The joint effects of formal and informal institutions on entrepreneurial start-ups: a global perspective

This study develops an integrated model to investigate how resource-based factors interact with country-level antecedents pertaining to the regulatory quality and uncertainty avoidance in shaping venture creation. Drawing upon an institutional approach, this research examines formal and informal institutions as contingency variables on the association between entrepreneurial resources and start-ups. The analytical results based on 41,156 observations from 46 countries suggest that entrepreneurial start-ups are significantly affected by resource factors in terms of human, financial, and social capitals. The results also show that national regulatory quality and uncertainty avoidance serve as moderating factors on such decision-making. The results largely support our hypotheses and suggest significant theoretical and political implications.

© 2024 The Author(s). Published with license by Taylor & Francis Group, LLC.

This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent.