Another day, another dollar: Enterprise resilience under terrorism in developing countries

Oana Branzei*, Samer Abdelnour

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This study extends the literature on entrepreneurship in developing countries by offering a two-stage explanation for the paradoxical observation that enterprise activities often flourish under extreme adversity. Our findings complement the base-of-pyramid and peace-through-commerce attention to the growing role of business in international development by fleshing out the functions of enterprise resilience under terrorism. We first explain how terrorism conditions (outbreak, escalation, and reduction) may create psychological incentives for enterprise resilience; then we show that, controlling for ex ante terrorism conditions, enterprise resilience yields more favorable economic payoffs at higher levels of terrorism, especially for informal entrepreneurs.
Original languageEnglish
Pages (from-to)804-825
Number of pages22
JournalJournal of International Business Studies
Volume41
Issue number5
Early online date4 Mar 2010
DOIs
Publication statusPublished - 1 Jun 2010

Keywords

  • entrepreneurship in emerging markets
  • economic development
  • market turmoil
  • low-income markets
  • bottom of the pyramid
  • peace-through-commerce
  • international development

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