The general theory of culture, entrepreneurship, innovation, and quality-of-life: Comparing nurturing versus thwarting enterprise start-ups in BRIC, Denmark, Germany, and the United States (original) (raw)
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Culture shapes institutional practices and policies facilitating or constraining the formation of new start-ups. This study assesses the extent to which cultural parameters and economic conditions support the development of new business start-ups in 44 nations. Cultural and economic variables provided unique contributions in predicting a profile of environmental conditions (ease of obtaining financing for new ventures, administrative burdens, legal infrastructure, and labor flexibility) favoring entrepreneurship in different nations.
Cross-national cultural values and nascent entrepreneurship: Factual versus normative values
This article, differentiating between factual and normative values, investigates the links between national culture and entrepreneurial activity in 24 countries based on 154 observations. We test hypotheses on the relationship between national culture—measured by Global Leadership and Organizational Behavior Effectiveness (GLOBE)—and nascent entrepreneurship as represented by Global Entrepreneurship Monitor (GEM). Both the GEM and the GLOBE databases are robust in terms of forming empirical connections between factual and normative culture and entrepre-neurship at the country level. Using these two separate databases to examine our hypotheses enables us to avoid the methodological biases that frequently appear in studies where the same respondents provide data for both the independent and the dependent variables. The study demonstrates that the introduction of two different aspects of culture—normative and factual culture—may help resolve the inconsistencies in the literature regarding the links between culture and entrepreneurial activity. This study rekindles an old debate on the role of culture in the social sciences and the need to examine both factual and normative elements. We find that the connection between the normative values of culture and nascent entrepreneurial activity is stronger than the connection between the factual practices of culture and nascent entrepreneurial activity.
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Innovation and Global Issues Congress III, 2018
The aim of research is to reveal the effect of national culture on entrepreneurship. For this purpose, secondary datas are obtained from Hofstede’s work for the cultural dimension of this study. For the entrepreneurship dimension, the necessary datas are obtained from the Global Entrepreneurship Report in 2017. The sample of the research is 56 countries that listed in both Global Entrepreneurship Monitor 2017 and Hofsthede’s work. The obtained data were analyzed by regression analysis. It has been found that masculinity, uncertainty avoidance and indulgence has a significant a effect on entrepreneurship.
National Culture and Entrepreneurship : A Review of Behavioral Research
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Conceptual arguments for the association between cultural characteristics and entrepreneurship have existed for decades but only in the last 10 years has this relationship been the focus of empirical scrutiny. In this article, we review and synthesize the findings of 21 empirical studies that examine the association between national cultural characteristics and aggregate measures of entrepreneurship, individual characteristics of entrepreneurs, and aspects of corporate entrepreneurship. The study concedes that a predominant number of empirical studies have used Hofstede's conceptualization of national culture and that other domains have been underdeveloped. A preliminary model that integrates past findings is extended. The review highlights fruitful avenues for future research.
International Journal of Entrepreneurship and Small Business, 2007
Entrepreneurship is a global phenomenon occurring in both developed and developing countries. Local economic and cultural factors both affect new ventures. This paper presents a framework that presents visionary (high quality) entrepreneurship as a principal driver in developing economies. The framework incorporates the dimensions of culture and resource-availability and speculates on their relationship with the quality of entrepreneurship. The notion of disequilibrium is presented where the role of culture and resource-availability is described as entrepreneurship impeding in developing economies, but entrepreneurship enhancing in developed economies. The framework also provides an integrated approach to guide future research about cross-cultural and geographic differences in the rates and qualities of new venture creation.
Journal of Business Economics and Management, 2019
This research has two aims. The first one is to determine how and to what extent the national cultural characteristic of a country plays a role in her entrepreneurship success. The second one is to determine whether culture and economic development levels interact with each other on influencing entrepreneurship success. A consecutive five-year longitudinal study, covering 81 countries is conducted. Longitudinal Random Effect Regression Analysis is used to determine the effects of culture on entrepreneurship rates. Data regarding the cultural dimensions indexes of the countries is obtained from Geert Hofstede website and the entrepreneurship rates from the annual reports of the Global Entrepreneurship and Development Institute. The interaction effect of cultural dimensions and economic development levels on entrepreneurship is analyzed by treating the economic development level is the interacting variable between cultural dimensions and entrepreneurship rates. Economic development levels of the countries are measured by GDP per capita, figures obtained from the World Bank. The findings are that the cultural dimensions Individualism, Long Term Orientation, and Indulgence vs. Restraint influence the entrepreneurship rate in a supportive manner, whereas Masculinity's impact is in a rendering manner. Other dimensions seem to have no significant effect. Although relevant cultural dimensions do interact with economic development levels, their interaction effects are small. This study has several unique contributions to the entrepreneurship literature, such as its longitudinal nature, using all Hofstede Dimensions, applying a very comprehensive entrepreneurship measurement scale, its huge sample size and containing an interactive analysis of culture and economic development level which is very rare in the literature.
