Cross-Country Differences in Entrepreneurial Activity: The Role of Cultural Practice and National Wealth

In this paper, we argue that national culture is important in interpreting the differences of entrepreneurial activities between countries. Furthermore, national wealth plays a moderating role between national culture and entrepreneurial activities. Datasets from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project and Global Entrepreneurship Monitor (GEM) study were analyzed. We find that there are interaction effects between GDP, a proxy for national wealth, and several cultural dimensions on entrepreneurial activities. More traditional cultural variables (in-group collectivism, humane orientation, and power distance) enhance early-stage and established entrepreneurship in low- and medium-GDP countries, but hinder early-stage and established entrepreneurship in high-GDP countries. More modernistic cultural variables (performance orientation, future orientation, and uncertainty avoidance) promote high-growth and high-innovation entrepreneurship in some situations, especially in high-GDP countries. Implications and limitations are discussed.     

The interplay of entrepreneurship education and national cultures in entrepreneurial activity: a social cognitive perspective

Does entrepreneurship education result in entrepreneurial activities across national cultures? For the most part, prior research has examined the relationship between entrepreneurship education and entrepreneurial activity, using country-specific samples. However, many of these results are inconsistent. One reason for such inconsistent results may be a limitation of country-specific samples, given that they are valid in a domestic context but not generalizable. Our study addresses this limitation by using a cross-national sample of 24,457 respondents from 38 countries to examine the role of diverse national cultures. Building on the social cognitive theory, our results show that entrepreneurship education is more seminal for entrepreneurial activities that take place in countries with greater individualism, less uncertainty avoidance, and a high level of masculinity. This research presents a more complete picture of how entrepreneurship education may affect international entrepreneurship contingent upon national culture, and has implications for researchers, educators, and policy makers.     

The impact of cultural differences on technology adoption

This study examines the impact of Type I and Type II cultural differences on mobile phone adoption patterns. We use Hofstede's cultural dimensions to examine cultural differences of two countries (Type I: the U.S.; Type II: S. Korea) and employ the Bass diffusion model to delineate innovation and imitation effects on mobile phone adoption. The results show that in Type I culture innovation factor has a significantly higher level of effect on adoption than it does in Type II culture; and in Type II culture imitation factor has a higher degree of effect on adoption than it does in Type I culture. These findings imply that in individualistic cultures, people tend to seek information on their own from direct and formal sources, whereas in collectivistic cultures, people rely more on subjective evaluation of an innovation, conveyed from other-like-minded individuals who already have adopted the innovation.     

Self-identity and internal environmental locus of control: Comparing their influences on green purchase intentions in high-context versus low-context cultures

This study empirically examines the combined effect of two crucial internal consumer predispositions, self-identity (SI) and internal environmental locus of control (INELOC), among consumers in a collectivistic culture and an individualistic culture. The study validated the extended theory of planned behaviour to predict consumers' green purchase intentions. Structural equation modelling was used to analyse primary data collected from 365 American and 408 Indian respondents. Analysis revealed differences between the two cultures. Green self-identity influenced attitude more than perceived behavioural control among American consumers, while the reverse was true for Indian consumers. Conversely, INELOC positively and significantly affected only Indian consumers’ perceived behavioural control, not that of American consumers.     

The mediating role of entrepreneurial orientation: A meta-analysis of resource orchestration and cultural contingencies

Building on the resource orchestration literature, we use meta-analytic structural equation modeling to test a model where entrepreneurial orientation (EO) mobilizes resources to influence firm performance. Our results indicate that (1) EO mediates (partially) the human and social capital - firm performance relationships; (2) social capital is positively associated with human capital; (3) the relationship between social capital and firm performance is mediated in two steps, first, by human capital, and then, by EO; and (4) the human capital – EO relationship is stronger in high in-group collectivistic, low future oriented, and high uncertainty avoidance cultures.     

Integrating psychological approaches to entrepreneurship: the Entrepreneurial Personality System (EPS)

Understanding the psychological nature and development of the individual entrepreneur is at the core of contemporary entrepreneurship research. Since the individual functions as a totality of his or her single characteristics (involving the interplay of biological, psychosocial, and context-related levels), a person-oriented approach focusing on intraindividual dynamics seems to be particularly fruitful to infer realistic implications for practice such as entrepreneurship education and promotion. Applying a person-oriented perspective, this paper integrates existing psychological approaches to entrepreneurship and presents a new, person-oriented model of entrepreneurship, the Entrepreneurial Personality System (EPS). In the empirical part, this model guided us to bridge two separate research streams dealing with entrepreneurial personality: research on broad traits like the Big Five and research on specific traits like risk-taking, self-efficacy, and internal locus of control. We examine a gravity effect of broad traits, as assumed in the EPS framework, by analyzing large personality data sets from three countries. The results reveal a consistent gravity effect of an intraindividual entrepreneurial Big Five profile on the more malleable psychological factors. Implications for entrepreneurship research and practice are discussed.     

