Distinctive role of region-specific institutions in regional entrepreneurship patterns: evidence from turkish regions

Abstract

ABSTRACT There are substantial differences in the entrepreneurship levels of different regions. Recent studies have shown that supply- and demand-side determinants fall short of explaining the level and type of entrepreneurship of a region, and have emphasized the critical role of region-specific institutional factors in regional entrepreneurship. This paper aims to contribute to understanding how region-specific institutions encourage or inhibit regional innovative entrepreneurship, concentrating particularly on the less studied normative and cultural-cognitive institutions. The study, based on face-to-face semi-structured in-depth interview data from four regions of Turkey with different innovative entrepreneurship patterns, reveals the significant role of normative institutions in defining different regional innovative entrepreneurship pathways, as well as those of some regulative and cultural-cognitive institutions. It highlights further that policies and regulations that alleviate bureaucratic procedures facilitate access to financial resources and strengthen coordination between local government agencies are encouraging regional entrepreneurship in general, while policies aimed at eliminating discrimination in society, supporting tolerance and openness, encouraging individual freedom and enhancing the skills and experience of entrepreneurs through new role models are critical for alleviating the disadvantages of regions and supporting innovative entrepreneurship. We contend that these policies are essential for improving the entrepreneurship environment and altering the perception of society regarding entrepreneurship.