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A Cross-Cultural Cognitive Model of New Venture Creation

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  • Lowell W. Busenitz
  • Chung-Ming Lau

Abstract

In examining the global landscape, it is clear that some cultures produce many more entrepreneurs than others. To explore this phenomenon, we take a cognitive perspective because it is assumed that the way one thinks has a significant impact on the intention to start a new business. Through the development of this model we clarify why some Individuals across different cultures tend to be more prolific in starting new ventures than others both Inside and outside the home country. In illustrating the model, the Chinese population and their high propensity to start new businesses when they migrate to new countries are discussed. Implications for competitive advantage and other areas of cross-cultural research are made.

Suggested Citation

  • Lowell W. Busenitz & Chung-Ming Lau, 1996. "A Cross-Cultural Cognitive Model of New Venture Creation," Entrepreneurship Theory and Practice, , vol. 20(4), pages 25-40, July.
    • Handle: RePEc:sae:entthe:v:20:y:1996:i:4:p:25-40
    DOI: 10.1177/104225879602000403
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