Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 207: Consequences of Cultural Practices for Entrepreneurial Behaviors

Erkko Autio (), Saurav Pathak () and Karl Wennberg ()
Additional contact information
Erkko Autio: Imperial College London Business School, Postal: Imperial College London Business School, South Kensington Campus, London SW7 2AZ, United Kingdom
Saurav Pathak: Michigan Tech University, Postal: Michigan Tech University, School of Business and Economics, Academic Office Building, G006, USA
Karl Wennberg: Ratio, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

Abstract: Although national culture is an important regulator of entrepreneurship, there is a dearth of studies that (i) explore the effects of national cultural practices on entrepreneurial behaviors by individuals; (ii) use appropriate multi-level research designs; (iii) consider the effects of culture on different entrepreneurial behaviors such as entry and post-entry growth aspirations. We combined Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effec-tiveness (GLOBE) data from 42 countries for 2005 – 2008 to address these gaps using a multi-level design. We found societal institutional collectivism practices negatively associated with entrepreneur-ial entry but positively associated with entrepreneurial growth aspirations. Uncertainty avoidance practices were negatively associated with entry but not with growth aspirations, while performance orientation practices were positively associated with entry. This highlights the differential effects of cultural practices on entrepreneurial entry and growth aspirations, and demonstratesthe value of multi-level techniques in analyzing the effect of culture on entrepreneurship.

Keywords: Culture; Entrepreneurship; Multi-level

JEL-codes: F55; L26; M16

45 pages, June 13, 2013

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