Cultural Underpinnings in Entrepreneurship

Regional Cultural Context as a Determinant of Entrepreneurial Behaviour: The Case of Germany

“…However, many of the studies mentioned in those overviews and many later studies of culture and entrepreneurship (e.g., Kreiser, Marino, Dickson, & Weaver, 2010; Li & Zahra, 2012; Minola, Criaco, & Obschonka, 2016; Petrakis & Valsamis, 2013; Stephan & Uhlaner, 2010; Thai & Turkina, 2014) are focussed on entrepreneurship phenomena other than the early-stage entrepreneurship or established business ownership. Among the studies that are relevant and based on some certain concept for describing culture, the Hofstede’s concept is the most widely used, both in theoretical (e.g., Dubina & Ramos, 2016; Russell, 2004; Thurik & Dejardin, 2012) and in empirical (e.g., Bouncken, Zagvozdina, Golze, & Mrozewska, 2009; Dheer, 2017; Díaz-Casero, Hernández-Mogollón, & Roldán, 2011; García-Cabrera & García-Soto, 2008; Pinillos & Reyes, 2011; Wennekers, Thurik, van Stel, & Noorderhaven, 2007) works. One problem related to the empirical studies is that the original indicators often used for describing the Hofstede’s cultural dimensions (Dheer, 2017; Pinillos & Reyes, 2011; Wennekers et al, 2007) are quite old: although adjusted and supplemented later, they are pertaining to the Hofstede’s (1980) original study.…”

“…Among the four cultural dimensions, the power distance describes the extent to which hierarchical relations and unequal distribution of power are accepted and expected in a society (Hofstede, 1980; Kaasa et al, 2014). It is usually assumed that PDI is negatively related to entrepreneurship (Autio et al, 2013; Bouncken et al, 2009; Dubina & Ramos, 2016; Mitchell, Smith, Seawright, & Morse, 2000; Russell, 2004; Zhao et al, 2012). In the societies with a higher level of power distance, there are established power relationships and resources are distributed more unequally, this, in turn, could make it difficult for low power groups to access information, experience and various resources and thus, to take advantage of profitable opportunities (Dubina & Ramos, 2016; Morales et al, 2015; Russell, 2004; Zhao et al, 2012).…”

“…Furthermore, the low power groups might view entrepreneurship as something that only high power groups do and not consider it as a possibility for themselves (Mitchell et al, 2000). Entrepreneurs also have to believe in the independence, but PDI is rather associated with less importance given to independence (Dubina & Ramos, 2016). It can be expected that if there are less starting businesses in the case of high PDI, the number of established businesses will also be low as culture does not change quickly and vice versa: because of low PDI there are more starting businesses in a society, there will also be more established businesses.…”

“…More generally, entrepreneurs have to deal effectively with the situations of incomplete information (Beugelsdijk, 2007) and be open to radically different solutions (Autio et al, 2013). In low UAI societies people are more ready to exploit opportunities even if information is limited (Dubina & Ramos, 2016). In societies with a higher level of UAI there is less motivation for entrepreneurship (Neira, Fernández, Portela, & Calvo, 2016).…”

“…Masculinity (as opposed to femininity) reflects the extent to which traditionally masculine societal values, such as orientation towards achievement and success, are more valued than those that are considered feminine, such as solidarity or tolerance (Hofstede 1980; Kaasa et al, 2014). As in masculine societies, assertiveness, competitiveness and accomplishment are important, and it might be assumed that masculinity is positively related to entrepreneurship (Dubina & Ramos, 2016; García-Cabrera & García-Soto, 2008; Kirkley, 2016). At the same time, in feminine societies the emphasis is on relationships and friendly atmosphere (Dubina & Ramos, 2016).…”