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All Journal Journal Economic Business Innovation
Kusuma Dewi, Rismaida
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Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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Political Turmoil and Informal Entrepreneurship: Uncovering Drivers of Resilience in Developing Countries Kusuma Dewi, Rismaida; Qurrota A'yun, Annisa
Journal Economic Business Innovation Vol. 2 No. 1 (2025): April
Publisher : Inovasi Analisis Data

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69725/jebi.v2i1.220

Abstract

Purpose: This paper provides evidence on how external institutional contexts and internal cognitive dimensions are associated with the engagement in informal entrepreneurship in emerging markets.Method: Methods A quantitative study was used in this study with structured questionnaires and analysis using SPSS to 438 subjects in Indonesia.Findings: The severity of political contestation level, decomposition of formal economy access, poor institutional governance and community social capital increase informal entrepreneurship. Additionally, a resilience-based entrepreneurial mindset (REM) has a significant moderating and enhancing effect on the relationships.Novelty: The research adds to the literature on entrepreneurship by offering REM as a new cognitive moderator that serves to neutralise institutional adversity and stimulate entrepreneurial engagement, dovetailing institutional theory and entrepreneurial cognition.Implications: The study contributes to theory development by highlighting psychological resilience in institutional void environments, while providing practitio- ners with guidance to facilitate adaptive entrepreneurship in vulnerable domains. More broadly, it offers a portable framework for interpreting the informal entrepreneurial ecosystem in a context of uncertainty and institutional frailty.
Co-Authors Qurrota A'yun, Annisa