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Published in: International Entrepreneurship and Management Journal 2/2013

01-06-2013

Entrepreneurs or employees: a cross-cultural cognitive analysis

Authors: Helena Knörr, Claudia Alvarez, David Urbano

Published in: International Entrepreneurship and Management Journal | Issue 2/2013

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Abstract

This study examines the influence of the cultural-cognitive dimension - measured through creativity, risk taking and independence - on the probability of becoming an entrepreneur or an employee. Institutional economics is used as theoretical framework of the research. The empirical research uses binomial and multinomial probit models, when controlling for socio-demographic factors and macro variables. Data was obtained from the World Values Survey, for the period 2005-2008, considering a sample of 41 countries and 56,875 individuals. The main findings demonstrate that creativity, risk taking and independence increase the probability of becoming entrepreneur, and decrease the probability of becoming employee. Given that these characteristics facilitate the birth of new ideas, processes, products, and services, it is crucial to learn from entrepreneurs, and to foster such characteristics within organizations. The results have contributions for both researchers and policymakers on new firm creation (entrepreneurship) and on the generation of innovation within organisations (intrapreneurship).

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Appendix
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Footnotes
1
Self-employment is a labor-market related parameter, but it is an adequate indicator of entrepreneurial activity (Vinogradov and Kolvereid, 2007).
 
2
We have reversed the original scale of WVS. In this scale who has more favorable attitudes toward creativity respond with lower values, while higher values indicate unfavorable attitudes toward creativity and new ideas.
 
3
Models have been regressed with a different number of observations due to missing value. Then, we consider the AIC corrected by the size of the sample and BIC based on the LR chi-squared.
 
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Metadata
Title
Entrepreneurs or employees: a cross-cultural cognitive analysis
Authors
Helena Knörr
Claudia Alvarez
David Urbano
Publication date
01-06-2013
Publisher
Springer US
Published in
International Entrepreneurship and Management Journal / Issue 2/2013
Print ISSN: 1554-7191
Electronic ISSN: 1555-1938
DOI
https://doi.org/10.1007/s11365-012-0235-2

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