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Role of Cultural Factors on Entrepreneurship Across the Diverse Economic Stages: Insights from GEM and GLOBE Data

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  • Chen Yue-e

    (School of Foreign Languages, Anhui Jianzhu University, Hefei, 230601, China)

  • Makki Bilal Iftikhar

    (School of Management, University of Science and Technology, Hefei, 230026, China)

Abstract

This article conducts an exploration of culture’s roles on entrepreneurial activities among countries at different economic stages. Culture factors from the GLOBE are converted into motivation culture and hygiene culture. The framework of this research is derived from Herzberg’s motivation hygiene theory. Total entrepreneurial activity (TEA) and the ratio of opportunity-driven to necessity-driven entrepreneurship (OPP/NEC) from global entrepreneurship monitor (GEM) are taken as measures for both the quantity and quality of entrepreneurial behavior. Panel regression with fixed effects is employed to test both direct and interaction effects. The direct relations show that the improvement of economic conditions discourages the TEA, while promotes the OPP/NEC; motivation culture significantly promotes OPP/NEC, while makes no difference in TEA; and hygiene culture significantly promotes TEA, while reduces OPP/NEC. In terms of interactive effects, motivation culture reduces the containment of economic development on TEA, yet hygiene culture hurts its promotion on OPP/NEC; motivation culture mitigates hygiene culture’s stimulation of TEA, while hygiene culture damages motivation culture’s fostering of OPP/NEC. Finally, a global culture map of quadrant distribution diagram is visually drawn with the corresponding culture scores. Notably, countries or regions in quadrant IV with high motivation culture and low hygiene culture demonstrate the most favorable entrepreneurial quality as well as high economic development.

Suggested Citation

  • Chen Yue-e & Makki Bilal Iftikhar, 2024. "Role of Cultural Factors on Entrepreneurship Across the Diverse Economic Stages: Insights from GEM and GLOBE Data," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-20, January.
    • Handle: RePEc:bpj:econoa:v:18:y:2024:i:1:p:20:n:1
    DOI: 10.1515/econ-2022-0083
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