Piperopoulos, P, Kafouros, M, Aliyev, M orcid.org/0000-0002-1457-094X et al. (2 more authors) (2021) How does informal entrepreneurship influence the performance of small formal firms? A cross-country institutional perspective. Entrepreneurship and Regional Development, 33 (7-8). pp. 668-687. ISSN 0898-5626
Abstract
We advance understanding of how competition from informal entrepreneurial firms influences the performance of small formal (registered) firms. We also investigate the role of tax and law related institutions in shaping differently the performance outcomes of the competition between informal and formal firms. Empirical evidence from the analysis of 11,988 observations in 110 emerging countries indicates that, on average, informal firms affect adversely the performance of small formal firms. These negative effects however are stronger in institutional environments with burdensome courts of law but tend to be weaker in environments with burdensome tax regulations. Our analysis extends the rational exit perspective of informality and shows how competition from informal firms affects the performance of small formal firms. It also specifies how contingencies associated with law- and tax-specific institutions across emerging countries influence this relationship.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Informa UK Limited, trading as Taylor & Francis Group. This is an author produced version of an article published in Entrepreneurship and Regional Development. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | competition; emerging countries; Informal economy; informal entrepreneurship; informality; institutional theory |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 05 Feb 2021 14:19 |
Last Modified: | 18 Aug 2022 00:13 |
Status: | Published |
Publisher: | Routledge |
Identification Number: | 10.1080/08985626.2021.1887371 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:170779 |