An Assessment of the Role of National Culture as a Determinant of Entrepreneurial Orientation

Abstract

Entrepreneurship is an important factor of production. It is considered as a source of innovative change. Thus it catalyzes enhancement in sustainable economic development of a nation. Entrepreneurship is inseparably interlinked with flexibility and knowledge. These two factors have gained importance as a source of competitive edge in the present globalized & interconnected economy. Entrepreneurship prevents concentration of economic activities, income and wealth and promotes decentralized development of commerce, trade and industry. This in turn, leads to removal of regional and industrial imbalance. Development of entrepreneurial activities and sustainable development in entrepreneurship have gained priority in national agenda across the world. Entrepreneurship is even more crucial for developing countries as it has high employment elasticity and potential for earning foreign exchange. However, entrepreneurship is essentially a behavioural aspect. Hence culture has a causal relationship with entrepreneurship. This paper aims at assessing the role of Hofstede’s dimensions of culture in developing entrepreneurship in nations by using the technique of linear multi-variate regression.

Keywords: Entrepreneurship, Hofstede’s dimensions of national culture, Linear multi-variate regression.

DOI: 10.7176/JESD/12-3-06

Publication date: February 28^th 2021