Entrepreneurship is considered as an important mechanism in fostering economic development. Across all countries, the entrepreneurial environment is influenced by the dynamics of its institutions, at both the macro and micro levels. In Malaysia, the entrepreneurial activity of ethnic Bumiputra as the majority community has been significantly influenced by the institutional priorities of the government. However, with its affirmative action policy, attempts made by the policy makers have struggled to enable the growth of Bumiputra entrepreneurial activity. There is currently little understanding of the relationships between institutions and how they influence entrepreneurial activity in such contexts of pro-ethnic policy making.
Using constructionist thematic analysis, this thesis examines entrepreneurship and institutions in the context of the emerging economy of Malaysia. It examines the perceptions and experiences of institutional actors, through interviews with policy makers and entrepreneurs, who influence and are influenced by the prevailing institutions in the Malaysian entrepreneurship milieu. This is achieved by analysing the influence of the affirmative action policy and societal norms that exist around Bumiputra entrepreneurship, and the social interactions between these institutions.
The main findings reveal various ways that both formal and informal institutional voids can be filled by institutional actors including both entrepreneurs and policy makers. These voids have also led to the practice of institutional manipulation through the role of institutional actors, who conduct their entrepreneurial activity through manipulating institutional roles including crony and policy entrepreneurship. These practices are frequently, if not always, considered as legal and normal. Institutional asymmetries are also found where more prevailing aspects were discovered in informal institutions such as the element of religion that can further be explored in certain industry sectors. These institutional perspectives help in shaping the societal norms by promoting diversity to the entrepreneurs that include expansion and industrial exploration. The heterogeneity has also been found to be influenced by the long-institutionalised pro-ethnic policy and needs to be addressed with specific policy reforms, such as in education and mainstreaming the use of digital platforms.
