IDEAS home Printed from https://ideas.repec.org/a/kap/jtecht/v47y2022i4d10.1007_s10961-021-09873-2.html
   My bibliography  Save this article

The Vietnamese entrepreneurship paradox: how can entrepreneurs thrive without political and economic freedom?

Author

Listed:
  • David B. Audretsch

    (Indiana University)

  • Antje Fiedler

    (University of Auckland)

Abstract

Entrepreneurship and democracy are often considered complementary, but recent evidence points to a paradox that entrepreneurial activities have increased in undemocratic contexts. Exploring economic and political freedoms, this paper investigates the development of entrepreneurship in Vietnam, an economy characterised by low economic and very low political freedoms. It suggests changes in economic freedom over time influence opportunity perceptions and activities more than absolute levels. We identify key aspects of how culture and institutions have changed, which have been conducive to entrepreneurship. Overall, we show how even small increases in economic freedom stimulate entrepreneurship, even in the absence of political freedom.

Suggested Citation

  • David B. Audretsch & Antje Fiedler, 2022. "The Vietnamese entrepreneurship paradox: how can entrepreneurs thrive without political and economic freedom?," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1179-1197, August.
    • Handle: RePEc:kap:jtecht:v:47:y:2022:i:4:d:10.1007_s10961-021-09873-2
    DOI: 10.1007/s10961-021-09873-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10961-021-09873-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10961-021-09873-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    2. Hien Thu Tran & Enrico Santarelli, 2014. "Capital constraints and the performance of entrepreneurial firms in Vietnam," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(3), pages 827-864.
    3. Marta Gasparin & Martin Quinn, 2021. "Designing regional innovation systems in transitional economies: A creative ecosystem approach," Growth and Change, Wiley Blackwell, vol. 52(2), pages 621-640, June.
    4. Aaron H. Anglin & Aaron F. McKenny & Jeremy C. Short, 2018. "The Impact of Collective Optimism on New Venture Creation and Growth: A Social Contagion Perspective," Entrepreneurship Theory and Practice, , vol. 42(3), pages 390-425, May.
    5. Tran, Hien Thu, 2019. "Institutional quality and market selection in the transition to market economy," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    6. Ronald Kumar, 2014. "Exploring the nexus between tourism, remittances and growth in Kenya," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1573-1588, May.
    7. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
    8. Quan-Hoang Vuong & Tran Tri Dung, 2009. "The Cultural Dimensions of the Vietnamese Private Entrepreneurship," Working Papers CEB 09-027.RS, ULB -- Universite Libre de Bruxelles.
    9. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute.
    10. Ronald Kumar & Peter Stauvermann, 2014. "Exploring the nexus between remittances and economic growth: a study of Bangladesh," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(4), pages 399-415, December.
    11. Garry D. Bruton & David Ahlstrom & Han–Lin Li, 2010. "Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future?," Entrepreneurship Theory and Practice, , vol. 34(3), pages 421-440, May.
    12. Bruton, Garry & Sutter, Christopher & Lenz, Anna-Katharina, 2021. "Economic inequality – Is entrepreneurship the cause or the solution? A review and research agenda for emerging economies," Journal of Business Venturing, Elsevier, vol. 36(3).
    13. Zhenhui Xu & Haizheng Li, 2008. "Political freedom, economic freedom, and income convergence: Do stages of economic development matter?," Public Choice, Springer, vol. 135(3), pages 183-205, June.
    14. 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.
    15. Enrico Santarelli & Hien Thu Tran, 2012. "Growth of Incumbent Firms and Entrepreneurship in V ietnam," Growth and Change, Wiley Blackwell, vol. 43(4), pages 638-666, December.
    16. Christian Bjørnskov & Nicolai Foss, 2010. "Economic Freedom and Entrepreneurial Activity: Some Cross-Country Evidence," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 201-225, Springer.
