This dissertation addresses two questions that emerge from this phenomenon: 1)
How do new ventures contend with the forces of institutionalization in their processes of
entrepreneurial action, and 2) how do these processes affect growth (at both firm and
regional levels of analysis)? The study develops theory more holistically around the
interaction of institutions and entrepreneurs and then uses it to undertake an empirical study
with simulation to investigate these questions from regional and venture levels of analysis.
The conceptual model is presented using entrepreneurial business model choice in the
microgeneration industry as an explanatory context. Informal and formal institutional
environments interact with socio-institutional factors to shape the decision-making of
entrepreneurs when choosing business models, but these choices and the actions that result
from them lead to shifts in the socio-institutional environment of the industry and over time
effect changes in informal institutional layers that span the economic environment more
broadly across regions and nations.