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Purpose: Considering that the social-cultural context is important as in which the entrepreneurs are embedded to conceptualise entrepreneurial orientation (EO), the purpose of the study is to explicate the influence of the key decision-makers’ internalised cultural values and perceptions of government regulations, to offer nuanced explanations of micro-level variations in EO of firms embedded in the same institutional context. Design/methodology/approach: Using a quantitative approach, relationships are explored in a sample of 201 Malaysian small- and medium-sized enterprises (SMEs). Partial least squares structural equation modelling (PLS-SEM) is used for the sample, and an additional test is conducted for a robustness check. Findings: The study finds that three cultural values of the key decision-maker, namely individualism, masculinity and uncertainty avoidance, exhibit a significant association with the EO of the firms. Further, the analysis reveals that the positive effects of individualism and masculinity are enhanced when moderated by favourable perceptions of government regulations to entrepreneurship. Research limitations/implications: The study uses a single key informant in data collection, therefore, the possibility of single-respondent bias. The results must be interpreted in light of these limitations. Originality/value: The study contributes to the existing literature regarding the relationship between institutions and entrepreneurship. Specifically, it articulates a microfoundations lens to explain the influence of institutions in terms of key decision-makers’ internalised cultural values (informal institutions) and their perceptions of government regulations (formal institutions) on the EO of the firm. It further elucidates the need to embrace informal and formal institutions as interdependent factors instead of treating them as standalone constructs in entrepreneurship research and policy design

Purpose: Considering that the social-cultural context is important as in which the entrepreneurs are embedded to conceptualise entrepreneurial orientation (EO), the purpose of the study is to explicate the influence of the key decision-makers’ internalised cultural values and perceptions of government regulations, to offer nuanced explanations of micro-level variations in EO of firms embedded in the same institutional context. Design/methodology/approach: Using a quantitative approach, relationships are explored in a sample of 201 Malaysian small- and medium-sized enterprises (SMEs). Partial least squares structural equation modelling (PLS-SEM) is used for the sample, and an additional test is conducted for a robustness check. Findings: The study finds that three cultural values of the key decision-maker, namely individualism, masculinity and uncertainty avoidance, exhibit a significant association with the EO of the firms. Further, the analysis reveals that the positive effects of individualism and masculinity are enhanced when moderated by favourable perceptions of government regulations to entrepreneurship. Research limitations/implications: The study uses a single key informant in data collection, therefore, the possibility of single-respondent bias. The results must be interpreted in light of these limitations. Originality/value: The study contributes to the existing literature regarding the relationship between institutions and entrepreneurship. Specifically, it articulates a microfoundations lens to explain the influence of institutions in terms of key decision-makers’ internalised cultural values (informal institutions) and their perceptions of government regulations (formal institutions) on the EO of the firm. It further elucidates the need to embrace informal and formal institutions as interdependent factors instead of treating them as standalone constructs in entrepreneurship research and policy design.

Previous research has mainly focused on the impact of host country institutional context on foreign entrants and yet with the rise of outward internationalization of firms from emerging and developing economies, the empirical findings are relatively scant. Drawing from the institutional perspective, this study intends to examine the home country's institutional context for encouraging international business activities and performance. Specifically, the study proposes that a supportive home country institutional context will lead to greater outward internationalization and performance of local firms. These predictions are tested on a sample of 203 international SMEs located in Malaysia. The analysis shows that a supportive home country institutional context in terms of regulatory, normative and cognitive dimensional affects significantly on SMEs’ international performance. Significant practical implications are derived accordingly for business practitioners and policymakers to promote SMEs' international business development and growth.

The international entrepreneurship (IE) literatures suggest that entrepreneurial orientation (EO) enhances the performance of firms in international markets, however, theempirical results are inconclusive. Drawing on the resource-based view (RBV), this study attempts i) to examine whether EO prevails in Malaysian SMEs that compete in the world market; and ii) whether EO can be associated with the performance of the firms, in particular, international performance. The study employed a quantitative research method and conducted a large-scale, self-administered questionnaire survey in Malaysia. Drawing upon data from 203 Malaysian internationalised SME, the statistical results show that the perceived level of EO is above average level. Among the measures of EO, innovativeness is relatively higher than pro-activeness and risk-taking behaviours. Moreover, the analysis reveals the positive association of EO in the firms’ international performance. Significant practical implications are derived accordingly for business practitioners and policymakers to promote SMEs' international business development and growth.