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Another day, another dollar: Enterprise resilience under terrorism in developing countries

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Author Info

  • Oana Branzei

    (Richard Ivey School of Business, The University of Western Ontario, Ontario, Canada)

  • Samer Abdelnour

    (Richard Ivey School of Business, The University of Western Ontario, Ontario, Canada)

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    Abstract

    This study extends the literature on entrepreneurship in developing countries by offering a two-stage explanation for the paradoxical observation that enterprise activities often flourish under extreme adversity. Our findings complement the base-of-pyramid and peace-through-commerce attention to the growing role of business in international development by fleshing out the functions of enterprise resilience under terrorism. We first explain how terrorism conditions (outbreak, escalation, and reduction) may create psychological incentives for enterprise resilience; then we show that, controlling for ex ante terrorism conditions, enterprise resilience yields more favorable economic payoffs at higher levels of terrorism, especially for informal entrepreneurs.

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 41 (2010)
    Issue (Month): 5 (June)
    Pages: 804-825

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    Handle: RePEc:pal:jintbs:v:41:y:2010:i:5:p:804-825

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    Cited by:
    1. Tobias, Jutta M. & Mair, Johanna & Barbosa-Leiker, Celestina, 2013. "Toward a theory of transformative entrepreneuring: Poverty reduction and conflict resolution in Rwanda's entrepreneurial coffee sector," Journal of Business Venturing, Elsevier, vol. 28(6), pages 728-742.
    2. Ramos, Miguel A. & Ashby, Nathan J., 2013. "Heterogeneous firm response to organized crime: Evidence from FDI in Mexico," Journal of International Management, Elsevier, Elsevier, vol. 19(2), pages 176-194.
    3. Ashby, Nathan J. & Ramos, Miguel A., 2013. "Foreign direct investment and industry response to organized crime: The Mexican case," European Journal of Political Economy, Elsevier, Elsevier, vol. 30(C), pages 80-91.

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