Unveiling the influence of national culture on entrepreneurship: systematic literature review

Abstract

Purpose How national culture induces entrepreneurship and business growth remains elusive in research. Questions remain, for example, how can we determine whether a given national culture is good or bad for entrepreneurial activities? What are those pro-entrepreneurship national culture dimensions that could be promoted across nations? These questions are yet open for discussion. The purpose of the study seeks to address these questions and unveil how various national cultural dimensions affect entrepreneurship in different national contexts. Design/methodology/approach The systematic literature review (SLR) method is meticulously applied. Key terms related to Hofstede’s national culture dimensions are traced alongside entrepreneurial aspects associated with entrepreneurial actions and orientations. By developing series of search queries from these terms, studies within the Web of Science and EBSCO databases are explored. Findings The review reveals that individualism, long-term orientation, low power distance, feminism, indulgence and low uncertainty avoidance dimensions of culture enable and foster entrepreneurial activities across countries. This study proposes that they be considered Hofstede’s pro-entrepreneurship cultural dimensions. The research suggests that countries endowed with more of these cultural factors tend to create favorable conditions for entrepreneurship. The authors argue that the bundling of these cultural dimensions makes a difference in entrepreneurial performance, not the isolated effect of individual dimensions. Practical implications The study reveals the intricate relationship between national culture and entrepreneurship, a relationship that is particularly crucial in today’s globalized work environment and cross-cultural entrepreneurship. The findings underscore the significant role of national culture in shaping the entrepreneurial activities of nations. To enhance the effectiveness of entrepreneurial practices, it is essential to consider the cultural context of societies. While the review does not identify a specific national culture dimension that distinguishes developing countries from developed ones in terms of entrepreneurial performance, it does suggest that promoting pro-entrepreneurship national cultural dimensions, rather than individual dimensions in isolation, can create a fertile ground for entrepreneurship to thrive. Originality/value This study significantly advances the understanding of the relationship between national culture and entrepreneurship, considering Hofstede’s six national cultural dimensions and their respective and concurrent influences. This research provides a clearer framework for understanding and promoting cultures that support entrepreneurship, particularly by focusing on how cultural “bundling” rather than isolated traits can drive success in entrepreneurship across different countries. The study also offers practical suggestions to stakeholders on how to promote a pro-entrepreneurship national culture. The use of the SLR methodology enhances the reliability of the findings, shedding light on the most critical national cultural dimensions that must be configured to achieve the maximum returns from entrepreneurial endeavors.