Comparative Entrepreneurship

8/8/2019 Comparative Entrepreneurship

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Culture and entrepreneurship

ComparativeEntrepreneurship

Renata Osowska


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What?

Culture as a set of values, believes and expectedbehaviours?

Culture as an element of entrepreneurial environment

Entrepreneurial culture- one or more? international

perspective


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1. "the total way oflife of people"

2. "the sociallegacy the individual acquires from his group"

3. "a way of thinking, feeling, and believing"

4. "an abstraction from behavior"

5.a theory on the part of the anthropologist about the way in which agroup of people in fact behave

6. a "storehouse of pooled learning"

7. "a set of standardized orientations to recurrent problems"

8. "learned behavior"

9. a mechanism for the normative regulation of behavior

10. "a set of techniques for adjusting both to the external environmentand to other men"

11. "a precipitate of history"

12. a behavioral map, sieve, or matrix

Clifford Geertz


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Definition

A set of shared values, beliefs and expected behaviours(e.g. Herbig 1994, Hofstede 1980, Hayton et al. 2002)

Values- more abstract and global/ general

Beliefs- more concrete/ about certain phenomena

Behaviours- response to both


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Origin of entrepreneurial

values:

Uhlaner and Turik (2007) claim thatit is important to understand

the influence of cultural values, because they are imbedded inpopulation and change more slowly than does economic policy andmay thus provide an explanation for differential effects of similareconomic policies across cultures.


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Family

Role models

Knowledge

Support


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Religion

Max Webber and his protestant work ethics

Religion is the richest source of values?

Monk or entrepreneur?


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Education

What people learn at school helps them to decide tobe an entrepreneur

Education helps introducing entrepreneurial cultureto the society

With necessary knowledge itis easier to start abusiness and to grow it

The more educated the better???- inventions


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Environment for individualism

Climate forliberty, to control own destiny

Trust the individual and believe in individual

Where there are no individuals, only people andmasses, development does not occur. What takes

place instead is either obedience oruprising.(Grondona2000)


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Entrepreneurial environment is a combination of factorsthat play a role in the development of entrepreneurship(Gnyawali et al., 1994)

Socio-cultural environment creates att itudes towards

entrepreneurial activities

Despite the presence of favourable environment,national culture is needed which will support individuals

who are mot ivated by factors such as f inancial rewards,achievement, social career, and individual fulfilment, tocultivate them into ent repreneurship. Some societiesvalue entrepreneurship, others do not .


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Culture influences the supportiveness of theenvironment to make it more legitimate to form abusiness, but also the motives, values and beliefs ofindividuals

different cultures emphasize different mot ivationalneeds (opportunity vs necessity),

to some point culture is manifested throughbehaviour. GEM (South America rates), pennycapitalism of women from the third world (Berger)


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GEMdata 2008


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How?

Culture could be measured at the national, regional,societallevel, but the majority of studies is

performed on the nationallevel

It enables to examine various entrepreneurialcharacteristics across countries comparing values,

motives and beliefs

Association between culture and entry mode into newmarkets (transaction costs)


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National culture is likely to influence rates ofentrepreneurship by creating a larger supply ofpotential entrepreneurs

The interdependent nature of the relationshipsbetween cultural values, individual values andbeliefs

Are entrepreneurs different fromnonentrepreneurs? (McGrath et al. 1992)


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Hofstede

Hofstedes (1980) cultural dimensions:

five variables: inequality, togetherness, genderroles,

dealing with the unknown and time orientation(Hofstede 1998)

The criteria for comparison are values.

According to Hofstede values are the most general

and unspecific mental programsusually acquired atan early age.

These values that can be distinguished betweennations are components of national culture.


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Etzioni

Sociallegitimation can determine the level ofentrepreneurship between countries, but also within

one society in different periods (Etzioni 1987).Depending on legitimation entrepreneurship can beregarded in a society as the prime activity, asacceptable activity, an activity suitable only for

minority or highly tabooed activity.Entrepreneurs are treated here as actors of changeto adapt to changing environment andentrepreneurship as the way to smooth the inevitabletransition.


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Dissatisfaction perspective

The dissatisfaction perspective assumes that whenlooking from the macro perspective entrepreneurship

exists as the result of differences in values andbelieves between society and prospectiveentrepreneurs.

a clash of values may drive entrepreneurs to proceedinto entrepreneurship in usually non-entrepreneurialculture (Uhlaner and Thurik 2007)


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Why?

The role of culture

Policy

Internationalrelations?

Business etiquette?

Entry mode


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Culture acts as the conductor and entrepreneur asthe catalyst to entrepreneurship

Complex relationship exists among cultural values,socialinstitutions (e.g.intellectual property rights),

industry characteristics (e.g.industrialconcentration), and behavioural outcomes such asentrepreneurship (Hayton et al. 2002)

Culture shapes and reinforces socialinstitutions,which over time reinforce cultural values. (George G.,Zahra S.A. 2002)

Societies, cultures and mentalities are in a continualstate of development and change.


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Key features associated with culture

Source: Entrepreneurship what triggers it?(MorrisonA., 2000)


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The impact of culture on business

Variations in value orientations (Kluckhohn andStrodtbeck 1961)

The solutions to three universally shared problems:peoples relationship to time, nature and otherhuman beings distinguish one culture from another.

They depend on the cultural background.


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The Western view of culture:

Everyone is basically the same inside.

Culture is all about food, language, customs, dress.

There is one rational way to live and one path ofdevelopment.

Democracy, human rights, individualism, capitalismare for everyone.

Most non-Western countries are less developed.

Beware of Western universalism


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In every culture in the world such phenomena asauthority, bureaucracy, creativity, good fellowship,verification and accountability are experienced indifferent ways.Although using the same words

people are unaware of cultural biases.

Internationalisation and common worldwide culture?

McDonalds orCoca-cola as a common product toworldwide market?

But what they mean to the people in each culture?


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Organisational Culture

Culture as the way we do things around here

A managementinstrument thatis seen as the key

factor in unlocking commitment and enthusiasm ofemployees

The difference between formal and informal culture

Organisational culture offers a shared system of

meanings, it fills the gaps between whatis formallyannounced and what actually takes place

Culture is not static


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Culture characteristics/ Summary

Culture is a social concept

Any collection of people who differin thinking andbehaviour from others may be assumed to have aculture.

Itinfluences behaviour of entrepreneurs/ culture

helps to recognise opportunitiesCulture is the contextin which things happen; out ofcontext, even legal matters lack significance.


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Discussion

Can entrepreneurship be regarded as an instrumentfor changing the culture?

Does itinvolve the devaluation of tradition andheritage?


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Gnyawali D., Fogel D., (1994) Environments for entrepreneurship development: KeyDimensions and Research ImplicationsEntrepreneurship Theoryand Practice Volume: 18 Issue: 4, Pages: 43-62

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Comparative Entrepreneurship