Cross-country differences in entrepreneurial activity: The role of cultural practice and national wealth
Research output: Journal contributions › Journal articles › Research › peer-review
Standard
In: Frontiers of Business Research in China, Vol. 6, No. 4, 2012, p. 447-474.
Research output: Journal contributions › Journal articles › Research › peer-review
Harvard
APA
Vancouver
Bibtex
}
RIS
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 -