Do Global Competitiveness, Cultural Resistance and Capital Financing Drive Value Creation?

Abstract

Purpose: While value creation has long been a target for most economies of the world, only recently have certain macroeconomic and socio-economic practicalities been discovered to play key roles in propelling value creation. Amazingly, this is a topical theme characterized by a rareness of both theoretical and empirical researches. Thus, the aim of this paper is to assess whether microeconomic and socio-economic practicalities (what has been termed as global competitiveness, capital financing and cultural resistance) drive value creation. Theoretical Framework: The theoretical framework is hinged on the resource-based theory of value creation, which emphasizes the roles financial (capital financing), social (cultural) and human resources play in driving entrepreneurial activities or value creation Design/Methodology/Approach: Three specific types of drivers of value creation are considered; the first being global competitiveness and the others being capital financing and cultural resistance. Using a cross-sectional research design, 545 respondents in six regions in Nigeria were examined to obtain their perceptions on the most relevant driver of value creation. Findings: Result of the approximation chi-square support the factorability of correlation matrix and suitability of the identified variables as drivers of value creation. The factor and principal component analyses showed that while the other two drivers (global competitiveness and cultural resistance) matter for value creation, capital financing was found to be the most relevant driver for value creation, thus reflecting how poor funding of entrepreneurial activities dissuaded value creation. Research, Practical and Social Implication: The study shows that global competitiveness, cultural resistance and capital financing are major drivers of value creation. Originality/Value: The value of the study is vital to governments such that governments and business angels should strive towards offering value creators with adequate funding to steer entrepreneurial activities.