Entrepreneurial activities in a developing country: an institutional theory perspective
International Journal of Entrepreneurial Behavior & Research
ISSN: 1355-2554
Article publication date: 14 May 2018
Issue publication date: 4 April 2019
Abstract
Purpose
Entrepreneurship research in the context of developing countries has typically investigated the ways in which culture, politics or economic institutions prohibit or enable entrepreneurial activities using macro-level surveys and deductive designs. In contrast, the purpose of this paper is to take a micro-institutional perspective to study these three institutions influencing entrepreneurial activities in such a context.
Design/methodology/approach
The analysis is based on inductive, qualitative field data from a challenging institutional environment, Tanzania. This includes two focus groups, one with experts and one with entrepreneurs; and 24 individual interviews with entrepreneurs.
Findings
Entrepreneurial activities in Tanzania are not constrained only by bureaucracy and arbitrary enforcement, access to capital, competition and consumer spending, but also by language barriers, negative media portrayals and gender disparity. In their favour, recent trade policy, opening up of borders and changing gender relations, has led to more opportunities, but just as important are traditional festivals, marital gift-giving and familial support. Entrepreneurs respond to institutional constraints in many creative ways, including undertaking entrepreneurial strategies, developing inner strength, joining associations, giving back to communities and skilfully managing relations with authorities.
Originality/value
The fine-grained discussion of the findings of this study specifically contributes to theory by illustrating the constraining and enabling role of under-represented institutions, such as festivals and marriages, as well as entrepreneurial creative responses that define everyday entrepreneurial life in a developing country.
Keywords
Acknowledgements
The authors are grateful to the anonymous reviewers and the co-editor for their valuable suggestions to develop this paper.
Citation
Eijdenberg, E.L., Thompson, N.A., Verduijn, K. and Essers, C. (2019), "Entrepreneurial activities in a developing country: an institutional theory perspective", International Journal of Entrepreneurial Behavior & Research, Vol. 25 No. 3, pp. 414-432. https://doi.org/10.1108/IJEBR-12-2016-0418
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited