Cultural differences and entrepreneurial behaviour: an intra-country cross-cultural analysis in Cape Verde

Two recent research trends give rise to the current work: the need to extend the conclusions reached in entrepreneurship studies to other cultural contexts, particularly important given the interest in stimulating the creation of firms in recently industrialised and less developed countries; and the need to go beyond the axiom ‘nation=culture’ in favour of the multiple cultures perspective. With these antecedents, we present the current work, which aims to answer two research questions: (1) are the cultural values associated in the literature with venture creation generalisable to different cultural contexts? (2) are there intra-cultural differences in a country generating differences in the entrepreneurial behaviour of its population? Thus, this work contributes to extending knowledge about entrepreneurship and international cross-cultural management by taking the novel approach of studying the cultural values and the decision to create a venture from the intra-cultural differences perspective. A sample of 448 individuals, obtained in the Republic of Cape Verde and analysed in six territories within this country, allows us to confirm the existence of cultural differences in individualism between regions of the Republic of Cape Verde, as well as their capacity to explain entrepreneurial behaviour in these regions.     

Organizational commitment in MNC subsidiary top managers: antecedents and consequences

This article studies, first, how affective and continuance commitments affect MNC subsidiary top managers' intent to leave either their current post or the firm itself, and second, which variables influence these managers' affective and continuance commitments. The analysis uses a sample of MNC subsidiary top managers in Spain, and the results confirm that these managers' intent to leave the subsidiary and the multinational is determined by affective and continuance commitments in its two dimensions (high-sacrifice and low-alternatives), and that these commitments, in turn, are determined by the managers' personal cultural values and company bonding variables.     

Does the banking sector structure matter for credit procyclicality?

The aim of this paper is to investigate whether the banking sector structure matters in explaining credit procyclicality for 17 OECD countries over the 1986–2010 period. To this end, we first provide a detailed classification of the banking system structure through the use of a hierarchical clustering methodology. Relying on the estimation of panel VAR models and accounting for potential heterogeneity between countries, we then propose a measure of credit procyclicality based on the impulse-response function of credit to a shock in GDP. Our findings show that while credit significantly responds to shocks in GDP, the structure of the banking sector is not a key factor in assessing the procyclicality of credit for OECD countries.     

Innovation orientation and long-term performance: The mediating role of market perception capability

This paper examines the relationship between the orientation towards innovation of SMEs and long-term performance, considering market perception capability as a mediating variable. This research topic is important because it can provide a better understanding of the relationship between innovation orientation and performance, since most of the previous papers that have analyzed this relationship have done so from a short-term perspective. But the effect of innovation orientation on performance may not be immediate and short-term, but long-term, and may be influenced by the company’s ability to develop marketing capabilities. A sample of 77 independent hotels is taken for empirical contrast and a system of structural equations is modelled using the Partial Least Squares (PLS) technique. The results show that the company’s capacity to understand the market in which it operates functions as a mechanism that intervenes in the relationship between innovation orientation and long-term result, with a mediating effect that explains the positive effect of innovation orientation on the long-term results.

     

Nonlinear adjustment of the real exchange rate towards its equilibrium value: A panel smooth transition error correction modelling

We study the nonlinear dynamics of the real exchange rate towards its behavioral equilibrium value (BEER) using a Panel Smooth Transition Regression model framework. We show that the real exchange rate convergence process in the long-run is characterized by nonlinearities for emerging economies, whereas industrialized countries exhibit a linear pattern. Moreover, there exists an asymmetric behavior of the real exchange rate when facing an over- or an undervaluation of the domestic currency. Finally, our results suggest that the real exchange rate may be unable to unwind alone global imbalances.     

Input–output evidence on the relative price effects of total productivity shift

This paper provides empirical evidence on the relative price effects of a notional shift in total productivity using data from ten Symmetric Input–Output Tables of five European economies. The results suggest that the direction of the price-movements is, more often than not, governed by the (traditional) labour cost condition and this could be connected to the effective ranks of the matrices of the relative shares of the capital goods.     

Measuring Consumers’ Ethical Position in Austria,Britain, Brunei,Hong Kong,and USA

Previous studies have found Forsyth’s Ethical Position Questionnaire (EPQ) to vary between countries, but none has made a systematic evaluation of its psychometric properties across consumers from many countries. Using confirmatory factor analysis and multi-group LISREL analysis, this paper explores the factor structure of the EPQ and the measurement equivalence in five societies: Austria, Britain, Brunei, Hong Kong and USA. The results suggest that the modified scale, measuring idealism and relativism, was applicable in all five societies. Equivalence was found across Britain, Brunei and USA, but the original scale cannot be used validly.     

Opportunity motivation and SME internationalisation in emerging countries: Evidence from entrepreneurs’ perception of institutions

Institutional studies based on cross-country comparisons and founded on a determinist perspective analyse the behaviour in emerging economies. The current research, in contrast, looks to neo-institutionalism and the literature on entrepreneurship to pose two research questions based on individuals’ discretion: (1) How does the entrepreneur’s perception of the institutional dimensions influence their decision to involve their SME in international operations? (2) What role does opportunity motivation play in the impact of those perceptions on the internationalisation decision? We analyse a sample of 296 entrepreneurs who had founded their businesses in Brazil (Federal State of Sergipe), and our results confirm that the individual’s perception of the normative and regulative aspects of institutions, the interaction between the two, and the interaction between the normative and cognitive aspects of institutions, explain the decision to embark on international operations. Opportunity motivation mediates the impact of the normative aspects of institutions on that decision.     

Measuring Unethical Consumer Behavior Across Four Countries

The huge amounts spent on store security and crime prevention worldwide, not only costs international businesses, but also amounts to a hidden tax on those law-binding consumers who bear higher prices. Most previous research has focused on shoplifting and ignored many other ways in which consumers cheat businesses. Using a hybrid of both qualitative research and survey approaches in four countries, an index of 37 activities was developed to examine consumers’ unethical activities across UK, US, France, and Austria. The findings indicate that around three quarters of consumers in all four countries can be classified as heavy offenders for these minor cheats. The paper argues that government agencies, marketers, and retailers should adopt more pro-active preventative approaches, rather than reactive loss limitation measures to combat unethical behavior.     

Determinants of information systems outsourcing in hotels from the resource‐based view: an empirical study

The objective of this study is to determine the factors affecting outsourcing of information system/information technology (IS/IT) activities in hotels from the resource‐based view of the firm. The factors considered are the conditions that the systems area resources must meet for that area to have a competitive value. The reasons, which are both strategic and tactical, are discussed. The former are mainly related to quality, improvement of service and concentration on core activities, whereas the latter are tactical or cost‐related reasons justifying the selection of the outsourcing strategy for this activity. The results indicate the factors determining IS/IT activity outsourcing are related to the creation of valuable resources and to market transaction costs, and the IS/IT area performance does not influence the decision to outsource. It is also shown that the reasons justifying outsourcing are strategic; related to the core competencies and quality of service and not to cost reduction. Copyright © 2005 John Wiley & Sons, Ltd.