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Regulatory burden, rule of law, and entry of strategic entrepreneurs : an international panel study

Levie, Jonathan and Autio, Erkko (2011) Regulatory burden, rule of law, and entry of strategic entrepreneurs : an international panel study. Journal of Management Studies, 48 (6). pp. 1392-1419. ISSN 0022-2380

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    Abstract

    Entry into entrepreneurship is a strategic act for individuals who seek an optimal way to exploit their human, social and financial capital. Trade-offs associated with this choice are influenced by institutional conditions. We use signalling theory, employment choice theory and theory on strategic entry to develop hypotheses on the effect of business regulations and rule of law on strategic and non-strategic entrepreneurial entry. Analysing a six-year panel of 54 countries, we find lighter burden of regulation associated with a higher rate and relative prevalence of strategic entrepreneurial entry. Rule of law moderates this effect such that regulation has a significant effect on strategic entry only when rule of law is strong. These findings are robust against alternative proxies. Implications are drawn for prospective entrepreneurs, existing organisations, policy, and further research.

    Item type: Article
    ID code: 28409
    Notes: Accepted for publication in Special Issue “Revitalizing Entrepreneurship” October 2010
    Keywords: Entrepreneurship, regulation, rule of law, signalling, employment choice, strategy, Commerce, Business and International Management, Strategy and Management, Management of Technology and Innovation
    Subjects: Social Sciences > Commerce
    Department: Strathclyde Business School > Hunter Centre For Entrepreneurship
    Related URLs:
      Depositing user: Miss Carol Ann Balloch
      Date Deposited: 19 Oct 2010 15:04
      Last modified: 10 Oct 2014 04:32
      URI: http://strathprints.strath.ac.uk/id/eprint/28409

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