The influence of socio-cultural environments on the performance of nascent entrepreneurs: an instrumental variable approach

Ute Stephan, Christian Hopp

Research output: Contribution to journalArticle

Abstract

The importance of informal institutions and in particular culture for entrepreneurship is a subject of ongoing interest. Past research has mostly concentrated on cross-national comparisons, cultural values, and the direct effects of culture on entrepreneurial behavior, but in the main found inconsistent results. The present research adds a fresh perspective to this research stream by turning attention to community-level culture and cultural norms. We hypothesize indirect effects of cultural norms on venture emergence. Specifically that community-level cultural norms (performance-based culture and socially-supportive institutional norms) impact important supply-side variables (entrepreneurial self-efficacy and entrepreneurial motivation) which in turn influence nascent entrepreneurs’ success in creating operational ventures (venture emergence). We test our predictions on a unique longitudinal data set (PSED II) tracking nascent entrepreneurs venture creation efforts over a 5 year time span and find evidence supporting them. Our research contributes to a more fine-grained understanding of how culture, in particular perceptions of community cultural norms, influences venture emergence. This research highlights the embeddedness of entrepreneurial behavior and its immediate antecedent beliefs in the local, community context.
Original languageEnglish
Pages (from-to)1
Number of pages1
JournalAcademy of Management Proceedings
Volume2012
Issue number1
DOIs
Publication statusPublished - Jan 2012

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Instrumental variables
Nascent entrepreneurs
Venture
Entrepreneurial behavior
Panel Study of Entrepreneurial Dynamics
Self-efficacy
Embeddedness
Cross-national comparison
Cultural values
Indirect effects
Informal institutions
Local communities
Direct effect
Longitudinal data
Prediction
Entrepreneurship
Venture creation
Supply side

Cite this

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The influence of socio-cultural environments on the performance of nascent entrepreneurs : an instrumental variable approach. / Stephan, Ute; Hopp, Christian.

In: Academy of Management Proceedings, Vol. 2012, No. 1, 01.2012, p. 1.

Research output: Contribution to journalArticle

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