The effect of institutions on intrapreneurship: An analysis of developed vs developing countries

Abstract

This article examines the interaction effects of formal and informal institutions on intrapreneurship in developed and developing countries. We use a multilevel logistic regression technique and data from the Global Entrepreneurship Monitor (GEM) for the years 2014–2020 with information from 29 developed countries (237,053 observations) and 31 developing countries (177,201 observations). The main findings highlight that informal institutions (fear of failure and media attention) are more relevant than the social status of entrepreneurs as predictors of intrapreneurship, in both developed and developing countries. In addition, the moderation of economic freedom as a formal institution differs depending on the economic development context. In developed countries, economic freedom enhances to a greater extent the relationship between social status and intrapreneurship, as well as between media attention and intrapreneurship. These findings can be useful for the design of intrapreneurship policies in adapting their strategies to the specific institutional environment.