Institutional voids and new venture performance: The moderating role of founders' political ties

Author:

Tantawy Ahmed Adel12ORCID,Amankwah‐Amoah Joseph3ORCID,Puthusserry Pushyarag4ORCID

Affiliation:

1. Sheffield Business School Sheffield Hallam University Sheffield UK

2. Kent Business School University of Kent Medway UK

3. Durham University Business School Durham University Durham UK

4. Kent Business School University of Kent Canterbury UK

Abstract

AbstractBuilding on the institutional voids (IVs) and resource‐dependence perspectives, this study examines the moderating impact of new business founders' political ties on the relationship between IVs and new venture performance (NVP). We developed and tested a unique model using data obtained from 309 new ventures in the MENA region, specifically Egypt. The results demonstrate that founders' political ties enhance firms' complementary assets and mitigate the negative effects of IVs on NVP in developing markets. The theoretical and practical implications concerning NVP in a developing market environment are examined.

Publisher

Wiley

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