Entrepreneurial orientation as a function of national cultural variations in two countries

Building on a large-scale survey study in Germany and China, this research develops and validates a model of internal variables fostering entrepreneurial orientation. The objective of the research is to understand whether organizational mechanisms, such as organizational structure or leadership style that underlie entrepreneurial organizations are universal or are contingent on national culture. The findings of this study indicate that some components are universal and some are contingent on culture. For instance, cross-functional integration, consideration, and development culture impact most dimensions of entrepreneurial orientation across cultures positively, whereas centralization does so negatively, suggesting strong similarities of entrepreneurial organizations. On the other hand, participation exerts an influence on entrepreneurial orientation only in Germany. There are also differences in the strength of relationships: cross-functional integration and consideration have stronger effects in China than in Germany. One major implication is that commonalities of entrepreneurial organizations are generally not strong enough to completely outweigh the influences of national culture. This research may help managers to foster the degree of entrepreneurial orientation in their businesses that operate internationally.