BMO-55806 Entrepreneurship and Innovation in emerging economies
Summary Literature + Lectures
Week 1
Viswanathan et al. (2010)
Understanding consumption and entrepreneurship in subsistence marketplaces
Previous studies: characterize subsistence contexts as 1-to-1 interactional marketplaces due to
prevalence of face-to-face interactions among customers and sellers when evaluating products,
making purchases and operating small businesses.
This research: focuses on both the consumer and the entrepreneur and the role of social networks
from both sides of the business transaction.
Study 1:
Hypotheses:
1) Subsistence consumers will rely more on social (versus non-social) sources for information
2) Subsistence consumers who rely more heavily on social (versus non-social) sources of
information will exhibit greater self-efficacy
3) The negative effects of low literacy on self-efficacy will be attenuated among consumers who
rely on social sources for information
Results:
H1 is supported. The top two information sources relied upon by respondents when making purchase
decisions were groups and interactions with family/close friends.
H2 is not supported. Differences in reliance on specific information sources, either social or non-social,
did not significantly impact overall self-efficacy regarding consumer skills.
H3 is supported. The number of years of formal schooling served as a proxy for literacy. Literacy did
play a role in interactions with shopkeepers. Self-efficacy did not vary.
Negative relations between: education and levels of mistrust in the shopkeeper, uncertainty about
what information to request and perceived power imbalance in favor of the shopkeeper.
Study 2:
Hypotheses:
4) Subsistence entrepreneurs will rely more heavily on social (versus non-social) sources for
information
5) Subsistence entrepreneurs who rely more heavily on social (versus non-social) sources of
information will exhibit greater self-efficacy
6) The negative effects of low literacy on self-efficacy will be attenuated among entrepreneurs
who rely on social sources of information
7) Subsistence entrepreneurs will rely more on social than non-social sources of business and
financial assistance
Results:
H4 is supported. Subsistence entrepreneurs generally relied more on social sources for information
about the marketplace than non-social sources.
H5 is supported, but the effect (of a higher self-efficacy) is not limited to only social sources, it is also
present for non-social sources.
H6 is supported. Self-efficacy is independent of literacy.
H7 is supported. Entrepreneurs relied more frequently on social sources of help than on non-social
sources.
1
Summary Literature + Lectures
Week 1
Viswanathan et al. (2010)
Understanding consumption and entrepreneurship in subsistence marketplaces
Previous studies: characterize subsistence contexts as 1-to-1 interactional marketplaces due to
prevalence of face-to-face interactions among customers and sellers when evaluating products,
making purchases and operating small businesses.
This research: focuses on both the consumer and the entrepreneur and the role of social networks
from both sides of the business transaction.
Study 1:
Hypotheses:
1) Subsistence consumers will rely more on social (versus non-social) sources for information
2) Subsistence consumers who rely more heavily on social (versus non-social) sources of
information will exhibit greater self-efficacy
3) The negative effects of low literacy on self-efficacy will be attenuated among consumers who
rely on social sources for information
Results:
H1 is supported. The top two information sources relied upon by respondents when making purchase
decisions were groups and interactions with family/close friends.
H2 is not supported. Differences in reliance on specific information sources, either social or non-social,
did not significantly impact overall self-efficacy regarding consumer skills.
H3 is supported. The number of years of formal schooling served as a proxy for literacy. Literacy did
play a role in interactions with shopkeepers. Self-efficacy did not vary.
Negative relations between: education and levels of mistrust in the shopkeeper, uncertainty about
what information to request and perceived power imbalance in favor of the shopkeeper.
Study 2:
Hypotheses:
4) Subsistence entrepreneurs will rely more heavily on social (versus non-social) sources for
information
5) Subsistence entrepreneurs who rely more heavily on social (versus non-social) sources of
information will exhibit greater self-efficacy
6) The negative effects of low literacy on self-efficacy will be attenuated among entrepreneurs
who rely on social sources of information
7) Subsistence entrepreneurs will rely more on social than non-social sources of business and
financial assistance
Results:
H4 is supported. Subsistence entrepreneurs generally relied more on social sources for information
about the marketplace than non-social sources.
H5 is supported, but the effect (of a higher self-efficacy) is not limited to only social sources, it is also
present for non-social sources.
H6 is supported. Self-efficacy is independent of literacy.
H7 is supported. Entrepreneurs relied more frequently on social sources of help than on non-social
sources.
1
