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How Culture Molds the Effects of Self Efficacy and Fear of Failure on Entrepreneurship


  • Wennberg, Karl

    () (The Ratio Institute & Stockholm School of Economics)

  • Pathak, Saurav

    () (Michigan Tech University)

  • Autio, Erkko

    () (Imperial College London Business School)


We use data from the Global Entrepreneurship Monitor (GEM) and the Global Leadership and Organizational Behavior Effectiveness study (GLOBE) for 42 countries to investigate how the effects of individual’s self-efficacy and fear of failure on entrepreneurial entry are contingent on national cultural practices. Using multi-level methodology, we observe that the positive effect of self-efficacy on entry is moderated by the cultural practices of institutional collectivism and performance orientation. Conversely, the negative effect of fear of failure on entry is moderated by the cultural practices of institutional collectivism and uncertainty avoidance. We discuss the implications for theory and methodological development in culture and entrepreneurship.

Suggested Citation

  • Wennberg, Karl & Pathak, Saurav & Autio, Erkko, 2013. "How Culture Molds the Effects of Self Efficacy and Fear of Failure on Entrepreneurship," Ratio Working Papers 223, The Ratio Institute.
  • Handle: RePEc:hhs:ratioi:0223

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    Cited by:

    1. Rakesh Sambharya & Martina Musteen, 2014. "Institutional environment and entrepreneurship: An empirical study across countries," Journal of International Entrepreneurship, Springer, vol. 12(4), pages 314-330, December.
    2. Schmutzler, Jana & Andonova, Veneta & Díaz Serrano, Lluís, 2015. "When culture does (not) matter: role models and self-efficacy as drivers of entrepreneurial behavior," Working Papers 2072/247806, Universitat Rovira i Virgili, Department of Economics.
    3. Cacciotti, Gabriella & Hayton, James C. & Mitchell, J. Robert & Giazitzoglu, Andres, 2016. "A reconceptualization of fear of failure in entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(3), pages 302-325.
    4. repec:eee:tefoso:v:123:y:2017:i:c:p:271-282 is not listed on IDEAS
    5. Atilla Öner, M. & Kunday, Özlem, 2016. "A study on Schumpeterian and Kirznerian entrepreneurship in Turkey: 2006–2013," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 62-71.
    6. Muralidharan, Etayankara & Pathak, Saurav, 2017. "Informal institutions and international entrepreneurship," International Business Review, Elsevier, vol. 26(2), pages 288-302.

    More about this item


    Culture; Entrepreneurship; Institutions; Multi-level;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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