24 Aug 2016

Cross-national cultural values and nascent entrepreneurship: Factual versus normative values

Lead author: Ilan Alon

This new article, to be published in IJCCM soon, is not just a really useful overview of the area of culture and entrepreneurship, but also an original study that shows somewhat controversially a positive connection between collectivism and entrepreneurship. Yet not so controversial for those studying entrepreneurship, for example, in Africa where it appears more closely connected to community.

This is an excellent contribution to knowledge in this area. Look out for it in December 2016.

Authors Ilan Alon, Miri Lerner, and Amir Shoham describe their work as follows:
Differentiating between factual and normative values, we investigate the links between national culture and entrepreneurial activity in 24 countries based on 154 observations. We test hypotheses on the relationship between national culture –measured by the Global Leadership and Organizational Behavior Effectiveness (GLOBE) -- and nascent entrepreneurship represented by the Global Entrepreneurship Monitor (GEM). Using these two separate databases to examine our hypotheses enables us to avoid the methodological biases that frequently appear in studies where the same respondents provide data for both the independent and the dependent variables. The study demonstrates that the introduction of the two different aspects of culture – normative and factual culture– may help resolve the inconsistencies in the literature regarding the links between culture and entrepreneurial activity. This study rekindles an old debate on the role of culture in the social sciences and the need to examine both these elements. We find that the connection between the normative values of culture and nascent entrepreneurial activity is stronger than the connection between the factual practices of culture and nascent entrepreneurial activity.
This is an article that should be unmissable to anyone interested in the connection between culture and entrepreneurship.

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