In which cultural contexts do individual values explain entrepreneurship? An integrative values framework using Schwartz’s theories

Abstract

Answering research calls for better contextualisation of entrepreneurial behaviour, we examine the cultural contexts in which individuals with entrepreneurial values (Schwartz’s self-enhancement- and openness-to-change values) are most likely to be entrepreneurs. Culture is assessed through Schwartz’s cultural dimensions of mastery and egalitarianism. The results of multilevel logistic regressions with more than 35,000 respondents nested in 28 European countries support the hypotheses that individual values are more important for explaining entrepreneurship in non-entrepreneurial cultures (low in mastery and egalitarianism). Our results indicate that mastery compensates for openness-to-change, whereas egalitarianism reduces the impact of both self-enhancement and openness-to-change values.

The Role of Personal Values in Forming Students’ Entrepreneurial Intentions in Developing Countries

“…The current study is focused on those individualistic values included in the self-enhancement and openness-to-change dimensions and mechanisms that link those values to entrepreneurial intentions. Individualistic values, such as openness to change and selfenhancement are particularly conducive to entrepreneurship and new venture creation (Noseleit, 2010;Schwartz, 2015;Gorgievski et al, 2018;Looi, 2019;Morales et al, 2019). Individuals who value openness to change, emphasizing independence and readiness for new ideas, actions, and experiences, and those who value self-enhancement, emphasizing pursuit of selfinterests and dominance over others (Schwartz, 1992(Schwartz, , 2011, are likely attracted to entrepreneurial career choices that offer the possibilities to fulfill those values.…”

“…Therefore, understanding the antecedents of entrepreneurial intentions is crucial to the study of entrepreneurial behavior (Fitzsimmons and Douglas, 2011). Personal values represent potentially relevant variables in this respect (Morales et al, 2019). Individuals make important choices and decisions about their jobs and workplaces in accordance with their values, which are their "guiding principles in life" (Schwartz, 1992).…”

“…They affect a person's attitude and behavior, and as guiding principles, they play a significant role in an individual's decisions and actions (Schwartz, 2011). Although psychologists have previously examined the role of personal values in decision making and behavior (Rohan, 2000;Schwartz and Boehnke, 2004;Bardi et al, 2009;Morales and Holtschlag, 2013), relatively little research has focused on the way these values may enhance entrepreneurial intentions, particularly in the early stages of an entrepreneurial endeavor (Liñán et al, 2016;Gorgievski et al, 2018;Morales et al, 2019). Some studies have explored the relationship between entrepreneurial intentions and personal values in Western countries, but thus far, little research on this topic has been conducted in developing countries.…”

Greater fit and a greater gap

“…These two institutions mirror the aforementioned facets of person-environment fit: informal institutions speak to the abilities and skills that are positively evaluated in a country (e.g., maintaining group harmony or taking risks), and formal institutions describe the extent to which the environment provides easy access to resources (e.g., labour or money). Both informal and formal institutional environments can have direct and indirect bearings on entrepreneurship (Brieger and De Clercq, 2019;Morales et al, 2019;Pathak et al, 2013;Urban and Kujinga, 2017), taking supportive or prohibitive positions and shaping the incentives that lead people to choose between entrepreneurship and paid employment (Morales and Holtschlag, 2013).…”

“…Moreover, Saeed et al (2014) note that in such cultures, entrepreneurial firms have trouble acquiring customers, because those customers tend to be loyal to established firms or to known products or services. Even if the entrepreneurs exhibit less risk aversion than their surrounding culture (Baum et al, 1993;Morales et al, 2019), they thus might still be hindered by an uncertainty-avoidant culture, which features general attitudes, desires, and values that do not fit the entrepreneurs' (Kirkley, 2016). These societies usually have better safety nets and job security (Hauff et al 2015), so the person-environment fit should be stronger for employees.…”