How private enterprises respond to government bureaucracy in emerging economies: the effects of entrepreneurial type and governance
Article first published online: 29 JUL 2008
© 2008 Strategic Management Society. Published by John Wiley & Sons, Ltd.
Strategic Entrepreneurship Journal
Volume 2, Issue 2, pages 133–153, June 2008
How to Cite
Luo, Y. and Junkunc, M. (2008), How private enterprises respond to government bureaucracy in emerging economies: the effects of entrepreneurial type and governance. Strat.Entrepreneurship J., 2: 133–153. doi: 10.1002/sej.46
- Issue published online: 29 JUL 2008
- Article first published online: 29 JUL 2008
- private enterprise;
- emerging economy
This study examines how private enterprises in emerging economies politically respond to government bureaucracy they face. With an emphasis on two political responses, engagement and influence, we propose that private enterprises react to bureaucracy differently, depending on their entrepreneurial traits, and this leads to different susceptibilities to bureaucracy. Our analysis of 9,123 private enterprises in 72 emerging economies suggests that political engagement and influence are positively associated with bureaucracy for all firms, but the levels of political engagement and influence vary according to a firm's entrepreneurial type (new vs. established venture; venture of entrepreneurial origin vs. other private) and governance (family vs. nonfamily; with vs. without government or foreign ownership). Firms in different groups of emerging economies also display some different propensities to political engagement and influence. Copyright © 2008 Strategic Management Society.