Hostname: page-component-78c5997874-dh8gc Total loading time: 0 Render date: 2024-11-03T02:09:34.595Z Has data issue: false hasContentIssue false
  • English
  • Français

Fertile soil for intrapreneurship: impartial institutions and human capital

Published online by Cambridge University Press:  12 January 2021

Martin Ljunge  and
Mikael Stenkula
Martin Ljunge
Affiliation:
Research Institute of Industrial Economics (IFN), PO Box 55665, SE-102 15Stockholm, Sweden
Mikael Stenkula*
Affiliation:
Research Institute of Industrial Economics (IFN), PO Box 55665, SE-102 15Stockholm, Sweden
*
*Corresponding author. Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Intrapreneurs, entrepreneurial employees, constitute an important force behind innovations in the economy. Yet, what factors that promote intrapreneurship at the country level are an underdeveloped research area. This paper provides an important contribution regarding the methodological approach and the broad set of potential explanatory factors studied. Based on machine-learning techniques (Least Absolute Shrinkage and Selection Operator (LASSO) and Extreme Bounds Analysis (EBA)), we investigate the influence of over 60 factors capturing institutional, demographic, cultural, and developmental factors. We find that the quality of government measured as impartiality, i.e. that the public institutions treat the citizens in a non-discriminatory fashion and do not favor some groups or individuals, and the level of human capital, measured as the average years of schooling, are the most important factors predicting the level of intrapreneurship across countries. Instrumental variable results support a causal interpretation. The findings emphasize the importance of policy to establish well-functioning and impartial institutions as well as to promote higher education.

Keywords

Intrapreneurshipimpartial institutionshuman capitalmachine learning
Type
Research Article
Information
Journal of Institutional Economics , Volume 17 , Issue 3 , June 2021 , pp. 489 - 508
Copyright
Copyright © Millennium Economics Ltd 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, D., Johnson, S. and Robinson, J. (2001), ‘The Colonial Origins of Comparative Development: An Empirical Investigation’, American Economic Review, 91(5): 1369–1401.CrossRefGoogle Scholar
Antoncic, B. and Hisrich, R. (2003), ‘Clarifying the Intrapreneurship Concept’, Journal of Small Business and Enterprise Development, 10(1): 7–24.CrossRefGoogle Scholar
Awaworyi Churchill, S. (2017), ‘Fractionalization, Entrepreneurship, and the Institutional Environment for Entrepreneurship’, Small Business Economics, 48(3): 577–597.CrossRefGoogle Scholar
Bager, T. and Schøtt, T. (2011), ‘Entrepreneurial Work by Employees and Independent Entrepreneurs: Understanding Nordic, Anglo-Saxon and Continental Countries’, in Entrepreneurial Work by Employees in Enterprises – Studied via Global Entrepreneurship Monitor in Denmark, Kolding, Denmark: University of Southern Denmark and GEM, pp. 121–129.Google Scholar
Baumol, W. J. (1990), ‘Entrepreneurship: Productive, Unproductive, and Destructive’, Journal of Political Economy, 98(5): 893–921.CrossRefGoogle Scholar
Baumol, W. J. (1993), Entrepreneurship, Management and the Structure of Payoffs, Cambridge, MA: MIT Press.Google Scholar
Bennett, D. L. and Nikolaev, B. (2021), ‘Historical Disease Prevalence, Cultural Values, and Global Innovation’, Entrepreneurship Theory and Practice, 45(1): 145–174.CrossRefGoogle Scholar
Bitros, G. and Karayiannis, A. D. (2008), ‘Values and Institutions as Determinants of Entrepreneurship in Ancient Athens’, Journal of Institutional Economics, 4(2): 205–230.CrossRefGoogle Scholar
Bjørnskov, C. and Foss, N. J. (2008), ‘Economic Freedom and Entrepreneurial Activity: Some Cross-country Evidence’, Public Choice, 134(3–4): 307–328.CrossRefGoogle Scholar
