work in neo-institutional theory as an approach to understanding the institutional context of emerging economies, and in particular for exploring the relationship between institutional uncertainty and entrepreneurship in emerging markets. Drawing on neo-institutional theory, the paper develops a typology of possible institutional strategies available to entrepreneurs in emerging markets. Three strategies are identified: institutional brokering, spanning institutional voids, and bridging institutional distance. The success factors associated with each strategy are also considered. The paper concludes with a discussion of the implications of the framework for theory development and points to a number of areas for future research.

Suggested Citation

  • Paul Tracey & Nelson Phillips, 2011. "Entrepreneurship in Emerging Markets," Management International Review, Springer, vol. 51(1), pages 23-39, February.
    • Handle: RePEc:spr:manint:v:51:y:2011:i:1:d:10.1007_s11575-010-0066-8
    DOI: 10.1007/s11575-010-0066-8
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    References listed on IDEAS

    as
    1. Nelson Phillips & Thomas B. Lawrence & Cynthia Hardy, 2000. "Inter‐organizational Collaboration and the Dynamics of Institutional Fields," Journal of Management Studies, Wiley Blackwell, vol. 37(1), pages 1-1, January.
    2. David Ahlstrom & Garry D. Bruton, 2006. "Venture Capital in Emerging Economies: Networks and Institutional Change," Entrepreneurship Theory and Practice, , vol. 30(2), pages 299-320, March.
    3. Tatiana S. Manolova & Rangamohan V. Eunni & Bojidar S. Gyoshev, 2008. "Institutional Environments for Entrepreneurship: Evidence from Emerging Economies in Eastern Europe," Entrepreneurship Theory and Practice, , vol. 32(1), pages 203-218, January.
    4. Fred Luthans & Elina S Ibrayeva, 2006. "Entrepreneurial self-efficacy in Central Asian transition economies: quantitative and qualitative analyses," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 92-110, January.
    5. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    6. Shaker A. Zahra, 1993. "A Conceptual Model of Entrepreneurship as Firm Behavior: A Critique and Extension," Entrepreneurship Theory and Practice, , vol. 17(4), pages 5-21, July.
    7. Ruta Aidis, 2005. "Institutional Barriers to Small- and Medium-Sized Enterprise Operations in Transition Countries," Small Business Economics, Springer, vol. 25(4), pages 305-317, November.
    8. Arthurs, Jonathan D. & Busenitz, Lowell W., 2006. "Dynamic capabilities and venture performance: The effects of venture capitalists," Journal of Business Venturing, Elsevier, vol. 21(2), pages 195-215, March.
    9. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    10. Klaus E Meyer, 2001. "Institutions, Transaction Costs, and Entry Mode Choice in Eastern Europe," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(2), pages 357-367, June.
    11. Neri Karra & Paul Tracey & Nelson Phillips, 2006. "Altruism and Agency in the Family Firm: Exploring the Role of Family, Kinship, and Ethnicity," Entrepreneurship Theory and Practice, , vol. 30(6), pages 861-877, November.
    12. Matthews, R C O, 1986. "The Economics of Institutions and the," Economic Journal, Royal Economic Society, vol. 96(384), pages 903-918, December.
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