Abstract

Although there are a growing number of studies examining entrepreneurial activity within individual countries (Wang, 2006) or regions (Armington & Acs, 2002), there remains a dearth of cross-country comparative empirical work examining the extent to which country level factors actually influence within-country entrepreneurial activity and/or what specific country level factors support entrepreneurial activity advantages over time (van Stel, Storey & Thurik, 2007). Some argue that one critical “structural characteristic” at the national level of analysis is political institutional structures that guide and constrain entrepreneurial behavior within a country (Aldrich, 1999; Spencer, Murtha, and Lenway, 2005), while others suggest that the within country resources available to startups predict formation rates (Bartholomew, 1997; Ho & Wong, 2007; Shane, 2004). Our study advances entrepreneurship research through empirically examining both political institutional structures and resource environments, and how they may influence country-level entrepreneurial activity.

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