Political Turmoil and Informal Entrepreneurship: Uncovering Drivers of Resilience in Developing Countries

Rismaida Kusuma Dewi; Annisa Qurrota A'yun

doi:10.69725/jebi.v2i1.220

Authors

Rismaida Kusuma Dewi Management Department, Vocational School, Universitas Diponegoro, Semarang, Indonesia
Annisa Qurrota A'yun Management Department, Vocational School, Universitas Diponegoro, Semarang, Indonesia

DOI:

https://doi.org/10.69725/jebi.v2i1.220

Keywords:

Informal entrepreneurship, Resilience, Institutions, Conflic, Economic merger

Abstract

Purpose: This paper provides evidence on how external institutional contexts and internal cognitive dimensions are associated with the engagement in informal entrepreneurship in emerging markets.
Method: Methods A quantitative study was used in this study with structured questionnaires and analysis using SPSS to 438 subjects in Indonesia.
Findings: The severity of political contestation level, decomposition of formal economy access, poor institutional governance and community social capital increase informal entrepreneurship. Additionally, a resilience-based entrepreneurial mindset (REM) has a significant moderating and enhancing effect on the relationships.
Novelty: The research adds to the literature on entrepreneurship by offering REM as a new cognitive moderator that serves to neutralise institutional adversity and stimulate entrepreneurial engagement, dovetailing institutional theory and entrepreneurial cognition.
Implications: The study contributes to theory development by highlighting psychological resilience in institutional void environments, while providing practitio- ners with guidance to facilitate adaptive entrepreneurship in vulnerable domains. More broadly, it offers a portable framework for interpreting the informal entrepreneurial ecosystem in a context of uncertainty and institutional frailty.

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Author Biographies

Rismaida Kusuma Dewi, Management Department, Vocational School, Universitas Diponegoro, Semarang, Indonesia

Rismaida Kusuma Dewi is a student at the Department of Management, Vocational School, Diponegoro University, Semarang, Indonesia. She has academic interests in business management, entrepreneurship, and digital innovation in the MSME sector. During her studies, Rismaida was active in various organisational activities and applied research focusing on developing managerial skills and technology-based marketing strategies. She is also developing expertise in data analysis and implementation of practical solutions to support business operational efficiency.
Annisa Qurrota A'yun, Management Department, Vocational School, Universitas Diponegoro, Semarang, Indonesia

Annisa Qurrota A'yun, S.E., M.M., is a permanent lecturer at the Department of Management, Vocational School, Diponegoro University, Semarang, Indonesia. She has expertise in strategic management, entrepreneurship, and business innovation, and is active in applied research that supports the development of MSMEs and the digital economy. His scientific works have been published in various reputable and Scopus-indexed journals. In addition to teaching, he also acts as a student mentor in community service and business incubation programmes. Annisa always integrates practical and academic approaches to produce vocational graduates who are adaptive to industry changes.

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