PROCESS MECHANISMS OF INSTITUTIONAL ENTREPRENEURSHIP

Abstract

Field and historical data from China delineate two specific process mechanisms that facilitate institutional change: diminished utility of regulatory controls and negotiated boundaries of institutional space. These mechanisms tend to have entrepreneurial origins and, together, create new institutions when in the context of other factors that may be present in emerging economy institutional transition. These mechanisms link praxis, or experiential participation, with institutional change, thus enhancing our understanding of the drivers of entrepreneur-initiated institutional transition. Specifically, the effectiveness of regulatory controls decreases in the presence of collective entrepreneurial action and mobilization. In addition, negotiated boundaries of institutional space increase in the presence of reflective shifts in consciousness and increased activity of potential institutional entrepreneurship.

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