Entrepreneurship in Emerging Regions Around the World

Entrepreneurship in Emerging Regions Around the World

Theory, Evidence and Implications

Batten Entrepreneurship series

Edited by Phillip H. Phan, Sankaran Venkataraman and S. Ramakrishna Velamuri

The contributors to this book look at the phenomenon of entrepreneurship in emerging regions in India, China, Ireland, Eastern Europe, North and South America, and North and South-East Asia. The organization is designed to take the reader from a general framework for understanding the relationship between economic development and entrepreneurship to more specific examples of how entrepreneurs and their firms respond to the opportunity and threats that are dynamically evolving in such places. The book represents the first serious attempt to suggest new theoretical frameworks for understanding the emergence of entrepreneurship in regions that do not have all of the classical prerequisites (such as financial and human capital, favorable geography, institutional infrastructures, and so on) predicted in extant development models.

Chapter 8: The Founding Conditions of Entrepreneurial Firms as a Function of Emerging Institutional Arrangements in China

Atipol Bhanich Supapol, Eileen Fischer and Yigang Pan

Subjects: business and management, entrepreneurship


8. The founding conditions of entrepreneurial firms as a function of emerging institutional arrangements in China Atipol Bhanich Supapol, Eileen Fischer and Yigang Pan INTRODUCTION In developed markets institutional structures typically change relatively slowly and incrementally. As developing economies emerge, however, institutional change is pervasive and frequently profound: rapid reform in political philosophies, regulatory environments and laws and policies governing how business may operate are common (for example, Park et al., 2006; Tan, 2005). Clearly, these changes are likely to present both challenges and opportunities for the managers of entrepreneurial ventures in such economies as feasible and attractive means of doing business may shift from one era or period to the next. Equally, these kinds of evolving economies also represent a challenge for entrepreneurship scholars accustomed to studying how new and growing firms compete in relatively slowly evolving macro-institutional environments. In order to study entrepreneurship in emerging economies, we need theories that are appropriate to such dynamic environments. In this chapter we address this challenge by drawing on the evolutionary economic perspective. We conceptualize the evolving macro-institutional conditions in such economies as founding conditions that may interact with firm choices at the time of founding to affect firm performance over time. There is a growing body of evidence that suggests there is a significant impact on firm performance of both initial choices and industry specific founding conditions (for example, Bamford et al., 1999). We build on the various theoretical perspectives that explain such findings to consider how...

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