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How Culture Molds the Effects of Self Efficacy and Fear of Failure on Entrepreneurship

Author

Listed:
  • Wennberg, Karl

    (The Ratio Institute & Stockholm School of Economics)

  • Pathak, Saurav

    (Michigan Tech University)

  • Autio, Erkko

    (Imperial College London Business School)

Abstract

We use data from the Global Entrepreneurship Monitor (GEM) and the Global Leadership and Organizational Behavior Effectiveness study (GLOBE) for 42 countries to investigate how the effects of individual’s self-efficacy and fear of failure on entrepreneurial entry are contingent on national cultural practices. Using multi-level methodology, we observe that the positive effect of self-efficacy on entry is moderated by the cultural practices of institutional collectivism and performance orientation. Conversely, the negative effect of fear of failure on entry is moderated by the cultural practices of institutional collectivism and uncertainty avoidance. We discuss the implications for theory and methodological development in culture and entrepreneurship.

Suggested Citation

  • Wennberg, Karl & Pathak, Saurav & Autio, Erkko, 2013. "How Culture Molds the Effects of Self Efficacy and Fear of Failure on Entrepreneurship," Ratio Working Papers 223, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0223
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    Keywords

    Culture; Entrepreneurship; Institutions; Multi-level;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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