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INSTITUTIONAL CORRELATES INFLUENCING MSME BUSINESS PROCESSES IN SOUTH AFRICA

Yıl 2025, Cilt: 8 Sayı: 2, 67 - 83, 30.12.2025
https://doi.org/10.54186/arhuss.1687314
https://izlik.org/JA76XP27RX

Öz

Institutional correlates affecting micro, small, and medium enterprises (MSMEs)’ business processes and operations across different economies are wide, somewhat distinct, and varied, yet they lack a concise and integrated approach. The emerging South African economy further presents an interesting case, given its apartheid history and unequal spatial economy for entrepreneurs. This paper investigates various institutional correlates that could influence business processes and operations. The paper utilised a qualitative interview approach to derive the essential correlates along socio-cultural, political and economic dimensions. Interview responses from thirty-two entrepreneurs running small and micro enterprises in Cape Town, Durban and Johannesburg were analysed using ATLAS.ti. Institutional theory and extant literature informed the emergent patterns. The positive and negative correlates signify what works, what can be continued, and what needs to be changed using institutional reforms. Relevant implications offer initial guidelines for research into institutional dynamics and public policies for enterprise development relevant to MSMEs in emerging economies.

Kaynakça

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Institutional Correlates Influencing MSME Business Processes in South Africa

Yıl 2025, Cilt: 8 Sayı: 2, 67 - 83, 30.12.2025
https://doi.org/10.54186/arhuss.1687314
https://izlik.org/JA76XP27RX

Öz

Institutional correlates affecting micro, small, and medium enterprises (MSMEs)’ business processes and operations across different economies are wide, somewhat distinct, and varied, yet they lack a concise and integrated approach. The emerging South African economy further presents an interesting case, given its apartheid history and unequal spatial economy for entrepreneurs. This paper investigates various institutional correlates that could influence business processes and operations. The paper utilised a qualitative interview approach to derive the essential correlates along socio-cultural, political and economic dimensions. Interview responses from thirty-two entrepreneurs running small and micro enterprises in Cape Town, Durban and Johannesburg were analysed using ATLAS.ti. Institutional theory and extant literature informed the emergent patterns. The positive and negative correlates signify what works, what can be continued, and what needs to be changed using institutional reforms. Relevant implications offer initial guidelines for research into institutional dynamics and public policies for enterprise development relevant to MSMEs in emerging economies.

Etik Beyan

The study complied with the ethics protocol of the University of the Witwatersrand, Johannesburg, South Africa, regarding human participants.

Destekleyen Kurum

University of the Witwatersrand, South Africa, but no conflict of interest.

