Institutional environments and entrepreneurial start-ups: an international study

Li, Tianchen ORCID: https://orcid.org/0000-0003-3641-5753 (2021) Institutional environments and entrepreneurial start-ups: an international study. Management Decision, 58 (8) . pp. 1929-1953. ISSN 0025-1747 [Article] (doi:10.1108/MD-01-2020-0031)

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Abstract

The purposes of this research are to examine how individuals’ cognition is related to the rate of entrepreneurial start-ups and how this relationship can be modified by three institutional pillars. Drawing upon a multilevel analysis and a global context comprising 67 countries, cross-level analyses are performed to assess the joint effects of entrepreneurial cognition and institutions on the rate of entrepreneurial start-ups. The findings confirm the role of entrepreneurial cognition (i.e. self-efficacy, risk attitude, and opportunity perception) in individuals’ decisions to start new businesses and reveal how this relationship can be diversely influenced by country-level institutional pillars. This paper could be useful for designing policies to promote entrepreneurial activity through institutions in different countries.

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