IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v12y2021i3d10.1007_s13132-020-00663-z.html
   My bibliography  Save this article

Culture and Entrepreneurship in the United Arab Emirates

Author

Listed:
  • François Facchini

    (University of Paris 1 Panthéon-Sorbonne)

  • Louis Jaeck

    (United Arab Emirates University)

  • Chafik Bouhaddioui

    (United Arab Emirates University)

Abstract

It is well known that entrepreneurship plays a key role in economic development; however, its cultural underpinnings remain a marginal field of study. This paper is an attempt to fill this gap. The development trend of the oil-rich United Arab Emirates (“UAE”) is at the heart of debates surrounding the effects of culture on economic choices and outcomes. In order to move away from an oil-based economy and provide private sector jobs for its growing number of nationals, the UAE has promoted and implemented diversification strategies over the last 20 years. Yet, less than 2% of the private sector workforce is composed of UAE nationals. The latter prefer working in the public sector because of better salary and working conditions. This paper seeks to explain the cultural foundations of the lack of entrepreneurship among UAE nationals. It conducts a survey among students from United Arab Emirates University and tests the determinants of their entrepreneurial intentions. It shows that the students’ culture is holistic and rather hostile to entrepreneurship. Such disinterest is stronger because of fear of stigmatization associated with business failure and because of social prestige associated with public sector jobs. Our results not only confirm the cultural specificity of Rentier States but also invite the launching of educational programs aimed at modifying students’ beliefs over entrepreneurship. Such cultural change seems inevitable in the context of a transition from an oil-based to a knowledge-based economy.

