National culture and entrepreneurial orientation in a hostile environment: a study of informal enterprises in Nigeria

This paper synthesizes the framework of national culture and entrepreneurial orientation (EO) in the context of informal enterprises in hostile environments. The study uses quantitative analysis with the partial least square-structural equation model (PLS-SEM) to examine whether six national culture dimensions affect informal enterprises’ EO in hostile environments. The study draws upon a sample of 385 informal enterprises across seven states of Nigeria. The findings show that power distance, uncertainty avoidance, and normative orientation negatively affect EO. In contrast, collectivism, femininity, and indulgence positively affect EO. The results justify the conclusion that high power distance, high uncertainty avoidance, and normative orientation are important cultural factors that constrain EO across informal enterprises and further inflict their prolonged informal status. In contrast, collectivism, femininity, and indulgence support their EO despite their high-power distance, uncertainty avoidance, and cultural rigidity. The study suggests properly formulating and implementing policies and programmes to reduce prevailing inequality, uncertainties, and complexities. This study makes novel contributions to knowledge by helping understand the relationships between the six dimensions of national culture and the EO of informal enterprises in Nigeria’s hostile environments, thereby providing crucial insight into why these enterprises manifest low EO.