Drivers of firm formalization in Vietnam: an attention theory explanation

Nguyen, Tam, Verreynne, Martie-Louise and Steen, John (2014) Drivers of firm formalization in Vietnam: an attention theory explanation. Entrepreneurship and Regional Development, 26 7-8: 574-593. doi:10.1080/08985626.2014.959069

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Author Nguyen, Tam
Verreynne, Martie-Louise
Steen, John
Title Drivers of firm formalization in Vietnam: an attention theory explanation
Journal name Entrepreneurship and Regional Development   Check publisher's open access policy
ISSN 0898-5626
Publication date 2014
Year available 2014
Sub-type Article (original research)
DOI 10.1080/08985626.2014.959069
Open Access Status File (Author Post-print)
Volume 26
Issue 7-8
Start page 574
End page 593
Total pages 20
Place of publication Abingdon, Oxon, United Kingdom
Publisher Routledge
Collection year 2015
Language eng
Formatted abstract
Informal enterprises are widely viewed as a mechanism to engage unemployed people in the economy and thereby alleviate poverty in developing economies.  However, over-representation in an economy may lead to both economic growth and broader employment opportunities being sacrificed. This paper presents a process model to investigate three potential drivers for firms to formalize: the first from a desire to grow and develop the firm through innovation, the second from the wish to access government financial support and the third stimulated by the payment of unofficial payments or bribes. We use data from surveys of Vietnamese firms in 2005, 2007, 2009 and 2011 to investigate these drivers of formalization. Although we find support for all three of these drivers, the results differ in significance across years and firm types. We explain these differences using attention theory to show how different situations and events can make the formalization decision more likely over time.
Keyword Formalization
Informal economy
Government support
Attention theory
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2015 Collection
UQ Business School Publications
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Citation counts: TR Web of Science Citation Count  Cited 3 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 2 times in Scopus Article | Citations
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Created: Wed, 27 Aug 2014, 13:12:27 EST by Karen Morgan on behalf of UQ Business School