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Title: The effect of institutional asymmetry on informal entrepreneurship
Scientific literature represents the informal economy in two opposite ways, either as a sector characterised by low wages and productivity, and as a provider of livelihood for billions of people around the world. Macroeconomic theories and studies provide contrasting explanations of this complex phenomenon. Using institutional theory, we develop a microeconomic approach from an individual perspective to understand the social dynamics that can explain the choice of informal entrepreneurship. Drawing from a rich tradition of cognitive models and institutional theories, this study provides evidence of the differential effect of institutional asymmetry on nascent entrepreneurs through attitudes and subjective norms. Social pressure exerts a critical role in differentiating the entrepreneurial process between formal and informal nascent entrepreneurs. The theoretical and practical implications are discussed.  more » « less
Award ID(s):
1735874
PAR ID:
10566214
Author(s) / Creator(s):
; ;
Publisher / Repository:
Inderscience Online
Date Published:
Journal Name:
International Journal of Entrepreneurship and Small Business
Volume:
53
Issue:
4
ISSN:
1476-1297
Page Range / eLocation ID:
472 to 502
Subject(s) / Keyword(s):
informal entrepreneurship, Bolivia, institutional asymmetry, social pressure, emerging economies, pervasive informal economy
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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