Structural Modeling of Institute of Entrepreneurship in Russia

Entrepreneurship plays an important role in the modern global economy, increasing the share of production of the enterprises of small and medium enterprises in gross domestic product and exports not only developed but also developing countries. Innovation processes cover all sectors of the economy, and more and more of the population is involved in entrepreneurial activity that promotes the penetration of entrepreneurial thinking and values of entrepreneurship in all spheres of socio-economic life of society. Institute of entrepreneurship plays an increasingly prominent role in the institutional environment of socio-economic systems. It actualizes the problem of studies of the relationship of entrepreneurship with the institutions of law, culture, management. Institutional Economics has sufficient capacity heuristic, methodological and theoretical research tools to study this problem. In particular, the structural modeling of the “old” institutionalism covers, in the author’s opinion, the diversity of interrelationships institute of entrepreneurship and other components of the institutional and economic environment.

Aim. The presented study aims to investigate the features of the academic entrepreneurship system in the Russian Federation through the example of leading Russian universities and to determine the main prospects for its development.Tasks. The author defines the theoretical foundations of the academic entrepreneurship system; examines the legal and regulatory framework of academic entrepreneurship; comparatively analyzes the entrepreneurial activity of leading Russian universities; determines the prospects and trends of the development of the academic entrepreneurship system in Russia.Methods. This study uses general scientific methods, including comparison, generalization, benchmarking, abstraction, deduction, and induction.Results. The theoretical foundations of academic entrepreneurship are investigated, and the author’s original definition of the term is formulated. The regulatory and legal framework of university entrepreneurship through the regulation of small innovative enterprises established at universities is examined. The level of academic entrepreneurship in leading Russian universities at the level of desk research is analyzed. Major directions for the development of the academic entrepreneurship system in Russia are determined.Conclusions. The system of academic entrepreneurship is implemented through the combined efforts of educational organizations and representatives of the business community to simplify the commercialization of the results of innovative activity. The legal and regulatory framework of academic entrepreneurship in Russia is underdeveloped considering the needs of the modern economy. The main legal acts regulating the activities of small innovative enterprises are federal laws, regulations of the Government of the Russian Federation, and the decree of the Ministry of Education and Science of the Russian Federation. University entrepreneurship in domestic higher education institutions continues to develop. A peculiar feature of the existing system is the desire to create an innovative infrastructure within the university and to stimulate entrepreneurial activity among the teaching staff and students. The prospects for the development of academic entrepreneurship in Russia are associated with the development of innovative university infrastructure and increased interaction with manufacturing organizations.

For almost three decades, a new institutional environment peculiar to the capitalist economy has been forming in modern Russia. Nevertheless, a number of market economy structures continue to undergo complex processes of transformation, adaptation to the real economic conditions of our country. In this article, the author analyzes the development of the institution of entrepreneurship, its importance for the formation of an innovative environment, not only from the standpoint of economic cooperation, but also socio-political peculiarities and regional psycho-social infrastructure of Russia as a whole and in the subjects of the Federation. The author assigns a special role in the development of the institution of entrepreneurship in Russia to universities, which are designed to create additional prerequisites for the formation of the business environment as a whole, and in the regions of the country as well. The systemic integrator of the development of the business climate in the region is the government structures, primarily the ministries of regional development, labour and employment, education and science. Leading regional universities are searching for new forms of integration - they are part of the R&D structures of large corporations, create joint research structures with business, and use the potential of the international partnership. Directly in the field of education, universities develop educational programs that contribute to the formation of students, graduate students, students of specialized courses, skills and competencies, economic, legal, psychological, etc. The most successfully implemented models of entrepreneurial universities in our country show a significant increase of the revenues’ share from applied research, the replenishment of the patent portfolio, and the research process involves teachers and a significant number of students.

PurposeThe purpose of this paper is to discuss the impact of the institutional environment on strategic networks including their cohesiveness as well as institutional entrepreneurship activities conducted by members of these networks.Design/methodology/approachThe paper presents a case study of the trade association Pharma Industry Finland (PIF) and its institutional environment.FindingsInstitutional environment and institutional entrepreneurship of a strategic network are intertwined in various ways. Changes in the institutional environment influence the strategic cohesiveness of the network and the mutual goals of its network members. As a result, PIF proactively engages in entrepreneurial activities to realize its interests.Research limitations/implicationsThe paper of one network and one institutional environment is limited in generalizability. Further research is needed to explore if similar results can be obtained in other contexts.Practical implicationsIn order to be successful, companies should be able to sense and evaluate which matters can be effectively addressed through collective institutional entrepreneurship and/or the company's own entrepreneurial activity.Originality/valueThis empirical study contributes to discussions on the theoretical understanding of strategic networks in relation to institutional environments, institutionally bounded strategizing in networks, and institutional entrepreneurship in business networks.

