Academic journal article International Journal of Entrepreneurship

The Effect of the National Culture on Female Entrepreneurial Activities in Emerging Countries: An Application of the Globe Project Cultural Dimensions

Academic journal article International Journal of Entrepreneurship

The Effect of the National Culture on Female Entrepreneurial Activities in Emerging Countries: An Application of the Globe Project Cultural Dimensions

Article excerpt

ABSTRACT

Understanding the process by which new ventures emerge is a crucial element in entrepreneurs hip research. Earlier studies on opportunity recognition process cannot be universally applicable in all emerging economies due to some important cultural differences. This research aims to extend previous studies by applying the cultural dimensions formulated by the GLOBE study that extends Hofstede's cultural values. The paper investigates the influence of various cultural dimensions formulated by the GLOBE study on female entrepreneurial activities in emerging countries to better underpin the opportunity recognition process in emerging economies.

INTRODUCTION

Opportunity recognition is a crucial element in entrepreneurship yet a review of the prior research indicates that to date there is limited research on the impact of culture on opportunity recognition in emerging economies. Although previous research did valuable contributions in exploring opportunity recognition to date some of these findings cannot be universally applicable in all emerging economies due to some important cultural differences. It is long known that cultural attributes play a crucial role in the rate of entrepreneurial activities (Carter and Wilton, 2006). For instance, access to social capital and resources, venture growth objectives, and the rate of entrepreneurial activities vary from culture to culture (Tan, 2002; Welter, Smallbone and Isakova, 2006). To date most earlier studies focused on the impact of national culture on entrepreneurial development (House, Javidan, Hanges and Dormían, 2002); entrepreneurial behavior (Hayton, George and Zahra, 2002); rates of innovation (Mueller and Thomas, 2001); entrepreneurial orientation (Kreiser, Marino, Dickson and Weaver, 2010). It was found that cultural differences impact the rate of innovation and capabilities for entrepreneurial activities (Kayal, 2008; Todorovic and McNaughton, 2007; Ahmed, Dana, Latfullin and Smirnova, 2001; Welter, Smallbone and Schakirova, 2003). Earlier studies also highlight the need to explore the characteristics of an emerging economy entrepreneurship to develop new theories to advance the entrepreneurship research (Bruton, Ahlstrom and Obloj, 2008). To date the actual role of various dimensions of culture in emerging economies is not yet well conceptualized. Hence, there is a great need to unpack cultural differences and better specification of culture to understand opportunity recognition in emerging economies.

To date the most widely used definition of culture was based on the Hofstede's formulation of culture. Primary aim of this research is to extend previous studies by applying the cultural dimensions formulated by the GLOBE study that codified and extended Hofstede's cultural values. In this study we will explore the influence of various cultural dimensions formulated by the GLOBE study to better underpin the opportunity recognition in emerging economies and "how" they impact entrepreneur's recognition of opportunities and entrepreneurial activities. Studying the effect of various underlying dimensions of national culture on female opportunity recognition intends to highlight important cross-national differences and hopefully sheds a light on opportunity recognition that lead the birth of a new firm in emerging economies. Since the concepts behind the framework tend to be applicable across all settings this research could be valuable in developing models in a cross-cultural testing of entrepreneurial activities and exploring the universality of the study measures.

In this study we will focus on opportunity driven entrepreneurial activities rather than necessity driven entrepreneurial activities. Previous studies highlighted the difference between the necessity based versus opportunity based entrepreneurial activities (Bögenhold, 1987; Reynolds, Bygrave, Autio, Cox and Hay, 2002; Acs et al, 2005; Acs and Varga, 2005; Sternberg, Brixy, and Schlapfher, 2006). …

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