Whether analogue countries
exhibit similar women
entrepreneurial activities?
Danish Junaid and Zheng He
School of Management and Economics,
University of Electronic Science and Technology of China, Chengdu, China
Amit Yadav
Chengdu Neusoft University, Chengdu, China, and
Lydia Asare-Kyire
School of Management and Economics,
University of Electronic Science and Technology of China, Chengdu, China
Abstract
Purpose – While there are many studies on the impacts of formal institutions such as government financial
supporting and tax preferential policies on women entrepreneurial entry, few attempted to explore how informal
institutions causes cross-country differences in women entrepreneurship. The purpose of this paper is to investigate
whether countries (Pakistan and Malaysia) with similar religious belief, political system and government policies
exhibits similar level of women entrepreneurial activity from an informal institutional perspective.
Design/methodology/approach – This study used Global entrepreneurship monitor (GEM) data for the
years 2010–2012 and employed probit regression analysis to examine the impacts of cultural-cognitive and
social-normative institutions on women entrepreneurial activity.
Findings – The findings reveal profound differences of women’s entrepreneurial activities between Pakistan
and Malaysia. While cultural-cognitive dimension shows substantial impact for both nations, social-normative
dimension explains the main differences in women’s entrepreneurial activity.
Practical implications – This study proposes that policymakers may craft policies to enhance women skills,
knowledge and networking as well as positive societal attitudes to foster women entrepreneurial activities.
Originality/value – This study shows that countries with the same religion and similar formal institutions
can also exhibit different level of women entrepreneurial activity. In Pakistan, the negative societal attitudes
in the form of deep rooted traditional beliefs as well as misinterpreted religious concepts for women role create
formidable challenges and inhibit business opportunities for them. By contrast, favorable social perception
and societal attitudes in Malaysia encourage women to pursue their entrepreneurial activities.
Keywords Global entrepreneurship monitor (GEM), Informal institutions, Islamic countries,
Women’s entrepreneurial activity
Paper type Research paper
1. Introduction
Women entrepreneurs account for substantial proportion of entrepreneurial population and
provide important contributions to innovation, employment creation and economic development
(Brush et al. , 2006). According to Global Entrepreneurship Monitor’ s (GEM) report, about 126m
women were starting or running new businesses in 67 economies (Kelley et al. , 2012).
Nevertheless the differences in women’ s entrepreneurial activity vary widely across nations. For
instance, the proportion of women entrepreneurs in Islamic nations ranging from 23 percent in
Kuwait to 12 percent in Bahrain to 9 percent in Oman and it continues declining to a low of seven
percent in Qatar and Saudi Arabia (Thomas, 2000). Recently, these differences have caught
much attention (Roomi and Parrott, 2008; Dana, 2009; Tracey, 2012; Dechant and Lamky, 2005).
Previous studies have found that the entrepreneurship is contextually embedded in a
country’s institutional environment, which causes cross-country differences in women’s
Management Decision
Vol. 58 No. 4, 2020
pp. 759-772
© Emerald Publishing Limited
0025-1747
DOI 10.1108/MD-06-2018-0681
Received 6 July 2018
Revised 3 March 2019
13 May 2019
Accepted 7 June 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0025-1747.htm
Social Science Planning Fund of Ministry of Education of China.
759
Women
entrepreneurial
activities