Institutional voids and new venture performance: The moderating role of founders' political ties

Ahmed Tantawy · Joseph Amankwah‐Amoah · Pushyarag N. Puthusserry

15 citations0/0 files storedEuropean Management Review

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Entrepreneurship Studies and Influences International Business and FDI Innovation and Knowledge Management

Abstract

Abstract Building on the institutional voids (IVs) and resource‐dependence perspectives, this study examines the moderating impact of new business founders' political ties on the relationship between IVs and new venture performance (NVP). We developed and tested a unique model using data obtained from 309 new ventures in the MENA region, specifically Egypt. The results demonstrate that founders' political ties enhance firms' complementary assets and mitigate the negative effects of IVs on NVP in developing markets. The theoretical and practical implications concerning NVP in a developing market environment are examined.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1990Institutions, Institutional Change and Economic Performance 1988On the Evaluation of Structural Equation Models 1977Estimating Nonresponse Bias in Mail Surveys 1979The External Control of Organizations: A Resource Dependence Perspective 2009Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future 1966Handbook of Organizations.1984Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit

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