Putting Entrepreneurial Intentions Into Context: Regional Institutions and the Intention-Behavior Link

Abstract

We examine the role of regional formal and informal institutions in the intention-behavior link in entrepreneurship. Using multilevel regression analyses on a longitudinal sample of university students embedded in 40 European regions, we find evidence that regional formal and informal institutions have distinct and unique influences on the entrepreneurial intention-action relationship. In particular, our results show that the intention-behavior link is strengthened in regions characterized by a high quality of government and weakened in regions featuring a high quality of the social security system and a strong work ethic culture. Our findings provide important insights into the interdependence between individual and contextual factors regulating the entrepreneurial process by integrating the role of regional institutions as important contingencies. Our study provides valuable theoretical and policy implications.