Shahid, M.S. orcid.org/0000-0002-6350-3532, Rodgers, P. orcid.org/0000-0002-6108-5111, Vershinina, N. orcid.org/0000-0002-7281-1043 et al. (2 more authors) (2022) Advancing the institutional perspective on informal entrepreneurship: a study of formalization intentions among street entrepreneurs. International Journal of Entrepreneurial Behavior & Research, 28 (8). pp. 2103-2131. ISSN 1355-2554
Abstract
Purpose
Informal entrepreneurship is seen as a direct outcome of either the failure of formal institutions or the asymmetry between formal and informal institutions. These two viewpoints are so far debated as alternative theoretical explanations for the prevalence of informal entrepreneurship. In this paper, the authors offer a theoretically integrative approach to further advance the institutional perspective of informal entrepreneurship. The purpose of this paper is to address these issues.
Design/methodology/approach
Using face-to-face surveys of 322 street entrepreneurs from Lahore, Pakistan, the authors deploy the hitherto unused partial least square approach (PLS) to structural equation modeling (SEM) to analyze data within the field of informal entrepreneurship.
Findings
The empirical findings strongly support the theoretical propositions of the new institutional perspective that the authors present in their paper. The authors find no direct impact of factors like procedural justice, redistributive justice and public sector corruption (i.e. formal institutional failings) on the formalization intentions of street entrepreneurs. Their findings demonstrate that the relationship between formal institutional failings and formalization intentions can only be explained through the mediating role of institutional asymmetry (i.e. tax morality).
Research limitations/implications
From a policy perspective, the authors find that if they can encourage street entrepreneurs to obtain a local-level registration as the first step toward formalization, it will significantly increase their chances to opt for higher national-level registrations.
Originality/value
This paper presents a unique attempt to further understand the context of street entrepreneurship through the theoretical lens of the institutional theory. In doing so, it synthesizes the arguments of existing institutional perspectives and further develops the institutional theory of informal entrepreneurship. Moreover, the paper develops the concept of “formalization intentions”.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2022, Emerald Publishing Limited. This is an author-produced version of a paper subsequently published in International Journal of Entrepreneurial Behavior & Research. This version is distributed under the terms of the Creative Commons Attribution-NonCommercial Licence (http://creativecommons.org/licenses/by-nc/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. You may not use the material for commercial purposes. |
Keywords: | Institutional theory; Formalization intentions; Street vendors; Pakistan |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 25 Jan 2023 11:34 |
Last Modified: | 25 Jan 2023 12:37 |
Status: | Published |
Publisher: | Emerald |
Refereed: | Yes |
Identification Number: | 10.1108/ijebr-02-2022-0151 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:195597 |