Exploring Informal Institutional Voids and Entrepreneurial Response Strategies in Nigeria

While the extant literature in emerging markets often emphasise informal institution as readily institutional alternative for entrepreneurs facing formal institutional challenges in such context, it is increasingly argued that its ability and capacity to provide institutional leverage is limited. This growing recognition highlights the limitation of theorising on the broader influence of informal institutions on entrepreneurship. Building on this argument, this thesis draws on the experience of the entrepreneurs in Nigeria to explore in specifically how informal institutional voids emerge – a concept to explain functional deficiencies of an institution and strategic responses of the entrepreneurs in shaping these outcomes. The study is underpinned by a neo-empiricism qualitative paradigm involving 21 semi structured interview from entrepreneurs in Nigeria. The data was analysed inductively using Gioia method. The analysis of the data revealed three key constructs around institutional logic perspectives to broadly reconceptualises the influence of the informal institutions on entrepreneurship and strategic behaviour of entrepreneurs. Findings shows that informal institutions operate within complex framework shaped by interdependent elements which overlaps to create deficiency such as normative tension, power dynamics and obligatory concern suggesting the presence of informal institutional voids. As such, entrepreneurs operating in such contexts creatively navigate and manage these conditions through the development of bricolage, organisation structure and evolving relational mechanism. By offering a reconceptualization of the influence of informal institution on entrepreneurship in emerging market, this thesis offer insights into how informal institutions are limited in capacity, challenging the general assumption on the sustenance of informal institutions to efficiently provide institutional leverage in institutional constraint environment. Additionally, the thesis also reframes entrepreneurial strategic behaviour, specifically within constrained economic-institutional context as a process of bricolage