Joshua Ault - Academia.edu (original) (raw)

Papers by Joshua Ault

Proceedings - Academy of Management, Aug 1, 2018

Journal of International Business Studies, Oct 1, 2016

This study applies an institutional perspective to a current debate in social entrepreneurship ab... more This study applies an institutional perspective to a current debate in social entrepreneurship about the relative effectiveness of commercial vs non-profit methods of building inclusive markets for the poor. While some observers argue that for-profit ventures are needed to serve the poor on a large scale, others express concern that commercialization causes mission drift, a phenomenon where ventures migrate to wealthier clients over time. A multilevel analysis of 2679 for-profit and non-profit microfinance lenders in 123 countries over 15 years supported the hypotheses that commercialization contributes to mission drift away from market inclusivity, but that national levels of "state fragility" moderate this effect. In countries with a low level of state fragility, it was less costly to serve the poor, which decreased pressure on commercial actors to shift to wealthier clients to achieve profitability. An important implication of this finding is that institutions influence not only the number of entrepreneurs found in a particular location but also the social impact of entrepreneurial strategies and actions.

Research Policy, Nov 1, 2022

While previous comparative research has identified the formal institutional conditions that diffe... more While previous comparative research has identified the formal institutional conditions that differentiate countries on their degree of informal entrepreneurship, this paper examines the characteristics that shape crossnational diversity in its type. Based on a series of fuzzy-set qualitative comparative analyses (fs/QCA) of 138 country cases, we find evidence of causal heterogeneity in the configuration of institutional conditions associated with entrepreneurial outcomes that are informal and growth-oriented and those that are informal and subsistence-oriented. Given our results, we propose that the formal institutional-based conditions that differentiate between types of informal sectors are best identified by the conjoint mixture of strength and weakness of state capabilities across multiple domains, rather than by uniform weakness, or voids, along all state functions. In our discussion, we explore the implication of our configurational-based findings for the comparative analysis of national systems of informal entrepreneurship and for the tailoring of policies to account for the multiple institutional-based pathways by which entrepreneurs come to enter into the informal economy.

Asia Pacific Journal of Management, May 31, 2019

While the international entrepreneurship literature has begun to expand its scope to include the ... more While the international entrepreneurship literature has begun to expand its scope to include the world's poorest and least-developed countries, it has not yet reached a consensus about how to conceptualize and measure the relevant cross-national differences that shape the wide range of entrepreneurial activities across the developing world. To address this gap, we explore the potential contribution of the multidimensional construct of Bstate fragility,^as developed in related fields, as an orienting framework for developing-country entrepreneurship research. Instead of viewing all developing country states as universally weak, the state fragility construct provides a conceptual framework to identify which types of capabilities are weak, to which degree, and in what configuration, thus advancing efforts to systematically compare and contrast the wide diversity of entrepreneurial processes and outcomes found across the developing world. Keywords Developing countries. Entrepreneurship. State fragility. Comparative research In developed-country studies, the presence of a strong state that enforces its own laws, monopolizes the use of violence, and provides basic social welfare services is often such a stable part of the background of entrepreneurial activities that issues of state fragility are rarely explicitly analyzed. In contrast, a common analytical strategy in developing-country entrepreneurship research is to relax the assumption of a strong

Proceedings - Academy of Management, Jul 1, 2012

We conducted a grounded study of a recent microfinance crisis in the Indian region of Andhra Prad... more We conducted a grounded study of a recent microfinance crisis in the Indian region of Andhra Pradesh to generalize more broadly about the role of the state in the success of business-led efforts to...