Kaynakça

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  • Schwarte, Y., Song, Y., Hunt, R. A., & Lohrke, F. T. (2023). Passion as process: Three perspectives on entrepreneurial passion and an integrated path forward. Journal of Business Research, 156, 113474. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.113474
  • Sefalafala, T. (2024). Beyond the income: The normative effects of unemployment in the goldfields of Welkom, Free State, South Africa. Development Southern Africa, 41(1), 23-41. https://doi.org/https://doi.org/10.1080/0376835X.2024.2384521
  • Sgroi, F., & Sciancalepore, V. D. (2022). Dynamics of structural change in agriculture, transaction cost theory and market efficiency: The case of cultivation contracts between agricultural enterprises and the food industry. Journal of Agriculture and Food Research, 10, 100396. https://doi.org/https://doi.org/10.1016/j.jafr.2022.100396
  • Shahaboonin, F., Olalekan David, O., & Van Wyk, A. (2021). Historic spatial inequality and poverty along racial lines in South Africa. International Journal of Economics and Financial Issues, 11(4), 184-197. https://doi.org/https://doi.org/10.32479/ijefi.13803
  • Silva, C. R., Siluk, J. C. M., Neuenfeldt Júnior, A., Rosa, C. B., & Michelin, C. d. F. (2022). Overview of the factors that influence the competitiveness of startups: a systematised literature review. Gestão & Produção [online], 29(13921). https://doi.org/https://doi.org/10.1590/1806-9649- 2022v29e13921
  • Sobhan, N., & Hassan, A. (2024). The effect of institutional environment on entrepreneurship in emerging economies: Female entrepreneurs in Bangladesh. Journal of Entrepreneurship in Emerging Economies, 17(1).
  • Steekelenburg, G., Lauw, A. M., Frese, M., & Visser, K. (2000). Problems and Coping, Strategies and Initiatives in Microbusiness Owners in South Africa. In M. Frese (Ed.), Success and Failure of Microbusiness Owners in Africa: A Psychological Approach. Quorum Books.
  • Telukdarie, A., Dube, T., Matjuta, P., & Philbin, S. (2023). The opportunities and challenges of digitalisation for SMEs. Procedia Computer Science, 217, 217, 689–698. https://doi.org/https://doi.org/10.1016/j.procs.2022.12.265
  • Tetteh, L. A., Agyenim-Boateng, C., & Simpson, S. N. Y. (2023). Institutional pressures and accountability processes in pursuit of sustainable development goals: Insights from Ghanaian indigenous oil companies. Corporate Social Responsibility and Environmental Management, 31(1), 89-107. https://doi.org/https://doi.org/10.1002/csr.2554
  • Utete, R., & Zhou, S. (2024). Re-imagining the complexities faced by rural entrepreneurs in South Africa: Implications for local economic development in the post-COVID-19 pandemic period. Journal of Rural Studies, 105, 103167. https://doi.org/https://doi.org/10.1016/j.jrurstud.2023.103167
  • Valdez, M. E., & Richardson, J. (2013). Institutional Determinants of Macro-Level Entrepreneurship. Entrepreneurship Theory & Practice, January, 1-27.
  • Vatavu, S., Dogaru, M., Moldovan, N.-C., & Lobont, O.-R. (2022). The impact of entrepreneurship on economic development through government policies and citizens’ attitudes. Economic Research-Ekonomska Istraživanja, 35(1), 1604-1617. https://doi.org/https://doi.org/10.1080/1331677X.2021.1985566
  • Villanueva-Flores, M., Diaz-Fernandez, M., Hernandez-Roque, D., & van Engen, M. (2021). Psychological capital and entrepreneurship: Gender differences. Gender in Management: An International Journal, 36(3), 238-255.
  • Wang, J., Li, W., ul Haq, S., & Shahbaz, P. (2023). Adoption of renewable energy technology on farms for sustainable and efficient production: Exploring the role of entrepreneurial orientation, farmer perception, and government policies. Sustainability, 15(7), 5611. https://doi.org/https://doi.org/10.3390/su15075611
  • WEF. (2020). How Countries are Performing on the Road to Recovery (The Global Competitiveness Report Special Edition 2020, Issue.
  • Wei, W., & Duan, J. (2024). How do entrepreneurial activities at different levels promote business growth: a review and research agenda. Chinese Management Studies, 18(3), 755-784. https://doi.org/https://doi.org/10.1108/CMS-06-2022-0226
  • Xavier, S., R., Kelly, D., Kew, J., Herrington, M., & Vorderwulbecke, A. (2012). Global Entrepreneurship Monitor 2012 Global Report. www.gemconsortium.org
  • Xu, D., & Meyer, K. E. (2013). Linking Theory and Context: ‘Strategy Research in Emerging Economies’ after Wright et al. (2005). Journal of Management Studies, 50(7), 1322-1346. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=90608090&site=eds-live
  • Yuan, D., Yau, Y., & Bao, H. (2024). Urban village redevelopment in China: Conflict formation and management from a neo-institutional economics perspective. Cities, 145, 104710. https://doi.org/https://doi.org/10.1016/j.cities.2023.104710
  • Zhang, Z., & Chun, D. (2018). Becoming entrepreneurs: how immigrants developed entrepreneurial identities. International Journal of Entrepreneurial Behavior & Research, 24(5), 947-970. https://doi.org/10.1108/IJEBR-07-2016-0214
Toplam 105 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular İşletme
Bölüm Araştırma Makalesi
Yazarlar

Taofeek Owoseni 0000-0003-0362-3062

Gönderilme Tarihi 17 Haziran 2025
Kabul Tarihi 22 Eylül 2025
Yayımlanma Tarihi 30 Aralık 2025
DOI https://doi.org/10.54186/arhuss.1687314
IZ https://izlik.org/JA76XP27RX
Yayımlandığı Sayı Yıl 2025 Cilt: 8 Sayı: 2

Kaynak Göster

APA Owoseni, T. (2025). Institutional Correlates Influencing MSME Business Processes in South Africa. Academic Review of Humanities and Social Sciences, 8(2), 67-83. https://doi.org/10.54186/arhuss.1687314

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