IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v14y2021i4p174-d533524.html
   My bibliography  Save this article

The Impact of Institutional Dimensions on Entrepreneurial Intentions of Students—International Evidence

Author

Listed:
  • Yassine Bakkar

    (Department of Business Administration, Tallinn University of Technology, Ehitajate Tee 5, 19086 Tallinn, Estonia)

  • Susanne Durst

    (Department of Business Administration, Tallinn University of Technology, Ehitajate Tee 5, 19086 Tallinn, Estonia)

  • Wolfgang Gerstlberger

    (Department of Business Administration, Tallinn University of Technology, Ehitajate Tee 5, 19086 Tallinn, Estonia)

Abstract

Acknowledging the role of different forms of entrepreneurship to continued economic prosper-ity and the role of institutional dimensions on entrepreneurship, this paper investigates if and to what extent a selected number of institutional dimensions influence students’ intentions to ei-ther start a company or take over an existing one. Based on a Global University Entrepreneurial Spirit Students’ Survey (GUESS) dataset and international country-level databases, evidence shows that both entrepreneurship options are hampered by corruption and limited business freedom while promoted through favourable labour regulations and trade freedom. Property rights, fiscal freedom, government spending, monetary freedom, and investment freedom only affect start-ups, while financial freedom adversely affects both options. The study provides new insight into the impact of institutional dimensions on different types of entrepreneurship. Thus, in contrast to extant research in this area, it goes beyond the typical focus on start-ups. Evidence also suggests that male students prefer starting a new company, while female students seem to prefer a takeover. This improved understanding could help in not only designing more targeted entrepreneurship and entrepreneurial financing policies but also in improving entrepreneurship education.

