Abstract
This paper tries to explain the considerable differences between countries in the TotalEntrepreneurial Activity (TEA) index, by analysing the values and motivations that driveentrepreneurial activity. Moreover, we have found, and taken into account, that the country’seconomic development conditions the appearance of personal values and motivations.Researchers have traditionally considered the needs for achievement and independence asthe main drivers of the individual’s entrepreneurial behaviour. But these elements have notoften been considered at the country level or in relation to the TEA index. The main argumentof the current work is based on the premise that a country’s development level implies boththe type of needs that remain unsatisfied and what the society values. Unsatisfied needsare determinant motivating elements of behaviour according to Maslow, and they explainsome of the differences in entrepreneurial activity levels. We use aggregate measures ofthe value accorded to money, security, affiliation, achievement, and prestige, since thesevariables have been considered relevant in explaining people’s entrepreneurial behaviour.We also consider a number of economic and social factors as control variables. The datacomes from 28 countries participating in the Global Entrepreneurship Monitor (GEM)project, the World Values Survey (WVS), and the Global Leadership and OrganisationalBehaviour Effectiveness (GLOBE) research programme. We have also used data aboutthese countries from the World Bank. In order to test the proposed hypotheses we used theregression analysis. The results obtained confirm the relevance of motivations and valuesin explaining countries’ entrepreneurial activity levels. The findings indirectly suggestthe need to examine achievement motivation in more depth, and its possible non-linear(inverted U-shaped) relation with entrepreneurial activity.References
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Erez M., Earley P.C. (1993): Culture, Self-identity and Work. Oxford University Press, New York.
Evans D.S., Leighton L.S. (1989): The determinants of changes in US self-employment, 1968-1987. Small Business Economics, Vol. 1(2), 111-119.
Franke R.H., Hofstede G., Bon M.H. (1991): Cultural roots of economic performance: a research note. Strategic Management Journal, Vol. 12, 165-173.
Gartner, W.B. (1988): Who is an entrepreneur? is the wrong question. American Journal of Small Business, Vol. 12 (4), 11-32.
George G., Zahra S.A. (2002): Culture and Its Consequences for Entrepreneurship. Entrepreneurship. Theory and Practice, Vol. 26 (Summer), 5-7.
Hayton J.C., George G., Zahra S.A. (2002): National Culture and Entrepreneurship: A Review of Behavioural Research. Entrepreneurship Theory and Practice, Vol. 26 (Summer), 33-52.
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Inglehart, R. (ed)(2003): Human values and social change: findings from the values survey. Brill, Leiden, The Netherlands.
Inglehart R., Welzel C. (2005): Modernization, Cultural Change, and Democracy: The Human Development Sequence.
Cambridge University Press, Cambridge.
Maslow, A. (1954): Motivation and personality. Harper and Row, New York.
McClelland, D. (1961): The achieving society. Van Nostrand, Princenton, NJ.
McGrath R., MacMillan I., Ai-Yuan Yang E., Tsai W. (1992a): Does culture endure, or is it malleable? Issues for entrepreneurial economic development. Journal of Business Venturing, Vol. 7(6), 441-458.
McGrath R.G., MacMillan I.C., Scheinberg S. (1992b): Elitists, risk-takers, and rugged individualists? An exploratory analysis of cultural differences between entrepreneurs and non-entre-
preneurs. Journal of Business Venturing, Vol. 7(2), 115-136.
Meager, N. (1992): Does unemployment lead to self-employment? Small Business Economics, Vol. 4(2), 87-103.
Miner, J.B. (1980): Limited Domain Theories of Organizational Energy. In Middle Range Theory and the Study of Organizations. Eds. C. Pinder and L. Moore. Martinus Nijhoff, Boston, 273– 286.
Mitchell K., Smith B., Seawright K.W., Morse E.A. (2000): Cross-cultural cognitions and the venture creation decision. Academy of Management Journal, Vol. 43 (5), 974-993.
Muller S.L., Thomas A.S. (2001): Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness. Journal of Business Venturing. Vol. 16(1), 51-75.
Noorderhaven N., Thurik R., Wennekers S., Van Stel A. (2004): The Role of Dissatisfaction and per Capita Income in Explaining Self-Employment across 15 European Countries. Entrepreneurship: Theory & Practice, Vol. 28(5), 447-466.
Reynolds P.D., Bygrave W.D., Autio E., Cox L.W., Hay M. (2002): Global entrepreneurship monitor, 2002 executive report. Babson College, Wellesley, MA.
