Abstract
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.
Original language | English |
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Title of host publication | Proceedings of the Eightieth Annual Meeting of the Academy of Management |
Editors | Guclu Atinc |
Number of pages | 1 |
Place of Publication | Briarcliff Manor, NY |
Publisher | Academy of Management |
Publication date | 2020 |
DOIs | |
Publication status | Published - 2020 |
Event | The Academy of Management Annual Meeting 2020: Broadening Our Sight - Virtual Duration: 7 Aug 2020 → 11 Aug 2020 Conference number: 80 https://aom.org/events/annual-meeting/past-annual-meetings/2020-broadening-our-sight |
Conference
Conference | The Academy of Management Annual Meeting 2020 |
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Number | 80 |
Location | Virtual |
Period | 07/08/2020 → 11/08/2020 |
Internet address |
Series | Academy of Management Proceedings |
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ISSN | 0065-0668 |