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Measurement and structural invariance of entrepreneurial investment climate: A cross-country scale development

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  • Nam, Dae-il
  • Kim, Juhee
  • Arthurs, Jonathan D.
  • Sosik, John J.
  • Cullen, John B.

Abstract

Testing invariance is important in cross-cultural studies because a lack of invariance may bias empirical results and lead to improper theoretical inferences. This study introduces and validates a scale for measuring entrepreneurial investment climate, consisting of four factors: Societal stability, Labor and Regulations, Quality of Infrastructure, and Ease of Finance. The instrument was developed using World Bank Group data from 51,169 firms and 72 institutional profiles to determine investment climate. Confirmatory factor analyses reveal the validity of the scale and its robustness across country types and time. The study’s implications for practice and future research are discussed.

Suggested Citation

  • Nam, Dae-il & Kim, Juhee & Arthurs, Jonathan D. & Sosik, John J. & Cullen, John B., 2016. "Measurement and structural invariance of entrepreneurial investment climate: A cross-country scale development," International Business Review, Elsevier, vol. 25(5), pages 1053-1065.
    • Handle: RePEc:eee:iburev:v:25:y:2016:i:5:p:1053-1065
    DOI: 10.1016/j.ibusrev.2016.01.004
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    Cited by:

    1. Thompson, Edmund R. & Dericks, Gerard H. & Fai, Felicia, 2019. "Development and validation of a firm-level vertical and horizontal internationalization metric," International Business Review, Elsevier, vol. 28(3), pages 533-543.

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