Experiment First, Register Later: On the Relationship Between Firms’ Informal Legacy and Exporting

Marcus Møller Larsen, Caroline Witte

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Abstrakt

Around the world and especially in areas of widespread poverty, unregistered organizational entities start their operations in the part of the economy that either fails to adhere to the established institutional rules or is denied the protection of those rules. In this article, we explore the export propensity of firms that start their operations in the informal economy. We argue that firms operating informally have a unique opportunity to experiment with different products and markets prior to formal registration. This experimentation reduces subsequent uncertainty related to internationalization and, hence, increases the propensity of these firms to export after formal registration. We also argue that the relationship between informal legacy and export propensity is weaker in countries with stronger formal institutional trust. Using a comprehensive sample of 9,454 African firms, we find support for our hypotheses.
OriginalsprogEngelsk
TitelProceedings of the Eightieth Annual Meeting of the Academy of Management
RedaktørerGuclu Atinc
Antal sider1
UdgivelsesstedBriarcliff Manor, NY
ForlagAcademy of Management
Publikationsdato2020
DOI
StatusUdgivet - 2020
BegivenhedThe Academy of Management Annual Meeting 2020: Broadening Our Sight - Virtual
Varighed: 7 aug. 202011 aug. 2020
Konferencens nummer: 80
https://aom.org/events/annual-meeting/past-annual-meetings/2020-broadening-our-sight

Konference

KonferenceThe Academy of Management Annual Meeting 2020
Nummer80
LokationVirtual
Periode07/08/202011/08/2020
Internetadresse
NavnAcademy of Management Proceedings
ISSN0065-0668

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