International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets context
This study examines the emergence of international hidden entrepreneurs (IHEs) in the Kingdom of Saudi Arabia through an institutional theory lens. An international hidden entrepreneur arises when local regulations impose high costs on an international entrepreneur operating as the legal head of an...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-03-01
|
| Series: | Journal of Innovation & Knowledge |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X25000204 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850278738569199616 |
|---|---|
| author | Moayad Moharrak Faisal AlReshaid Kathleen Marshall Park Ahmad R. Alsaber |
| author_facet | Moayad Moharrak Faisal AlReshaid Kathleen Marshall Park Ahmad R. Alsaber |
| author_sort | Moayad Moharrak |
| collection | DOAJ |
| description | This study examines the emergence of international hidden entrepreneurs (IHEs) in the Kingdom of Saudi Arabia through an institutional theory lens. An international hidden entrepreneur arises when local regulations impose high costs on an international entrepreneur operating as the legal head of an enterprise, therefore giving rise to a concealed partnership with a local entrepreneur to serve as the official managing director. The IHEs in our study typically originate from emerging market nations. Drawing on qualitative data from 44 participants, we examine the complexities of (1) mechanisms of IHE practices, (2) catalysts to the rise of IHEs, and (3) ethical and economic impacts of the presence of IHEs and their implications for the local economy. We establish the existence of IHEs as a still underexplored phenomenon and the advantages and disadvantages of the system in consonance with the cognitive, regulative, and normative pillars of institutional theory. Our findings reveal that IHEs arise as a response to stringent regulatory barriers, socio-cultural norms, and cognitive skill gaps. This study contributes to institutional theory by demonstrating how these pillars intersect in the Saudi context, offering novel insights into informal entrepreneurship and its challenges to Saudi Vision 2030. |
| format | Article |
| id | doaj-art-7e39cedcfd3d4965a9d84730fd7899d8 |
| institution | OA Journals |
| issn | 2444-569X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-7e39cedcfd3d4965a9d84730fd7899d82025-08-20T01:49:22ZengElsevierJournal of Innovation & Knowledge2444-569X2025-03-0110210066910.1016/j.jik.2025.100669International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets contextMoayad Moharrak0Faisal AlReshaid1Kathleen Marshall Park2Ahmad R. Alsaber3Business Management, Taif University, Saudi ArabiaManagement, American University of Kuwait, Kuwait; Corresponding author.Administrative Sciences, Strategy and Innovation, MET Department of Administrative Sciences and Global Development Policy Center, Boston University, Boston, MA 02460, USAStatistics and Data Science, American University of Kuwait, KuwaitThis study examines the emergence of international hidden entrepreneurs (IHEs) in the Kingdom of Saudi Arabia through an institutional theory lens. An international hidden entrepreneur arises when local regulations impose high costs on an international entrepreneur operating as the legal head of an enterprise, therefore giving rise to a concealed partnership with a local entrepreneur to serve as the official managing director. The IHEs in our study typically originate from emerging market nations. Drawing on qualitative data from 44 participants, we examine the complexities of (1) mechanisms of IHE practices, (2) catalysts to the rise of IHEs, and (3) ethical and economic impacts of the presence of IHEs and their implications for the local economy. We establish the existence of IHEs as a still underexplored phenomenon and the advantages and disadvantages of the system in consonance with the cognitive, regulative, and normative pillars of institutional theory. Our findings reveal that IHEs arise as a response to stringent regulatory barriers, socio-cultural norms, and cognitive skill gaps. This study contributes to institutional theory by demonstrating how these pillars intersect in the Saudi context, offering novel insights into informal entrepreneurship and its challenges to Saudi Vision 2030.http://www.sciencedirect.com/science/article/pii/S2444569X25000204J15M13M16O11O19O53 |
| spellingShingle | Moayad Moharrak Faisal AlReshaid Kathleen Marshall Park Ahmad R. Alsaber International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets context Journal of Innovation & Knowledge J15 M13 M16 O11 O19 O53 |
| title | International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets context |
| title_full | International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets context |
| title_fullStr | International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets context |
| title_full_unstemmed | International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets context |
| title_short | International hidden entrepreneurs: Concealed partnerships in new venture formation in an emerging markets context |
| title_sort | international hidden entrepreneurs concealed partnerships in new venture formation in an emerging markets context |
| topic | J15 M13 M16 O11 O19 O53 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X25000204 |
| work_keys_str_mv | AT moayadmoharrak internationalhiddenentrepreneursconcealedpartnershipsinnewventureformationinanemergingmarketscontext AT faisalalreshaid internationalhiddenentrepreneursconcealedpartnershipsinnewventureformationinanemergingmarketscontext AT kathleenmarshallpark internationalhiddenentrepreneursconcealedpartnershipsinnewventureformationinanemergingmarketscontext AT ahmadralsaber internationalhiddenentrepreneursconcealedpartnershipsinnewventureformationinanemergingmarketscontext |