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Do interactions between formal and informal institutions matter for productive entrepreneurship?

Author

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  • Malgorzata Godlewska

    (Warsaw School of Economics, Collegium of Business Administration)

Abstract

Motivation: Institutional and Entrepreneurship theory pays attention to institutions and their influence on productive, unproductive and destructive entrepreneurship in transition economies. However, according to the literature, it is not only institutions that matter for productive entrepreneurship, but also the interaction between formal and informal institutions. Moreover, transition economies needs the productive entrepreneurship ‘to catch-up’ with world leaders. Aim: The aim of this paper is to advance institutional research through the development of a better understanding of the relation between formal and informal institutions and their influence on productive entrepreneurship in transition economies like CEECs. Results: The paper demonstrates that strong formal and informal institutions, the ‘invisible hand’ of the state, as well as the complementary and accommodating relations between formal and informal institutions are necessary for productive entrepreneurship in transition economies.

Suggested Citation

  • Malgorzata Godlewska, 2019. "Do interactions between formal and informal institutions matter for productive entrepreneurship?," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(1), pages 17-28, March.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:1:p:17-28
    DOI: 10.12775/EiP.2019.002
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    References listed on IDEAS

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    Cited by:

    1. Jinhua Xie & Gangqiao Yang & Ge Wang & Yaying Zhu & Zhaoxia Guo, 2023. "Substitutes or complements? Exploring the impact of environmental regulations and informal institutions on the clean energy utilization behaviors of farmers," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 3893-3922, May.
    2. Izabela Rogalska, 2020. "Perception of Location Factors by Entrepreneurs and Representatives of Business Environment Institutions," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 600-613.
    3. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.

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    More about this item

    Keywords

    formal and informal institutions; productive entrepreneurship; transition economies; institutional asymmetry; interplay between institutions;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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