High-growth aspiration entrepreneurship and exit: the contingent role of market-supporting institutions

In this paper, we analyse entrepreneurial exit from an institutional lens and consider high-growth aspiration initiatives. We elaborate on the idea that institutions that are market-supporting reduce exit, while the level of high-growth aspiration entrepreneurship increases it. More importantly, we show that the existence of strong market-supporting institutions in a country decreases the positive relationship between the level of high-growth aspiration entrepreneurship and exit. We employ panel data of 74 countries for the years 2007–2017. Model estimations confirm our hypotheses.