Bjørnskov, C. and Foss, N. J. (2013), ‘How Strategic Entrepreneurship and the Institutional Context Drive Economic Growth’, Strategic Entrepreneurship Journal, 7(1): 50–69.CrossRefGoogle Scholar
Boettke, P. and Coyne, C. J. (2009), ‘Context Matters: Institutions and Entrepreneurship’, Foundations and Trends in Entrepreneurship, 5(3): 135–209.CrossRefGoogle Scholar
Bosma, N. S., Stam, E. and Wennekers, S. (2010), ‘Intrapreneurship – An International Study’, EIM research report H201005, Zoetermeer: EIM.Google Scholar
Bosma, N. S., Stam, E. and Wennekers, S. (2011), ‘Intrapreneurship versus Independent Entrepreneurship: A Cross-national Analysis of Individual Entrepreneurial Behavior’, Utrecht School of Economics Tjalling C. Koopmans Research Institute Discussion Paper Series 11-04.Google Scholar
Bosma, N. S., Stam, E. and Wennekers, S. (2012a), ‘Entrepreneurial Employee Activity: A Large Scale International Study’, Utrecht School of Economics Tjalling C. Koopmans Research Institute Discussion Paper Series 12-12.Google Scholar
Bosma, N. S., Wennekers, S. and Amorós, J. E. (2012b), Global Entrepreneurship Monitor, 2011 Extended Report: Entrepreneurial Employees Across the Globe, Babson Park, MA: Babson College.Google Scholar
Bosma, N. S., Content, J., Sanders, M. and Stam, E. (2018), ‘Institutions, Entrepreneurship, and Economic Growth in Europe’, Small Business Economics, 51(2): 483–499.CrossRefGoogle Scholar
Boudreaux, C. (2014), ‘Jumping Off of the Great Gatsby Curve: How Institutions Facilitate Entrepreneurship and Intergenerational Mobility’, Journal of Institutional Economics, 10(2), 231–255.CrossRefGoogle Scholar
Boudreaux, C.J. and Nikolaev, B. (2019), ‘Capital is Not Enough: Opportunity Entrepreneurship and Formal Institutions’, Small Business Economics Journal, 53(3): 709–738.CrossRefGoogle Scholar
Burns, P. (2017), Corporate Entrepreneurship: Innovation and Strategy in Large Organizations, New York: Palgrave MacMillan.Google Scholar
Carrier, C. (1994), ‘Intrapreneurship in Large Firms and SMEs: A Comparative Study’, International Small Business Journal, 12(3): 54–61.CrossRefGoogle Scholar
Chowdhury, F., Audretsch, D. B. and Belitski, M. (2018), ‘Institutions and Entrepreneurship Quality’, Entrepreneurship Theory and Practice, 43(1): 51–81.CrossRefGoogle Scholar
Coad, A. and Srhoj, S. (2020), ‘Catching Gazelles with a Lasso: Big Data Techniques for the Prediction of High-growth Firms’, Small Business Economics, 55(3): 541–565.CrossRefGoogle Scholar
Colombier, N. and Masclet, D. (2008), ‘Intergenerational Correlation in Self-employment: Some Further Evidence from French ECHP Data’, Small Business Economics, 30(4): 423–437.CrossRefGoogle Scholar
Dana, L.-P. (ed.) (2010), Entrepreneurship and Religion, Cheltenham, UK: Edward Elgar.CrossRefGoogle Scholar
Dau, L. A. and Cuervo-Cazurra, A. (2014), ‘To Formalize or not to Formalize: Entrepreneurship and Pro-market Institutions’, Journal of Business Venturing, 29(5): 668–686.CrossRefGoogle Scholar
Delmar, F. and Wennberg, K. (2010), Knowledge Intensive Entrepreneurship: The Birth, Growth and Demise of Entrepreneurial Firms, Cheltenham: Edward Elgar Publishing.CrossRefGoogle Scholar
Dheer, R. J. S. (2017), ‘Cross-national Differences in Entrepreneurial Activity: Role of Culture and Institutional Factors’, Small Business Economics, 48(4): 813–842.CrossRefGoogle Scholar
Diamond, J. (1997), ‘Guns, Germs, and Steel: The Fates of Human Societies’, New York: Norton.Google Scholar
Easterly, W. and Levine, R. (2003), ‘Tropics, Germs, and Crops: How Endowments Influence Economic Development’, Journal of Monetary Economics, 50(1): 3–39.CrossRefGoogle Scholar
Elert, N. and Henrekson, M. (2017), ‘Entrepreneurship and Institutions: A Bidirectional Relationship’, Foundations and Trends in Entrepreneurship, 13(3): 191–263.CrossRefGoogle Scholar
