Purpose
The purpose of this paper is to investigate the relationship between culture and entrepreneurial activity at both the national and regional levels of analyses. While there has been significant progress in investigating the effects of culture on entrepreneurial activity, most work overlooks the effects that time-orientation may have on national or regional entrepreneurial activity. Specifically, this study argues for the connection between long-term orientation (LTO) and subsequent levels of entrepreneurship such that the more a nation or region is long-term oriented, the higher the subsequent entrepreneurial activity will be.
Design/methodology/approach
Data from the World Value Survey (WVS), which is a global project that measures individuals’ values across 62 countries (World Value Survey, 2011), were used for this project. The final sample consisted of 36,652 individual observations across 29 nations and 262 regions and was analyzed using ecological factor analyses and multilevel modeling.
Findings
The findings suggest that LTO as a cultural dimension does influence entrepreneurship activity levels. The findings also suggest that the effects of LTO at the regional and national levels vary widely. Specifically, the authors find LTO to be positively related to entrepreneurship at the regional, but not national, level of analysis.
Originality/value
The findings reveal important nuances about the implications that the understudied cultural factor of LTO has on entrepreneurial activity across multiple levels of analysis.
Empirical evidence establishes that entrepreneurs pursue and achieve different goals and objectives with their ventures ranging from purely economic to purely social (e.g. non-profits) in nature. The reason that individual entrepreneurs choose to pursue such divergent paths is currently poorly understood, however. We employ a perspective integrating generational theory, goal-setting theory and the theory of planned behaviour to determine why entrepreneurs of different ages pursue social performance in their ventures. Using a sample of 150 entrepreneurs belonging to Baby Boomer, Generation X and Millennial generations, we examined the relationship between age, social salience and the social performance of their firms. Findings suggest a mediated relationship between age, social salience and social performance.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.