The Recursive Relationship between Entrepreneurship and Institutions:A Comparative Study of SMEs

There is a growing recognition that institutional theory can be used as a theoretical lens for entrepreneurship research. This paper sets out to explore the relationship between the institutional context and entrepreneurship through a study of entrepreneurial actors with less perceived power and resources at the nexus of cross-context institutional (macro) level and cross-business entrepreneurial (micro) level. We suggest that the entrepreneurial action of SMEs and the institutions context within which they operate are strongly and recursively intertwined, profiling entrepreneurial SMEs as socially-balanced that are neither over-socialized taking established institutions for granted, nor under-socialized ignoring the institutional pressures for conformity.