Local institutions on small firm investments: degrees of institutional persistence matter
by Bach Nguyen
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 41, No. 1, 2020

Abstract: This study investigates the influence of local institutions including corruption, administration transparency, and leadership proactivity on small firm investment. Drawing from the institutional theory, we suggest that the persistence (resistance to changes) of institutional forces is an important determinant of their effects on investment. Using a dataset of 945,725 firm observations in Vietnam from 2006 to 2015, we find that: 1) investment is a U-shaped function of corruption controls; 2) transparency has a positive effect on investment; 3) leadership proactivity can moderate the adverse effects of corruption and opaqueness in public services. This variety in the association patterns between investment and institutional forces is due to the degree of institutional persistence in local norms of doing business.

Online publication date: Wed, 09-Sep-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Entrepreneurship and Small Business (IJESB):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com