You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy

Academy of Management Review, Vol. 34, No. 3, pp. 492-510, 2009

44 Pages Posted: 28 Aug 2009

See all articles by Justin W. Webb

Justin W. Webb

Oklahoma State University - Stillwater

Laszlo Tihanyi

Texas A&M University - Department of Management

R. Duane Ireland

Texas A&M University - Department of Management

David G. Sirmon

Texas A&M University

Date Written: August 27, 2009

Abstract

The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multi-level perspective integrating entrepreneurship theory (micro-level) with institutional (macro-level) and collective identity (meso-level) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence transition to the formal economy.

Keywords: Entrepreneurship, formal economy, informal economy, shadow economy, renegade economy

Suggested Citation

Webb, Justin W. and Tihanyi, Laszlo and Ireland, R. Duane and Sirmon, David G., You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy (August 27, 2009). Academy of Management Review, Vol. 34, No. 3, pp. 492-510, 2009 . Available at SSRN: https://ssrn.com/abstract=1462559

Justin W. Webb (Contact Author)

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

Laszlo Tihanyi

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States

R. Duane Ireland

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States

David G. Sirmon

Texas A&M University ( email )

430 Wehner
College Station, TX 77843-4218
United States

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