A Cross-Cultural Cognitive Model of New Venture Creation

Abstract

In examining the global landscape, it is clear that some cultures produce many more entrepreneurs than others. To explore this phenomenon, we take a cognitive perspective because it is assumed that the way one thinks has a significant impact on the intention to start a new business. Through the development of this model we clarify why some Individuals across different cultures tend to be more prolific in starting new ventures than others both Inside and outside the home country. In illustrating the model, the Chinese population and their high propensity to start new businesses when they migrate to new countries are discussed. Implications for competitive advantage and other areas of cross-cultural research are made.

Personal values and entrepreneurial intention: an empirical study

“…However, they have been the object of considerable criticism, both methodological and theoretical, which has highlighted the inadequacy of general individual characteristics for predicting entrepreneurial behavior (Gartner, 1988;Robinson, Stimpson, Huefner, & Hunt, 1991;Shane & Venkataraman, 2000;Shaver & Scott, 1991). Consequently, since the middle 1990s, researchers have stressed the importance of including more and more cognitive factors in studying entrepreneurship (Baron, 1998;Baron, 2004;Baum, et al, 2007;Busenitz & Lau, 1996;Krueger, 2000;Neck, Neck, Manz, & Godwin, 1999).…”

“…In this sense, recent research has underscored the value of understanding the cognitive mechanisms leading to the decision to start up a venture (Baron, 1998;Busenitz & Lau, 1996;Katz & Shepherd, 2003;Kolvereid, 1996;Kolvereid & Isaksen, 2006;Krueger, 2000Krueger, , 2003Liñán, Urbano, & Guerrero, forthcoming;Mitchell, et al, 2002;Simon, Houghton, & Aquino, 2000;Zhao, Siebert, & Hills, 2005).…”

Social progress orientation and innovative entrepreneurship: an international analysis

“…Although with mixed results (Bruton et al 2010;Hayton et al 2002;Salimath and Cullen 2010;Spencer and Gomez 2004), cultural dimensions have been extensively applied to the study of entrepreneurial activity at regional and country levels (Baum et al 1993;Beugelsdijk 2007;Bosma 2009;Davidsson 1995;Davidsson and Wiklund 1997;Feldman 2014;Hofstede et al 2004;Mitchell et al 2000;Shane 1992Shane , 1993Vinogradov and Kolvereid 2007, among others). Extant research tends to depict the entrepreneur profile as individualistic, featuring a high power distance, masculinity and low uncertainty avoidance (Busenitz and Lau 1996;Hayton et al 2002;McGrath et al 1992aMcGrath et al , 1992b. Among all the cultural dimensions, individualism and uncertainty avoidance are the two most studied by the existing research analyzing regions and countries (Rooks et al 2016;Salimath and Cullen 2010).…”

Small- and Medium-Sized Businesses’ Growth Expectations and Financial Performance in Latvia: Does Ethnicity Matter?

“…Recent entrepreneurship literature emphasizes the importance of the accuracy of growth anticipations for optimal business growth and performance, since it can help to ensure optimal allocation of necessary resources which are needed to implement future strategies (Busenitz & Lau 1996;Gaglio & Katz 2001). Therefore though high growth expectations may be beneficial for business success (as formulated in hypothesis 1), the impact of this factor may be mitigated by the negative influence of a high discrepancy between anticipations and actual outcomes.…”

“…Accuracy in anticipating a firm's sales growth performance can help to ensure optimal allocation of necessary resources needed to implement future strategies (Busenitz & Lau 1996;Gaglio & Katz 2001). Since small and mediumsized firms usually have more limited financial resources as compared to their larger counterparts (e.g.…”