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The institutional environment for international entrepreneurship in Russia: Reflections on growth decisions and performance in SMEs

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  • Daria Volchek

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  • Ari Jantunen
  • Sami Saarenketo

Abstract

The paper examines the interrelationships among the domestic institutional environment for entrepreneurship, a firm’s innovation capability, and an SME’s decision to grow using an internationalization or innovation-based strategy. The effects of both the external institutional environment and the internal dynamic capabilities on the firm’s subsequent performance are evaluated. Cross-sectional cross-industry data from 188 Russian SMEs were collected in order to address these issues. The results suggest that the initial decision of an SME to pursue an internationalization strategy is influenced by conditions in the cognitive institutional environment and the SME’s internal ability to innovate. The initial decision to pursue innovation-based growth, however, is affected only by a firm’s internal factors. However, the growth outcome depends on the normative institutional environment, in other words on favorable societal attitudes to the phenomenon of international entrepreneurship. The paper demonstrates the complexity of institution-based and resource-based factors that affect SME growth in emerging economies, and provides recommendations concerning strategic policy objectives. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Daria Volchek & Ari Jantunen & Sami Saarenketo, 2013. "The institutional environment for international entrepreneurship in Russia: Reflections on growth decisions and performance in SMEs," Journal of International Entrepreneurship, Springer, vol. 11(4), pages 320-350, December.
  • Handle: RePEc:kap:jinten:v:11:y:2013:i:4:p:320-350
    DOI: 10.1007/s10843-013-0115-z
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Martineau, Charles & Pastoriza, David, 2016. "International involvement of established SMEs: A systematic review of antecedents, outcomes and moderators," International Business Review, Elsevier, vol. 25(2), pages 458-470.
    2. Vi Dung Ngo & Frank Janssen & Marine Falize, 2016. "An incentive-based model of international entrepreneurship in emerging and transition economies," Journal of International Entrepreneurship, Springer, vol. 14(1), pages 52-74, March.
    3. repec:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0423-6 is not listed on IDEAS
    4. Igor Laine & Tamara Galkina, 0. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    5. Jozef Habanik & Petr Novak & Jaroslav Belas & Eva Cipovova, 2014. "Actual Trends in Business Risks for Small and Medium Enterprises. Case Studies from the Czech Republic and Slovakia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 159-181.
    6. repec:hig:fsight:v:11:y:2017:i:3:p:83-93 is not listed on IDEAS
    7. Peerayuth Charoensukmongkol, 2016. "The interconnections between bribery, political network, government supports, and their consequences on export performance of small and medium enterprises in Thailand
      [Las interconexiones entre sob
      ," Journal of International Entrepreneurship, Springer, vol. 14(2), pages 259-276, June.
    8. Ali Dehghanpour Farashah, 2015. "The effects of demographic, cognitive and institutional factors on development of entrepreneurial intention: Toward a socio-cognitive model of entrepreneurial career," Journal of International Entrepreneurship, Springer, vol. 13(4), pages 452-476, December.

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