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

Entrepreneurship & Regional Development, Forthcoming

37 Pages Posted: 4 Nov 2013

See all articles by Karl Wennberg

Karl Wennberg

Linkoping University - Institute for Analytical Sociology (IAS)

Saurav Pathak

Michigan Technological University

Erkko Autio

Imperial College Business School; Tilburg University School of Economics and Management

Date Written: November 4, 2013

Abstract

We use data from the Global Entrepreneurship Monitor (GEM) and the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study for 42 countries to investigate how the effects of individual’s self-efficacy and of 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

JEL Classification: D24, L25, L26

Suggested Citation

Wennberg, Karl and Pathak, Saurav and Autio, Erkko, How Culture Molds the Effects of Self-Efficacy and Fear of Failure on Entrepreneurship (November 4, 2013). Entrepreneurship & Regional Development, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2349706

Karl Wennberg (Contact Author)

Linkoping University - Institute for Analytical Sociology (IAS) ( email )

Norrköping, 601 74
Sweden

Saurav Pathak

Michigan Technological University ( email )

Houghton, MI 49931
United States

Erkko Autio

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom
+447786226452 (Phone)

HOME PAGE: http://www.imperial.ac.uk/people/erkko.autio

Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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