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You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy

Authors
Justin WebbLászló TihanyiDavid Sirmon
Journal
Academy of Management Review
Published
July 1, 2009

Abstract

The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multilevel perspective integrating entrepreneurship theory (microlevel) with institutional (macrolevel) and collective identity (mesolevel) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence the transition to the formal economy.

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DOI

10.5465/amr.2009.40632826

License

Unknown License
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