Personal Entrepreneurial Attributes and Intentions to Start Business: The Moderating Role of Culture

Abstract

Culture influence the entrepreneurial intentions, which make a contribution to entrepreneurial evolution. This study investigates that whether (Hofstede, Dimensionalizing Cultures: The Hofstede Model in Context, 2001) cultural dimensions has a moderating role in converting Personal Entrepreneurial Attributes into their Intention to Start a Business. To measure these attributes, we applied bounded multidimensional model of social entrepreneurship as proposed by (Weerawardena & Mort, 2006) and applied by (Richter, et al., 2016). The effect of three Entrepreneurial Attributes namely risk taking, innovativeness and pro-activeness along with other demographic variables were tested against entrepreneurial intensions (EI). Their effect was moderated by five cultural dimensions namely Masculinity, Power Distance, Long-Term Orientation, Collectivism, and Uncertainty Avoidance. Data of 272 respondents from Pakistan was collected using close ended questionnaire and was analysed using Confirmatory factor analysis and structured equation modelling by means of path model which specifies various constructs of this study. The results suggested that risk taking and pro-activeness had a positive and significant effect on EI, whereas innovativeness doesn’t seem to effect EI. This imply that risk takers and proactive individuals are more inclined towards entrepreneurship than innovators. With regards to cultural dimensions, Masculinity, Power Distance, and Collectivism seems to negatively affect EI, whereas Long-Term Orientation, and Uncertainty Avoidance seems to effect positively. Interestingly, Collectivism and Masculinity have positive and significant complementarities with innovativeness, whereas Uncertainty Avoidance have negative and significant effect. This means innovativeness does seem to effect EI in collective and masculine culture. This also suggested that innovators would be more inclined in converting their ideas into workable projects in collective decision making and hierarchical cultural settings. Conversely, Uncertainty Avoidance, seem to restrict Entrepreneurial aspirations in innovators. Cultural variable doesn’t seem to have a significant moderation effect with regards to risk taking, except of Long Term Orientation, that have significant negative complementarities. Surprisingly, Masculinity, and Collectivism had and significant negative moderating effect with pro-activeness and EI, whereas Long Term Orientation and Uncertainty Avoidance have a significant positive interaction. This suggested that hierarchical culture deter proactive people in fulfilling their EI, at the same time, encourage innovators. With regards to demographics, male seems to have more EI, whereas the coefficient of education and age found that advanced education and experienced individuals believes in development, increasingly slanted toward entrepreneurship. Frames of mind to completing the expectations are poor in entrepreneurship.