Proceedings - Academy of Management, Aug 1, 2019

In this study, I develop and test an institutional-contingency model for explaining business inno... more In this study, I develop and test an institutional-contingency model for explaining business innovation in low-income markets of less-developed countries. To build the model, I begin with the basic insight of the BOP literature: that there exist both social and business motives for firms to enter impoverished markets. I then extend this assertion by defining poverty as a function of not only income but also institutions; it is not only income poverty that managers need to account for when entering low-income markets, but also the institutional context in which that poverty is embedded. An important implication of the institutional contingency model is that national context will likely shape: 1) the ability of a business innovation formed in one less-developed country to transfer and grow in another; and 2) the conditions when for-profit governance will be more effective than non-profit. My model also contributes to the international-business literature. IB research that studies the transfer of business practices usually examines the flow of practices from advanced to less-developed countries. In contrast, my model looks at the transfer of indigenous practices created within less-developed countries themselves, a topic rarely examined in the literature. A challenge of analyzing the transfer of practices across low-income countries is that we do not know which institutions matter in this process. Institutional factors that distinguish among rich countries, or even between rich and poor countries, are not necessarily those that distinguish among poor countries themselves. For instance, the IB literature often assumes that a country\u27s regulatory pillar (as measured by formal laws) will be relatively strong. But, this assumption may not hold in less-developed countries. To develop specific institutional measures for analyzing differences among less-developed countries, I introduce the concept of state fragility. This measure has been found to capture variation in the effectiveness of international-aid programs across less-developed countries (Rice & Patrick, 2008). I suggest that differences in state fragility will influence what type of business model will succeed in a particular low-income market. I test the institutional-contingency model through an analysis of the global growth and commercialization of commercial microfinance. Microfinance, a scheme for provisioning small loans to impoverished entrepreneurs in less-developed countries, is often cited in the literature as the quintessential example of a business solution to global poverty (Prahalad, 2005). It has grown into an industry of tens of millions of borrowers worldwide. Furthermore, policymakers have actively pushed the industry to transition to a for-profit model. Global trends in microfinance thus provide an appropriate backdrop for testing the institutional-contingency model. To test the institutional-contingency model, I develop two basic hypotheses. The first relates to the institutional contingencies that influence the global growth of microfinance. It predicts that microfinance will be most likely to grow in those countries that possess middle levels of state fragility. The second hypothesis relates to the institutional contingencies that shape the choice between a commercial and non-for-profit governance model for microfinance lending. It predicts that, in countries that have some kind of microfinance sector, the industry will be most likely to use the for-profit model in those countries with less fragility. Using Random Coefficient Modeling (RCM), I conduct a longitudinal analysis of microfinance in 175 countries. I find support for the institutional-contingency model. State fragility is found to influence the global growth and commercialization of the microfinance industry business model. I then illustrate the effects of state fragility on the global-growth and commercialization of microfinance through two in-depth case studies

Proceedings - Academy of Management, Aug 1, 2022

Proceedings - Academy of Management, 2013

Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management s... more Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management scholar with intriguing questions. On the one hand, university leaders see minimal congruence between BTCA and the core mission of a university. On the other hand, BTCA continues to grow and thrive. The central theme of this symposium will be to endeavor to explain this “lack of congruence, yet thriving” paradox—and discuss whether, and how, BTCA can be leveraged such that it is consistent with the core mission of a university. More specifically, the central questions to be addressed in this symposium are: 1) How is it that big-time college athletics has grown and prospered in spite of serious concerns related to its lack of congruence with the core mission of universities? 2) How is it that innovative efforts, the objectives of which are to increase university-BTCA congruence, while adopted, have not been implemented and/or have not diffused? 3) How, then, might the congruence between BTCA and the core mission...

MethodsX, 2021

To guide researchers interested in replicating our configurational approach to comparative instit... more To guide researchers interested in replicating our configurational approach to comparative institutional analysis, we report on a methodology that builds from existing state fragility indices to differentiate between types of state fragility in 189 countries across the world. We first present the steps we used to identify three constituent dimensions of state fragility. We then report how we configured these first-order institutional measures to build a large-N, fuzzy set qualitative set analysis (fs/QCA) of variation in the degree and type of informal economic sectors found across the world. Our discussion of the methodology shows that:• Configurational-based analysis requires unbundling aggregate measures into constituent dimensions as a first step to analyzing possible systemic interactions.• Configurational-based analysis recognizes sources of cross-national diversity that aggregated or single dimensional metrics are unable to fully capture.

