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.
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Notes
BRAC was initially called the Bangladesh Rehabilitation Assistance Committee.
According to the 2001 Population Census, Bangladesh Bureau of Statistics, Statistics Bangladesh 2006, http://www.bbs.gov.bd/dataindex/stat_bangladesh.pdf. Accessed 7 July 2009.
A household was eligible for inclusion in the NSP if it contained at least one physically able child under 5 years of age, and if the mother was present.
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Acknowledgements
The authors thank Paul Beamish for his insights and guidance throughout this project. Our colleagues Tima Bansal, Geoff Kistruck, Srinivas Sridharan, and Stewart Thornhill also offered helpful suggestions on prior versions of the manuscript. We are grateful to the Special Issue editors and reviewers, and especially to our action editor, Mary Ann Von Glinow, for their feedback during the review process. Financial support was provided by the Social Sciences and Humanities Research Council, a 2007–2008 Canadian-African Capacity Building Grant for Private Sector Development Research in Africa co-funded by the Investment Climate and Business Environment Research Fund (ICBE RF), The International Development Research Centre (IDRC) and TrustAfrica (Ford Foundation), and the Richard Ivey School of Business at The University of Western Ontario. A prior version of the manuscript was presented at the 2009 Academy of Management Meetings in Chicago, where it received the Entrepreneurship division nomination for the all-academy Carolyn Dexter award.
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Accepted by Mary Ann Von Glinow, Consulting Editor, 22 December 2009. This paper has been with the authors for three revisions.
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Branzei, O., Abdelnour, S. Another day, another dollar: Enterprise resilience under terrorism in developing countries. J Int Bus Stud 41, 804–825 (2010). https://doi.org/10.1057/jibs.2010.6
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DOI: https://doi.org/10.1057/jibs.2010.6