The joint effects of formal and informal institutions on entrepreneurial startups: a global perspective

This study develops an integrated model to investigate how resource-based factors interact with country-level antecedents pertaining to the regulatory quality and uncertainty avoidance in shaping venture creation. Drawing upon an institutional approach, this research examines formal and informal institutions as contingency variables on the association between entrepreneurial resources and startups. The analytical results based on 41,156 observations from 46 countries suggest that entrepreneurial startups are significantly affected by resource factors in terms of human, financial, and social capitals. The results also show that national regulatory quality and uncertainty avoidance serve as moderating factors on such decision-making. The results largely support our hypotheses and suggest significant theoretical and political implications.