Business Startups: Cultural-Economic Controversy
AbstractThe purpose of this paper is to examine whether national cultural differences and/or economic, macroeconomic indicators are dominant in explaining business startups in selected EU countries. Among Hofstede’s national cultural differences, we have used the individualismcollectiveness indexmeasuring preference behavior that promotes one’s self interest, while the power distance index measures tolerance of citizens in terms of social inequality in terms of superiors or subordinates; the uncertainty avoidance index reflects tolerance towards uncertainty and ambiguity among citizens, while the masculinity index measures whether the society is male centered (Hofstede 2003). The last variable in the model related to culture is the corruption index (Transparency International 2008), which reflects how sensitive the nation is towards corruption. Among the macroeconomic indicators we have looked at whether the firm birth rate in an economy is strongly influenced by the given average wage rate, overall productivity level among nations, index for profitability and real per capita GDP growth. Findings show that with some exclusion, cultural factors are as important as economic indicators in explaining national business startups. Towards this end we have used factor and principle component analysis towards explaining the strength of the relationship among the variables.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.
Volume (Year): 9 (2011)
Issue (Month): 1 ()
Find related papers by JEL classification:
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Boris Urban, 2013. "Social Entrepreneurship in an Emerging Economy: A Focus on the Institutional Environment and Social Entrepreneurial Self-Efficacy," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 11(1 (Spring), pages 3-25.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alen Jezovnik).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.