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entrepreneurship and culture by Reeha Gulzar
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entrepreneurship and culture |
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Business
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Future research should also look more deeply into the issue of how culturally bounded entrepreneurial behavior is. Entrepreneurial theories today include assumptions such as profit maximization and self-interest maximization. However, this may not be universally true in all emerging economies. The values and motivations in some emerging economies include an emphasis on the welfare of others, maintaining the status quo, maintaining networks and relationships which may change the implications of assumptions an indi- vidual on profit maximization and self-interest maximization. Thus, there is a need to look deeper to see how theoretical assumptions made by researchers based on evidence in mature economies need to be altered or deleted as they examine emerging economies. There is also the need to look deeper to see what the impact of culture is on entrepreneurship. It is known that cultural values and norms, religion, and educational systems shape individual and organizational behavior including entrepreneurship. Emerg- ing economies provide a fascinating testing ground for studying the impact of these items over time. Yet as noted earlier, too often, researchers have argued that any differences found in an emerging economy is due to the culture of that economy. Thus, there is a great need to understand the actual role of culture. Issues such as how culture impacts trans- actions costs, resources, and cognitive maps of entrepreneurs should be explored. In examining culture there is also a need to examine in greater depth the different dimensions of culture and their impact on entrepreneurship. The most widely used definition of culture is that by Hofstede. However, the GLOBE (Global Leadership and Organizational Behavior Effectiveness) study on culture and leadership has further codi- fied and extended the Hofstedian formulation of culture and cultural values. Researchers 8 ENTREPRENEURSHIP THEORY and PRACTICE should use this information and seek to unpack the cultural differences that exist so that there can be a better specification of culture and in turn a better understanding of its impact (see House, Hanges, Javidan, Dorfman, & Gupta, 2004). Emerging Economy Entrepreneurship and the International Domain Entrepreneurship in emerging economies is not an isolated domain. Instead, it is part of the broader international business domain that helps to identify other relevant issues. For example, more and more emerging economy firms go international soon after their founding (Ahlstrom, Bruton, &Yeh, 2007; Zucchella, Palamara, & Denicolai, 2007). The nature of these entrepreneurial firms’ local market that encourages them to seek out other markets should be explored. For example, these firms often internationalize to either gain market share or to gain knowledge; which of these two is the principal motivator for entrepreneurial firms or how the two motivations impact each other merits examination. There is also a need to understand the impact of cultural and institutional differences between the country of the entrepreneur and the country where the entrepreneur is doing business. For example, the cultural distance between countries and how that impacts the expansion of entrepreneurial firms should be explored. It is important to not stop at the firm- and country-level effects in examining entre- preneurship in emerging economies. Country effects are important, yet often overlooked are the country–firm interaction effects. The interaction effects would include how firms uniquely benefit from going international in that type of country. For example, Middle Eastern entrepreneurs are experiencing some success with investment in the Moslem countries of SoutheastAsia such as Malaysia and Indonesia. Similar religious and cultural orientation would appear to provide a variety of benefits apart from standard cost savings or new marketing opportunities that emerge. Athird aspect of examining international dimensions of entrepreneurship in emerging economies is seeking to better understand born global firms from the developing worlds. Born global firms are firms that are international from their very beginning. These firms are not unlike domestic only firms as they must consider all the difficult questions entrepreneurs have about financing, managing, and strategizing within the organization. But the born global firms face a far more complex analysis since the new firms are crossing national borders. By crossing boundaries, the entrepreneurial firm faces con- straints but the firm also obtains opportunities to enhance market value based on the strategic deployment of firm resources and assets, as well as intangible assets gained by going international. For firms from emerging economies that are often facing constrained resources, the act of going international would appear to provide unique challenges that need greater understanding By: Reeha Gulzar Khan.
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