How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach

Despite an abundance of research, still there is a gap in understanding the underlying cultural mechanisms behind entrepreneurial behavior of nations in the literature. This study contributes to the debate through a new perspective of analysis based on behavioral reasoning theory (BRT). Specifically, this research analyses the role cultural values play in formation of the reasoning behind entrepreneurial behavior. The data and variables are taken from the GLOBE project and the Global Entrepreneurship Monitor (GEM) for a multiple regression analysis spanning from 2007 to 2017 for 50 countries. The results show that, with the exception of Institutional Collectivism, all of GLOBE’s cultural dimensions affect the reasoning justifications behind entrepreneurial intentions in various countries. Thus, the novel contribution of the present research is the application of BRT in explaining entrepreneurial intentions. This contribution is substantial to the international entrepreneurship field through clarification of the role of cultural values in the reasoning processes behind entrepreneurial activities of nations. Some findings are surprising with regard to the conventional understandings. These findings are fully discussed in the concluding sections.