Effects of informal institutions on the performance of microenterprises in the Phillipines : the mediating role of entrepreneurial orientation
Version 2 2024-06-17, 08:11Version 2 2024-06-17, 08:11
Version 1 2014-10-28, 09:52Version 1 2014-10-28, 09:52
journal contribution
posted on 2024-06-17, 08:11authored byB Roxas, D Chadee
The study investigates the effects of informal institutions and entrepreneurial orientation on the performance of microenterprises at the subnational level within a developing country context. Using structural equation modeling based on a large-scale survey of 735 microenterprises in the Philippines, it is found that informal institutional factors and entrepreneurial orientation are associated with firm performance. However, further analysis reveals a strong mediating role of entrepreneurial orientation on the informal institutions-firm performance relationships. This finding is novel and adds to our understanding of the mechanism through which informal institutions affect firm performance, particularly for microenterprises in developing countries.