In this paper we propose and test a dynamic perspective on informality suggesting that entrepreneurial informality can be a feedback mechanism to oppressive governments. We call this informality for good. We do this through the lens of institutional entrepreneurship (Bylund and McCaffrey, 2017) and following Williamson’s (1998, 2000) 4-level institutional framework to suggest that entrepreneurs can take altering and evasive actions to send rebellious feedback to formal institutions. The context to develop our theorizing is the Nicaraguan 2018 insurrection, and we test our hypotheses through a decision-based experiment and a secondary data analysis. We find support for our hypotheses that suggests to us the existence of informality for good.
