Institutional environment dimensions and business performance of rural-based women entrepreneurs: the role of entrepreneurial orientation

Rajeev Kumar Panda

8 citations0/0 files storedJournal of Entrepreneurship and Public Policy

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Entrepreneurship Studies and Influences Gender Diversity and Inequality Migration, Ethnicity, and Economy

Abstract

Purpose The existing literature has primarily focused on distinguishing the performance of men and female-owned businesses, often emphasizing challenges specific to women entrepreneurs (WEs) like gender parity and socio-cultural and work-life. However, research on WEs has given limited attention to regional and cultural differences, which are widely considered crucial to business success. This article aims to empirically analyze how the institutional environment (IE) affects the business performance of rural-based women entrepreneurs (WEs) through the mediating influence of entrepreneurial orientation (EO). The IE (regulatory, cognitive and normative) approach is employed as a guiding framework considering the complexities of the entrepreneurial ecosystem in diverse regions of emerging economies. Design/methodology/approach A convenience sample of 344 rural WEs was surveyed, and data were analyzed using partial least squares structural equation modeling (PLS-SEM). Findings Results indicate that the regulatory (ROG) and cognitive (COG) dimensions significantly and positively affect business performance (BPO) among rural WEs. However, the normative (NOR) dimension exhibits no significant relationship with BPO. EO partially mediates the impact of ROG and COG on BPO, while it fully mediates the NOR–BPO relationship. Research limitations/implications These findings offer valuable insights for policymakers aiming to develop rural entrepreneurship strategies by highlighting EO’s mediating role between IE and business outcomes. The study also expands institutional theory by exploring how formal (regulatory) and informal institutions interact to influence WEs’ performance, emphasizing within-gender dynamics. Originality/value The study is an early attempt to investigate rural WEs in an emerging economy, focusing on how IE and EO shape their business performance.

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References

2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.2011PLS-SEM: Indeed a Silver Bullet 1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance 1989Strategic management of small firms in hostile and benign environments 1983The Correlates of Entrepreneurship in Three Types of Firms 2000Entrepreneurial discovery and the competitive market process: an Austrian approach 1982Innovation in conservative and entrepreneurial firms: Two models of strategic momentum 2017Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods

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