Do 'cultural gaps' affect entrepreneurial activities? An analysis based on globe's dimensions

Abstract

This paper aims at investigating how country culture affects entrepreneurship, measured by the percentage population who are either a nascent entrepreneur or owner-manager of a new business in a specific country. Our analyses rely on GLOBE's dimensions. Considering the influence of both values (should be scores) and practices (as is scores), we identify the inclination towards cultural change of a specific country as the difference between its 'should be' and 'as is' scores of each cultural dimension. Our goal is to find out whether the inclination towards cultural change affects entrepreneurship. The statistical analysis shows that the inclination toward cultural change affects entrepreneurship. Moreover, we find different results in term of statistical significance for different cultural dimensions. Our research sheds new light on the literature on cultural entrepreneurship. Most of the literature analyses the linkage between cultural values and entrepreneurship, and only a few studies refer to cultural practices and on their influence on entrepreneurial orientation.