Institutions, entrepreneurial adaptation, and the legal form of the organization

IF 1.5 Q2 ECONOMICS

Journal of Entrepreneurship and Public Policy Pub Date : 2020-10-02 DOI:10.1108/jepp-10-2019-0087

Indu Khurana, Dmitriy Krichevskiy, G. Dempster, Sean Stimpson

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引用次数: 5

Abstract

PurposeThis paper aims to examine how economic freedom impacts the initial choice of legal structure for startup firms. The authors do this by first exploring whether economic freedom is an essential determinant of the initial legal form of organization (LFO). The authors then explore the impact of economic freedom on firms' choice of changing their initial legal structure over time and how this change impacts their survival rate.Design/methodology/approachThe authors employ a multinomial logistic regression model to measure the initial determinants of LFO by utilizing an eight-year panel data set of 4,928 startups in the USA through the Kauffman firm survey and merge it with the Economic Freedom in North American index from the Fraser Institute. The authors then employ a logistic regression model to examine the determinants facilitating a change in legal structure over time.FindingsThe results show that economic freedom is a significant determinant in the choice of legal structure. The findings also report that the majority of startups do not change their legal form, but of those that do change the legal structure show a higher survival rate.Research limitations/implicationsMajor limitations are the size of the data and the nature of somewhat limited economic freedom differences with the USA. More nuanced measures of economic freedom would be highly desirable.Practical implicationsPolicymakers should take note that limited red tape, smoothly working labor markets and straightforward processes for changes of legal structures of organizations would improve survival and growth odds for entrepreneurs.Originality/valueDrawing on the theory of institutions, the authors attempt to bridge a gap in the literature by explicitly analyzing the determinants of the legal structure in startups in light of economic freedom. Institutional factors do not work in isolation; therefore, the authors also employ traditional entrepreneur-specific variables that affect the choice of legal structure in addition to the institutional framework.

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机构、企业适应和组织的法律形式

目的本文旨在考察经济自由对创业公司法律结构初始选择的影响。作者首先探讨了经济自由是否是组织初始法律形式的重要决定因素。然后，作者探讨了经济自由对企业选择随着时间的推移改变其初始法律结构的影响，以及这种变化如何影响其生存率。设计/方法/方法作者采用多项逻辑回归模型，通过Kauffman公司调查，利用美国4928家初创公司的八年面板数据集，测量LFO的初始决定因素，并将其与弗雷泽研究所的北美经济自由指数合并。然后，作者采用逻辑回归模型来检验促进法律结构随时间变化的决定因素。研究结果表明，经济自由是法律结构选择的重要决定因素。研究结果还表明，大多数初创公司不会改变其法律形式，但那些改变了法律结构的初创公司的存活率更高。研究局限性/含义主要局限性是数据的规模和与美国经济自由度差异的性质。更细致的经济自由度衡量标准是非常可取的。实际含义政策制定者应该注意到，有限的繁文缛节、平稳运作的劳动力市场和组织法律结构变化的直接过程将提高企业家的生存和增长几率。独创性/价值借鉴制度理论，作者试图通过明确分析经济自由下创业公司法律结构的决定因素来弥合文献中的空白。制度因素不能孤立地发挥作用；因此，除了制度框架之外，作者还采用了传统企业家特有的影响法律结构选择的变量。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Entrepreneurship and Public Policy ECONOMICS-

CiteScore

3.70

自引率

15.80%

发文量

期刊介绍： Institutions – especially public policies – are a significant determinant of economic outcomes; entrepreneurship and enterprise development are often the channel by which public policies affect economic outcomes, and by which outcomes feed back to the policy process. The Journal of Entrepreneurship & Public Policy (JEPP) was created to encourage and disseminate quality research about these vital relationships. The ultimate aim is to improve the quality of the political discourse about entrepreneurship and development policies. JEPP publishes two issues per year and welcomes: Empirically oriented academic papers and accepts a wide variety of empirical evidence. Generally, the journal considers any analysis based on real-world circumstances and conditions that can change behaviour, legislation, or outcomes, Conceptual or theoretical papers that indicate a direction for future research, or otherwise advance the field of study, A limited number of carefully and accurately executed replication studies, Book reviews. In general, JEPP seeks high-quality articles that say something interesting about the relationships among public policy and entrepreneurship, entrepreneurship and economic development, or all three areas. Scope/Coverage: Entrepreneurship, Public policy, Public policies and behaviour of economic agents, Interjurisdictional differentials and their effects, Law and entrepreneurship, New firms; startups, Microeconomic analyses of economic development, Development planning and policy, Innovation and invention: processes and incentives, Regional economic activity: growth, development, and changes, Regional development policy.