Suggested Citation

  • Yassine Bakkar & Susanne Durst & Wolfgang Gerstlberger, 2021. "The Impact of Institutional Dimensions on Entrepreneurial Intentions of Students—International Evidence," JRFM, MDPI, vol. 14(4), pages 1-23, April.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:4:p:174-:d:533524
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/14/4/174/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/14/4/174/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. de Haan, Jakob & Sturm, Jan-Egbert, 2000. "On the relationship between economic freedom and economic growth," European Journal of Political Economy, Elsevier, vol. 16(2), pages 215-241, June.
    2. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    3. Selin Dilli & Niklas Elert & Andrea M. Herrmann, 2018. "Varieties of entrepreneurship: exploring the institutional foundations of different entrepreneurship types through ‘Varieties-of-Capitalism’ arguments," Small Business Economics, Springer, vol. 51(2), pages 293-320, August.
    4. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    5. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
    6. Lex Van Teeffelen & Lorraine Uhlaner & Martijn Driessen, 2011. "The importance of specific human capital, planning and familiarity in Dutch small firm ownership transfers: a seller's perspective," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 14(1), pages 127-148.
    7. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
    8. Walter, Sascha G. & Block, Jörn H., 2016. "Outcomes of entrepreneurship education: An institutional perspective," Journal of Business Venturing, Elsevier, vol. 31(2), pages 216-233.
    9. Mandy Wheadon & Nathalie Duval-Couetil, 2019. "Token entrepreneurs: a review of gender, capital, and context in technology entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(3-4), pages 308-336, March.
    10. Herrera-Echeverri, Hernán & Haar, Jerry & Estévez-Bretón, Juan Benavides, 2014. "Foreign direct investment, institutional quality, economic freedom and entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 67(9), pages 1921-1932.
    11. David Urbano & Claudia Alvarez, 2014. "Institutional dimensions and entrepreneurial activity: an international study," Small Business Economics, Springer, vol. 42(4), pages 703-716, April.
    12. Dominic S.K. Lim & Eric A. Morse & Ronald K. Mitchell & Kristie K. Seawright, 2010. "Institutional Environment and Entrepreneurial Cognitions: A Comparative Business Systems Perspective," Entrepreneurship Theory and Practice, , vol. 34(3), pages 491-516, May.
    13. Nan Langowitz & Maria Minniti, 2007. "The Entrepreneurial Propensity of Women," Entrepreneurship Theory and Practice, , vol. 31(3), pages 341-364, May.
    14. Yaron Zelekha, 2013. "The Effect of Immigration on Entrepreneurship," Kyklos, Wiley Blackwell, vol. 66(3), pages 438-465, August.
    15. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    16. Ingi Runar Edvardsson & Susanne Durst, 2017. "Universities and knowledge-based development: a literature review," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 8(2), pages 105-134.
    17. Jeffery S. McMullen & D. Ray Bagby & Leslie E. Palich, 2008. "Economic Freedom and the Motivation to Engage in Entrepreneurial Action," Entrepreneurship Theory and Practice, , vol. 32(5), pages 875-895, September.
    18. Ruta Aidis & Saul Estrin & Tomasz Mickiewicz, 2012. "Size matters: entrepreneurial entry and government," Small Business Economics, Springer, vol. 39(1), pages 119-139, July.
    19. Nicola Baldini & Rosa Grimaldi & Maurizio Sobrero, 2007. "To patent or not to patent? A survey of Italian inventors on motivations, incentives, and obstacles to university patenting," Scientometrics, Springer;Akadémiai Kiadó, vol. 70(2), pages 333-354, February.
    20. Jac C. Heckelman, 2000. "Economic Freedom and Economic Growth: A Short-Run Causal Investigation," Journal of Applied Economics, Taylor & Francis Journals, vol. 3(1), pages 71-91, May.
    21. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    22. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-247, February.
    23. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
    24. Pamela S. Tolbert & Robert J. David & Wesley D. Sine, 2011. "Studying Choice and Change: The Intersection of Institutional Theory and Entrepreneurship Research," Organization Science, INFORMS, vol. 22(5), pages 1332-1344, October.
    25. Lea Mergemeier & Jessica Moser & Tessa Christina Flatten, 2018. "The influence of multiple constraints along the venture creation process and on start-up intention in nascent entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 30(7-8), pages 848-876, August.
    26. Idalene F. Kesner & Dan R. Dalton, 1994. "Top Management Turnover And Ceo Succession: An Investigation Of The Effects Of Turnover On Performance," Journal of Management Studies, Wiley Blackwell, vol. 31(5), pages 701-713, September.
    27. Sanjay Goel & Ranjan Karri, 2020. "Entrepreneurial aspirations and poverty reduction: the role of institutional context," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(1-2), pages 91-111, January.
    28. Michael Fritsch & Juergen Schmude (ed.), 2006. "Entrepreneurship in the Region," International Studies in Entrepreneurship, Springer, number 978-0-387-28376-0, December.
    29. Gregory Jackson & Richard Deeg, 2008. "Comparing capitalisms: understanding institutional diversity and its implications for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 540-561, June.
