Measurement and structural invariance of entrepreneurial investment climate: A cross-country scale development

Dae il Nam, Juhee Kim, Jonathan D. Arthurs, John Joseph Sosik, John B. Cullen

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Testing invariance is important in cross-cultural studies because a lack of invariance may bias empirical results and lead to improper theoretical inferences. This study introduces and validates a scale for measuring entrepreneurial investment climate, consisting of four factors: Societal stability, Labor and Regulations, Quality of Infrastructure, and Ease of Finance. The instrument was developed using World Bank Group data from 51,169 firms and 72 institutional profiles to determine investment climate. Confirmatory factor analyses reveal the validity of the scale and its robustness across country types and time. The study's implications for practice and future research are discussed.

Original languageEnglish (US)
Pages (from-to)1053-1065
Number of pages13
JournalInternational Business Review
Volume25
Issue number5
DOIs
StatePublished - Oct 1 2016

Fingerprint

Scale development
Factors
Invariance
Investment climate
Cross-cultural studies
Robustness
World Bank
Labor
Testing
Empirical results
Finance
Inference

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Marketing

Cite this

Nam, Dae il ; Kim, Juhee ; Arthurs, Jonathan D. ; Sosik, John Joseph ; Cullen, John B. / Measurement and structural invariance of entrepreneurial investment climate : A cross-country scale development. In: International Business Review. 2016 ; Vol. 25, No. 5. pp. 1053-1065.
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Measurement and structural invariance of entrepreneurial investment climate : A cross-country scale development. / Nam, Dae il; Kim, Juhee; Arthurs, Jonathan D.; Sosik, John Joseph; Cullen, John B.

In: International Business Review, Vol. 25, No. 5, 01.10.2016, p. 1053-1065.

Research output: Contribution to journalArticle

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