Suggested Citation

  • François Facchini & Louis Jaeck & Chafik Bouhaddioui, 2021. "Culture and Entrepreneurship in the United Arab Emirates," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1245-1269, September.
    • Handle: RePEc:spr:jknowl:v:12:y:2021:i:3:d:10.1007_s13132-020-00663-z
    DOI: 10.1007/s13132-020-00663-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-020-00663-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-020-00663-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Boettke, Peter J. & Coyne, Christopher J., 2009. "Context Matters: Institutions and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(3), pages 135-209, March.
    2. François Facchini, 2013. "Economic freedom in Muslim countries: an explanation using the theory of institutional path dependency," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00636998, HAL.
    3. François Facchini, 2008. "Culture, Diversité Culturelle Et Développement Économique. Une Mise En Perspective Critique De Travaux Récents," Revue Tiers-Monde, Armand Colin, vol. 0(3), pages 523-554.
    4. Stulz, Rene M. & Williamson, Rohan, 2003. "Culture, openness, and finance," Journal of Financial Economics, Elsevier, vol. 70(3), pages 313-349, December.
    5. Thomas M Begley & Wee-Liang Tan, 2001. "The Socio-Cultural Environment for Entrepreneurship: A Comparison Between East Asian and Anglo-Saxon Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 537-553, September.
    6. Jon Heales & Sophie Cockcroft & Corina Raduescu, 2004. "The Influence of National Culture on the Level and Outcome of IS Development Decisions," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 7(4), pages 3-28, October.
    7. Tiessen, James H., 1997. "Individualism, collectivism, and entrepreneurship: A framework for international comparative research," Journal of Business Venturing, Elsevier, vol. 12(5), pages 367-384, September.
    8. Omar Khalil & Laila Marouf, 2017. "A Cultural Interpretation of Nations’ Readiness for Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 97-126, March.
    9. Lorraine Uhlaner & Roy Thurik, 2010. "Postmaterialism Influencing Total Entrepreneurial Activity Across Nations," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 301-328, Springer.
    10. Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006. "Political foundations of the resource curse," Journal of Development Economics, Elsevier, vol. 79(2), pages 447-468, April.
    11. Harry P Bowen & Dirk De Clercq, 2008. "Institutional context and the allocation of entrepreneurial effort," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 747-767, June.
    12. Christian Bjørnskov & Nicolai Foss, 2010. "Economic Freedom and Entrepreneurial Activity: Some Cross-Country Evidence," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 201-225, Springer.
    13. François Facchini, 2013. "Economic freedom in Muslim countries: an explanation using the theory of institutional path dependency," European Journal of Law and Economics, Springer, vol. 36(1), pages 139-167, August.
    14. Donna Marie De Carolis & Patrick Saparito, 2006. "Social Capital, Cognition, and Entrepreneurial Opportunities: A Theoretical Framework," Entrepreneurship Theory and Practice, , vol. 30(1), pages 41-56, January.
    15. María-José Pinillos & Luisa Reyes, 2011. "Relationship between individualist–collectivist culture and entrepreneurial activity: evidence from Global Entrepreneurship Monitor data," Small Business Economics, Springer, vol. 37(1), pages 23-37, July.
    16. François Facchini, 2011. "Economic freedom in Muslim countries : an explanation using the theory of institutional path dependency," Post-Print halshs-00587694, HAL.
    17. Ute Stephan & Lorraine M Uhlaner, 2010. "Performance-based vs socially supportive culture: A cross-national study of descriptive norms and entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1347-1364, October.
    18. Christopher Coyne, 2005. "The Institutional Prerequisites for Post-Conflict Reconstruction," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 18(3), pages 325-342, December.
    19. Fearon, James D, 2003. "Ethnic and Cultural Diversity by Country," Journal of Economic Growth, Springer, vol. 8(2), pages 195-222, June.
    20. Stephan F. Gohmann & Bradley K. Hobbs & Myra McCrickard, 2008. "Economic Freedom and Service Industry Growth in the United States," Entrepreneurship Theory and Practice, , vol. 32(5), pages 855-874, September.
    21. François Facchini, 2008. "Culture, diversité culturelle et développement économique : une mise en perspective critique des travaux récents," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286759, HAL.
    22. Pyayt P. Oo & Arvin Sahaym & Sakdipon Juasrikul & Sang-Youn Lee, 2018. "The interplay of entrepreneurship education and national cultures in entrepreneurial activity: a social cognitive perspective," Journal of International Entrepreneurship, Springer, vol. 16(3), pages 398-420, September.
    23. Lee, Sang M. & Peterson, Suzanne J., 2000. "Culture, entrepreneurial orientation, and global competitiveness," Journal of World Business, Elsevier, vol. 35(4), pages 401-416, January.
    24. Martin Paldam, 2007. "An essay on the Muslim Gap. Religiosity and the political system," Economics Working Papers 2007-04, Department of Economics and Business Economics, Aarhus University.
    25. Lars Jonsson & Enrico Baraldi & Lars-Eric Larsson & Petter Forsberg & Kristofer Severinsson, 2015. "Targeting Academic Engagement in Open Innovation: Tools, Effects and Challenges for University Management," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(3), pages 522-550, September.
    26. McGrath, Rita Gunther & MacMillan, Ian C. & Scheinberg, Sari, 1992. "Elitists, risk-takers, and rugged individualists? An exploratory analysis of cultural differences between entrepreneurs and non-entrepreneurs," Journal of Business Venturing, Elsevier, vol. 7(2), pages 115-135, March.
    27. Weiffen, Brigitte, 2008. "Liberalizing Autocracies in the Gulf Region? Reform Strategies in the Face of a Cultural-Economic Syndrome," World Development, Elsevier, vol. 36(12), pages 2586-2604, December.
    28. Bryan Caplan, 2002. "Systematically Biased Beliefs About Economics: Robust Evidence of Judgemental Anomalies from the Survey of Americans and Economists on the Economy," Economic Journal, Royal Economic Society, vol. 112(479), pages 433-458, April.
    29. James C. Hayton & Gabriella Cacciotti, 2013. "Is there an entrepreneurial culture? A review of empirical research," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(9-10), pages 708-731, December.
