Institutions, the entrepreneurial orientation and innovative capabilities of countries: the moderating effect of technological development

Purpose The impacts of institutions on entrepreneurship and innovation, as well as the effects of technological development, have been subject to various research studies. While this theme inherently remains a focus for political decision-makers, there is very little knowledge on the combined role of institutions, entrepreneurial orientations and innovation capabilities on the technological development of countries. In this study, we examine the impacts of entrepreneurial orientation and the innovative capacity of countries through considering the moderating effect of technological development. Design/methodology/approach The data used in this study has been collected from various sources, including the World Economic Forum United Nations (UN), World Bank (WB), Organization for Economic Cooperation and Development (OECD), World Intellectual Property Organization (WIPO), National Consortium for the Study of Terrorism and Responses to Terrorism (START) and Scimago. The study focuses on 86 countries that are either at stage 2 or stage 3 of development or in the transition from stage 2 to stage 3. Findings We have found that corporate governance, property rights and security institutions have a positive influence on a country’s entrepreneurial mindset and its ability to innovate. Additionally, we have noted that technological advancements also play a role in moderating this relationship. These findings have important implications for the theory, practice and public policies in this area. Originality/value This study emphasizes the substantial impact of institutional quality on the entrepreneurial mindset and innovation capabilities of businesses. It shows that perceiving institutions as more stable can have a positive effect on both entrepreneurial orientation and innovative capabilities, ultimately improving companies' competitiveness.