Journal of Business & Industrial Marketing, 2020
Purpose This paper aims to apply complexity theory tenets to deepen understanding, explanation and prediction of how configurations of national cultures and need motivations influence national entrepreneurial and innovation behavior and nations’ quality-of-life (QOL). Also, the study examines whether or not high national ethical behavior is sufficient for indicating nations high in quality-of-life. Design/methodology/approach Applying core tenets of complexity theory, the study constructs asymmetric, case-based (nations), explanations and predictive models of cultures’ consequences (via Schwartz’s seven value dimensions) and implicit need motivations (via McClelland’s three need motivations) indicating national entrepreneur and innovation activities and subsequent national quality-of-life and ethical behavior. The study includes testing configurational models empirically for predictive accuracy. The empirical examination is for a set of data for 24 nations in Asia, Europe, North and South America and the South Pacific. Findings The findings confirm the usefulness of applying complexity theory to learn how culture and motivation configurations support versus have negative consequences on nations’ entrepreneurship, innovation and human well-being. Nurturing of entrepreneur activities supports the nurturing of enterprise innovation activity and their joint occurrence indicates nations achieving high quality-of-life. The findings advance the perspective that different sets of cultural value configurations indicate nations high versus low in entrepreneur and innovation activities. Practical implications High entrepreneur activities without high innovation activity are insufficient for achieving high national quality-of-life. Achieving high ethical behavior supports high quality-of-life. Originality/value This study is one of the first to apply complexity theory tenets in the field of entrepreneurship research. The study here advances the perspective that case-based asymmetric modeling of recipes is necessary to explain and predict entrepreneur activities and outcomes rather than examining whether variable relationships are statistically significant from zero.
Entrepreneurship and National Culture
Handbook of Research on Internationalization of Entrepreneurial Innovation in the Global Economy, 2015
The direct relationship between national cultural practice and entrepreneurship activities is analyzed in this chapter, based on the analysis of 44 countries. Datasets from 2012 and 2013 Global Entrepreneurship Monitor (GEM) report are used to characterize three types of entrepreneurship: early-stage entrepreneurial activity (TEA); necessity-driven entrepreneurship (NDE) and opportunity-driven (ODE) entrepreneurship. Data sets on national cultural values are used to analyze five dimensions of Hofstede's work on cultural values (power distance, individualism/collectivism, masculinity/femininity, long/short term orientation, and uncertainty avoidance). For that, the authors use the Values Survey Module 2013, which has been adapted from Hofstede's previous work from 2010 and 2008. The main conclusion is that the three types of entrepreneurship analyzed in this chapter are differently explained by the cultural and expanded models. If the country of origin and the type of economy...
Entrepreneurial Culture and its Effect on the Rate of Nascent Entrepreneurship
2009
This paper investigates the relationship between entrepreneurial culture and the rate of nascent entrepreneurship. Embedded in trait research, we develop a new composite measure of entrepreneurial culture using data from the World Values Survey. To corroborate the results obtained when regressing this newly developed measure on 2002 levels of nascent entrepreneurship in a sample of 28 countries, we also employ existing indicators of entrepreneurial culture, i.e. McClelland's N achievement index (1961), Granato, Inglehart and Leblang's Achievement motivation index (1996), Lynn's Competitiveness index (1991), and GLOBE's (2004) performance orientation measure. In contrast with the existing measures we find a significant positive effect of our new measure of entrepreneurial culture, leading us to i) discuss the strengths and weaknesses of these existing measures, and ii) interpret the wider implications of our findings for the research into the role of entrepreneurial culture in explaining international differences in entrepreneurship rates.