Academy of Management Proceedings

Contemporary studies in economic and financial analysis, 2009

We are confident that the Wal-Mart concept is “exportable.”…If Wal-Mart had been content to be ju... more We are confident that the Wal-Mart concept is “exportable.”…If Wal-Mart had been content to be just an Arkansas retailer in the early days, we probably would not be where we are today. State borders were not barriers, and people and ideas moved freely from one area to another…We believe the successful retailers of the future will be those that bring the best of each nation to today's consumer. We call it “global learning.” We are committed to being a successful global retailer and we believe the attributes that made us successful in the United States will also lead to success internationally.– David D. Glass, President and CEO, Wal-Mart Stores, Inc. (Govindarajan & Gupta, 2001)

Academy of Management Proceedings

Journal of International Business Studies, 2016

This study applies an institutional perspective to a current debate in social entrepreneurship ab... more This study applies an institutional perspective to a current debate in social entrepreneurship about the relative effectiveness of commercial vs non-profit methods of building inclusive markets for the poor. While some observers argue that for-profit ventures are needed to serve the poor on a large scale, others express concern that commercialization causes mission drift, a phenomenon where ventures migrate to wealthier clients over time. A multilevel analysis of 2679 for-profit and non-profit microfinance lenders in 123 countries over 15 years supported the hypotheses that commercialization contributes to mission drift away from market inclusivity, but that national levels of "state fragility" moderate this effect. In countries with a low level of state fragility, it was less costly to serve the poor, which decreased pressure on commercial actors to shift to wealthier clients to achieve profitability. An important implication of this finding is that institutions influence not only the number of entrepreneurs found in a particular location but also the social impact of entrepreneurial strategies and actions.

We apply a comparative institutional perspective to extend research into the conditions of succes... more We apply a comparative institutional perspective to extend research into the conditions of successful business innovation in Bottom-of-the-Pyramid (BOP) markets. To test the importance of the institutional context in these markets, we analyze cross-national differences in the growth of one BOP innovation: commercial microfinance. Our empirical analysis supports the proposition that BOP markets contain comparative institutional advantages that differ from those found in more developed market settings. Specifically, we find that the amount of microlending is strongest in those countries where institutions support a specific type of informal market

While the international entrepreneurship literature has begun to expand its scope to include the ... more While the international entrepreneurship literature has begun to expand its scope to include the world’s poorest and least-developed countries, it has not yet reached a consensus about how to devel...

Research Policy

Abstract While previous comparative research has identified the formal institutional conditions t... more Abstract While previous comparative research has identified the formal institutional conditions that differentiate countries on their degree of informal entrepreneurship, this paper examines the characteristics that shape cross-national diversity in its type. Based on a series of fuzzy-set qualitative comparative analyses (fs/QCA) of 138 country cases, we find evidence of causal heterogeneity in the configuration of institutional conditions associated with entrepreneurial outcomes that are informal and growth-oriented and those that are informal and subsistence-oriented. Given our results, we propose that the formal institutional-based conditions that differentiate between types of informal sectors are best identified by the conjoint mixture of strength and weakness of state capabilities across multiple domains, rather than by uniform weakness, or voids, along all state functions. In our discussion, we explore the implication of our configurational-based findings for the comparative analysis of national systems of informal entrepreneurship and for the tailoring of policies to account for the multiple institutional-based pathways by which entrepreneurs come to enter into the informal economy.

Academy of Management Proceedings

Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management s... more Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management scholar with intriguing questions. On the one hand, university leaders see minimal congruence between BTCA and the core mission of a university. On the other hand, BTCA continues to grow and thrive. The central theme of this symposium will be to endeavor to explain this “lack of congruence, yet thriving” paradox—and discuss whether, and how, BTCA can be leveraged such that it is consistent with the core mission of a university. More specifically, the central questions to be addressed in this symposium are: 1) How is it that big-time college athletics has grown and prospered in spite of serious concerns related to its lack of congruence with the core mission of universities? 2) How is it that innovative efforts, the objectives of which are to increase university-BTCA congruence, while adopted, have not been implemented and/or have not diffused? 3) How, then, might the congruence between BTCA and the core mission...

