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The relationship between culture and entrepreneurship: the role of Trust

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  • Aycan Kara

    (Indiana University Southeast)

  • Ratan J. S. Dheer

    (Indiana University Southeast)

Abstract

This study examines the effect of culture on productive entrepreneurship. Specifically, we explore the mechanisms explaining this relationship by illustrating the mediating role of trust. Our analyses based on multi-sourced data for thirty-seven nations indicate that culture’s effect on productive entrepreneurship is complex. While individualism affects positively, power distance and uncertainty avoidance negatively affect productive entrepreneurship. Further, we found that the effect of these cultural dimensions is sequentially mediated by particularized and generalized trust. We discuss our findings and outline contributions to international entrepreneurship literature. We end by advancing implications for policymakers and suggestions for future research.

Suggested Citation

  • Aycan Kara & Ratan J. S. Dheer, 2023. "The relationship between culture and entrepreneurship: the role of Trust," International Entrepreneurship and Management Journal, Springer, vol. 19(4), pages 1803-1833, December.
    • Handle: RePEc:spr:intemj:v:19:y:2023:i:4:d:10.1007_s11365-023-00901-1
    DOI: 10.1007/s11365-023-00901-1
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