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An institutional theory of informal entrepreneurship: some lessons from FYR Macedonia
- Publication Year :
- 2018
-
Abstract
- In recent years, a new institutionalist theory has emerged to explain the prevalence of informal sector entrepreneurship. This argues that formal institutional failures lead to the emergence of an asymmetry between the formal rules (laws and regulations) and the norms, values and beliefs of entrepreneurs regarding the acceptability of participating in the informal sector, which in turn leads to the prevalence of informal entrepreneurship. The aim of this paper is to evaluate this social actor approach by reporting evidence from 453 face-to-face interviews with a nationally representative sample of entrepreneurs in FYR Macedonia. This reveals not only a significant association between participation in the informal economy and the non-alignment of entrepreneurs’ views with the formal rules, but specific formal institutional failings that are significantly associated with the acceptability of informal entrepreneurship, namely poor quality public services, a lack of tax fairness, corruption and instability in the formal institutions. The theoretical and policy implications are then discussed.
- Subjects :
- Economics and Econometrics
Entrepreneurship
Public economics
Informal sector
Corruption
informal economy
entrepreneurship
tax morale
institutional theory
FYR Macedonia
Strategy and Management
media_common.quotation_subject
05 social sciences
Poor quality
Political science
0502 economics and business
050207 economics
Business and International Management
Institutional theory
050203 business & management
media_common
Subjects
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.doi.dedup.....6436b270bf01e962891da7ffa4a28910