The influence of regional institutional setting on the performance of innovative entrepreneurship: An emerging market perspective
ISSN: 1750-614X
Article publication date: 8 January 2020
Issue publication date: 18 June 2020
Abstract
Purpose
Two types of institutional constraints, namely, institutional voids and policy uncertainty, have been recognised and elaborated, including their influence on new venture performance. However, not enough attention has been paid to the multidimensional attribute of institutional transformation. By hinting at a relatively underexplored third type of institutional constraints, i.e. institutional fragility, this paper aims to build a comprehensive framework of institutional constraints to analyse how innovative start-up performance is influenced by institutional constraints.
Design/methodology/approach
Using Chinese manufacturing firms as the empirical sample, the authors use an econometric method to test the relationship between institutional constraints and the performance of innovative start-ups.
Findings
On the basis of a uniquely constructed database from 2005 to 2007, the authors find that institutional constraints are negatively associated with innovative start-up performance proxied by return on assets, sales growth and new product sales.
Originality/value
The study offers researchers and practitioners a detailed view of institutional constraints and innovative start-up performance.
Keywords
Citation
Wang, R. and Zhou, W.C. (2020), "The influence of regional institutional setting on the performance of innovative entrepreneurship: An emerging market perspective", Chinese Management Studies, Vol. 14 No. 3, pp. 639-659. https://doi.org/10.1108/CMS-08-2019-0294
Publisher
:Emerald Publishing Limited
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