Determining the influence of national culture: insights into entrepreneurs’ collective identity and effectuation

Abstract

While prior research demonstrates that an entrepreneur’s behavior and perceptions are essentially shaped by national culture, little is known about how cultural values impact effectual behavior among entrepreneurs. We outline a conceptual model of how entrepreneurs’ effectual behavior is shaped by collective identity under different levels of cultural conditioning (i.e., national cultural values). Based on a survey of 235 Thai and German entrepreneurs we analyze the impact of Hofstede’s cultural dimensions of power distance, individualism, masculinity, and long-term orientation on the relationship between collective identity and effectuation. Results show that national culture is dispositive for the causal effects of collective identity on effectual behavior. Our findings demonstrate that the entrepreneur’s effectual behavior differs due to their national cultural conditioning.