Robichaud Y., McGraw E., Roger A.( 2001): Toward the development of measuring instrument for entrepreneuril motivation. Journal Development Entrepreneurship, Vol. 6(2), 189-201.
Sharma S., Durand R.M., Gur-Arie O. (1981): Identification and Analysis of Moderator Variables. Journal of Marketing Research, Vol. XVIII, 291-300.
Sternberg R., Wennekers S. (2005): Determinants and Effects of New Business Creation Using Global Entrepreneurship Monitor Data. Small Business Economics, Vol. 24(3), 193-203.
Tödtling, F., Wanzenböck H. (2003): Regional differences in structural characteristics of startups. Entrepreneurship & Regional Development, Vol. 15 (4), 351-370.
Triandis H.C., Suh E.M. (2002): Cultural influences on personality. Annual Review of Psychology, Vol. (1) 53, 133-160.
Uhlaner L., Thurik R. (2007): Postmaterialism influencing total entrepreneurial activity across nations. Journal of Evolutionary Economics, Vol. 17(2), 161-185.
Van Stel A., Carree M., Thurik R. (2005): The effect of Entrepreneurial Activity on National Economic Growth. Small Business Economics, Vol. 24 (3), 311-321.
Wennekers S., Noorderhaven N., Hofstede G., Thurik, R. (2002): Cultural and Economic Determinants of Business Ownership across Countries. Frontiers of Entrepreneurship Research, 2002, Center of Entrepreneurial Studies, Babson College, MA, 179-190.
Aiken L.S., West S.G. (1991): Multiple regression: Testing and interpreting interactions. Sage, Newbury Park, CA.
Audrestsch D.B., Thurik A.R., Verheul I., Wennekers A.R.M. (2002): Entrepreneurship: determinants and policy in a European-US comparison. Kluwer, Boston.
Baron R.M., Kenny D.A. (1986): The moderator-mediator variable distinction in social psychological research Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, Vol. 51(6), 1173-1182.
Baum J.R., Olian J.D., Erez M., Schnell E.R., Smith K.G., Sims H.P., Scully J.S., Smith K.A. (1993): Nationality and Work Role Interactions: A Cultural Contrast of Israeli and U.S. Entrepreneurs’ Versus Managers’ Needs. Journal of Business Venturing, Vol. 8(6), 499-512.
Blais R.A., Toulouse J. (1990): National, regional or world patterns of entrepreneurial motivation? An empirical study of 2.278 entrepreneurs and 1.733 non-entrepreneurs in fourteen countries on four continents. Journal Small Business Entrepreneurship, Vol. 7(2), 3-20.
Blanchflower D.G. (2000): Self-employment in OECD countries. Labour Economics, Vol. 7(5), 471-505.
Blanchflower D.G., Oswald A.J. (1994): The wage curve. MIT, Cambridge, MA.
Blau, D. (1987): A time series analysis of self-employment. Journal of Political Economy, Vol. 95(3), 445-467.
Brockhaus R.H., Horowitz P.S. (1986): The psychology of entrepreneur, In Kent, D.L., Sexton, D.L.; Vesper, K.H., (Eds.), Encyclopedia of entrepreneurship. Prentice-Hall, Englewood Cliffs, NJ.
Erez M., Earley P.C. (1993): Culture, Self-identity and Work. Oxford University Press, New York.
Evans D.S., Leighton L.S. (1989): The determinants of changes in US self-employment, 1968-1987. Small Business Economics, Vol. 1(2), 111-119.
Franke R.H., Hofstede G., Bon M.H. (1991): Cultural roots of economic performance: a research note. Strategic Management Journal, Vol. 12, 165-173.
Gartner, W.B. (1988): Who is an entrepreneur? is the wrong question. American Journal of Small Business, Vol. 12 (4), 11-32.
George G., Zahra S.A. (2002): Culture and Its Consequences for Entrepreneurship. Entrepreneurship. Theory and Practice, Vol. 26 (Summer), 5-7.
Hayton J.C., George G., Zahra S.A. (2002): National Culture and Entrepreneurship: A Review of Behavioural Research. Entrepreneurship Theory and Practice, Vol. 26 (Summer), 33-52.
Hofstede, G. (1980): Culture’s consequences: International differences in work related values. Sage, Beverly Hills, CA.
Hofstede, G. (2001): Culture’s consequences: Comparing values, behaviours, institutions, and organizations across nations, second edn. Sage, Thousand Oaks, CA.