    30. Dirk Dohse & Sascha Walter, 2012. "Knowledge context and entrepreneurial intentions among students," Small Business Economics, Springer, vol. 39(4), pages 877-895, November.
    31. Jan Camerlynck & Hubert Ooghe & Tine Langhe, 2005. "Pre-Acquisition Profile of Privately Held Companies Involved in Take-Overs: An Empirical Study," Small Business Economics, Springer, vol. 24(2), pages 169-186, March.
    32. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
    33. Farzana Chowdhury & David B. Audretsch & Maksim Belitski, 2019. "Institutions and Entrepreneurship Quality," Entrepreneurship Theory and Practice, , vol. 43(1), pages 51-81, January.
    34. Levesque, Moren & Minniti, Maria, 2006. "The effect of aging on entrepreneurial behavior," Journal of Business Venturing, Elsevier, vol. 21(2), pages 177-194, March.
    35. Pia Arenius & Maria Minniti, 2005. "Perceptual Variables and Nascent Entrepreneurship," Small Business Economics, Springer, vol. 24(3), pages 233-247, February.
    36. Patricia Pitcher & Samia Chreim & Veronika Kisfalvi, 2000. "CEO succession research: methodological bridges over troubled waters," Strategic Management Journal, Wiley Blackwell, vol. 21(6), pages 625-648, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dejan Djordjevic & Dragan Cockalo & Srdjan Bogetic & Mihalj Bakator, 2021. "Predicting Entrepreneurial Intentions among the Youth in Serbia with a Classification Decision Tree Model with the QUEST Algorithm," Mathematics, MDPI, vol. 9(13), pages 1-27, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yongseok Jang & Woo Jin Lee & Brandy Hadley, 2020. "Interactive Effects of Business Environment Assessment and Institutional Programs on Opportunity Entrepreneurship," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    2. Ivano Dileo & Thaís García Pereiro, 2019. "Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1393-1441, December.
    3. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    4. Christopher J. Boudreaux & Daniel L. Bennett & David S. Lucas & Boris N. Nikolaev, 2023. "Taking mental models seriously: institutions, entrepreneurship, and the mediating role of socio-cognitive traits," Small Business Economics, Springer, vol. 61(2), pages 465-493, August.
    5. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    6. David Urbano & Claudia Alvarez, 2014. "Institutional dimensions and entrepreneurial activity: an international study," Small Business Economics, Springer, vol. 42(4), pages 703-716, April.
    7. Ratan J. S. Dheer, 2017. "Cross-national differences in entrepreneurial activity: role of culture and institutional factors," Small Business Economics, Springer, vol. 48(4), pages 813-842, April.
    8. Miao, Chao & Gast, Johanna & Laouiti, Rahma & Nakara, Walid, 2022. "Institutional factors, religiosity, and entrepreneurial activity: A quantitative examination across 85 countries," World Development, Elsevier, vol. 149(C).
    9. Aparicio, Sebastian & Urbano, David & Stenholm, Pekka, 2021. "Attracting the entrepreneurial potential: A multilevel institutional approach," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    10. R. Sandra Schillo & Ajax Persaud & Meng Jin, 2016. "Entrepreneurial readiness in the context of national systems of entrepreneurship," Small Business Economics, Springer, vol. 46(4), pages 619-637, April.
    11. Audretsch, David B. & Belitski, Maksim & Caiazza, Rosa & Desai, Sameeksha, 2022. "The role of institutions in latent and emergent entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    12. Franz Huber & Alan Ponce & Francesco Rentocchini & Thomas Wainwright, 2020. "The Wealth of (Open Data) Nations? Examining the interplay of open government data and country-level institutions for entrepreneurial activity at the country-level," SEEDS Working Papers 1120, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Nov 2020.
    13. José Ernesto Amorós & Luciano Ciravegna & Vesna Mandakovic & Pekka Stenholm, 2019. "Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts," Entrepreneurship Theory and Practice, , vol. 43(4), pages 725-750, July.
    14. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
    15. Aparicio, Sebastian & Audretsch, David & Urbano, David, 2021. "Why is export-oriented entrepreneurship more prevalent in some countries than others? Contextual antecedents and economic consequences," Journal of World Business, Elsevier, vol. 56(3).
    16. Eva Christine Erhardt, 2022. "Prevalence and Persistence of High-Growth Entrepreneurship: Which Institutions Matter Most?," Journal of Industry, Competition and Trade, Springer, vol. 22(2), pages 297-332, June.
    17. Amirmahmood Amini Sedeh & Amir Pezeshkan & Rosa Caiazza, 2022. "Innovative entrepreneurship in emerging and developing economies: the effects of entrepreneurial competencies and institutional voids," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1198-1223, August.
    18. David B. Audretsch & Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, 2022. "Necessity or opportunity? Government size, tax policy, corruption, and implications for entrepreneurship," Small Business Economics, Springer, vol. 58(4), pages 2025-2042, April.
    19. Schmutzler, Jana & Andonova, Veneta & Díaz Serrano, Lluís, 2015. "When culture does (not) matter: role models and self-efficacy as drivers of entrepreneurial behavior," Working Papers 2072/247806, Universitat Rovira i Virgili, Department of Economics.
    20. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:14:y:2021:i:4:p:174-:d:533524. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.