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An Institutional Perspective on Business Planning Activities for Nascent Entrepreneurs in Sweden and the US

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  • Benson Honig

    ()
    (Degroote School of Business, McMaster University, 1280 Main Street West, Hamilton, ON L8S4M4, Canada)

  • Tomas Karlsson

    (Department of Managing Organisational Renewal and Entrepreneurship (MORE), Chalmers University, Vera Sandbergs Allé 8: 4 vån, Gothenburg 41296, Sweden)

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    Abstract

    We compared nascent characteristics and behaviors leading to business planning activities in Sweden with the United States (US), examining the effects of institutional pressures exerted in the different countries. We analyzed institutional factors leading 362 Swedish and 347 US entrepreneurs to write plans during a two-year period. We show that national cultures moderate how institutional pressures influence nascent behaviors, questioning generic applications of institutional theory. We found business planning behaviors moderated by nationality, showing significant and negative effects for business classes in the US. Implications are drawn for institutional theory and the study of nascent businesses, as well as for normative business planning literature and practice of nascent businesses.

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    Bibliographic Info

    Article provided by MDPI, Open Access Journal in its journal Administrative Sciences.

    Volume (Year): 3 (2013)
    Issue (Month): 4 (November)
    Pages: 266-289

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    Handle: RePEc:gam:jadmsc:v:3:y:2013:i:4:p:266-289:d:30663

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    Related research

    Keywords: institutional theory; cross national entrepreneurship; business planning;

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    1. Delmar, Frederic & Shane, Scott, 2004. "Legitimating first: organizing activities and the survival of new ventures," Journal of Business Venturing, Elsevier, vol. 19(3), pages 385-410, May.
    2. Katz, Jerome A., 2003. "The chronology and intellectual trajectory of American entrepreneurship education: 1876-1999," Journal of Business Venturing, Elsevier, vol. 18(2), pages 283-300, March.
    3. James G. March, 1978. "Bounded Rationality, Ambiguity, and the Engineering of Choice," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 587-608, Autumn.
    4. Carter, Nancy M. & Gartner, William B. & Reynolds, Paul D., 1996. "Exploring start-up event sequences," Journal of Business Venturing, Elsevier, vol. 11(3), pages 151-166, May.
    5. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
    6. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    7. Anne K. Johnson, 1998. "The Influence of Institutional Culture on the Formation of Pre-Regime Climate Change Policies in Sweden, Japan and the United States," Environmental Values, White Horse Press, vol. 7(2), pages 223-244, May.
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