Researching the entrepreneurial behaviour of new and existing ventures in European agriculture

This study analyzes differences existing between new and established agri-entrepreneurs as well as differences in relation to their counterparts in non-agricultural ventures. This study uses the resource-based view and institutional economics as conceptual frameworks and focuses on the analysis of the resources and capabilities; entrepreneurial orientation (risk-taking, proactiveness and innovativeness); and legitimation affecting the entrepreneurial process. The literature points out that the specific characteristics of the sector (strong family links and institutional support) can condition the entrepreneurship process. Thus, hypotheses are developed to test these relationships. We use random effects models to test our hypotheses with the Global Entrepreneurship Monitor (GEM) for 20 European countries. Results show that agri-entrepreneurs have weaker entrepreneurial capabilities than other sectors. However, new entrants into the agricultural sector are not less entrepreneurial in relation to other sectors. On the other hand, established agri-entrepreneurs are less proactive than other sectors. Results suggest that new entrants into agriculture are more entrepreneurially oriented than established ones. Our study contributes to the entrepreneurship literature by contextualizing the entrepreneurship process and providing valuable insights for policy-makers to enhance farmers’ entrepreneurial skills and entrepreneurial orientation.     

The State of Augmented Reality Advertising Around The Globe: A Multi-Cultural Content Analysis

As a new form of advertising, augmented reality (AR) advertising offers a unique opportunity to study how new technology-facilitated ad campaigns are constructed across cultures. This research analyzes the content of 117 AR ad campaign videos uploaded on YouTube, and reveals the prevalent characteristics of AR campaigns. We compared videos from individualistic countries with those from collectivistic countries. Results suggest that AR ad campaigns from more individualistic cultures tend to include product information and enable a user to control the virtual AR content, whereas AR ad campaigns from more collectivistic cultures tend to allow a user to become part of the virtual AR content without manipulating it. In closing, we discuss managerial implications for marketers and advertisers as well as opportunities for future research.     

Relationship between individualist–collectivist culture and entrepreneurial activity: evidence from Global Entrepreneurship Monitor data

This paper examines how one dimension of national culture (an individualist–collectivist orientation) is related to Total Entrepreneurial Activity, depending on the level of economic development, measured by GDP per capita. Researchers have traditionally associated individualism with high rates of firm creation, arguing that an orientation towards achievement and the pursuit of personal objectives (dominant aspects in individualist cultures) are determinants of entrepreneurial activity. The current analysis shows that a country’s culture correlates to entrepreneurship, but cannot uphold the idea that higher levels of individualism mean higher rates of entrepreneurship. Using data from the Global Entrepreneurship Monitor on 52 countries, the results show that a country’s entrepreneurship rate is negatively related to individualism when development is medium or low, and positively related to individualism when the level of development is high. Thus, individualism is not related to entrepreneurship in the same way in countries with differing levels of development.     

Entrepreneurial orientation and international scope: The differential roles of innovativeness,proactiveness, and risk-taking

This research integrates the international business and entrepreneurship literatures by examining the independent influences of innovativeness, proactiveness, and risk-taking on the ability of a firm to broaden its scope across international markets. For each dimension of entrepreneurial orientation, a cost–benefit framework is applied to highlight the trade-offs associated with different levels in the internationalization context. Based on a unique dataset of 500 SMEs spanning 10 industries, the results reflect the consequences of being “stuck in the middle” with respect to their strategic posture on innovativeness and proactiveness, but reveal a nuanced role for risk-taking behavior. The non-uniform and non-linear relationships from the findings contribute to a better understanding of when the individual dimensions of entrepreneurial orientation help or hinder entrepreneurial firms in the internationalization process.     

Materialism,fashion consumers and gender: a cross‐cultural study

The purpose of this study was to examine the relationships among materialism, gender and fashion consumer groups from two countries – one representative of an individualistic culture (US) and one representative of a collectivistic culture (Korea). Participants were 397 students from a university in Korea (n = 221) and a university in the US (n = 176) who completed the questionnaire. The materialism construct showed adequate reliability for participants in both cultures. Fashion change agents scored higher on materialism (centrality and success) than fashion followers. Females scored higher on materialism than males which seemed to be based on higher scores on the centrality subscale. Participants from the US and Korea differed on all three subscales of materialism with US participants scoring higher on centrality but lower on success and happiness than Korean participants. The findings of this study provide valuable implications for fashion marketers and retailers in Korea and US. The findings are limited to Korean and US consumers and cannot be generalized to other cultures. This paper fills a gap in the literature by comparing materialistic values between genders and fashion consumer groups in an individualistic culture (US) and a collectivistic culture (Korea).     

