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Institutional Environment and Productive Entrepreneurship

Author

Listed:
  • Nan Li

    (School of Managment, Xiamen University, Xiamen 361000, China)

  • Yanzhao Tang

    (School of Managment, Xiamen University, Xiamen 361000, China)

  • Guangyu Xia

    (School of Economics and Management, Wuhan University, Wuhan 430072, China)

  • Hongqin Tang

    (School of Managment, Xiamen University, Xiamen 361000, China)

  • He Li

    (School of Managment, Xiamen University, Xiamen 361000, China)

Abstract

In the context of intensifying global competition, productive entrepreneurship plays an important role in industrial upgrading and sustainable economic development. This study explores how the institutional environment affects productive entrepreneurship through different allocation paths. By integrating multiple institutional logics and using PD-QCA (Panel Data fsQCA) methods, we examined data from 76 countries for the period 2012–2022. The results show that institutional complexity provides entrepreneurs with diversified opportunities and resources, but also brings decision-making challenges due to the conflict of institutional factors. We identified three main models: (1) Government-Market Collaborative Model: driven by government support and property rights protection. (2) Market-Led Model: financial support is crucial. (3) Three-Wheel Drive Model: combines property rights protection, market opening, and social norms that promote entrepreneurship. This study contributes to the literature by revealing the multidimensional effects of institutional complexity and provides practical implications for policymakers seeking to promote high-quality entrepreneurial activity. Limitations include the static nature of the data and the need to further explore dynamic institutional interactions over time.

Suggested Citation

  • Nan Li & Yanzhao Tang & Guangyu Xia & Hongqin Tang & He Li, 2024. "Institutional Environment and Productive Entrepreneurship," Sustainability, MDPI, vol. 16(24), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:24:p:11060-:d:1545615
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