Institutional Framework Conditions and Entrepreneurial Attitudes and Motivations
Institutional Framework Conditions and Entrepreneurial Attitudes and Motivations

Author(s): Bettina Bastian, Mohammed Reza Zali, Maryam Mirzaei
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: institutional setting; entrepreneurial attitudes; motivation; performance; ecosystems
Summary/Abstract: Entrepreneurship takes place within a larger framework of conditions that affect new ventures and businesses. Parts of this framework are legal, regulatory and policy institutions as defined by national or local governments. In the following chapter, we study the correlation between institutional setting and entrepreneurial attitudes, motivation and performance. We use cross sectional survey data from entrepreneurial firms in the Middle East and North Africa, where most countries have weak formal state institutions. However, many initiatives in the region have been undertaken to strengthen entrepreneurship by creating viable ecosystems and fostering innovative mindsets. Regarding the correlation of institutions with attitudes and motivation, previous literature shows that attitudes are important precursors to entrepreneurial intention, and motivation transforms intentions into entrepreneurial behavior. Our research finds that both variables are positively correlated with institutional factors, but motivation is most susceptible to institutional framework conditions. This suggests that any initiative that does not involve a change in formal institutions affecting business in the region must remain suboptimal. These institutions have the most impact on entrepreneurial motivations, and are therefore essential for bridging the gap between entrepreneurial intentions and behaviors, engaging therefore more entrepreneurs.

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