State fragility and informal entrepreneurship: The moderating effects of human capital under varying temporal orientations

This study examines the linkage between state fragility and informal entrepreneurship and the moderating effects of human capital on this linkage under varying temporal orientations. Using data on 429 observations from 62 countries for the 2006–2017 period, we find a positive linkage between state fragility and informal entrepreneurship. Moreover, both human capital and long-term orientation weaken the linkage, while the moderating role of human capital is weaker in long-term-oriented countries. This study advances our knowledge of the implications of state fragility for entrepreneurship and the antecedents of informal entrepreneurship. It also assists in illustrating the wide variation in the level of informal entrepreneurship across countries, thereby contributing to the comparative international entrepreneurship literature.