Institutional Differences and Opportunity Exploitation: A Comparison of Managerial Ties Utilization in Asia and Europe

This chapter discusses how differences in distinct institutional environments affect the vital entrepreneurial activity of utilizing managerial ties for opportunity exploitation. Focusing on the comparison between Asia and Europe provides an opportunity for researchers to see entrepreneurs operating in the same global market with strong and consistent rules and, in this case, to examine how the differing institutional settings affect the behavior of entrepreneurs in different markets. This chapter adopts an institutional theory perspective to investigate entrepreneurial behavior in two regions of the world with disparate institutional environments and enormous regional differences—Asia and Europe. Two typical countries are chosen, China, the largest emerging country in Asia, and Germany, the largest economy in Europe. A comparative study of the differences provides insight into the impact of cultural context and institutional environment on entrepreneurial behavior. The study finds that institutions in these two different environments lead to significant differences in entrepreneurial practices. By exploring and comparing the relationship between managerial ties and opportunity exploitation in Asia and Europe, this chapter intends to provide a better theoretical understanding of the different behavior patterns of entrepreneurs in divergent institutional contexts.