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Effectuation Publications Library
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How do Developing Country Entrepreneurs Navigate Extreme Institutional Voids?
2012
Ajnesh Prasad
Extending previous research on institutional voids within emerging economies, we propose for more scholarly attention to the study of ‘extreme institutional voids’–institutional environments that have simultaneous formal and informal institutional voids, which compromise the ability for robust institutions to compensate for weak institutions. Departing from previous work that has largely emphasized multinational enterprise strategies amidst formal voids, we explore the acute entrepreneurial dilemmas faced by indigenous entrepreneurs operating in regions impaired by challenges of individual mobility, security, and justice. By investigating these settings, we gain a deeper understanding of how entrepreneurship unfolds without clear guidance from institutions.