Microfoundations of Institutional Entrepreneurship: The Interactive Effects of CEO Entrepreneurial Self-efficacy and Organizational Characteristics
-
Matthias Staessens
,
Johan Bruneel
Abstract
To better understand the microfoundations of institutional entrepreneurship, we introduce entrepreneurial self-efficacy (ESE) as a mechanism to explain why some organizations engage in institutional entrepreneurship while others do not. Although it is clear that ESE is critical to understanding entrepreneurship, we lack an understanding of how ESE affects institutions. Drawing on novel survey data on Flemish work-integration social enterprises which are exposed to a significant policy reform, we find that organizations with CEOs who exhibit high ESE are more likely to engage in political tactics to actively shape their institutional environment, and that this effect is amplified for firms that have more resources, reputation and connections in the field. These findings provide a better understanding of the cognitive microfoundations of institutions, complement existing research on conditions enabling institutional entrepreneurship and provide guidance for practice.
Acknowledgments
We are grateful to editor Thomas Lyons and the anonymous reviewers for their constructive and thoughtful feedback throughout the review process. We also sincerely thank Markus Perkmann, Riccardo Fini, Trish Reay, Deniz Ucbasaran, and Nicolai Foss for their valuable feedback and insightful comments.
Overview operationalizations.
| ESE (items adapted from Zhao, Hills, and Seibert 2005; Cronbach α = 0.86) | |
| (1 = strongly disagree, 7 = strongly agree) | |
| Respondent’s confidence in identifying new business opportunities | |
| Respondent’s confidence in creating new products | |
| Respondent’s confidence in thinking creatively | |
| Respondent’s confidence in commercializing new ideas or developments | |
|
|
|
| Political tactics (adapted from Clemens and Douglas 2005; Cronbach α = 0.82) | |
| (1 = not applied, 4 = average applied, 7 = completely applied) | |
|
|
|
| Influence 1 | Contact prominent people to influence regulations |
| Influence 2 | Involve other stakeholders to help influence regulations |
| Bargain 1 | Meet with elected legislators and politicians to change the regulations |
| Bargain 2 | Negotiate with regulatory organizations to obtain an advantageous solution |
| Firm dependency on government (construct developed with assistance from an expert panel; α = 0.85) | |
| (1 = completely disagree, 4 = neutral, 7 = completely agree) | |
|
|
|
| If subsidies are reduced, it will be more difficult to achieve our financial objectives | |
| If subsidies are reduced, it will be more difficult to achieve our social objectives | |
| If subsidies are reduced, it will be more difficult to continue with our current activities | |
| If subsidies are reduced, it will be more difficult to fulfil our mission | |
| Interconnectedness (adapted from Clemens and Douglas 2005) | |
| (1 = no cooperation, 7 = extremely strong cooperation) | |
|
|
|
| Extent of cooperation with sheltered workshops | |
| Extent of cooperation with social workplaces | |
| Extent of cooperation with regular companies | |
| Extent of cooperation with umbrella organizations | |
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