The impact of corporate and national cultures on decentralization in multinational corporations

We develop and test a model of multinational corporation (MNC) decentralization in which the allocation of decision rights to subsidiaries is explained by aspects of both internal corporate culture as well as external national cultures. We extend the literature on MNC decentralization by testing the impact of both of these factors as determinants within the same model. Drawing on management control theory as a conceptual platform, we argue that the assignment of decision rights to a subsidiary in the MNC is impacted by corporate innovativeness and shared values, as well by aspects of home and host country cultures. We test our model on a sample of 119 MNC subsidiary managers drawn from a diverse range of industries and locations. The findings provide support to the proposition that corporate innovativeness positively impacts the decision to decentralize, whilst also indicating that home country individualism and host country uncertainty avoidance have a significant influence. The findings challenge established international management logic with respect to shared values—this variable is found to have a negative relationship with decentralization. Overall cultural distance is not found to be significant.     

Where Angels Fear to Tread: Internationalization of Emerging Country SMEs

Based on institutional theory and risk perspectives, this study examines how the entrepreneurial orientation of firms as determined by national cultural factors is related to the internationalization of small- and medium-sized enterprises (SMEs) from emerging and developing countries. We also suggest that institutional improvements can have a moderating effect on the relationship between culture and internationalization. We develop a unique measure of internationalization and test it on a sample of 7,212 SMEs from 36 developing countries using a multilevel linear hierarchical model that allows us to examine both firm- and country-level effects. We find that developed institutions support the internationalization of SMEs from more masculine and individualistic cultures.     

反应性角色行为、工作—家庭冲突与创业导向关系研究

利用中国创业动态跟踪项目（CPSED）的调查数据,本文实证考察了反应性角色行为、工作〖CD*2〗家庭双向冲突与创业导向之间的作用关系,研究发现反应性角色行为对化解冲突的作用并不显著,创业干涉家庭冲突则对创新性、风险承担性和先动性创业导向产生了正向影响。研究结论丰富了工作〖CD*2〗家庭冲突理论,深化了创业导向的研究成果,对我国新生创业者在开展创业实践中理性应对工作〖CD*2〗家庭冲突进而提升企业成长质量也具有重要的管理实践启示。     

A cross-cultural meta-analysis of how leader emotional intelligence influences subordinate task performance and organizational citizenship behavior

Global human resource managers need to understand which personality characteristics contribute to leadership effectiveness in different cultures for both selection and training purposes. This meta-analysis demonstrates that leaders’ emotional intelligence (EI) demonstrates incremental validity and relative weight in predicting subordinates’ task performance and organizational citizenship behavior (OCB) after controlling for the Big Five and cognitive ability. The relationship between leaders’ EI and subordinates’ task performance is stronger in collectivistic, feminine, and high uncertainty avoidance cultures. The relationship between leaders’ EI and subordinates’ OCB is stronger in high power distance, collectivistic, feminine, high uncertainty avoidance, long-term oriented, and restraint cultures.     

Designing a global standardized methodology for measuring social entrepreneurship activity: the Global Entrepreneurship Monitor social entrepreneurship study

Although there is a high level of practitioner, policymaker, and scholar interest in social entrepreneurship, most research is based on case studies and success stories of successful social entrepreneurs in a single country. We develop a methodology to measure population-based social entrepreneurship activity (SEA) prevalence rates and test it in 49 countries. Our results provide insights into institutional and individual drivers of SEA. Using the Global Entrepreneurship Monitor (GEM) methodology of Total Entrepreneurial Activity (TEA), we find that countries with higher rates of traditional entrepreneurial activity also tend to have higher rates of social entrepreneurial activity. We develop a broad definition of social entrepreneurship and then explore types based on social mission, revenue model, and innovativeness.     

Culture, entrepreneurial orientation, and global competitiveness

Based on Lumpkin and Dess’s conceptualization of entrepreneurial orientation (EO), this paper presents a cultural model of entrepreneurship. We propose that a society’s propensity to generate autonomous, risk-taking, innovative, competitively aggressive and proactive entrepreneurs and firms will depend on its cultural foundation. The role of economic, political/legal, and social factors as moderators of the relationship between culture and entrepreneurial orientation (EO) are also considered. Overall, it is proposed that only those countries with specific cultural tendencies will engender a strong EO, hence experiencing more entrepreneurship and global competitiveness. Specific country examples are discussed.     

Does entrepreneurial self-efficacy distinguish entrepreneurs from managers?

