Social progress orientation and innovative entrepreneurship: an international analysis
- 571 Downloads
Using the institutional approach, this paper examines the influence of social progress orientation on innovative entrepreneurship from an international perspective. Using a multiple linear regression model with cross-sectional information from the Global Entrepreneurship Monitor, the Indices of Social Development, the World Values Survey, the Hofstede Centre, the United Nations Development Programme and World Development Indicators, we find that social progress orientation dimensions such as voluntary spirit, survival vs. self-expression values and power distance were related to entrepreneurial activity. More specifically, the main findings demonstrate that high voluntary spirit had a positive and statistically significant impact on innovative early-stage entrepreneurial activity (TEA). In addition, necessity-driven TEA is highly discouraged in those societies with high voluntary spirit and self-expression values, whereas larger power distance increased the entrepreneurial activity driven by necessity. Based on these results, this study advances the literature by introducing and analyzing the concept of social progress orientation, by examining the factors that influence innovative entrepreneurial activity in light of an institutional approach. Also, this research could be useful for designing policies to foster entrepreneurial activity in different national and regional environments.
KeywordsEntrepreneurial activity Social progress orientation Institutions Postmaterialism Hofstede Development
JEL ClassificationI31 L26 O15
The authors appreciate helpful comments by Professor Uwe Cantner and anonymous reviewers in the previous versions of this manuscript. In addition, David Urbano acknowledges the financial support from projects ECO2013-44027-P (Spanish Ministry of Economy & Competitiveness) and 2014-SGR-1626 (Economy & Knowledge Department —Catalan Government) and Sebastian Aparicio acknowledges funding for Ph.D. studies from COLCIENCIAS Ph.D. Programme chapter 3 (617/2013), Enlaza Mundos Municipio de Medellín (2013), and Fundación ECSIM for financial support.
- Acs ZJ, Arenius P, Hay M, Minniti M (2004) Global Entrepreneuship Monitor. Executive Report. London Business School, BabsonGoogle Scholar
- Alkire S, Santos ME (2014) Measuring Acute Poverty in the developing world: Robustness and Scope of the Multidimensional Poverty Index. World Dev 59:251–271Google Scholar
- Alvarez SA, Busenitz LW (2001) The entrepreneurship of resource-based theory. J Manage 27:755–775Google Scholar
- Amorós JE, Bosma N (2014) Global Entrepreneurship Monitor 2013 Global Report: fifteen years of assessing entrepreneurial activity across the globe. Global Entrepreneurship Monitor http://www.babson.edu/Academics/centers/blank-center/global-research/gem/Documents/GEM%202013%20Global%20Report.pdf. Accessed 26 September 2014.
- Aparicio S, Urbano D, Gómez D. (2016b) The role of innovative entrepreneurship within Colombian business cycle scenarios: A system dynamics approach. Futures. In press, doi: 10.1016/j.futures.2016.02.004.
- Audia PG, Freeman JH, Reynolds PD (2006) Organizational foundings in community context: Instruments manufacturers and their interrelationship with other organizations. Admin Sci Quart 51:381–419Google Scholar
- Beckers T, Siegers P, Kuntz A (2012) Congruence and performance of value concepts in social research. Surv Res Methods 6:13–24Google Scholar
- Blanchflower DG (2004) Self-employment: More may not be better. National Bureau of Economic Research, Working paper w10286. http://www.nber.org/papers/w10286. Accessed 1 October 2014.
- Bosma N (2009) The Geography of Entrepreneurial Activity and Regional Economic Development. Utrecht University (doctoral thesis).Google Scholar
- Busenitz LW, Lau CM (1996) A cross-cultural cognitive model of new venture creation. Entrep Theory Pract 20:25–40Google Scholar
- Busenitz LW, West GP, Shepherd D, Nelson T, Chandler GN, Zacharakis A (2003) Entrepreneurship research in emergence: past trends and future directions. J Manage 29:285–308Google Scholar
- De Clercq D, Danis WM, Dakhli M (2010) The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies. Int Bus Rev 19:85–101Google Scholar
- Feldman MP (2001) The entrepreneurial event revisited: Firm formation in a regional context. Ind Corp Change 10:861–891Google Scholar
- Florida R (2002) The rise of the creative class. The Washington Monthly 34:15–25Google Scholar
- Foa R (2011) Indices of Social Development: Research Applications. International Institute for Social Studies Working Paper Series. http://www.indsocdev.org. Accessed 2 October 2014.
- Foa R, Tanner JC (2012) Methodology of the indices of social development. Institute for Social Studies Working Paper Series, Working paper 2012–4. http://www.indsocdev. Org. Accessed 1 October 2014.
- Fritsch M, (2011) Elgar Handbook of Research on Entrepreneurship and Regional Development. National and Regional Perspectives. Edward Elgar, Cheltenham.Google Scholar
- Hartog C, Parker S, van Stel A, Thurik R (2010) The two-way relationship between entrepreneurship and economic performance. Scales report H200822, http://core.ac.uk/download/pdf/6332576.pdf. Accessed 15 September 2014
- Hayton JC, George G, Zahra SA (2002) National culture and entrepreneurship: A review of behavioral research. Entrep Theory Pract 26:33–52Google Scholar
- Hechavarría DM, Terjesen SA, Ingram AE, Renko M, Justo R, Elam A (2016) Taking care of business: the impact of culture and gender on entrepreneurs’ blended value creation goals. Small Bus Econ. In press, doi: 10.1007/s11187-016-9747-4.
