What explains entrepreneurial start-ups across countries: An integrative model

This research develops a multi-level framework to examine how resource-based antecedents shape individuals' decisions to start ventures via their perception of opportunities and how country-level characteristics pertaining to institutional development and institutional instability provide boundary conditions for the aforementioned associations. The empirical results show that entrepreneurial start-ups are positively affected by human capital resources and organisational resources, and that individuals’ perception of opportunities acts as a mediator within these relationships. In addition, the findings demonstrate that the proposed mediation effects are further bounded by country-specific institutional environments. The results offer new insights for the development of knowledge and theoretical bases by providing a multi-level perspective on how resource-based factors, perceived opportunity and institutions operate as principal determinants that affect entrepreneurial start-ups. This paper complements and advances resource-based theory by integrating an approach that focuses on institutions and the pursuit of entrepreneurial opportunities to assess the mechanisms that are needed to release the potential of resources in venture creation more comprehensively. The research findings have implications and values for general managers who are keen to understand why heterogeneous resource is necessary and how it functions in their businesses, as well as how the process of managing resources needs to be aligned with their capabilities to identify and pursue business opportunities.