Proceedings - Academy of Management, Aug 1, 2018

Journal of International Business Studies, Oct 1, 2016

This study applies an institutional perspective to a current debate in social entrepreneurship ab... more This study applies an institutional perspective to a current debate in social entrepreneurship about the relative effectiveness of commercial vs non-profit methods of building inclusive markets for the poor. While some observers argue that for-profit ventures are needed to serve the poor on a large scale, others express concern that commercialization causes mission drift, a phenomenon where ventures migrate to wealthier clients over time. A multilevel analysis of 2679 for-profit and non-profit microfinance lenders in 123 countries over 15 years supported the hypotheses that commercialization contributes to mission drift away from market inclusivity, but that national levels of "state fragility" moderate this effect. In countries with a low level of state fragility, it was less costly to serve the poor, which decreased pressure on commercial actors to shift to wealthier clients to achieve profitability. An important implication of this finding is that institutions influence not only the number of entrepreneurs found in a particular location but also the social impact of entrepreneurial strategies and actions.

Research Policy, Nov 1, 2022

While previous comparative research has identified the formal institutional conditions that diffe... more While previous comparative research has identified the formal institutional conditions that differentiate countries on their degree of informal entrepreneurship, this paper examines the characteristics that shape crossnational diversity in its type. Based on a series of fuzzy-set qualitative comparative analyses (fs/QCA) of 138 country cases, we find evidence of causal heterogeneity in the configuration of institutional conditions associated with entrepreneurial outcomes that are informal and growth-oriented and those that are informal and subsistence-oriented. Given our results, we propose that the formal institutional-based conditions that differentiate between types of informal sectors are best identified by the conjoint mixture of strength and weakness of state capabilities across multiple domains, rather than by uniform weakness, or voids, along all state functions. In our discussion, we explore the implication of our configurational-based findings for the comparative analysis of national systems of informal entrepreneurship and for the tailoring of policies to account for the multiple institutional-based pathways by which entrepreneurs come to enter into the informal economy.

Asia Pacific Journal of Management, May 31, 2019

While the international entrepreneurship literature has begun to expand its scope to include the ... more While the international entrepreneurship literature has begun to expand its scope to include the world's poorest and least-developed countries, it has not yet reached a consensus about how to conceptualize and measure the relevant cross-national differences that shape the wide range of entrepreneurial activities across the developing world. To address this gap, we explore the potential contribution of the multidimensional construct of Bstate fragility,^as developed in related fields, as an orienting framework for developing-country entrepreneurship research. Instead of viewing all developing country states as universally weak, the state fragility construct provides a conceptual framework to identify which types of capabilities are weak, to which degree, and in what configuration, thus advancing efforts to systematically compare and contrast the wide diversity of entrepreneurial processes and outcomes found across the developing world. Keywords Developing countries. Entrepreneurship. State fragility. Comparative research In developed-country studies, the presence of a strong state that enforces its own laws, monopolizes the use of violence, and provides basic social welfare services is often such a stable part of the background of entrepreneurial activities that issues of state fragility are rarely explicitly analyzed. In contrast, a common analytical strategy in developing-country entrepreneurship research is to relax the assumption of a strong

Proceedings - Academy of Management, Jul 1, 2012

We conducted a grounded study of a recent microfinance crisis in the Indian region of Andhra Prad... more We conducted a grounded study of a recent microfinance crisis in the Indian region of Andhra Pradesh to generalize more broadly about the role of the state in the success of business-led efforts to...