Previous research on the psychology of entrepreneurs found that personality traits such as locus of control failed to distinguish entrepreneurs from managers. In search of an individual characteristic that is distinctively entrepreneurial, we proposed an entrepreneurial self-efficacy construct (ESE) to predict the likelihood of an individual being an entrepreneur. ESE refers to the strength of a person’s belief that he or she is capable of successfully performing the various roles and tasks of entrepreneurship. It consists of five factors: marketing, innovation, management, risk-taking, and financial control.We conducted two studies, one on students and the other on small business executives. Study 1 found that the total ESE score differentiated entrepreneurship students from students of both management and organizational psychology, and that across the three types of students, ESE was positively related to the intention to set up one’s own business. We also found the entrepreneurship students to have higher self-efficacy in marketing, management, and financial control than the management and psychology students. In study 2, we simultaneously tested effects of ESE and locus of control on the criteria of founders vs. nonfounders of current businesses. After controlling for individual and company background variables, the effect of ESE scores was significant, but the effect of locus of control was not. More specifically, it was found that business founders had higher self-efficacy in innovation and risk-taking than did nonfounders.The results of this study demonstrate the potential of entrepreneurial self-efficacy as a distinct characteristic of the entrepreneur. From these results, some important implications can be drawn on entrepreneurial assessment, education, counseling, and community intervention. First, ESE can be used to identify reasons for entrepreneurial avoidance. There may be many individuals who shun entrepreneurial activities not because they actually lack necessary skills but because they believe they do. This is especially true for sectors of the population such as women or those minority groups who are perceived as lacking entrepreneurial traditions. Communities and individuals could benefit from identifying sources of entrepreneurial avoidance by targeting their efforts toward enhancing ESE of particular groups or individuals for specific aspects of entrepreneurship.An additional use of ESE is to identify areas of strength and weakness to assess the entrepreneurial potential of both an individual and a community. Once entrepreneurial potential is identified, resources can be channeled and more effectively used to promote entrepreneurship. Finally, diagnosis and treatment of ESE can be performed on real entrepreneurs. The entrepreneur may be completely avoiding, or performing less frequently, certain critical entrepreneurial activities because s/he lacks self-efficacy. For example, the entrepreneur may be avoiding company growth for fear of losing control. Identification and removal of self-doubt will enable the entrepreneur to be actively engaged in entrepreneurial tasks, more persistent in the face of difficulty and setbacks, and more confident in meeting challenges.Overall, ESE is a moderately stable belief and requires systematic and continuous efforts to be changed. Two broad approaches can be taken toward desired change. One is the micro-approach that directly focuses on people’s beliefs. In designing and conducting entrepreneurship courses, training institutions should not just train students in critical entrepreneurial skills and capabilities but also strengthen their entrepreneurial self-efficacy. The current state of entrepreneurship courses in most management schools may fall short in both respects. Courses focus on commonly identified management skills, but often ignore entrepreneurial skills such as innovation and risk-taking. Furthermore, the teaching of entrepreneurial skills tends to be technical, with insufficient attention paid to the cognition and belief systems of the entrepreneur. Educators should take into account entrepreneurial attitudes and perceptions when designing or assessing their course objectives. Conscious efforts could be made to enhance ESE by involving the students in “real-life” business design or community small business assistance, by inviting successful entrepreneurs to lecture, and by verbal persuasion from the instructor and renowned entrepreneurs.The second approach to enhancing ESE is to work on the environment of potential and actual entrepreneurs. According to the reciprocal causation model, the environment may affect self-efficacy not only directly but also indirectly through performance. An environment perceived to be more supportive will increase entrepreneurial self-efficacy because individuals assess their entrepreneurial capacities in reference to perceived resources, opportunities, and obstacles existing in the environment. Personal efficacy is more likely to be developed and sustained in a supportive environment than in an adverse one. A supportive environment is also more likely to breed entrepreneurial success, which in turn further enhances entrepreneurial self-efficacy. Communities can work toward creating an efficacy enhancing environment by making resources both available and visible, publicizing entrepreneurial successes, increasing the diversity of opportunities, and avoiding policies that create real or perceived obstacles.     

Characteristics and influences of multinational subsidiary entrepreneurial culture: The case of the advertising sector

This paper undertakes an exploratory study into the characteristics of entrepreneurial culture of the multinational subsidiary; and, into the associated influences and manifestations linked to multinational corporation (MNC) and environmental contexts. The theme of multinational subsidiary entrepreneurial culture is an unexplored theme in the literature, and has considerable research and managerial significance. This qualitative research is based on eight multinational subsidiaries in the advertising sector in the UK. The evidence suggests that the constituents of multinational subsidiary entrepreneurial culture include global vision, entrepreneurial orientation and entrepreneurial MNC network management. The related influences and manifestations refer to subsidiary autonomy, target market servicing and responsiveness to local environmental conditions. In addition, the findings show that while entrepreneurial behaviour was evident in all investigated subsidiaries, its locus varied significantly. Specifically, entrepreneurship in multinational subsidiaries can be subsidiary-, headquarters-, or jointly-driven.