- Hessels J, van Stel A, Brouwer P, Wennekers S (2007) Social security arrangements and early stage entrepreneurial activity. Comparat Lab Law Policy J 28:743–774Google Scholar
- Hofstede G (1980) Culture’s consequences: International differences in work-related values. Sage, Beverly HillsGoogle Scholar
- Hofstede G (2005) Culture and Organizations: Software of the mind. Revised and expanded 2nd edition. McGraw-Hill USA, New York.Google Scholar
- Hofstede G, Hofstede GJ, Minkov M (1997) Cultures and organizations. McGraw-Hill, New YorkGoogle Scholar
- Hofstede G, Noorderhaven NG, Thurik AR, Uhlaner LM, Wennekers AR, Wildeman RE (2004) Culture's role in entrepreneurial activity: self-employment out of dissatisfaction. In: Brown TE, Ulijn J (eds) Innovation, entrepreneurship and culture: The interaction between technology, progress and economic growth. Edgar Elgar Publishing Lt, London, pp 162–203Google Scholar
- House RJ, Hanges PJ, Javidan M, Dorfman PW, Gupta V (2004) Culture, leadership and organizations: The GLOBE study of 62 societies. Sage, Thousand OaksGoogle Scholar
- Hunt S, Levie J (2002) Culture as a predictor of entrepreneurial activity. In Babson College, Babson Kauffman Entrepreneurial activity Research Conference (BKERC) (2002–2006). http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1748691. Accessed 30 September 2014.
- Inglehart R (1977) The Silent Revolution: Changing Values and Political Styles in Advanced Industrial Society. Princeton University Press, PrincetonGoogle Scholar
- Inglehart R (1990) Culture shift in advanced industrial society. Princeton University Press, PrincetonGoogle Scholar
- Inglehart R (1997) Modernization and Postmodernization: Cultural, Economic, and Political Change in 43 Societies. Princeton University Press, PrincetonGoogle Scholar
- Liñán F, Fernández-Serrano J, Romero I (2013) Necessity and Opportunity Entrepreneurship: The Mediating Effect of Culture. Rev Econ Mund 33:21–47Google Scholar
- Lyons TS, Alter TR, Audretsch D, Augustine D (2012) Entrepreneurship and community: The next frontier of entrepreneurship inquiry. Entrep Res J 2:Article 1Google Scholar
- Morris MH, Avila RA, Alien J (1993) Individualism and the modern corporation: Implications for innovation and entrepreneurship. J Manage 19:595–612Google Scholar
- Naudé WA, Amorós JE, Cristi M (2013) "Romanticizing Penniless Entrepreneurs?" The Relationship between Start-Ups and Human Wellbeing across Countries. IZA Discussion Paper 7547. http://www.econstor.eu/handle/10419/80527. Accesses 15 April 2014.
- Porter ME (2013) Social Progress Index 2013. Social Progress Imperative. http://www.prueba04.info/wpcontent/uploads/2009/01/SocialProgressIndex2013.pdf. Accessed 30 June 2014.
- Saxenian A (1994) Regional Advantage. Culture and Competition in Silicon Valley and Route 128. Harvard University Press, Cambridge, MA.Google Scholar
- Schumpeter JA (1911) The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle. Transaction Publishers, New BrunswickGoogle Scholar
- Shane S, Venkataraman S (2000) The promise of entrepreneurship as a field of research. Acad Manage Rev 25:217–226Google Scholar
- Stiglitz J, Sen A, Fitoussi JP (2009) The measurement of economic performance and social progress revisited. Reflections and overview. Commission on the Measurement of Economic Performance and Social Progress, Paris. http://www.ofce.sciences-po.fr/pdf/dtravail/WP2009-33.pdf. Accessed 15 May 2014.
- Urban B (2010) A focus on networking practices for entrepreneurs in a transition economy. Transform Bus Econ 952–66Google Scholar
- Urban B (2011) Social capital configurations for necessity-driven versus opportunity-driven entrepreneurs. S Afr J Econ Manage Sci 14:407–421Google Scholar
- Verheul I, Wennekers S, Audretsch D, Thurik R (2002) An eclectic theory of entrepreneurship: policies, institutions and culture. In: Audretsch D, Thurik R, Verheul I, Wennekers S (eds) Entrepreneurship: Determinants and policy in a European-US comparison. Springer US, New York, pp 11–81CrossRefGoogle Scholar
- Webbink E (2012) Inclusion of Minorities. The Indices of Social Development. http://www.indsocdev.org/resources/ISD%20Inclusion%20of%20Minorities.pdf. Accessed 12 September 2014.
- Wooldridge J (2012) Introductory econometrics: A modern approach (5th Ed.). Cengage Learning, Mason, OH.Google Scholar