Proceedings - Academy of Management, Aug 1, 2019

In this study, I develop and test an institutional-contingency model for explaining business inno... more In this study, I develop and test an institutional-contingency model for explaining business innovation in low-income markets of less-developed countries. To build the model, I begin with the basic insight of the BOP literature: that there exist both social and business motives for firms to enter impoverished markets. I then extend this assertion by defining poverty as a function of not only income but also institutions; it is not only income poverty that managers need to account for when entering low-income markets, but also the institutional context in which that poverty is embedded. An important implication of the institutional contingency model is that national context will likely shape: 1) the ability of a business innovation formed in one less-developed country to transfer and grow in another; and 2) the conditions when for-profit governance will be more effective than non-profit. My model also contributes to the international-business literature. IB research that studies the transfer of business practices usually examines the flow of practices from advanced to less-developed countries. In contrast, my model looks at the transfer of indigenous practices created within less-developed countries themselves, a topic rarely examined in the literature. A challenge of analyzing the transfer of practices across low-income countries is that we do not know which institutions matter in this process. Institutional factors that distinguish among rich countries, or even between rich and poor countries, are not necessarily those that distinguish among poor countries themselves. For instance, the IB literature often assumes that a country\u27s regulatory pillar (as measured by formal laws) will be relatively strong. But, this assumption may not hold in less-developed countries. To develop specific institutional measures for analyzing differences among less-developed countries, I introduce the concept of state fragility. This measure has been found to capture variation in the effectiveness of international-aid programs across less-developed countries (Rice & Patrick, 2008). I suggest that differences in state fragility will influence what type of business model will succeed in a particular low-income market. I test the institutional-contingency model through an analysis of the global growth and commercialization of commercial microfinance. Microfinance, a scheme for provisioning small loans to impoverished entrepreneurs in less-developed countries, is often cited in the literature as the quintessential example of a business solution to global poverty (Prahalad, 2005). It has grown into an industry of tens of millions of borrowers worldwide. Furthermore, policymakers have actively pushed the industry to transition to a for-profit model. Global trends in microfinance thus provide an appropriate backdrop for testing the institutional-contingency model. To test the institutional-contingency model, I develop two basic hypotheses. The first relates to the institutional contingencies that influence the global growth of microfinance. It predicts that microfinance will be most likely to grow in those countries that possess middle levels of state fragility. The second hypothesis relates to the institutional contingencies that shape the choice between a commercial and non-for-profit governance model for microfinance lending. It predicts that, in countries that have some kind of microfinance sector, the industry will be most likely to use the for-profit model in those countries with less fragility. Using Random Coefficient Modeling (RCM), I conduct a longitudinal analysis of microfinance in 175 countries. I find support for the institutional-contingency model. State fragility is found to influence the global growth and commercialization of the microfinance industry business model. I then illustrate the effects of state fragility on the global-growth and commercialization of microfinance through two in-depth case studies

Proceedings - Academy of Management, Aug 1, 2022

Proceedings - Academy of Management, 2013

Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management s... more Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management scholar with intriguing questions. On the one hand, university leaders see minimal congruence between BTCA and the core mission of a university. On the other hand, BTCA continues to grow and thrive. The central theme of this symposium will be to endeavor to explain this “lack of congruence, yet thriving” paradox—and discuss whether, and how, BTCA can be leveraged such that it is consistent with the core mission of a university. More specifically, the central questions to be addressed in this symposium are: 1) How is it that big-time college athletics has grown and prospered in spite of serious concerns related to its lack of congruence with the core mission of universities? 2) How is it that innovative efforts, the objectives of which are to increase university-BTCA congruence, while adopted, have not been implemented and/or have not diffused? 3) How, then, might the congruence between BTCA and the core mission...

MethodsX, 2021

To guide researchers interested in replicating our configurational approach to comparative instit... more To guide researchers interested in replicating our configurational approach to comparative institutional analysis, we report on a methodology that builds from existing state fragility indices to differentiate between types of state fragility in 189 countries across the world. We first present the steps we used to identify three constituent dimensions of state fragility. We then report how we configured these first-order institutional measures to build a large-N, fuzzy set qualitative set analysis (fs/QCA) of variation in the degree and type of informal economic sectors found across the world. Our discussion of the methodology shows that:• Configurational-based analysis requires unbundling aggregate measures into constituent dimensions as a first step to analyzing possible systemic interactions.• Configurational-based analysis recognizes sources of cross-national diversity that aggregated or single dimensional metrics are unable to fully capture.

