How do institutions matter for innovative entrepreneurship? An investigation at the regional scale

demirdağ, ismail
Entrepreneurship, which is widely regarded as the primary source of employment, technological progress, innovation and sustainable economic growth and development, differs significantly in terms of level and type across countries and even regions of the same country. Numerous studies have tried to explain why the level and type of entrepreneurship vary by regions with various regional determinants such as human capital, financial resources, unemployment, urbanisation, natural opportunities, industrial cluster and infrastructure. However, over time, a growing number of studies have demonstrated that these determinants alone are insufficient to determine the level and type of regional entrepreneurship, but rather that ‘institutions’ defined as the rules of the game that shape interactions between individuals in society, play a more effective role. However, although the current literature has provided significant evidence on the effects of institutions on regional entrepreneurship activities, there are important gaps in the literature. In this sense, using Scott’s three-dimensional institutions' definition, this study aims to explore, understand and explain how and to what extent the regulative (laws, regulations, rules and policies), normative (norms, values, beliefs and traditions) and culture-cognitive (socially shared knowledge) dimensions/pillars of institutions determine the level of regional innovative (or innovation-driven) entrepreneurship. More precisely, by adopting the ‘Exploratory Sequential Mixing Method’, which consists of qualitative and quantitative research methods, this thesis tries to demonstrate the extent to which the three dimensions of institutions play a decisive role in explaining the innovative entrepreneurship level differences of NUTS-III level regions (or provinces i.e., Van, Elazığ, Bolu and Adana) in Turkey. Using primary data obtained through in-depth interviews (43 participants) and a subsequent survey questionnaires (170 entrepreneurs), this research uses content analysis to analyse qualitative data, while factor, ANOVA, MANOVA, Discriminant Function and Multinomial Logistic Regression analyses to test quantitative data. The study's findings clearly showed that all three dimensions of the institutions play critical roles in determining the innovative entrepreneurship levels of the provinces. Using provinces with different levels of innovative entrepreneurship, this study revealed that regions with low-quality institutions have relatively lower innovative entrepreneurship activities, on the contrary, those with high-quality institutions have higher innovativeness. In addition, the findings showed that compared to the regulatory dimension of institutions, the normative and culture-cognitive dimensions play more decisive roles in explaining the innovative entrepreneurship level differences between the provinces. However, as with most studies, this study has some limitations. The lack of data sets on institutional dimensions and innovative entrepreneurship activities at the regional level is one of the main limitations of this study. Yet, by providing evidence showing how three dimensions of institutions at the regional level support or constrain innovative entrepreneurial activities, this study makes an essential contribution to the expansion of existing literature. Further, this study provides important policy recommendations at national, regional, firm and individual levels to promote regional innovative entrepreneurship activities and reduce inter-regional disparities.


Distinctive role of region-specific institutions in regional entrepreneurship patterns: evidence from turkish regions
DEMİRDAĞ, İsmail; Eraydın, Ayda (2022-04-01)
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 th...
Changing Istanbul City Region Dynamics: Re-regulations to Challenge the Consequences of Uneven Development and Inequality
Eraydın, Ayda (2011-01-01)
In this paper, it is claimed that the dynamics that enabled the emergence of city regions as new places of globalization brought about significant changes and restructuring in these areas in the early years of neo-liberal policies. Subsequently, from the 1990s onwards a new neo-liberalist agenda, in reply to the problems of the early period of globalization, defined new relations and new dynamics for city regions. The aim of this paper, with the help of earlier Istanbul case studies, is to discuss the chang...
Innovative Capability Innovation Strategy and Market Orientation An Empirical Analysis in Turkish Software Industry
Akman, Gülşen; Yılmaz, Cengiz (2008-01-01)
Innovation could be recognised as a key success factor in an increasingly competitive, global economy. The purpose of this paper is to examine the relations among market orientation, innovation strategy, innovative capability and innovation success in small and medium-sized business in developing countries. This study builds a model related to the most important factors that influence mostly innovative capability of firms, such as market orientation, technological orientation and innovation strategy. Then i...
The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey
Ulku, Hulya; Pamukcu, Mehmet Teoman (2015-08-01)
As the experiences of newly industrialized economies have shown, R&D and knowledge diffusion can play a crucial role in spurring the innovation capacity and productivity of emerging economies. Using firm level manufacturing data from 2003 to 2007, this paper investigates whether R&D intensity and various channels of knowledge diffusion affect productivity in Turkey-one of the fastest-growing emerging economies of the past decade. We find that an increase in the foreign ownership share in firms and technolog...
Is it possible to define a universal technology management discipline?
ANSAL, Hacer; AYGÖREN, Huriye; EKMEKÇİ, Umut (Iktisat Isletme ve Finans Dergisi, 2009-8-1)
Considering the diversity of needs and concerns in developed and developing countries, the evolution of technology management (TM) discipline would be expected to follow different paths to include different national experiences and unique needs of these countries. Whether this diversity is reflected in the mainstream TM research agenda is an important issue. Thus, the aim of this study is in two folds; first, to examine how the general research agenda of TM discipline has evolved in the academic research in...
Citation Formats
i. demirdağ, “How do institutions matter for innovative entrepreneurship? An investigation at the regional scale,” Ph.D. - Doctoral Program, Middle East Technical University, 2021.