Culture, Entreprenurial Orientation,

and Global Competitiveness

Submitted By:
Group 4

Need to establish a global business

climate leads to entrepreneurship

Recent trends towards corporate downsizing

Privatisation of economies

Global competition based on:

Agility

Creativity

Innovation

3 Main Approaches towards

Entrepreneurship

Individual Approach: Internal psychological traits of individual

entrepreneurs, with propensity towards:

Risk taking
High Achievement

Internal locus of control

Experiment with technology

Sociological Characteristics:

Being a first child

Being an immigrant

Having early role models

Environmental/Contextual Approach:

Response to certain environmental conditions that can help or hinder

entrepreneurship success by the nature of climate they establish.

Factors such as family & support systems, financial resources, local

community, and govt. agencies can affect entrepreneurial activity

Firm Approach:

Stresses on the entrepreneurial process and the role of top management

philosophies regarding entrepreneurship.

Success depends on the commitment of the top management

Consists stages involved in moving from identifying an opportunity to

defining a business concept, assessing resource requirements,
acquiring those resources, managing & harvesting the venture

Culture & Entrepreneurship

Development in economy doesnt ensure entrepreneurial activity

Economic reform is only one step in the overall process of

modernisation

Entrepreneurship develops from the Bottom-up approach

Culture serves as a conductor and the entrepreneur as a catalyst to

entrepreneurship

Identification and Definition of Cultural Dimensions Based on

Hofstede & Trompenaars
Cultural Dimension
Power Distance degree of tolerance
hierarchical or unequal relationships

Definition
for High- Large deg. of tolerance
relationships
Low- Small deg. of tolerance

for

unequal

Uncertainty Avoidance- deg. of acceptance for Strong- Little acceptance for uncertainty or risk
uncertainty/willingness to take risk
Weak- Generally accepting for uncertainty and risk
Individualism deg. of emphasis placed on Individualism- large deg. of emphasis placed on
individual accomplishment
individual accomplishment.
Collectivism- large deg. of emphasis placed on
group accomplishment.
Masculinity- deg. of stress placed on materialism

Masculinity- large deg. of stress on materialism &

wealth
Femininity- large deg. of stress on harmony &
relationships

Achievement- describes how power & status are Achievement- power & status are achieved/earned
determined
through competition & hard-work
Ascription- power & status are ascribed by
birthright, age or gender.
Universalism- describes norms for relating to Universalism- code of laws exist that apply equally

Cultural
Dimensions
of
Various
Countries/Regions based on Hofstede and
Trompenaars
Cultural
Countries/ Regions
Dimension

Conductive
Entrepreneu
rial Culture

U.S

Japan

China

Former
Soviet
Economics

Mexico

Uncertainty
Avoidance

Weak

Weak

Strong

Strong

Strong

Strong

Power
Distance

Low

Low

High

High

High

High

Masculinity

Masculine

Masculine

Masculine

Feminine

Feminine

Masculine

Individualis
m

Individual

Individual

Collective

Collective

Collective

Collective

Achievemen
t

Achievemen
t

Achievemen
t

Ascription

Ascription

Ascription

Achievemen
t

Universalis
m

Universal

Universal

Particular

Particular

Particular

Particular