    17. Vuong Quan Hoang & La Viet Phuong & Vuong Thu Trang & Hoang Phuong Hanh & Ho Manh Toan & Ho Manh Tung & Nguyen Hong Kong To, 2020. "Multi-faceted insights of entrepreneurship facing a fast-growing economy: A literature review," Open Economics, De Gruyter, vol. 3(1), pages 25-41, January.
    18. 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.
    19. Huang,Yasheng, 2008. "Capitalism with Chinese Characteristics," Cambridge Books, Cambridge University Press, number 9780521898102.
    20. Phuong Mai Nguyen & Van Toan Dinh & Thi-Minh-Ngoc Luu & Yongshik Choo, 2020. "Sociological and theory of planned behaviour approach to understanding entrepreneurship: Comparison of Vietnam and South Korea," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1815288-181, January.
    21. David B. Audretsch & Max Keilbach, 2004. "Does Entrepreneurship Capital Matter?," Entrepreneurship Theory and Practice, , vol. 28(5), pages 419-430, September.
    22. Trinh Quang Long, 2021. "Is innovation activity persistent among small firms in developing countries? Evidence from Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(1), pages 140-157, January.
    23. Enrico Santarelli & Hien Thu Tran, 2017. "Young innovative companies: Are they high performers in transition economies? Evidence for Vietnam," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1052-1076, October.
    24. Haworth, Nigel, 2013. "Compressed Development: Global value chains, multinational enterprises and human resource development in 21st century Asia," Journal of World Business, Elsevier, vol. 48(2), pages 251-259.
    25. Yun, Mikyung, 2019. "Technological Capability of MSMEs and Implications for Innovation Policy: A Case Study of Vietnam," APEC Study Series 19-2, Korea Institute for International Economic Policy.
    26. Robyn Klingler-Vidra & Robert Wade, 2020. "Science and Technology Policies and the Middle-Income Trap: Lessons from Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 56(4), pages 717-731, April.
    27. Phan Minh Ngoc & Eric D. Ramstetter, 2004. "Foreign Multinationals and Local Firms in Vietnam's Economic Transition," Asian Economic Journal, East Asian Economic Association, vol. 18(4), pages 371-404, December.
    28. Daniel L. Bennett, 2021. "Local economic freedom and creative destruction in America," Small Business Economics, Springer, vol. 56(1), pages 333-353, January.
    29. Nachiket Bhawe & Shaker A. Zahra, 2019. "Inducing heterogeneity in local entrepreneurial ecosystems: the role of MNEs," Small Business Economics, Springer, vol. 52(2), pages 437-454, February.
    30. Haizheng Li & Zhenhui Xu, 2007. "Economic Convergence in Seven Asian Economies," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 531-549, August.
    31. Vo Xuan Han & Roger Baumgarte, 2000. "Economic Reform, Private Sector Development, and the Business Environment in Viet Nam," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 42(3), pages 1-30, September.
    32. James W. Saunoris & Aishath Sajny, 2017. "Entrepreneurship and economic freedom: cross-country evidence from formal and informal sectors," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(3-4), pages 292-316, March.
    33. Klingler-Vidra, Robyn & Wade, Robert, 2020. "Science and technology policies and the middle-income trap: lessons from Vietnam," LSE Research Online Documents on Economics 100712, London School of Economics and Political Science, LSE Library.
    34. Kuckertz, Andreas & Berger, Elisabeth S.C. & Mpeqa, Andrew, 2016. "The more the merrier? Economic freedom and entrepreneurial activity," Journal of Business Research, Elsevier, vol. 69(4), pages 1288-1293.
    35. Junge, Vera & Revilla Diez, Javier & Schätzl, Ludwig, 2015. "Determinants and Consequences of Internal Return Migration in Thailand and Vietnam," World Development, Elsevier, vol. 71(C), pages 94-106.
    36. Erik E. Lehmann & Nikolaus Seitz, 2017. "Freedom and innovation: a country and state level analysis," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1009-1029, October.
    Full references (including those not matched with items on IDEAS)

