Iron Cage for Indigenous Entrepreneurs? Understanding the Movement and Impact of External Ideas on Indigenous Entrepreneurship in Ecuador

Abstract

This study examines the dynamics of how ideas about entrepreneurship are transmitted from Public Organizations (POs) and Non-Public Organizations (NPOs) to Indigenous entrepreneurs, using a case study in Ecuador based on 29 interviews and field observations. Employing the concept of Institutional Translation, a three-stage translation process model was developed, encompassing the conveyance of ideas about entrepreneurship from POs and NPOs, the response by Indigenous entrepreneurs, and the evaluation of translation outcomes. This process occurs within a high institutional distance context, reflecting significant cultural and social disparities between these actors, complicating the translation process. The findings indicate that POs and NPOs do not differentiate Indigenous entrepreneurs from others and fail to consider essential cultural components, such as traditional knowledge, when conveying ideas about entrepreneurship. Conversely, Indigenous entrepreneurs exhibit diverse levels of adoption and rejection of these ideas, highlighting their agency and resilience in protecting and continuing to use their traditional knowledge in their entrepreneurial activities despite external pressures. This research makes three contributions: it advances the field of Indigenous entrepreneurship by theorizing the complex process of transferring ideas about entrepreneurship from external actors to Indigenous entrepreneurs; it enhances business ethics discourse on the critical role of cultural differences by examining the ethical challenges arising from the interaction; and it addresses overlooked aspects within Institutional Translation by exploring a high institutional distance context where cultural disparities complicate the translation process.