Title: Overcoming informal competition in emerging markets: a self-reliant resourcefulness perspective

Authors: Sadrac Cenophat; Heinz-Theo Wagner; Yassir Yahya Al-Masoudi

Addresses: EM Strasbourg, University of Strasbourg, Strasbourg, France ' Neu-Ulm University of Applied Sciences (HNU), Baden-Württemberg, Neu-Ulm, Germany ' European University Viadrina, Frankfurt (Oder), Brandenburg, Germany

Abstract: Drawing on the premise that informal enterprises have cost-advantage, prior studies argue that Informal Competition (IC) has a deleterious impact on the performance of formal enterprises. We revise this premise by developing and testing a conceptual framework in which formal enterprises across different regulatory environments view self-reliant resourcefulness as a strategic response to the issue of IC and as a path toward higher performance. Our analysis of 6708 formal enterprises in emerging markets across southern and eastern Europe and central Asia supports this argument. We examine the effect of IC on self-reliant resourcefulness but also how this effect is moderated by regulatory control. We discuss the theoretical contribution of our findings and the implications for managers and policymakers.

Keywords: informal competition; self-reliant resourcefulness; regulatory control; sales performance; emerging markets.

DOI: 10.1504/EJIM.2026.155591

European Journal of International Management, 2026 Vol.30 No.1, pp.35 - 57

Received: 13 Mar 2023
Accepted: 05 Apr 2024
Published online: 06 Aug 2026 *

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