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Consequences of cultural practices for entrepreneurial behaviors

Author

Listed:
  • Erkko Autio

    (Imperial College Business School, London, UK)

  • Saurav Pathak

    (School of Business and Economics, Michigan Technological University, Houghton, USA)

  • Karl Wennberg

    (1] Stockholm School of Economics, Stockholm, Sweden[2] The Ratio Institute, Stockholm, Sweden)

Abstract

Although national culture is an important regulator of entrepreneurship, there is a dearth of studies that: (1) explore the effects of national cultural practices on entrepreneurial behaviors by individuals; (2) use appropriate multilevel research designs; (3) consider the effects of culture on different entrepreneurial behaviors, such as entry and post-entry growth aspirations. We combined Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effectiveness (GLOBE) data from 42 countries for 2005–2008 to address these gaps, using a multilevel design. We found societal institutional collectivism practices negatively associated with entrepreneurial entry, but positively associated with entrepreneurial growth aspirations. Uncertainty avoidance practices were negatively associated with entry but not with growth aspirations, and performance orientation practices were positively associated with entry. Our analysis highlights the differential effects of cultural practices on entrepreneurial entry and growth aspirations, and demonstrates the value of multilevel techniques in analyzing the effect of culture on entrepreneurship.

Suggested Citation

  • Erkko Autio & Saurav Pathak & Karl Wennberg, 2013. "Consequences of cultural practices for entrepreneurial behaviors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
    • Handle: RePEc:pal:jintbs:v:44:y:2013:i:4:p:334-362
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    JEL classification:

    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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