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

Karl Wennberg (), Saurav Pathak () and Erkko Autio ()
Additional contact information
Saurav Pathak: Michigan Tech University, Postal: Michigan Tech University, , School of Business and Economics Academic Office Building, G006, ,
Erkko Autio: Imperial College London Business School, Postal: Imperial College London Business School,, South Kensington Campus, London SW7 2AZ, United Kingdom

No 223, Ratio Working Papers from The Ratio Institute

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.

Keywords: Culture; Entrepreneurship; Institutions; Multi-level (search for similar items in EconPapers)
JEL-codes: D24 L25 L26 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2013-11-04
New Economics Papers: this item is included in nep-bec, nep-cul, nep-cwa, nep-ent and nep-sbm
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Citations: View citations in EconPapers (20)

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