The Impact of Institutional Voids on Entrepreneurial Firm Growth: A Quantitative Research in Egypt

Document Type : Original Article

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Faculty of Commerce, Cairo University, Egypt.

10.21608/ajccr.2025.335517.1138

Abstract

This study investigates the impact of micro-level institutional voids on the growth of entrepreneurial firms. A sample of 315 Egyptian Information, Communication, and Technology (ICT) companies, representing diverse sizes and maturity levels, was used to model the correlation between variables via structural equation modeling. The results suggest growth has a strong positive relationship with product-market voids; a strong negative relationship with capital-market voids; and an insignificant negative relationship with labor-market voids. Only a few previous papers investigated different dimensions of micro-level institutional voids instead of the more common focus on macro-level voids. Additionally, a focus on entrepreneurial growth as the ultimate goal of a firm advances knowledge in the area. The presented results allow firms to manage institutional voids better and assist institutions, particularly financial ones, in enhancing their services to support company growth. Ultimately, this paper opens up new avenues for future research on entrepreneurship, institutional voids, and firm growth in emerging economies.

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