Abstract
PurposeThe purpose of this paper is to examine the influence of cultural leadership factors (charismatic/value-based, team oriented, participative, humane, autonomous and self-protective) on the rates of opportunity and necessity entrepreneurship.Design/methodology/approachThe study integrates insights from institutional and cultural leadership theories to provide a fresh perspective to advance comparative entrepreneurship research. To test the hypotheses, the authors conduct a multiple regression analysis with observations from 34 countries, using data (from the year 2013) from the Global Entrepreneurship Monitor for the dependent variable and from Global Leadership and Organizational Behavior Effectiveness to create leadership factors as independent variables.FindingsThe results show that all the types of leadership considered in the study have a relevant effect on entrepreneurial activity. However, charismatic leadership has a greater effect on entrepreneurial activity, particularly on opportunity entrepreneurship. The research also shows that autonomous leadership has a negative impact on entrepreneurial activity, although, when it is moderated by the humane dimension, this relationship changes.Practical implicationsSince the alternative dimensions facilitate or inhibit the generation of new firm creation, it is critical for researchers, teachers and leaders to learn about and to foster such leadership types.Originality/valueThis research covers a gap in the cross-cultural evidence presented in the literature and suggests the integration of the concepts leadership and entrepreneurship.
Highlights
The cross-country differences in the levels of entrepreneurship are persistent and cannot be explained by economic factors alone (Freytag and Thurik, 2010)
Using data from the Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effectiveness (GLOBE) research projects, the paper entrepreneurship analyzed the influence of leadership on entrepreneurship in the light of institutional economics (North, 1990), the theory of social and economic organization (Weber, 1947) and the cultural implicit leadership theory (ILT) as conceptual frameworks
The study finds general support for the main thesis that all the leadership styles have a strong effect on the total national entrepreneurial activity of countries, indicating that charismatic leadership has an effect on entrepreneurial activity, which turns out to be greater than other leadership types, and even more on opportunity entrepreneurship
Summary
The cross-country differences in the levels of entrepreneurship are persistent and cannot be explained by economic factors alone (Freytag and Thurik, 2010). Scholars have turned to national cultures as a possible explanation, but the results have been mixed Hayton and Cacciotti, 2013; Stephan and Pathak, 2016). Stephan and Pathak (2016) suggested that these mixed results could be explained by cultural values being very broad and general concepts. Some authors have attempted to explore how different cultural characteristics affect entrepreneurship. Hechavarria and Reynolds (2009) approached culture through authority and well-being using information from the World Values Survey (WVS). These authors found that these two variables affect opportunity
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