Elert, N. and Henrekson, M. (2020), ‘Collaborative Innovation Blocs and Antifragility’, Journal of Institutional Economics, 16(4): 537–552.CrossRefGoogle Scholar
Elert, N., Henrekson, M and Stenkula, M. (2017), Institutional Reform for Innovation and Entrepreneurship – An Agenda for Europe, Cham: Springer International Publishing.CrossRefGoogle Scholar
Elert, N., Stam, E. and Stenkula, M. (2019), ‘Intrapreneurship and Trust’, IFN Working Paper No. 1280, Stockholm: Research Institute of Industrial Economics (IFN).CrossRefGoogle Scholar
Estrin, S., Mickiewicz, T. and Stephan, U. (2013), ‘Entrepreneurship, Social Capital, and Institutions: Social and Commercial Entrepreneurship Across Nations’, Entrepreneurship Theory and Practice, 37(3): 479–504.CrossRefGoogle Scholar
Foss, N. J. and Klein, P. G. (2015), ‘Introduction to a Forum on the Judgment-based Approach to Entrepreneurship: Accomplishments, Challenges, New directions’, Journal of Institutional Economics, 11(3): 585–599.CrossRefGoogle Scholar
Fritsch, M. and Wyrwich, M. (2016), ‘Entrepreneurship in the East German Transition Process: Lessons for the Korean Peninsula’, Historical Social Research, 41(3): 256–280.Google Scholar
Gohmann, S. F. (2012), ‘Institutions, Latent Entrepreneurship, and Self-employment: An International Comparison’, Entrepreneurship Theory and Practice, 36(2): 295–321.CrossRefGoogle Scholar
Greve, A. and Salaff, J. W. (2003), ‘Social Networks and Entrepreneurship’, Entrepreneurship Theory and Practice, 28(1): 1–22.CrossRefGoogle Scholar
Harper, D. A. (2018), ‘Innovation and Institutions from the Bottom Up: An Introduction’, Journal of Institutional Economics, 14(6): 975–1001.CrossRefGoogle Scholar
Hastie, T., Tibshirani, R. and Friedman, J. (2009), The Elements of Statistical Learning (2nd edn), New York: Springer.CrossRefGoogle Scholar
Hechavarria, D.M. and Reynolds, P. D. (2009), ‘Cultural Norms & Business Start-Ups: The Impact of National Values on Opportunity and Necessity Entrepreneurs’, International Entrepreneurship and Management Journal, 5(4): 417–437.CrossRefGoogle Scholar
Henley, A. (2017), ‘Does Religion Influence Entrepreneurial Behaviour?’, International Small Business Journal, 35(5): 597–617.CrossRefGoogle Scholar
Henrekson, M. and Sanandaji, T. (2011), ‘The Interaction of Entrepreneurship and Institutions’, Journal of Institutional Economics, 7(1): 47–75.CrossRefGoogle Scholar
Hibbs, D. Jr. and Olsson, O. (2004), ‘Geography, Biogeography, and Why Some Countries are Rich and Others are Poor’, Proceedings of the National Academy of Sciences, 101(10): 3715–3720.CrossRefGoogle ScholarPubMed
Hofstede, G. (1991), Cultures and Organizations: Software of the Mind, Maidenhead, UK: McGraw-Hill.Google Scholar
Hofstede, G., Hofstede, G. J. and Minkov, M. (2010), Cultures and Organizations: Software of the Mind, New York: McGraw-Hill.Google Scholar
Hofstede, G., Noorderhaven, N. G., Thurik, A. R., Uhlander, L. M., Wennekers, A. R. M. and Wildeman, R. E. (2004), ‘Culture's Role in Entrepreneurship: Self-employment Out of Dissatisfaction’, in Brown, T. E. and Ulijn, J. (eds), Innovation, Entrepreneurship and Culture: The Interaction between Technology, Progress and Economic Growth, Cheltenham, UK: Edward Elgar, pp. 162–203.Google Scholar
Kodila-Tedika, O. and Agbor, J. (2016), ‘Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries’, Economies, 4(1): 1–17.CrossRefGoogle Scholar
Koellinger, P. and Minniti, M. (2009), ‘Unemployment Benefits Crowd Out Entrepreneurial Activity’, Economics Letters, 103(2): 96–98.CrossRefGoogle Scholar
Kwon, S.-W. and Arenius, P. (2010), ‘Nations of Entrepreneurs: A Social Capital Perspective’, Journal of Business Venturing, 25(3): 315–330.CrossRefGoogle Scholar
Liang, J., Wang, H. and Lazear, E. (2018), ‘Demographics and Entrepreneurship’, Journal of Political Economy, 126(S1): 140–196.CrossRefGoogle Scholar