Purpose – The purpose of this paper is to examine the role of institutional entrepreneurship in opportunity formation and opportunity exploitation in developing emerging strategic new industries. Design/methodology/approach – The paper reviews the focal literature focussing on institutional entrepreneurs’ role in opportunity formation with special attention to opportunities for institutional entrepreneurs in emerging economy. A multi-method approach consisting of historical case studies and event sequencing is applied to track the historical development of the solar energy industry in two case contexts and to investigate the role of institutional entrepreneurs in this process. Findings – Investigation of two cases illustrates that different types of institutional entrepreneur, as represented by individual entrepreneurs and local government, in the context of massive institutional change – such as the Grand Western Development Program and the Thousand Talents Program in China – have varied effects on triggering and inducing institutional change and innovation to explore and exploit opportunities in emerging new industries. Practical implications – The significance of local context for the nature and scope of institutional entrepreneurship in emerging economy is worthy of further research. The top-down process of institutional innovation dominated by local government might cause myopic outcome and distortion of market opportunities. Indigenous individual entrepreneurs with well-accumulated political capital and strong perceived responsibility could be the main actors to introduce incremental institutional change by combining bottom-up and top-down processes and promoting sustained new industry development through creating and seizing institutional opportunities and market opportunities. Originality/value – This paper illustrates the close relationship between institutional environment and opportunity formation in emerging economies, contributes to the understanding of contextualizing institutional entrepreneurs in different regional contexts and discloses the problems involved in local government acting as an institutional entrepreneur.

It is essential to develop entrepreneurship in Russia, both to promote economic growth of the country and its regions, and to create jobs and opportunities for highly qualified personnel. At the same time, institutions and spatial concentration of business are known to affect enterprise activity. The aim of our research is to estimate the role of institutional factors and spatial concentration in entrepreneurial activity in Russia's regions. We use panel data for 80 Russian regions covering the period from 2008 to 2018 and apply the system generalized method of moments. Our main contribution to the research on Russian regions is that in addition to institutional factors we estimate spatial effects, while performing a comprehensive analysis of entrepreneurial activity, i.e. considering small, medium, and large enterprises. The results of the empirical analysis show that the impact of institutional factors on entrepreneurship in Russia is varied. The number of economic crimes in the region negatively and significantly affects medium and large business. Corruption is found to be significant only for large business, while the level of the banking system and the risk index positively affect firms of all sizes. We also reveal a positive impact of entrepreneurship in the neighboring regions on the entrepreneurial activity in the region under consideration and confirm that spatial effects decline with distance. We conclude that institutional and spatial factors deserve attention while elaborating and implementing economic policy measures aimed at development of entrepreneurial activity. The heterogeneity of the development of entrepreneurship in the regions indicates the need for a differentiated policy in the field of entrepreneurship. An effective policy for one region may not be suitable for other regions, so government support should differ depending on the situation and the recipient. The results of our research can be useful for designing regional economic policy.

Purpose– The aim of this paper is to propose an action-interaction-process framework to extend research on institutional entrepreneurship. The framework examines an actor's characteristics, interactions in an institutional context, and the process by which entrepreneurial action is accomplished.Design/methodology/approach– Via a sociohistorical archival method of narrative analysis, the action-interaction-process framework is applied to an exemplary case of institutional entrepreneurship – the case of James Meredith and the integrationist movement at the University of Mississippi in the 1960 s.Findings– The findings show that institutional entrepreneurs who maintain little power and influence over the institutional field must form strategic alliances to mobilize constituents and capitalize on the convergence of resources in the social setting.Practical implications– Through the process of collective action, institutional entrepreneurs can overcome resistance to change and displace inequitable institutional policies, while establishing new practices and norms.Originality/value– This research provides a stronger approach to examining institutional entrepreneurship and institutional entrepreneurs, the interaction between the institutional entrepreneur and the social context in which the individual operates, and the process by which inequitable institutionalized norms are reformed through collective action. This approach is useful to researchers examining institutional entrepreneurship or any area in which power disparity plays an important role.

