Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327571 
Year of Publication: 
2025
Citation: 
[Journal:] Journal of Innovation & Knowledge (JIK) [ISSN:] 2444-569X [Volume:] 10 [Issue:] 2 [Article No.:] 100669 [Year:] 2025 [Pages:] 1-14
Publisher: 
Elsevier, Amsterdam
Abstract: 
This study examines the emergence of international hidden entrepreneurs (IHEs) in the Kingdom of Saudi Arabia through an institutional theory lens. An international hidden entrepreneur arises when local regulations impose high costs on an international entrepreneur operating as the legal head of an enterprise, therefore giving rise to a concealed partnership with a local entrepreneur to serve as the official managing director. The IHEs in our study typically originate from emerging market nations. Drawing on qualitative data from 44 participants, we examine the complexities of (1) mechanisms of IHE practices, (2) catalysts to the rise of IHEs, and (3) ethical and economic impacts of the presence of IHEs and their implications for the local economy. We establish the existence of IHEs as a still underexplored phenomenon and the advantages and disadvantages of the system in consonance with the cognitive, regulative, and normative pillars of institutional theory. Our findings reveal that IHEs arise as a response to stringent regulatory barriers, socio-cultural norms, and cognitive skill gaps. This study contributes to institutional theory by demonstrating how these pillars intersect in the Saudi context, offering novel insights into informal entrepreneurship and its challenges to Saudi Vision 2030.
Subjects: 
Hidden entrepreneurs
Informal economy
Shadow economy
Institutional theory
International entrepreneurship
Emerging markets
Saudi Arabia
JEL: 
J15
M13
M16
O11
O19
O53
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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