Liebregts, W. and Stam, E. (2019), ‘Employment Protection Legislation and Entrepreneurial Activity’, International Small Business Journal, 37(6): 581–603.CrossRefGoogle Scholar
Lindquist, M., Sol, J. and Van Praag, M. (2015), ‘Why Do Entrepreneurial Parents Have Entrepreneurial Children?’, Journal of Labor Economics, 33(2): 269–296.CrossRefGoogle Scholar
Marvel, M., David, J. and Sproul, C. (2016), ‘Human Capital and Entrepreneurship Research: A Critical Review and Future Directions’, Entrepreneurship Theory and Practice, 40(3): 599–626.CrossRefGoogle Scholar
McMullen, J. S., Bagby, D. R. and Palich, L. E. (2008), ‘Economic Freedom and the Motivation to Engage in Entrepreneurial Action’, Entrepreneurship Theory and Practice, 32(5): 875–895.CrossRefGoogle Scholar
Mickiewicz, T. and Rebmann, A. (2020), ‘Entrepreneurship as Trust’, Foundations and Trends in Entrepreneurship, 16(3): 244–309.CrossRefGoogle Scholar
Miles, M. P. and Covin, J. G. (2002), ‘Exploring the Practice of Corporate Venturing: Some Common Forms and Their Organizational Implications’, Entrepreneurship Theory and Practice, 26(3): 21–40.CrossRefGoogle Scholar
Morris, M., Kuratko, D. and Covin, J. (2018), Corporate Entrepreneurship & Innovation, Mason, OH: South Western Educational Publishing.Google Scholar
Mueller, S. L. and Thomas, A. S. (2000), ‘Culture and Entrepreneurial Potential: A Nine Country Study of Locus of Control and Innovativeness’, Journal of Business Venturing, 16(1): 51–75.CrossRefGoogle Scholar
Mulligan, C. (1997), Parental Priorities and Economic Inequality, Chicago and London: University of Chicago Press.Google Scholar
Murtazashvili, I. (2017), ‘Institutions and the Shale Boom’, Journal of Institutional Economics, 13(1): 189–210.CrossRefGoogle Scholar
Nikolaev, B. N., Boudreaux, C. J. and Palich, L. (2018), ‘Cross-country Determinants of Early-stage Necessity and Opportunity-motivated Entrepreneurship: Accounting for Model Uncertainty’, Journal of Small Business Management, 56(Supp. 1): 243–280.CrossRefGoogle Scholar
Nikolaev, B., Boudreaux, C. and Salahodjaev, R. (2017), ‘Are Individualistic Societies Less Equal? Evidence from the Parasite Stress Theory of Values’, Journal of Economic Behavior & Organization, 138(2017): 30–49.CrossRefGoogle Scholar
Nistotskaya, M., Charron, N. and Lapuente, V. (2015), ‘The Wealth of Regions: Quality of Government and SMEs in 172 European Regions’, Environment and Planning C: Politics and Space, 33(5): 1125–1155.CrossRefGoogle Scholar
North, D. C. (1990), Institutions, Institutional Change and Economic Performance, New York, NY: Cambridge University Press.CrossRefGoogle Scholar
Nyström, K. (2008), ‘The Institutions of Economic Freedom and Entrepreneurship: Evidence from Panel Data’, Public Choice, 136(3–4): 269–282.CrossRefGoogle Scholar
Nyström, K. (2012), ‘Entrepreneurial Employees: Are They Different from Independent Entrepreneurs?’, Swedish Entrepreneurship Forum Working paper 2012:10.Google Scholar
Obschonka, M. and Audretsch, D. B. (2020), ‘Artificial Intelligence and Big Data in Entrepreneurship: A New Era has Begun’, Small Business Economics, 55(3): 529–539.CrossRefGoogle Scholar
Obschonka, M., Lee, N., Rodríguez-Pose, A., Eichstaedt, J. C. and Ebert, T. (2020), ‘Big Data Methods, Social Media, and the Psychology of Entrepreneurial Regions: Capturing Cross-county Personality Traits and Their Impact on Entrepreneurship in the USA’, Small Business Economics, 55(3): 567–588.CrossRefGoogle Scholar
Olsson, O. and Hibbs, D. (2005), ‘Biogeography and Long-run Economic Development’, European Economic Review, 49(4): 909–938.CrossRefGoogle Scholar
Olthaar, M., Dolfsma, W., Lutz, C. and Noseleig, F. (2017), ‘Markets and Institutional Swamps: Tensions Confronting Entrepreneurs in Developing Countries’, Journal of Institutional Economics, 13(2): 243–269.CrossRefGoogle Scholar
