TY - JOUR

T1 - Cross-country differences in entrepreneurial activity

T2 - The role of cultural practice and national wealth

AU - Zhao, Xiang-Yang

AU - Li, Hai

AU - Rauch, Andreas

PY - 2012

Y1 - 2012

N2 - In this paper, we argue that national culture is important in interpreting the differences of entrepreneurial activities between countries. Furthermore, national wealth plays a moderating role between national culture and entrepreneurial activities. Datasets from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project and Global Entrepreneurship Monitor (GEM) study were analyzed. We find that there are interaction effects between GDP, a proxy for national wealth, and several cultural dimensions on entrepreneurial activities. More traditional cultural variables (in-group collectivism, humane orientation, and power distance) enhance early-stage and established entrepreneurship in low-and medium-GDP countries, but hinder early-stage and established entrepreneurship in high-GDP countries. More modernistic cultural variables (performance orientation, future orientation, and uncertainty avoidance) promote high-growth and high-innovation entrepreneurship in some situations, especially in high-GDP countries. Implications and limitations are discussed. © 2012 by Koninklijke Brill NV, Leiden, The Netherlands.

AB - In this paper, we argue that national culture is important in interpreting the differences of entrepreneurial activities between countries. Furthermore, national wealth plays a moderating role between national culture and entrepreneurial activities. Datasets from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project and Global Entrepreneurship Monitor (GEM) study were analyzed. We find that there are interaction effects between GDP, a proxy for national wealth, and several cultural dimensions on entrepreneurial activities. More traditional cultural variables (in-group collectivism, humane orientation, and power distance) enhance early-stage and established entrepreneurship in low-and medium-GDP countries, but hinder early-stage and established entrepreneurship in high-GDP countries. More modernistic cultural variables (performance orientation, future orientation, and uncertainty avoidance) promote high-growth and high-innovation entrepreneurship in some situations, especially in high-GDP countries. Implications and limitations are discussed. © 2012 by Koninklijke Brill NV, Leiden, The Netherlands.

KW - Entrepreneurship

KW - cultural practice

KW - entrepreneurial activities

KW - Global Entrepreneurship Monitor (GEM)

KW - Global Leadership and Organizational Behavior Effectiveness (GLOBE)

KW - national culture

UR - http://www.scopus.com/inward/record.url?scp=84879987990&partnerID=8YFLogxK

U2 - 10.3868/s070-001-012-0021-0

DO - 10.3868/s070-001-012-0021-0

M3 - Journal articles

VL - 6

SP - 447

EP - 474

JO - Frontiers of Business Research in China

JF - Frontiers of Business Research in China

SN - 1673-7326

IS - 4

ER -