Institutional uncertainty and growth expectations of businesses: the case of Jordan.
Uncertainty about the institutional environment plays a crucial role in business‐related decisions. Measuring institutional uncertainty, in light of its interplay with normative, regulatory, and cognitive aspects of institutions, is a complex issue. This study develops a multidimensional index to me...
| Published in: | International Social Science Journal Vol. 70; no. 237/238; pp. 239 - 262 |
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| Main Authors: | , |
| Format: | Article |
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Wiley-Blackwell
Sep-Dec 2020
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=147773990&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 147773990 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00208701 ISJ jtl: International Social Science Journal issn: 00208701 maglogo: Y pubinfo: dt: Sep-Dec 2020 vid: 70 iid: 237/238 pid: 480 pub: Wiley-Blackwell artinfo: ui: 147773990 10.1111/issj.12254 ppf: 239 ppct: 23 formats: tig: atl: Institutional uncertainty and growth expectations of businesses: the case of Jordan. aug: au: Sandri, Serena Alshyab, Nooh su: Business Institutional environment Multidimensional databases Databases Business expansion sug: subj: Business Institutional environment Multidimensional databases Databases Business expansion keyword: binary logit regression business growth institutional uncertainty institutions Jordan binary logit regression business growth institutional uncertainty institutions Jordan ab: Uncertainty about the institutional environment plays a crucial role in business‐related decisions. Measuring institutional uncertainty, in light of its interplay with normative, regulatory, and cognitive aspects of institutions, is a complex issue. This study develops a multidimensional index to measure the perception of institutional uncertainty by private sector decision‐makers and to assess its effects on the perspectives of business growth. The index captures uncertainty related to government and policies, law and law enforcement, judiciary, security of persons and property rights, political instability, and state–private sector relations. The developed indicator is then measured based on a survey run over a representative sample of 319 business owners, entrepreneurs, and top managers in Jordan. The results of binary logit regressions support the view that if institutions are perceived to be uncertain, this negatively influences the growth expectations of businesses. More specifically, it emerges that the uncertainty related to the judiciary, to political instability, as well as to clientelism and corruption significantly contributes to discouraging job creation. The results further point to the importance of social capital and networking for doing business. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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