Informal Institutions and Their Comparative Influences on Social and Commercial Entrepreneurship: The Role of In‐Group Collectivism and Interpersonal Trust

Saurav Pathak · Etayankara Katangote Muralidharan

140 citations0/0 files storedJournal of Small Business Management

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Entrepreneurship Studies and Influences Migration, Ethnicity, and Economy Culture, Economy, and Development Studies

Abstract

We use insights from institutional theory to study how societal collectivism and societal trust facilitate or constrain the emergence of social entrepreneurship (SE) and commercial entrepreneurship (CE). Using 58,918 individual-level responses obtained from the Global Entrepreneurship Monitor (GEM) survey of 27 countries and supplementing with country-level data obtained from the World Values Survey (WVS) and the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study, our results from multilevel analyses demonstrate that while societal collectivism decreases the likelihood of CE, it increases that of SE. Further, while societal trust influences both SE and CE positively, the strength of this positive influence is felt more strongly on SE than CE.

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References

2010Strategic management a stakeholder approach 2017Exchange and Power in Social Life 1995An Integrative Model Of Organizational Trust 1965Exchange and Power in Social Life.2000The Promise of Entrepreneurship as a Field of Research 1996Trust: The Social Virtues and the Creation of Prosperity 1998Not So Different After All: A Cross-Discipline View Of Trust 1997Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of who and What Really Counts

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