Cross-country differences in entrepreneurial activity: The role of cultural practice and national wealth

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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.
Original languageEnglish
JournalFrontiers of Business Research in China
Volume6
Issue number4
Pages (from-to)447-474
Number of pages28
ISSN1673-7326
DOIs
Publication statusPublished - 2012

    Research areas

  • Entrepreneurship - cultural practice, entrepreneurial activities, Global Entrepreneurship Monitor (GEM), Global Leadership and Organizational Behavior Effectiveness (GLOBE), national culture

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