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Performance-based vs socially supportive culture: A cross-national study of descriptive norms and entrepreneurship

Ute Stephan and Lorraine M Uhlaner
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Ute Stephan: Department of Managerial Economics, Strategy and Innovation, Katholieke Universiteit Leuven, Leuven, Belgium
Lorraine M Uhlaner: EDHEC Business School, France

Journal of International Business Studies, 2010, vol. 41, issue 8, 1347-1364

Abstract: This paper is a cross-national study testing a framework relating cultural descriptive norms to entrepreneurship in a sample of 40 nations. Based on data from the Global Leadership and Organizational Behavior Effectiveness project, we identify two higher-order dimensions of culture – socially supportive culture (SSC) and performance-based culture (PBC) – and relate them to entrepreneurship rates and associated supply-side and demand-side variables available from the Global Entrepreneurship Monitor. Findings provide strong support for a social capital/SSC and supply-side variable explanation of entrepreneurship rate. PBC predicts demand-side variables, such as opportunity existence and the quality of formal institutions to support entrepreneurship.

Date: 2010
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