Entrepreneurial Cognitions and Innovative Entrepreneuriship: Moderating Role of Societal Context

Abstract

What is the interrelationship between informal institutions, entrepreneurial cognition, and innovative entrepreneurial entry? This article explores how the effects of individual’s entrepreneurial cognition on innovative entrepreneurial entry are contingent on Societal Context (national cultural practices). The dynamics of the relationship among informal institutions, entrepreneurial cognition, and innovative entrepreneurial entry is investigated using a multi- level methodology. Drawing on the institutional theory and social cognitive theory, we using The investigation uses data from the Global Entrepreneurship Monitor and the Global Leadership and Organizational Behavior Effectiveness studies for 43 countries. To investigate how the effects of individual’s entrepreneurial cognition on innovative entrepreneurial entry are contingent on national cultural practices. Using multilevel methodology, we found that the positive effect of entrepreneurial cognition on innovative entrepreneurial entry is moderated by the cultural practices institutional collectivism, performance orientation and uncertainty avoidance, which have theoretical and practical implications for cross-cultural entrepreneurship research.