IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v28y2013i6p743-758.html
   My bibliography  Save this article

Entrepreneurs' responses to semi-formal illegitimate institutional arrangements

Author

Listed:
  • Sutter, Christopher J.
  • Webb, Justin W.
  • Kistruck, Geoffrey M.
  • Bailey, Anastasia V.G.

Abstract

While prior research has discussed how entrepreneurs deal with formal institutional voids and informal institutional environments, little is known about how entrepreneurs respond to institutional arrangements involving illegitimate actors. We define such arrangements as semi-formal illegitimate institutions. Using an exploratory study, we examine one such arrangement in Guatemala City, where organized crime dominates the institutional landscape in which entrepreneurs operate. We examine the strategic responses of these entrepreneurs, and find that they vary in the extent to which they resist semi-formal illegitimate institutions; some entrepreneurs engage in defiance, others avoid the illegitimate pressures, while others simply acquiesce. Upon further investigation, we find that the differences in entrepreneurs' network strength and network proximity, combined with their individual perception of threat and resource mobility, help to predict the different strategic responses.

Suggested Citation

  • Sutter, Christopher J. & Webb, Justin W. & Kistruck, Geoffrey M. & Bailey, Anastasia V.G., 2013. "Entrepreneurs' responses to semi-formal illegitimate institutional arrangements," Journal of Business Venturing, Elsevier, vol. 28(6), pages 743-758.
    • Handle: RePEc:eee:jbvent:v:28:y:2013:i:6:p:743-758
    DOI: 10.1016/j.jbusvent.2013.03.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883902613000323
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusvent.2013.03.001?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. Geoffrey G. Bell & Akbar Zaheer, 2007. "Geography, Networks, and Knowledge Flow," Organization Science, INFORMS, vol. 18(6), pages 955-972, December.
    2. Janine Aron, 2003. "Building institutions in post-conflict African economies," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 471-485.
    3. Carter, Michael R. & Maluccio, John A., 2003. "Social Capital and Coping with Economic Shocks: An Analysis of Stunting of South African Children," World Development, Elsevier, vol. 31(7), pages 1147-1163, July.
    4. Mair, Johanna & Marti, Ignasi, 2009. "Entrepreneurship in and around institutional voids: A case study from Bangladesh," Journal of Business Venturing, Elsevier, vol. 24(5), pages 419-435, September.
    5. Guirkinger, Catherine, 2008. "Understanding the Coexistence of Formal and Informal Credit Markets in Piura, Peru," World Development, Elsevier, vol. 36(8), pages 1436-1452, August.
    6. Mead, Donald C., 1994. "The contribution of small enterprises to employment growth in southern and eastern Africa," World Development, Elsevier, vol. 22(12), pages 1881-1894, December.
    7. World Bank, 2011. "World Development Report 2011 [Rapport sur le développement dans le monde 2011 : Conflits, sécurité et développement - Abrégé]," World Bank Publications - Books, The World Bank Group, number 4389, December.
    8. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02276707, HAL.
    9. José Miguel Cruz, 2010. "Central American maras : from youth street gangs to transnational protection rackets," Global Crime, Taylor & Francis Journals, vol. 11(4), pages 379-398, November.
    10. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02312706, HAL.
    11. Baron, Robert A., 1998. "Cognitive mechanisms in entrepreneurship: why and when enterpreneurs think differently than other people," Journal of Business Venturing, Elsevier, vol. 13(4), pages 275-294, July.
    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. Justin W. Webb & Theodore A. Khoury & Michael A. Hitt, 2020. "The Influence of Formal and Informal Institutional Voids on Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 44(3), pages 504-526, May.
    2. Franczak, Jennifer & Lanivich, Stephen E. & Adomako, Samuel, 2023. "Filling institutional voids: Combinative effects of institutional shortcomings and gender on the alertness – Opportunity recognition relationship," Journal of Business Research, Elsevier, vol. 155(PB).
