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International Entrepreneurship and Management Journal

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01.03.2015

Socio-psychological determinants of opportunity entrepreneurship

verfasst von: Ekaterina Turkina, Mai Thi Thanh Thai

Erschienen in: International Entrepreneurship and Management Journal | Ausgabe 1/2015

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Abstract

This paper examines socio-psychological determinants of entrepreneurial motivation. It identifies four higher-order socio-psychological factors—locus of control, social cynicism, the traditionalism-modernity continuum and the survival-self-actualization continuum—and conducts a multi-level analysis of their effects on the probability of being an opportunity entrepreneur in a given society while controlling for the levels of necessity entrepreneurship and other important factors. Our model also includes varying levels of growth expectations by the focal entrepreneur. The results of our study provide interesting new insights and suggest that socio-psychological factors are significant predictors of entrepreneurial motivation. Moreover, the effects of socio-psychological factors on opportunity entrepreneurship vary depending on growth expectations: the effects are the strongest on high-growth-oriented entrepreneurship.

Vorheriger Artikel Measurement model in entrepreneurship and small business research: a ten year review

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Indeed, there is evidence that individuals learn about entrepreneurship and develop basic beliefs about starting a business within a certain social context (Peterson and Roquebert 1993; Reynolds 1992). Martz et al. (2005) and Gupta and Fernandez (2009) report that entrepreneurship is perceived, rewarded and acknowledged differently across countries. For instance, the US appears to have a higher level of appreciation of entrepreneurship than France and the UK (Martz et al. 2005). Similarly, Muzyka (2002) observes that in Canada, social norms are not as supportive of entrepreneurship as in the US and, generally speaking, entrepreneurship is considered to be an unattractive career choice.

The highest factor scores in the modernity dimension are for the following constituents: individualism, self-reliance and personal independence, formation of horizontal and decentralized rather than hierarchical and centralized social and economic structures, and gender equality (Inglehart and Welzel 2005).

Inglehart’s modernity dimension is correlated with Hofstede’s individualism dimension (Inglehart and Oyserman 2004). Social identity in modern societies is based on individual success rather than collective gains.

Even Japan, which has a high modernity index, but is more collectivist in its orientations than modernized Europe, the US and Canada, has a much higher individualism score (46 on Hofstede’s scale) than less modern Asian countries like China (score 15).

For instance, Japanese people tend to be significantly more external in locus of control orientation than people in the US (Berry et al. 1992). Countries in Europe exhibit different levels of locus of control although they have similar level of economic development (Shiraev and Levy 2004).

Previous research has indicated that decisions about whether engaging in risky behaviors or not were significantly influenced by external and internal locus of control (e.g. Crisp and Barber 1995). More specifically, locus of control was found to mediate the relationship between perception and behavior; studies have found negative correlation between external locus of control and risk-taking tendency. Adolescents with an internal locus of control had higher risk-taking propensity since they made more accurate assessments about their risk.

Which could explain why many self-employed do not register their businesses in some countries as means of minimizing exposure.

Opportunism can be the cause of personal and professional problems in salaried relationships, but salaried relationships offer some stability, while en entrepreneur risks to lose his/her income in the case of business failure.

traditionalism/modernity continuum, survival/self-expression continuum, social cynicism, social complexity, religiosity, fate control, reward for application, and happiness.

For instance, Hagen (1960) argues that individuals have to be rebels to become entrepreneurs in traditional societies that do not value economic and social progress and markets as much as modernized societies.

Social capital decreases social distance between people, increases interpersonal trust, develops social spirit and encourages people to have confidence in their actions (Uzzi 1997; Dunn and Holtz-Eakin 2000; Stephan and Uhlaner, 2010).

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Titel: Socio-psychological determinants of opportunity entrepreneurship
verfasst von: Ekaterina Turkina
Mai Thi Thanh Thai
Publikationsdatum: 01.03.2015
Verlag: Springer US
Erschienen in: International Entrepreneurship and Management Journal / Ausgabe 1/2015
Print ISSN: 1554-7191
Elektronische ISSN: 1555-1938
DOI: https://doi.org/10.1007/s11365-013-0288-x

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Weitere Artikel der Ausgabe 1/2015

Sex, gender, and individual entrepreneurial orientation: evidence from four countries

The moderating role of explanatory style between experience and entrepreneurial self-efficacy

Mapping the field of family business research: past trends and future directions

Benchmarking biotechnology industries: A comparative perspective

Nicolai J. Foss, Peter G. Klein: Organizing entrepreneurial judgment: a new approach to the firm

Entrepreneurial sensegiving and the attention contract

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