| Summary: | Taking into consideration the increasing phenomenon of Western migration toward developing countries and its potential for developing the local tourism industry, this study analyses the institutional challenges faced by tourism entrepreneurs when managing a small and medium-sized lodging in a developing economy. Moreover, it focuses on Western immigrants entrepreneurs to explore how effective are two processes for acquiring institutional knowledge – congenital and vicarious learning – in reducing the degree to which Western immigrants face institutional challenges when managing their lodgings. Evidence gathered from a sample of entrepreneurs with lodgings in Morocco suggests that congenital and vicarious learning are effective in helping Western immigrant entrepreneurs to face Poor policies, Corruption, and Cultural problems in Morocco.
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