    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. Daniel L. Bennett & Boris Nikolaev, 2021. "Individualism, pro-market institutions, and national innovation," Small Business Economics, Springer, vol. 57(4), pages 2085-2106, December.
    2. Juan M. Dempere & Alexandrina M. Pauceanu, 2022. "The impact of economic-related freedoms on the national entrepreneurial activity," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-20, December.
    3. Deerfield, Amanda & Elert, Niklas, 2022. "Entrepreneurship and Regulatory Voids: The Case of Ridesharing," Working Paper Series 1426, Research Institute of Industrial Economics.
    4. Lucas, David & Boudreaux, Christopher, 2018. "Federal Regulation, Job Creation, and the Moderating Effect of State Economic Freedom," MPRA Paper 92593, University Library of Munich, Germany.
    5. Mehmet Altin & Esra Memili & Sevil Sönmez, 2017. "Institutional economics and firm creation in the hospitality and tourism industry," Tourism Economics, , vol. 23(7), pages 1381-1397, November.
    6. Luca Farè & David B. Audretsch & Marcus Dejardin, 2023. "Does democracy foster entrepreneurship?," Small Business Economics, Springer, vol. 61(4), pages 1461-1495, December.
    7. Ioscha Cordier & Marco Bade, 2023. "The relationship between business regulation and nascent and young business entrepreneurship revisited," Small Business Economics, Springer, vol. 61(2), pages 587-616, August.
    8. 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.
    9. H. T. Tran & E. Santarelli, 2013. "Determinants and Effects of Innovative Activities in Vietnam. A Firm-level Analysis," Working Papers wp909, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Tran, Hien Thu, 2019. "Institutional quality and market selection in the transition to market economy," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    11. Vuong Quan Hoang & La Viet Phuong & Vuong Thu Trang & Hoang Phuong Hanh & Ho Manh Toan & Ho Manh Tung & Nguyen Hong Kong To, 2020. "Multi-faceted insights of entrepreneurship facing a fast-growing economy: A literature review," Open Economics, De Gruyter, vol. 3(1), pages 25-41, January.
    12. Turan Yay & Gülsün G. Yay & Tolga Aksoy, 2018. "Impact of institutions on entrepreneurship: a panel data analysis," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 131-160, April.
    13. Yagoub Ali Gangi & Alamedin Abdallah Bannaga & Omer Abker, 2023. "Institutional Environment, Entrepreneurial Activities and Economic Growth across Selected Arab Countries," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(4), pages 89-117.
    14. Angulo-Guerrero, María J. & Pérez-Moreno, Salvador & Abad-Guerrero, Isabel M., 2017. "How economic freedom affects opportunity and necessity entrepreneurship in the OECD countries," Journal of Business Research, Elsevier, vol. 73(C), pages 30-37.
    15. Aleksandrova, E. & Verkhovskaya, O., 2015. "Institutional determinants of necessity-driven entrepreneurship," Working Papers 6434, Graduate School of Management, St. Petersburg State University.
    16. Claudia Alvarez & José Ernesto Amorós & David Urbano, 2014. "Regulations and Entrepreneurship: Evidence from Developed and Developing Countries," Past Working Papers 02, Universidad del Desarrollo, School of Business and Economics, revised Nov 2014.
    17. Christopher J. Boudreaux & Boris Nikolaev, 2019. "Capital is not enough: opportunity entrepreneurship and formal institutions," Small Business Economics, Springer, vol. 53(3), pages 709-738, October.
    18. David S. Lucas & Christopher J. Boudreaux, 2019. "The Interdependence of Hierarchical Institutions: Federal Regulation, Job Creation, and the Moderating Effect of State Economic Freedom," Papers 1903.02924, arXiv.org.
    19. Kuckertz, Andreas & Berger, Elisabeth S.C. & Mpeqa, Andrew, 2016. "The more the merrier? Economic freedom and entrepreneurial activity," Journal of Business Research, Elsevier, vol. 69(4), pages 1288-1293.
    20. Liu, Chen & Yang, Wei, 2023. "Does social insurance stimulate business creation? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).

    More about this item

    Keywords

    Economic freedom; Political freedom; Democracy; Entrepreneurship; Vietnam;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

    Statistics

    Access and download statistics

    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:kap:jtecht:v:47:y:2022:i:4:d:10.1007_s10961-021-09873-2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.