The Winds (and Walls) of Change: A Theoretical Framework for Understanding Entrepreneurship in the Midst of Reform

40 Pages Posted: 28 Jan 2013

See all articles by Charles E. Eesley

Charles E. Eesley

Stanford University - Management Science & Engineering

Daniel Erian Armanios

Carnegie Mellon University - Engineering & Public Policy

Wesley Koo

Strategy

Date Written: January 28, 2013

Abstract

The analogy of ‘letting a thousand flowers bloom’ leads to a perspective that institutional change should focus on making it easier to become an entrepreneur. In this paper, we develop a theoretical framework that links the attributes of institutional change and its local context with the nature of entrepreneurship and implications for firm performance. Contributing to the institutional theory literature, the framework offers a compelling deviation from our traditional view that more entrepreneurship is always better. It highlights that there are several distinct types of institutional changes that influence entrepreneurship by at times unexpected consequences. The framework leads to a novel view that we may be able to alter the nature of the entrepreneurial firms in society and their performance through careful reforms in institutions. This framework also contributes to research on entrepreneurial firms by offering a view of how the role of new actors entering the market, the type of institution ushering such change, and the local context in which the change occurs all present rich opportunities to understand the dynamics between institutions and entrepreneurs.

Keywords: entrepreneurship, institutions, institutional theory

Suggested Citation

Eesley, Charles E. and Armanios, Daniel Erian and Koo, Wesley, The Winds (and Walls) of Change: A Theoretical Framework for Understanding Entrepreneurship in the Midst of Reform (January 28, 2013). Available at SSRN: https://ssrn.com/abstract=2207829 or http://dx.doi.org/10.2139/ssrn.2207829

Charles E. Eesley (Contact Author)

Stanford University - Management Science & Engineering ( email )

473 Via Ortega
Stanford, CA 94305-9025
United States

HOME PAGE: http://chuckeesley.com

Daniel Erian Armanios

Carnegie Mellon University - Engineering & Public Policy ( email )

Pittsburgh, PA 15213-3890
United States

Wesley Koo

Strategy ( email )

Boulevard de Constance
77305 Fontainebleau
France

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