National culture and entrepreneurial orientation in an emerging economy: the moderating role of informal enterprises’ survival intent

Abstract

PurposeThe purpose of this paper is to investigate the relationship between culture and entrepreneurial orientation (EO) in informal enterprises and the moderating role of their survival intent.Design/methodology/approachThis paper used Hofstede's national culture framework and theory of EO to develop a novel conceptual framework. The data were collected using a survey from a sample of 385 informal enterprises and analyzed using partial least square structural equation modelling.FindingsThe findings of this paper confirmed that power distance, uncertainty avoidance and normative orientation negatively affect EO in contrast with the positive effect of individualism and masculinity. Although power distance and uncertainty avoidance negatively affect an EO, the findings showed that survival intent weakens the negative nexus between these variables and strengthens the positive effect of individualism and masculinity on EO.Research limitations/implicationsAlthough this study examined how survival intent moderates the nexus between national culture and EO across informal enterprises in emerging economies, the data were collected in Nigeria only. This study also examined EO in aggregate and considered only one sector.Practical implicationsThis study recommends that policymakers and practitioners understand the important links between firms' characteristics, culture and EO while designing training programs, policies and procedures. Doing so will support the successful implementation of entrepreneurship programs, address the prevailing entrepreneurial needs and cultural deficits across enterprises and promote the efficient allocation of resources.Originality/valueThis paper extends Hofstede's framework of national culture and EO in the context of informal enterprises in emerging economies by examining the nexus between national culture and EO, moderated by survival intent.