This study represents a crucial step in identifying the key components of institutional entrepreneurship among small ventures. It examines how the institutional environment moderates the efforts of institutional entrepreneurs as agents of strategic institutional change. Using a representative sample of 55 small ventures to confirm the hypotheses, the data were analyzed with the hierarchical linear method to examine how institutional entrepreneurship components are moderated by the institutional environment. The findings indicate that institutional entrepreneurs recognize key components of institutional entrepreneurship, including the locale of change, strategic behavior, and new technology. Additionally, this study finds that the institutional environment moderates the relationships between the locale of change, strategic behavior, new technology, and government regulations. Institutional entrepreneurship activities vary considerably across countries and over time. Therefore, achieving a comprehensive understanding of their role remains an important area of research. This study offers a better understanding of institutional entrepreneurs’ legitimation approaches and underscores the significance of examining the contextual foundations of institutional entrepreneurship.

Purpose – This chapter examines how informal and formal entrepreneurial institutions are influenced by economic crises. These institutions act as the foundation for many, if not all, entrepreneurial activities, but they are highly vulnerable to change during times of crisis.Design/methodology/approach – This chapter uses a case study of software entrepreneurs in Ottawa, Canada, to better understand the influence of the 2001 and 2008 recessions on the social and economic aspects of entrepreneurship. This case is examined through a set of 39 semi-structured interviews with entrepreneurs, investors, and economic development officers.Findings – While informal entrepreneurial institutions have adapted to a changing economic environment, formal institutions and government programs have so far failed to do this. This results in less effective entrepreneurship support programs.Research limitations/implications – As with other qualitative case studies, these findings are not generalizable to other regions. This chapter calls for further research is needed to better understand the social forces behind institutional change.Practical implications – This chapter argues that entrepreneurship support programs must be customized to the informal social institutions that underlie all entrepreneurial behavior and practices. This alignment potentially increases the usefulness of such programs to entrepreneurs.Originality/value of the paper– While entrepreneurship in Ottawa has been carefully studied, there has been very little work examining how technology entrepreneurship in Ottawa has fared after the decline of the telecommunications market. This chapter is useful to both entrepreneurship scholars as well as practitioners and policy makers interested in how entrepreneurial institutions react to crises.

Authors analyze the differences between the influence of the foreign direct investments on the economic growth in the developed and developing countries. For the model of the GDP on the foreign direct investments for the developed countries the following data are used: observations for the 10 countries during 1983-2013. For the model of the GDP on the foreign direct investments for the developing countries the following data are used: observations for the 11 countries during 1994-2013. Investigators conclude that the influence of the foreign direct investments on the economic growth definitely has the positive effect in both cases. However, the degree of this influence depends on the type of the country. The developing countries get the smaller effect from the foreign direct investments because of the non-transparent institutional environment and negative influence of other non-economic factors. These findings provide an opportunity to judge that in developed countries, institutional and economic environment and, most of all, human capital allow you to get the full effect of FDI, that is, as capital accumulation and spill-over effects. In developing countries, there should be thresholds to reduce effects of FDI, such as insufficient human capital and poor economic and institutional environment. Thus, the impact of FDI on economic growth is certainly positive, however the level of this effect depends on country characteristics. That is, the hypothesis that FDI affects developing countries less than developed, due to the existence of thresholds in the form of unhealthy institutional and economic environment were confirmed.

Authors analyze the differences between the influence of the foreign direct investments on the economic growth in the developed and developing countries. For the model of the gross domestic product (GDP) on the foreign direct investments for the developed countries the following data are used: observations for the 10 countries during 1983-2013. For the model of the GDP on the foreign direct investments (FDI) for the developing countries the following data are used: observations for the 11 countries during 1994-2013. Investigators conclude that the influence of the foreign direct investments on the economic growthdefinitely has the positive effect in both cases. However, the degree of this influence depends on the type of the country. The developing countries get the smaller effect from the foreign direct investments because of the non-transparent institutional environment and negative influence of other non-economic factors. These findings provide an opportunity to judge that in developed countries, institutional and economic environment and, most of all, human capital allow you to get the full effect of FDI, that is, as capital accumulation and spill-over effects. In developing countries, there should be thresholds to reduce effects of FDI, such as insufficient human capital and poor economic and institutional environment. Thus, the impact of FDI on economic growth is certainly positive, however the level of this effect depends on country characteristics. That is, the hypothesis that FDI affects developing countries less than developed, due to the existence of thresholds in the form of unhealthy institutional and economic environment were confirmed.

