Institutional and self-efficacy effects on systemic entrepreneurship: evidence from South Africa

Abstract

Research indicates that institutional weaknesses in several African economies often leads to uncertainty, but also provides opportunity so that different types of entrepreneurship may become more or less feasible in these economies. Recognizing that it is not always clear which institutions really matter, this study is important as it empirically examines the impact of formal and informal institutions, as well as the effect of entrepreneurial self-efficacy, on systemic entrepreneurial growth intentions. Hypotheses were statistically tested using primary data from early-stage enterprises (n = 292) in South Africa. Findings highlight a significant relationship between entrepreneurial self-efficacy as well as the normative institutional dimension and systemic entrepreneurship. By weaving in the entrepreneurial and institutional context of South Africa, this study has extended the theoretical and empirical reach of institutional theory to the domain of systemic entrepreneurship. Study implications relate to creating empirical links between the different institutional dimensions, self-efficacy and systemic entrepreneurship, which is vital for an African market setting as the context for entrepreneurship is often a distinctive one.

RÉSUMÉ

La recherche indique que les faiblesses institutionnelles de plusieurs économies africaines sont souvent source d’incertitude, mais offrent aussi des opportunités selon lesquelles différents types d’entrepreneuriat peuvent devenir plus ou moins réalisables dans ces économies. Reconnaissant qu’il n’est pas toujours aisé de savoir quelles institutions comptent réellement, cette étude est importante en ce sens qu’elle examine empiriquement l’impact des institutions formelles et informelles, ainsi que l’effet de l’auto-efficacité entrepreneuriale, sur les intentions de croissance entrepreneuriale systémique. Les hypothèses ont été testées statistiquement à l’aide de données primaires provenant d’entreprises en phase de démarrage (n = 292) en Afrique du Sud. Les résultats mettent en évidence le rapport significatif entre l’auto-efficacité entrepreneuriale, ainsi que la dimension institutionnelle normative, et l’entrepreneuriat systémique. En tissant dans le contexte entrepreneurial et institutionnel de l’Afrique du Sud, cette étude a élargi la portée théorique et empirique de la théorie institutionnelle au domaine de l’entrepreneuriat systémique. Les implications de cette étude concernent la création de liens empiriques entre les différentes dimensions institutionnelles, l’auto-efficacité et l’entrepreneuriat systémique, ce qui est vital pour la mise en place d’un marché africain, étant donné que le contexte de l’entrepreneuriat est souvent spécifique.

Keywords:

• Institutional dimensions
• regulatory
• normative
• cognitive
• entrepreneurial self-efficacy
• South Africa
• systemic and local entrepreneurship

MOTS-CLÉS:

• Dimensions institutionnelles
• réglementaire
• normatif
• cognitif
• auto-efficacité entrepreneuriale
• Afrique du Sud
• Entrepreneuriat systémique et local

Disclosure statement

There is no conflict of interest in relation to the research and this publication on part of the authors.

Additional information

Notes on contributors

M. Murimbika

Dr. McEdward Murimbika is an academic and corporate executive with 25 years' experience as a business executive and specialist practitioner in the fields of exponential entrepreneurialism, business, venture creation, and policy research, and Executive Training in both public and private sectors. He has worked in Sub-Saharan Africa and also has international experience in the fields of Exponential Technologies & Emerging Technologies Convergence, and Global Entrepreneurship.

B. Urban

Prof Boris Urban was the inaugural Chair in Entrepreneurship at Wits and has more than 30 years of academic and professional experience where he has practiced, taught and researched organisational behaviour, strategy and entrepreneurship. Based on more than 100 articles in academic journals his work is well recognised in the field and he is a highly cited researcher. In terms of advocacy, he has contributed, as subject expert, to several initiatives such as the World Economic Forum, EY G20 Entrepreneurship Monitor Report, Sunday Times Directors Event, SME Summit, LeaderEx, and MIT Global Start-ups panels.