Empirical Evidence on the Influence of the Institutional Environment on Venture Innovation Performance in South Africa
Vol. Volume 21, Number 2 June/2016
Researchers argue that there is a strong case to be made that entrepreneurship is itself a consequence of the adoption and development of institutions that encourage entrepreneurial behavior. Previous research on institutions classified the formal and informal institutions that affect entrepreneurs into regulatory, normative, and cognitive categories. This study builds in this direction by investigating how perceptions of these institutional profiles may influence venture innovation performance. Following a survey of ventures in the ICT industry, hypotheses are tested using regression analysis. The results reveal that regulatory and normative institutional dimensions explain a modest yet significant amount of variance in venture innovation performance. The results also have important policy implications, where the institutional framework in South Africa could be enhanced by developing a country-specific mix of entrepreneur-friendly regulations and normative institutional conditions.
Institutional profiles, entrepreneurial intention, regulatory, cognitive, normative, South Africa