    3. Dorado, Silvia & Ventresca, Marc J., 2013. "Crescive entrepreneurship in complex social problems: Institutional conditions for entrepreneurial engagement," Journal of Business Venturing, Elsevier, vol. 28(1), pages 69-82.
    4. Silvestre, Bruno S., 2015. "Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories," International Journal of Production Economics, Elsevier, vol. 167(C), pages 156-169.
    5. Juan M. Gil-Barragan & María José López-Sánchez, 2021. "The Fast Lane of Internationalization of Latin American SMEs: A Location-Based Approach," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    6. Zhao, Eric Yanfei & Lounsbury, Michael, 2016. "An institutional logics approach to social entrepreneurship: Market logic, religious diversity, and resource acquisition by microfinance organizations," Journal of Business Venturing, Elsevier, vol. 31(6), pages 643-662.
    7. Saul Estrin & Tomasz Mickiewicz & Ute Stephan, 2013. "Entrepreneurship, Social Capital, and Institutions: Social and Commercial Entrepreneurship across Nations," Entrepreneurship Theory and Practice, , vol. 37(3), pages 479-504, May.
    8. Marta Widz & Nadine Kammerlander, 2023. "Entrepreneurial exit intentions in emerging economies: a neoinstitutional perspective," Small Business Economics, Springer, vol. 60(2), pages 615-638, February.
    9. Castellanza, Luca, 2022. "Discipline, abjection, and poverty alleviation through entrepreneurship: A constitutive perspective," Journal of Business Venturing, Elsevier, vol. 37(1).
    10. Sietze Vellema & Greetje Schouten & Rob Van Tulder, 2020. "Partnering capacities for inclusive development in food provisioning," Development Policy Review, Overseas Development Institute, vol. 38(6), pages 710-727, November.
    11. Liedong, Tahiru Azaaviele & Peprah, Augustine Awuah & Amartey, Abednego Okoe & Rajwani, Tazeeb, 2020. "Institutional voids and firms' resource commitment in emerging markets: A review and future research agenda," Journal of International Management, Elsevier, vol. 26(3).
    12. Kumar, Avinash & Kumra, Rajeev & Singh, Ramendra, 2022. "Base of the pyramid producers’ constraints: An integrated review and research agenda," Journal of Business Research, Elsevier, vol. 140(C), pages 115-129.
    13. Chliova, Myrto & Brinckmann, Jan & Rosenbusch, Nina, 2015. "Is microcredit a blessing for the poor? A meta-analysis examining development outcomes and contextual considerations," Journal of Business Venturing, Elsevier, vol. 30(3), pages 467-487.
    14. Simon Joncourt & Heiko Gebauer & Javier Reynoso & Karla Cabrera & Ana Valdes & Katharina Greve, 2019. "Extending the Base-of-the-Pyramid Concept," Service Science, INFORMS, vol. 11(3), pages 241-261, October.
    15. Kelsey M. Taylor & Eugenia Rosca, 2023. "Sink, swim, or drift: How social enterprises use supply chain social capital to balance tensions between impact and viability," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(2), pages 62-86, April.
    16. María Helena Jaén & Ezequiel Reficco & Gabriel Berger, 2021. "Does Integrity Matter in BOP Ventures? The Role of Responsible Leadership in Inclusive Supply Chains," Journal of Business Ethics, Springer, vol. 173(3), pages 467-488, October.
    17. Slade Shantz, Angelique & Kistruck, Geoffrey & Zietsma, Charlene, 2018. "The opportunity not taken: The occupational identity of entrepreneurs in contexts of poverty," Journal of Business Venturing, Elsevier, vol. 33(4), pages 416-437.
    18. Junzhe Ji & Pavlos Dimitratos & Qingan Huang & Taoyong Su, 2019. "Everyday-Life Business Deviance Among Chinese SME Owners," Journal of Business Ethics, Springer, vol. 155(4), pages 1179-1194, April.
    19. Abinotam J. Adike & Paschal U. Anosike & Yong Wang, 2022. "Two-sided Institutional Impacts and Informal Entrepreneurship Motivation in Nigeria," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 158-175, January.
    20. Niklas Elert & Magnus Henrekson, 2021. "Entrepreneurship prompts institutional change in developing economies," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 34(1), pages 33-53, March.

    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:eee:jbvent:v:28:y:2013:i:6:p:743-758. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusvent .

    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.