Hofstede G., Noorderhaven N., Thurik A.R., Uhlaner L.M., Wennekers S., Wildeman R.E. (2004): Culture’s role in entrepreneurship: self-employment out of dissatisfaction. In: Ulijn J, Brown T (eds) Innovation, entrepreneurship and culture: the interaction between technology, progress
and economic growth. Edward Elgar, Cheltenham, UK, 162–203.
House R.J., Hanges P.J., Javidan M., Dorfman P.W., Gupta V. (2004): Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Sage, London, UK.
Inglehart R (1977): The silent revolution: changing values and political styles among western publics. Princeton University Press, Princeton, NJ.
Inglehart, R. (1997): Modernization and post-modernization: cultural, economic and political change in 43 societies. Princeton University Press, Princeton, NJ.
Inglehart, R. (2000): Globalisation and Postmodern values. Washington Quarterly, 23(1), 215-228.
Inglehart, R. (ed)(2003): Human values and social change: findings from the values survey. Brill, Leiden, The Netherlands.
Inglehart R., Welzel C. (2005): Modernization, Cultural Change, and Democracy: The Human Development Sequence.
Cambridge University Press, Cambridge.
Maslow, A. (1954): Motivation and personality. Harper and Row, New York.
McClelland, D. (1961): The achieving society. Van Nostrand, Princenton, NJ.
McGrath R., MacMillan I., Ai-Yuan Yang E., Tsai W. (1992a): Does culture endure, or is it malleable? Issues for entrepreneurial economic development. Journal of Business Venturing, Vol. 7(6), 441-458.
McGrath R.G., MacMillan I.C., Scheinberg S. (1992b): Elitists, risk-takers, and rugged individualists? An exploratory analysis of cultural differences between entrepreneurs and non-entre-
preneurs. Journal of Business Venturing, Vol. 7(2), 115-136.
Meager, N. (1992): Does unemployment lead to self-employment? Small Business Economics, Vol. 4(2), 87-103.
Miner, J.B. (1980): Limited Domain Theories of Organizational Energy. In Middle Range Theory and the Study of Organizations. Eds. C. Pinder and L. Moore. Martinus Nijhoff, Boston, 273– 286.
Mitchell K., Smith B., Seawright K.W., Morse E.A. (2000): Cross-cultural cognitions and the venture creation decision. Academy of Management Journal, Vol. 43 (5), 974-993.
Muller S.L., Thomas A.S. (2001): Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness. Journal of Business Venturing. Vol. 16(1), 51-75.
Noorderhaven N., Thurik R., Wennekers S., Van Stel A. (2004): The Role of Dissatisfaction and per Capita Income in Explaining Self-Employment across 15 European Countries. Entrepreneurship: Theory & Practice, Vol. 28(5), 447-466.
Reynolds P.D., Bygrave W.D., Autio E., Cox L.W., Hay M. (2002): Global entrepreneurship monitor, 2002 executive report. Babson College, Wellesley, MA.
Robichaud Y., McGraw E., Roger A.( 2001): Toward the development of measuring instrument for entrepreneuril motivation. Journal Development Entrepreneurship, Vol. 6(2), 189-201.
Sharma S., Durand R.M., Gur-Arie O. (1981): Identification and Analysis of Moderator Variables. Journal of Marketing Research, Vol. XVIII, 291-300.
Sternberg R., Wennekers S. (2005): Determinants and Effects of New Business Creation Using Global Entrepreneurship Monitor Data. Small Business Economics, Vol. 24(3), 193-203.
Tödtling, F., Wanzenböck H. (2003): Regional differences in structural characteristics of startups. Entrepreneurship & Regional Development, Vol. 15 (4), 351-370.
Triandis H.C., Suh E.M. (2002): Cultural influences on personality. Annual Review of Psychology, Vol. (1) 53, 133-160.
Uhlaner L., Thurik R. (2007): Postmaterialism influencing total entrepreneurial activity across nations. Journal of Evolutionary Economics, Vol. 17(2), 161-185.
Van Stel A., Carree M., Thurik R. (2005): The effect of Entrepreneurial Activity on National Economic Growth. Small Business Economics, Vol. 24 (3), 311-321.
Wennekers S., Noorderhaven N., Hofstede G., Thurik, R. (2002): Cultural and Economic Determinants of Business Ownership across Countries. Frontiers of Entrepreneurship Research, 2002, Center of Entrepreneurial Studies, Babson College, MA, 179-190.
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