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Journal of International Entrepreneurship

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01.06.2011

Regulative institutions supporting entrepreneurship in emerging economies: A comparison of China and India

verfasst von: Nir Kshetri, Nikhilesh Dholakia

Erschienen in: Journal of International Entrepreneurship | Ausgabe 2/2011

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Abstract

China and India are touted as new entrepreneurship powerhouses. The two countries’ different institutional history and characteristics have led to differences in environments related to entrepreneurship. There are some well-founded rationales as well as a number of misinformed and ill-guided viewpoints about the friendliness of the environment to support entrepreneurship in each country as well as the China–India differences concerning entrepreneurial environment. This article contributes to this debate by offering theoretical and empirical evidence regarding the differences in regulative institutions in the two economies. Specifically, we compare the state’s regulative, participative, and supportive roles from the standpoint of entrepreneurship in the two countries.

Vorheriger Artikel Learning about foreign markets: A study of Czech SMEs

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As an alternative measure of the regulatory role, businesses’ perceptions of their competitors’ compliance with laws can also be used, which is measured by question no. 35 in the WBES. The question read, “Please judge on a four point scale how problematic are the following practices of your competitors for your firm?” This measure, however, could not be used because of missing data for Indian businesses.

We used Satterthwaite method of t test, which is an alternative to the pooled-variance t test. Satterthwaite method is used when the assumption that the two populations have equal variances seems unreasonable. It provides a t statistic that asymptotically (that is, as the sample sizes become large) approaches a t distribution, allowing for an approximate t test to be calculated when the population variances are not equal (http://www.ats.ucla.edu/stat/sas/output/ttest.htm). Note, however, that interpretations for most of the results did not change with pooled-variance t test.

As an alternative measure of participatory roles, question no. 10 in the WBES can be used, which read, “When a new law, rule, regulation, or decree is being discussed that could have a substantial impact on your business, how much influence does your firm typically have at the national level of government on the content of that law, rule, regulation or decree?” This question consisted of four items related to executive, legislative, ministry, and regulatory agency. This question, however, could not be used because of missing data for Indian businesses.

As an alternative measure of supportive role, question no. 8 in WBES can be used, which read, “How often does the government intervene in the following types of decisions by your firm?” This question consisted of seven items. This measure, however, could not be used because of missing data for Chinese businesses.

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Titel: Regulative institutions supporting entrepreneurship in emerging economies: A comparison of China and India
verfasst von: Nir Kshetri
Nikhilesh Dholakia
Publikationsdatum: 01.06.2011
Verlag: Springer US
Erschienen in: Journal of International Entrepreneurship / Ausgabe 2/2011
Print ISSN: 1570-7385
Elektronische ISSN: 1573-7349
DOI: https://doi.org/10.1007/s10843-010-0070-x

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