Open AccessInstitutional risks impact on the growth potential of construction entrepreneurship organizations
Author(s) -
Bozhidar Chaparov,
A. Gospodinova,
I. Fedoseev,
M. N. Yudenko
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/951/1/012030
Subject(s) - transaction cost , attractiveness , business , norm (philosophy) , entrepreneurship , industrial organization , unification , investment (military) , institutional theory , economics , finance , management , political science , psychology , politics , computer science , psychoanalysis , law , programming language
Theoretical approaches to the concept of “growth potential” of entrepreneurial organizations were researched. A hypothesis is put forward about the objective presence of institutional risks in the organizations activities in the form of ineffective norms and rules that reduce the growth potential of organizations in the construction industry. The institutional norm of “contribution to the infrastructure development” in construction entrepreneurship and its impact on the activities of developers in Russia and Bulgaria are studied. The conclusion is made about the instability of this norm and the lack of unification of its application in the regions, which creates institutional risks for the construction business and consumers of construction facilities. Institutional risks are directly related to administrative barriers in the entrepreneurs’ activities, and their interaction reduces the investment attractiveness of facilities, increases transaction costs and reduces the growth potential of organizations.