Academy of Management Proceedings

Contemporary studies in economic and financial analysis, 2009

We are confident that the Wal-Mart concept is “exportable.”…If Wal-Mart had been content to be ju... more We are confident that the Wal-Mart concept is “exportable.”…If Wal-Mart had been content to be just an Arkansas retailer in the early days, we probably would not be where we are today. State borders were not barriers, and people and ideas moved freely from one area to another…We believe the successful retailers of the future will be those that bring the best of each nation to today's consumer. We call it “global learning.” We are committed to being a successful global retailer and we believe the attributes that made us successful in the United States will also lead to success internationally.– David D. Glass, President and CEO, Wal-Mart Stores, Inc. (Govindarajan & Gupta, 2001)

Academy of Management Proceedings

Journal of International Business Studies, 2016

This study applies an institutional perspective to a current debate in social entrepreneurship ab... more This study applies an institutional perspective to a current debate in social entrepreneurship about the relative effectiveness of commercial vs non-profit methods of building inclusive markets for the poor. While some observers argue that for-profit ventures are needed to serve the poor on a large scale, others express concern that commercialization causes mission drift, a phenomenon where ventures migrate to wealthier clients over time. A multilevel analysis of 2679 for-profit and non-profit microfinance lenders in 123 countries over 15 years supported the hypotheses that commercialization contributes to mission drift away from market inclusivity, but that national levels of "state fragility" moderate this effect. In countries with a low level of state fragility, it was less costly to serve the poor, which decreased pressure on commercial actors to shift to wealthier clients to achieve profitability. An important implication of this finding is that institutions influence not only the number of entrepreneurs found in a particular location but also the social impact of entrepreneurial strategies and actions.

We apply a comparative institutional perspective to extend research into the conditions of succes... more We apply a comparative institutional perspective to extend research into the conditions of successful business innovation in Bottom-of-the-Pyramid (BOP) markets. To test the importance of the institutional context in these markets, we analyze cross-national differences in the growth of one BOP innovation: commercial microfinance. Our empirical analysis supports the proposition that BOP markets contain comparative institutional advantages that differ from those found in more developed market settings. Specifically, we find that the amount of microlending is strongest in those countries where institutions support a specific type of informal market

While the international entrepreneurship literature has begun to expand its scope to include the ... more While the international entrepreneurship literature has begun to expand its scope to include the world’s poorest and least-developed countries, it has not yet reached a consensus about how to devel...

Research Policy

Abstract While previous comparative research has identified the formal institutional conditions t... more Abstract While previous comparative research has identified the formal institutional conditions that differentiate countries on their degree of informal entrepreneurship, this paper examines the characteristics that shape cross-national diversity in its type. Based on a series of fuzzy-set qualitative comparative analyses (fs/QCA) of 138 country cases, we find evidence of causal heterogeneity in the configuration of institutional conditions associated with entrepreneurial outcomes that are informal and growth-oriented and those that are informal and subsistence-oriented. Given our results, we propose that the formal institutional-based conditions that differentiate between types of informal sectors are best identified by the conjoint mixture of strength and weakness of state capabilities across multiple domains, rather than by uniform weakness, or voids, along all state functions. In our discussion, we explore the implication of our configurational-based findings for the comparative analysis of national systems of informal entrepreneurship and for the tailoring of policies to account for the multiple institutional-based pathways by which entrepreneurs come to enter into the informal economy.

Academy of Management Proceedings

Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management s... more Big time college athletics (BTCA) is a fascinating phenomenon, one that presents the management scholar with intriguing questions. On the one hand, university leaders see minimal congruence between BTCA and the core mission of a university. On the other hand, BTCA continues to grow and thrive. The central theme of this symposium will be to endeavor to explain this “lack of congruence, yet thriving” paradox—and discuss whether, and how, BTCA can be leveraged such that it is consistent with the core mission of a university. More specifically, the central questions to be addressed in this symposium are: 1) How is it that big-time college athletics has grown and prospered in spite of serious concerns related to its lack of congruence with the core mission of universities? 2) How is it that innovative efforts, the objectives of which are to increase university-BTCA congruence, while adopted, have not been implemented and/or have not diffused? 3) How, then, might the congruence between BTCA and the core mission...