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Regional Cultural Context as a Determinant of Entrepreneurial Behaviour: The Case of Germany

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  • Kadri Arrak
  • Anneli Kaasa
  • Urmas Varblane

Abstract

This exploratory article aims to take first steps towards understanding whether a regional cultural background has, among other determinants, an influence on a person’s entrepreneurial behaviour, relying on the example of Germany. A multilevel approach is applied combining the Global Entrepreneurship Monitor individual-level data about entrepreneurship with up-to-date cultural dimensions indicators based on Hofstede’s original approach at the regional (NUTS 1) level. The results indicate that regional cultural context is an important determinant of entrepreneurial behaviour. At that, different cultural dimensions have different impacts, and the impact also differs across different stages of entrepreneurship. A lower level of uncertainty avoidance in a region could have a positive impact on early-stage entrepreneurship, whereas the established business ownership seems to be encouraged by a lower level of power distance.

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  • Kadri Arrak & Anneli Kaasa & Urmas Varblane, 2020. "Regional Cultural Context as a Determinant of Entrepreneurial Behaviour: The Case of Germany," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(1), pages 88-118, March.
    • Handle: RePEc:sae:jouent:v:29:y:2020:i:1:p:88-118
    DOI: 10.1177/0971355719893501
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    2. Maha Aly & David B. Audretsch & Heike Grimm, 2021. "Emotional skills for entrepreneurial success: the promise of entrepreneurship education and policy," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1611-1629, October.
    3. Aristizábal, Juan & Tarapuez, Edwin & Hidalgo, Mario, 2023. "A multilevel approach to understanding the relationship between entrepreneurship and the urban environment: empirical evidence from Colombia [Un enfoque multinivel para comprender la relación entre," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 35(1), pages 311-329, June.
    4. Maha Aly & Galal Galal-Edeen, 2021. "Why is Germany less entrepreneurial? A behavioral reasoning perspective," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1376-1416, October.
    5. Claudiu Oancea, 2020. "Recycling Romania’s Communist Past as an Entrepreneurial Project. Two Case Studies," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 31(1), pages 46-60, December.

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