Parker, S. (2011), ‘Intrapreneurship or Entrepreneurship?’, Journal of Business Venturing, 26(1): 19–34.CrossRefGoogle Scholar
Prüfer, J. and Prüfer, P. (2020), ‘Data Science for Entrepreneurship Research: Studying Demand Dynamics for Entrepreneurial Skills in the Netherlands’, Small Business Economics, 55(3): 651–672.CrossRefGoogle Scholar
Rodrik, D., Subramanian, A and Trebbi, F (2004), ‘Institutions Rule: The Primacy of Institutions Over Geography and Integration In Economic Development’, Journal of Economic Growth, 9(2): 131–165.CrossRefGoogle Scholar
Santarelli, E. and Vivarelli, M. (2007), ‘Entrepreneurship and the Process of Firms’ Entry, Survival and Growth’, Industrial and Corporate Change, 16(3): 455–488.CrossRefGoogle Scholar
Shane, S. (2009), ‘Why Encouraging More People to Become Entrepreneurs is Bad Public Policy’, Small Business Economics, 33(2): 141–149.CrossRefGoogle Scholar
Sharma, P. and Chrisman, J. J. (1999), ‘Toward a Reconciliation of the Definitional Issues in the Field of Corporate Entrepreneurship’, Entrepreneurship: Theory & Practice, 23(3): 11–27.Google Scholar
Smallbone, D., Kitching, J. and Athayde, R. (2010), ‘Ethnic Diversity, Entrepreneurship and Competitiveness in a Global City’, International Small Business Journal, 28(2): 174–190.CrossRefGoogle Scholar
Sobel, R. S., Dutta, N. and Roy, S. (2010), ‘Does Cultural Diversity Increase the Rate of Entrepreneurship?’, The Review of Austrian Economic, 23(3): 269–286.CrossRefGoogle Scholar
Spolaore, E. and Wacziarg, R. (2013), ‘How Deep Are the Roots of Economic Development?’, Journal of Economic Literature, 51(2): 325–369.CrossRefGoogle Scholar
Stam, E. (2013), ‘Knowledge and Entrepreneurial Employees: A Country Level Analysis’, Small Business Economics, 41(4): 887–898.CrossRefGoogle Scholar
Stam, E. and Stenkula, M. (2017), ‘Intrapreneurship in Sweden: An International Perspective’, FIRES working paper 17-02.Google Scholar
Stam, E. and van Stel, A. (2011), ‘Types of Entrepreneurship and Economic Growth’, in Szirmai, A., Naudé, W. and Goedhuys, M. (eds), Entrepreneurship, Innovation, and Economic Development, Oxford, UK: Oxford University Press, pp. 78–95.CrossRefGoogle Scholar
Taylor, M. Z. and Wilson, S. (2012), ‘Does Culture Still Matter? The Effects of Individualism on National Innovation Rates’, Journal of Business Venturing, 27(2): 234–247.CrossRefGoogle Scholar
Thai, M. T. T. and Turkina, E. (2014), ‘Macro-level Determinants of Formal Entrepreneurship versus Informal Entrepreneurship’, Journal of Business Venturing, 29(4): 490–510.CrossRefGoogle Scholar
Unger, J., Rauch, A., Frese, M. and Rosenbusch, N. (2011), ‘Human Capital and Entrepreneurial Success: A Meta-Analytical Review’, Journal of Business Venturing, 26(3): 341–358.CrossRefGoogle Scholar
Urbano, D., Aparicio, S. and Audretsch, D. (2019), ‘Twenty-five Years of Research on Institutions, Entrepreneurship, and Economic Growth: What Has Been Learned?’, Small Business Economics, 53(1): 21–49.CrossRefGoogle Scholar
van Stel, A., Carree, M. and Thurik, R. (2005), ‘The Effect of Entrepreneurial Activity on National Economic Growth’, Small Business Economics, 24(3): 311–321.CrossRefGoogle Scholar
van Stel, A., Storey, D. and Thurik, R. (2007), ‘The Effect of Business Regulations on Nascent and Young Business Entrepreneurship’, Small Business Economics, 28(2–3): 171–186.CrossRefGoogle Scholar
Wyrwich, M. (2012), ‘Regional Entrepreneurial Heritage in a Socialist and a Post-Socialist Economy’, Economic Geography, 88(4): 423–445.CrossRefGoogle Scholar
Zahra, S. A. (1991), ‘Predictors and Financial Outcomes of Corporate Entrepreneurship: An Exploratory Study’, Journal of Business Venturing, 6(4): 259–285.CrossRefGoogle Scholar
Supplementary material: PDF

Ljunge and Stenkula supplementary material

Ljunge and Stenkula supplementary material

Download Ljunge and Stenkula supplementary material(PDF)
PDF 197.4 KB