Loosen up? Cultural tightness and national entrepreneurial activity

Research output: Contribution to journalArticleAcademicpeer-review

4 Citations (Scopus)

Abstract

The level of entrepreneurship between countries differs consistently. A source of this variance lies in national culture differences. Recently, the cultural dimension “tightness” has been introduced in the literature. Tightness refers to the degree to which a nation has strong norms and a low tolerance for deviant behavior. Tightness can have a direct effect on national entrepreneurial activity. It can also moderate the strength and/or direction of the relationship between other cultural characteristics and entrepreneurship. Such moderation might explain previous studies' inconclusive findings. This study analyzes tightness's impact on new business ownership, high-growth entrepreneurship, and social entrepreneurship, using recent secondary data from 29 countries. The results show that tightness has neither a direct nor a moderating effect on entrepreneurship. Other cultural dimensions, such as individualism and uncertainty avoidance, have an impact on new business ownership, but not on high-growth entrepreneurship or social entrepreneurship. This suggests that policy makers can use formal institutions to foster high-growth entrepreneurship and social entrepreneurship – even in nations whose cultural conditions do not seem to be supportive
Original languageEnglish
Pages (from-to)196-204
JournalTechnological forecasting and social change
Volume121
DOIs
Publication statusPublished - Aug 2017

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Entrepreneurship
Industry
Ownership
Growth
Cultural Characteristics
Entrepreneurial activity
Administrative Personnel
Uncertainty

Keywords

  • METIS-318251
  • IR-101761

Cite this

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title = "Loosen up? Cultural tightness and national entrepreneurial activity",
abstract = "The level of entrepreneurship between countries differs consistently. A source of this variance lies in national culture differences. Recently, the cultural dimension “tightness” has been introduced in the literature. Tightness refers to the degree to which a nation has strong norms and a low tolerance for deviant behavior. Tightness can have a direct effect on national entrepreneurial activity. It can also moderate the strength and/or direction of the relationship between other cultural characteristics and entrepreneurship. Such moderation might explain previous studies' inconclusive findings. This study analyzes tightness's impact on new business ownership, high-growth entrepreneurship, and social entrepreneurship, using recent secondary data from 29 countries. The results show that tightness has neither a direct nor a moderating effect on entrepreneurship. Other cultural dimensions, such as individualism and uncertainty avoidance, have an impact on new business ownership, but not on high-growth entrepreneurship or social entrepreneurship. This suggests that policy makers can use formal institutions to foster high-growth entrepreneurship and social entrepreneurship – even in nations whose cultural conditions do not seem to be supportive",
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Loosen up? Cultural tightness and national entrepreneurial activity. / Harms, Rainer; Groen, Arend J.

In: Technological forecasting and social change, Vol. 121, 08.2017, p. 196-204.

Research output: Contribution to journalArticleAcademicpeer-review

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AU - Harms, Rainer

AU - Groen, Arend J.

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