Further entrepreneurship theory process and practice 9th edition pdf free is available here. An earlier version of this paper was presented at the National Academy of Management Meeting in Boston on August 12, 1997. The authors gratefully acknowledge the contributions of Professor Jan Luytjes who was instrumental in initiating the cross-national collaborative team that gathered the data used in the project.
We are also grateful to our collaborators in the various countries whose effort and cooperation were essential to the completion of this study. Entrepreneurship research has identified a number of personal characteristics believed to be instrumental in motivating entrepreneurial behavior. Two frequently cited personal traits associated with entrepreneurial potential are internal locus of control and innovativeness. Internal locus of control has been one of the most studied psychological traits in entrepreneurship research, while innovative activity is explicit in Schumpeter’s description of the entrepreneur. Entrepreneurial traits have been studied extensively in the United States. However, cross-cultural studies and studies in non-U.
Thus the question is raised: do entrepreneurial traits vary systematically across cultures and if so, why? Culture, as the underlying system of values peculiar to a specific group or society, shapes the development of certain personality traits and motivates individuals in a society to engage in behaviors that may not be evident in other societies. Although Hofstede did not specify the relationship between culture and entrepreneurial activity per se, his culture dimensions are useful in identifying key aspects of culture related to the potential for entrepreneurial behavior. In this paper we offer several hypotheses about the relationship between two of Hofstede’s culture dimensions and psychological traits associated with entrepreneurial potential. We expect that an internal locus of control orientation is more prevalent in individualistic cultures than in collectivistic cultures. Likewise, we expect that an innovative orientation is more prevalent in low uncertainty avoidance cultures than in high uncertainty avoidance cultures. However, since neither internal locus of control nor innovativeness alone is sufficient to explain entrepreneurial motivation, we also hypothesize that individuals with both an internal locus of control and innovative orientation should appear more frequently in highly individualistic and low uncertainty cultures.
These hypotheses were tested on a sample of over 1,800 responses to a survey of third- and fourth-year students at universities in nine countries. Eighteen items in the survey instrument were used to construct scales for innovativeness and locus of control. Items for the innovativeness scale were adapted from the Jackson Personality Inventory while items used for the locus of control scale were adapted from Rotter’s I-E scale. The results of this exploratory study support the proposition that some cultures are more conducive for entrepreneurship than others.
In individualistic cultures we found an increased likelihood of an internal locus of control orientation. There was also support for the hypothesis that an entrepreneurial orientation, defined as internal locus of control combined with innovativeness, is more likely in individualistic, low uncertainty avoidance cultures than in collectivistic, high uncertainty avoidance cultures. Culture, it appears, may condition potential for entrepreneurship, generating differences across national and regional boundaries. This suggests that in addition to support from political, social, and business leaders, there needs to be a supportive culture to cultivate the mind and character of the potential entrepreneur.