This study explores the relationship between institutional entrepreneurship and legitimacy. It looks at how an institutional entrepreneur is able to acquire legitimacy for a novel innovation. The empirical setting is in an emerging economy, because institutions are typically less rigid in emerging economies, and so the likelihood of institutional entrepreneurship occurring is greater, providing more opportunities for experimental observation. While institutional theorists have devoted considerable attention to institutional entrepreneurship in recent years, there has been little focus on exploring the difference between the institutional entrepreneur’s actual creative act and the subsequent need for the entrepreneur to acquire legitimacy for her/his innovation. This study is the first to separate these two components of institutional entrepreneurship. By doing so, the study is then able to investigate three related questions: (1) Is it possible to shed new light on resolving the paradox of embedded agency?, (2) What are the mechanisms of legitimacy acquisition that an institutional entrepreneur uses to get her/his novel idea accepted and approved by the internal and external stakeholders?, and (3) What kind of institutional or ideological preconditions might be necessary for institutional entrepreneurial action to benefit or harm a society in an emerging economy? The study uses a qualitative case study design research based on systematic combining approach for data collection and analysis. The critical case study is the establishment of the first free trade zone in Dubai, UAE, the Jebel Ali Free Zone (JAFZA). Data was collected from 18 semi-structured interviews and several secondary resources detailing the establishment of JAFZA; and analyzed using thematic analysis to explain how the institutional innovation of JAFZA was received and accepted in a society. JAFZA has subsequently gone on to become the core business of the hugely successful DP World group.

In the context of social and economic crisis, the transition to market relations and the growing social stratification, it is relevant to involve the business in addressing the pivotal social problems. There is a functioning problem of the institution of entrepreneurship in Russia. On the one hand, the state provides philanthropists with tax incentives, and, on the other hand, there is no regular charitable activity in society. The institution of social entrepreneurship meets the most important needs providing mutual assistance among community members. The implementation of the ideas of social entrepreneurship is advantageous for the state, society, and business. The research analyzes the features of the phenomenon of social entrepreneurship as an important subject of market relations by a case study of the Udmurt Republic. The author concludes that a regional concept of social entrepreneurship is to be developed. It should include campaigning for participation in entrepreneurs’ charitable events in the media, creating a positive image of the entrepreneur who manages the social-oriented enterprise, providing legal, economic and informational support for social entrepreneurs.

Sport clubs traditionally focus on essential tasks such as organising local competitions, facilitating youth sport, and managing their volunteers. This primary focus can sometimes make it challenging to prioritise additional social initiatives such as developing more inclusive sports programs for disadvantaged communities. Despite the inherent difficulties, expanding the scope of sport clubs to embrace social inclusivity can significantly enhance their impact on both members and their local neighbourhoods. Central to addressing this social challenge are institutional entrepreneurs, who serve as exemplary sports clubs advocating the integration of both traditional responsibilities and social values within the sports sector. Recognising the pivotal role played by institutional entrepreneurs, this study aimed to delve deeper into the specific environmental characteristics and actions that trigger sport clubs to become an institutional entrepreneur. For this purpose, we applied the entrepreneurial model of Battilana, Leca & Boxenbaum (2009) . Employing a single-case study design, we focused on a Belgian amateur soccer club, conducting a comprehensive investigation through 22 semi-structured interviews. The findings yielded multiple interesting insights such as the role of the external environment (i.e., the competitive dynamics of soccer and the demographic shift in the club's neighbourhood) in initiating entrepreneurial initiatives. Furthermore, the role of an intrapreneur emerged from the data and proved to be a decisive characteristic in catalysing the call for advocating social values within the club. Consequently, this study contributes to the discussion on how entrepreneurial actions, initiated by the intrapreneur, can bring about social change in the field of sport clubs.

A growing body of literature has examined the dynamics of wind energy development across different mature and emerging institutional contexts. However, so far only few have paused to reflect on the differences between developed and emerging economies. Building upon the literature on institutional entrepreneurship, this paper compares institutional strategies in wind energy development in Finland and India by using the typology of political, technical and cultural work. We highlight the role of institutional approaches in studying sustainable energy transitions in mature and emerging institutional contexts, while being sensitive to the role of heterogeneous actors in shaping institutional arrangements. Our findings offer implications for debates in the institutional entrepreneurship literature by exploring how actors shape their institutional environment in different contexts, and the extent to which emerging institutional contexts provide more opportunities for institutional entrepreneurship. Finally, this paper underscores the need for developing insights into enabling conditions for successful collective institutional entrepreneurship and for developing typologies of institutional strategies which are generalizable across both mature and emerging institutional contexts.