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Culture’s Consequences for Entrepreneurship


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Professor Ute Stephan, of Aston Business School

Will speak on;

Culture’s Consequences for Entrepreneurship: A Review Framework and Research Agenda

Date: Monday 19Th March 2018
Time: 4pm
Venue: EA527, 5th, Easterfield Building


Research on culture and entrepreneurship has been rapidly expanding, triggered by consistent findings of substantial and stable cross-country differences in entrepreneurship rates that cannot be solely explained by economic development or formal institutions. Yet studies on culture and entrepreneurship present conflicting evidence to date (for instance, with regard to the effects of cultural individualism and uncertainty avoidance) and they reflect a fragmented body of work with parallel lines of research informed by economic, sociological or psychological theories respectively. This means it is unclear what we currently understand about why, how and when culture influences entrepreneurship. The review synthesizes the insights from 163 empirical studies identified through a systematic review. Based on the review, we develop a framework for research on culture and entrepreneurship that is attentive to levels of analysis and the diversity of cultural concepts. It integrates complementary theories from cross-cultural psychology, work on proactive behavior in organizational behavior, sociological work on institutions, and transaction cost economics to explicate four clusters of macro-to-micro level mechanisms through which culture influences entrepreneurship. The review and framework help to make sense of conflicting evidence to date but also call for future research to pay greater attention to interactions and configurations among aspects of culture and with formal institutions; to take heterogeneity (or types of) entrepreneurship seriously; to consider aspects of culture strength and ‘inclusiveness’ of culture to empower individuals who would not normally engage in entrepreneurship to start and grow a venture; and to be attentive to temporal dynamics and culture change.