Blooming in the cracks: productive entrepreneurship amid institutional voids

Institutional entrepreneurship holds that institutions, as the rules of the game, provide payoff structures affecting the allocation of entrepreneurship to productive, unproductive, or destructive paths. Contrary to institutionalist assumptions, institutional work (IW) literature draws a broader vision of the recursive and dialectical connection between agents and institutions. IW explains how agents' intent and capability lead to maintaining, altering, or creating institutions and direct entrepreneurial outcomes toward productive paths. The current research adopts an IW perspective to explore how productive entrepreneurship (PE) occurs in poor institutional contexts. Applying an extended case method and conducting semi-structured interviews with entrepreneurs, we extend the current understanding of the agent-institution interplay in entrepreneurship allocation. Our results depict a more realistic and comprehensive picture of entrepreneurship allocation to productive paths amid institutional constraints. Highlighting the role of actions and motivations, we explore different mechanisms and IW strategies entrepreneurs use to pursue PE within inefficient institutions. This paper, viewed through the lens of institutional work (IW), explains productive entrepreneurship (PE) in the face of institutional constraints. It explores the role of actions and motivations in surmounting institutional barriers, offering practical insights for policymakers. It highlights the necessity for policymakers to acknowledge and rectify institutional inefficiencies. Moreover, it stresses the influence of informal community beliefs on formal institutions, advocating for long-term transformation strategies, particularly through education and community awareness campaigns. Further, it highlights the significance of the institutional work of economic actors and community leaders in promoting PE. Lastly, it explores how entrepreneurs' motivations drive them toward PE, suggesting that educational policies should consider these aspects.