Vartuhi Tonoyan

Corruption and Entrepreneurship: How Formal and Informal Institutions Shape Small Firm Behavior in Transition and Mature Market Economies

This article explores the determinants of corruption in transition economies of the post–Soviet Union, Central–Eastern Europe, and Western industrialized states. We look in–depth at the East–West gap in corruption, and why entrepreneurs and small business owners become engaged in corrupt deals. Part of the answers lie in the country–specific formal and informal institutional make–up. The likelihood of engaging in corruption is influenced by the lower efficiency of financial and legal institutions and the lack of their enforcements. Also, viewing illegal business activities as a widespread business practice provides the rationale for entrepreneurs to justify their own corrupt activities. Moreover, closed social networks with family, friends, and national bureaucrats reduce the opportunism of the contracting party of the corrupt deal, thus providing breeding grounds for corruption.

Bridging the Gender Gap in Employment Growth On the Role of Innovativeness and Occupational Segregation

Analysing 1,055 female- and 2,207 male-owned businesses in Germany, the authors found that the former underperformed compared with the latter in terms of employment growth and firm innovativeness. Controlling for endogeneity, ie feedback effects between employment growth and innovation, it was demonstrated that the lower employment growth in women-owned businesses was mainly due to womens lower commitment to product and process innovations, a phenomenon that is referred to in this study as the ‘female–male innovation gap’. The female–male innovation gap apparently goes back to occupational sex segregation, with women populating occupations and choosing fields of study or apprenticeship training that are less technical or technology-oriented and thus less likely to provide them with important resources (eg technical know-how) and favourable conditions needed for the development and implementation of product and process innovations.

Employment Growth and Firm Innovativeness — An Empirical Investigation of Women- and Men-Owned Small Ventures in Germany

Analyzing 1055 female- and 2207 male-owned businesses in Germany, we find that the former underperform the latter in terms of employment growth and firm innovativeness. Controlling for endogeneity, i.e. feedback effects between employment growth and innovation, we show that the lower employment growth in womenowned businesses is mainly due to women’s lower commitment to product and process innovations, a phenomenon which is referred to as “female-male innovation gap” in this study. The female-male innovation gap goes apparently back to occupational sex segregation, with women occupying occupations and choosing fields of study or apprenticeship training which are less technical or technology-oriented and thus less likely to provide them with important resources (e.g. technical know-how) and favorable conditions needed for the development and implementation of product and process innovations.