The consequences of short-term institutional change in the rule of law for entrepreneurship

IF 5.7 2区 管理学 Q1 BUSINESS
Tomasz Mickiewicz, Ute Stephan, Muntasir Shami
{"title":"The consequences of short-term institutional change in the rule of law for entrepreneurship","authors":"Tomasz Mickiewicz,&nbsp;Ute Stephan,&nbsp;Muntasir Shami","doi":"10.1002/gsj.1413","DOIUrl":null,"url":null,"abstract":"<div>\n \n \n <section>\n \n <h3> Research Summary</h3>\n \n <p>Past research views institutions as stable and slow to change and uses institutional differences to explain cross-national variation in entrepreneurship. This article introduces a new perspective to institutional theory, that of short-term institutional change. Integrating insights from cognitive science allows us to theorize not just about the significance of short-term institutional change but also about why and how deterioration versus improvements in institutions have distinct effects. We test how short-term institutional change impacts entrepreneurship in a cross-country multilevel study. We find that short-term change in the rule of law affects entrepreneurial entry and that institutional deterioration weighs heavier than institutional improvement. We argue and find that changes in the rule of law are more consequential for entrepreneurship compared to changes in business regulations.</p>\n </section>\n \n <section>\n \n <h3> Managerial Summary</h3>\n \n <p>It is known that the quality of institutions affects individuals' decisions to pursue entrepreneurship. Yet, we newly investigate effects of year-to-year <i>changes</i> in national institutions. Not only changes in business regulations matter, but also changes in more fundamental institutional aspects, especially in the rule of law. We find that institutional change has an impact because, on its basis, potential entrepreneurs form expectations about the future and therefore about the riskiness of their investment. Deteriorations compared to improvements in the rule of law are more consequential for entrepreneurship, consistent with the fact that losses loom larger than gains in human decisions.</p>\n </section>\n </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"11 4","pages":"709-739"},"PeriodicalIF":5.7000,"publicationDate":"2021-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1002/gsj.1413","citationCount":"19","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Global Strategy Journal","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/gsj.1413","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 19

Abstract

Research Summary

Past research views institutions as stable and slow to change and uses institutional differences to explain cross-national variation in entrepreneurship. This article introduces a new perspective to institutional theory, that of short-term institutional change. Integrating insights from cognitive science allows us to theorize not just about the significance of short-term institutional change but also about why and how deterioration versus improvements in institutions have distinct effects. We test how short-term institutional change impacts entrepreneurship in a cross-country multilevel study. We find that short-term change in the rule of law affects entrepreneurial entry and that institutional deterioration weighs heavier than institutional improvement. We argue and find that changes in the rule of law are more consequential for entrepreneurship compared to changes in business regulations.

Managerial Summary

It is known that the quality of institutions affects individuals' decisions to pursue entrepreneurship. Yet, we newly investigate effects of year-to-year changes in national institutions. Not only changes in business regulations matter, but also changes in more fundamental institutional aspects, especially in the rule of law. We find that institutional change has an impact because, on its basis, potential entrepreneurs form expectations about the future and therefore about the riskiness of their investment. Deteriorations compared to improvements in the rule of law are more consequential for entrepreneurship, consistent with the fact that losses loom larger than gains in human decisions.

短期法治制度变革对创业的影响
过去的研究认为制度是稳定的,变化缓慢的,并利用制度差异来解释创业精神的跨国差异。本文为制度理论引入了一个新的视角,即短期制度变迁的视角。整合认知科学的见解使我们不仅可以对短期制度变革的重要性进行理论化,还可以对制度的恶化和改善为什么以及如何产生不同的影响进行理论化。我们在一项跨国多层次研究中检验了短期制度变迁对企业家精神的影响。我们发现,法治的短期变化会影响企业家的进入,制度的恶化比制度的改善更重要。我们论证并发现,与商业法规的变化相比,法治的变化对创业的影响更大。众所周知,制度的质量会影响个人追求创业的决定。然而,我们最近调查了国家机构逐年变化的影响。不仅商业法规的变化很重要,更根本的制度方面,特别是法治方面的变化也很重要。我们发现制度变革会产生影响,因为在制度变革的基础上,潜在的企业家形成了对未来的预期,从而形成了对投资风险的预期。与法治的改善相比,法治的恶化对企业家精神的影响更大,这与人类决策的损失大于收益这一事实是一致的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
14.20
自引率
11.80%
发文量
46
期刊介绍: The Global Strategy Journal is a premier platform dedicated to publishing highly influential managerially-oriented global strategy research worldwide. Covering themes such as international and global strategy, assembling the global enterprise, and strategic management, GSJ plays a vital role in advancing our understanding of global business dynamics.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信