Abstract

The role of institutions in influencing entrepreneurship is a topic of interest to scholars using both sociological and economic perspectives (e.g. Aldrich & Fiol, 1994; North, 1990). However, extant studies have primarily focused on the effects of centralized economic and sociological institutions such as regulations (see Minniti, 2008 for a review) and social movements (e.g. Sine & Lee, 2009). In this study, we develop an integrative cross-institutional model that investigates the effects of decentralized institutions on entrepreneurial entry. In particular, we test whether the efficacy of venture capital availability in driving cleantech entry in a region is moderated by levels of environmental social norms. To do so, we create a unique state-level panel database merging data on cleantech entrepreneurial entry, cleantech venture investment, and environmental social norms. Our results suggest that decentralized economic and socio-cultural institutions have complex complementary effects.

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