Abstract
Using time-lagged primary data from entrepreneurs in two developing countries (Ghana, N = 261 and Ethiopia, N = 166), we examine how institutional voids drive entrepreneurs’ advice seeking behavior. Our findings show that higher levels of institutional voids in these developing countries are negatively related to internal advice-seeking but positively associated with external advice-seeking. The results also show that a heightened perception of environmental dynamism negatively moderates the relationship between institutional voids and internal advice-seeking but positively moderates the effect of institutional voids and external advice-seeking. Furthermore, we find that the negative relationship between institutional voids and internal advice-seeking is positive when entrepreneurs develop ties with politicians. The positive relationship between institutional voids and external advice-seeking is amplified when political network connections are stronger. Implications and direction for future research are discussed.
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