    30. Kallol Bagchi & Paul Hart & Mark F. Peterson, 2004. "National Culture and Information Technology Product Adoption," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 7(4), pages 29-46, October.
    31. Marcus Noland & Howard Pack, 2007. "Arab Economies in a Changing World, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3931, January.
    32. Bjorvatn, Kjetil & Farzanegan, Mohammad Reza, 2013. "Demographic Transition in Resource Rich Countries: A Blessing or a Curse?," World Development, Elsevier, vol. 45(C), pages 337-351.
    33. Steven F. Kreft & Russell S. Sobel, 2005. "Public Policy, Entrepreneurship, And Economic Freedom," Cato Journal, Cato Journal, Cato Institute, vol. 25(3), pages 595-616, Fall.
    34. KruegerJR, Norris F. & Reilly, Michael D. & Carsrud, Alan L., 2000. "Competing models of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 411-432.
    35. Gregory M. Randolph & Michael T. Tasto & Robert F. Salvino Jr. (ed.), 2017. "Public Policy, Productive and Unproductive Entrepreneurship," Books, Edward Elgar Publishing, number 14939.
    36. François Facchini, 2013. "Economic Freedom in Muslim Countries: an explanation using the theory of institutional path dependency," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286717, HAL.
    37. Shane, Scott, 1993. "Cultural influences on national rates of innovation," Journal of Business Venturing, Elsevier, vol. 8(1), pages 59-73, January.
    38. Arye Hillman, 2007. "Economic and security consequences of supreme values," Public Choice, Springer, vol. 131(3), pages 259-280, June.
    39. Mohammad Reza Farzanegan, 2014. "Can oil-rich countries encourage entrepreneurship?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(9-10), pages 706-725, December.
    40. Scott Shane, 1995. "Uncertainty Avoidance and the Preference for Innovation Championing Roles," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 47-68, March.
    41. Noel D. Campbell & Tammy M. Rogers, 2007. "Economic Freedom and Net Business Formation," Cato Journal, Cato Journal, Cato Institute, vol. 27(1), pages 23-36, Winter.
    42. Ryan, James Christopher, 2016. "Old knowledge for new impacts: Equity theory and workforce nationalization," Journal of Business Research, Elsevier, vol. 69(5), pages 1587-1592.
    43. Justin Paul & Philippe Hermel & Archana Srivatava, 2017. "Entrepreneurial intentions—theory and evidence from Asia, America, and Europe," Journal of International Entrepreneurship, Springer, vol. 15(3), pages 324-351, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lee, Seungah S., 2023. "Entrepreneurship for all? The rise of a global “entrepreneurship for development” agenda, 1950–2021," World Development, Elsevier, vol. 166(C).
    2. Cayetano Medina Molina & Domingo Ribeiro Soriano & Cristina Blanco González-Tejero, 2023. "Multi-level corporate entrepreneurship in SMEs: an intra-metropolitan analysis," Review of Managerial Science, Springer, vol. 17(7), pages 2185-2213, October.
    3. Esmat Zaidan & Rula Momani & Mohammad Al-Saidi, 2024. "Entrepreneurial universities and integrated sustainability for the knowledge-based economy: self-perception and some structural challenges in the Gulf region," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    3. Ivano Dileo & Thaís García Pereiro, 2019. "Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1393-1441, December.
    4. Daniel L. Bennett & Boris Nikolaev, 2021. "Individualism, pro-market institutions, and national innovation," Small Business Economics, Springer, vol. 57(4), pages 2085-2106, December.
    5. Ratan J. S. Dheer, 2017. "Cross-national differences in entrepreneurial activity: role of culture and institutional factors," Small Business Economics, Springer, vol. 48(4), pages 813-842, April.
    6. K. Parboteeah & Sascha Walter & Jörn Block, 2015. "When Does Christian Religion Matter for Entrepreneurial Activity? The Contingent Effect of a Country’s Investments into Knowledge," Journal of Business Ethics, Springer, vol. 130(2), pages 447-465, August.
    7. Muralidharan, Etayankara & Pathak, Saurav, 2017. "Informal institutions and international entrepreneurship," International Business Review, Elsevier, vol. 26(2), pages 288-302.
    8. Kleinhempel, Johannes & Klasing, Mariko & Beugelsdijk, Sjoerd, 2022. "Cultural Roots of Entrepreneurship," MPRA Paper 115942, University Library of Munich, Germany.
    9. 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.
    10. Jana Schmutzler & Veneta Andonova & Luis Diaz-Serrano, 2019. "How Context Shapes Entrepreneurial Self-Efficacy as a Driver of Entrepreneurial Intentions: A Multilevel Approach," Entrepreneurship Theory and Practice, , vol. 43(5), pages 880-920, September.
    11. Moamen Gouda & Jerg Gutmann, 2021. "Islamic constitutions and religious minorities," Public Choice, Springer, vol. 186(3), pages 243-265, March.
    12. Barreto, Tais S. & Lanivich, Stephen E. & Cox, Kevin C., 2022. "Temporal orientation as a robust predictor of innovation," Journal of Business Research, Elsevier, vol. 138(C), pages 287-300.
    13. Lorraine Uhlaner & Roy Thurik, 2010. "Postmaterialism Influencing Total Entrepreneurial Activity Across Nations," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 301-328, Springer.
    14. Jessica Birkholz, 2022. "Persistence of Regional Entrepreneurship Patterns: Quantity and Quality of Regional Business Opportunity Perception," Bremen Papers on Economics & Innovation 2204, University of Bremen, Faculty of Business Studies and Economics.
    15. Francisco Liñán & José Fernandez-Serrano, 2014. "National culture, entrepreneurship and economic development: different patterns across the European Union," Small Business Economics, Springer, vol. 42(4), pages 685-701, April.
    16. Thai, Mai Thi Thanh & Turkina, Ekaterina, 2014. "Macro-level determinants of formal entrepreneurship versus informal entrepreneurship," Journal of Business Venturing, Elsevier, vol. 29(4), pages 490-510.
    17. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
    18. Saunoris, James W., 2024. "Individualism, economic freedom, and the development of the shadow economy," Economic Systems, Elsevier, vol. 48(1).
    19. Block, J.H. & Thurik, A.R. & van der Zwan, P.W. & Walter, S., 2010. "Business Takeover or New Venture? Individual and Environmental Determinants from a Cross-Country Study," ERIM Report Series Research in Management ERS-2010-042-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    20. Calza, Francesco & Cannavale, Chiara & Zohoorian Nadali, Iman, 2020. "How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach," International Business Review, Elsevier, vol. 29(5).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:12:y:2021:i:3:d:10.1007_s13132-020-00663-z. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.