Research paper
Religiosity and entrepreneurship behaviours

https://doi.org/10.1016/j.ijhm.2017.08.005Get rights and content

Highlights

  • Religion plays a critical role in shaping individuals values and their entrepreneurial behaviors.

  • Religiosity is a critical determinant of entrepreneurial behavior.

  • Religiosity moderates the magnitude and direction of the relationships between values and entrepreneurial behaviors.

Abstract

This study investigates the impacts of entrepreneurs’ religiosity on their values and on the relationship between their values and entrepreneurial behaviours by examining the differences between practicing Muslim entrepreneurs and non-practicing Muslim entrepreneurs. Relationships between values and religiosity are examined within an integrative framework of Schwartz’s value theory.

Findings suggest that religion plays a critical role in shaping individuals values and their entrepreneurial behaviours. Practicing Muslim entrepreneurs have more respect for, commitment to and acceptance of the religious and traditional customs and ideas compared with those non-practicing Muslim entrepreneurs. On the other hand, non-practicing Muslim entrepreneurs have more independent thoughts and actions when it comes to choosing, creating and exploring compared with those practicing Muslim entrepreneurs. Furthermore, non-practicing Muslim entrepreneurs are more likely to seek for worldly pleasures and sensuous gratification compared with those practicing Muslim entrepreneurs.

Introduction

Religion is a treasury of the most sacred and precious values of society. Religion, being an integral and inseparable part of individual’s life, significantly influences the society through shaping human behaviours (Nwankwo and Gbadamosi, 2013). As a collection of cultural as well as spiritual systems of worldviews, believes, values and norms, religion is an essential component of most people’s lifestyle (Podgornyi, 2012). Individuals, in particular believers, transform religious values to their various activities including consumption behaviours, business practices as well as working environment (Griebel et al., 2014; Miller and Timothy, 2010; Byrne et al., 2011).

While a small number of studies have examined the influence of values and religion in the field of hospitality and tourism, most of them were focused mainly on the influence of religion on consumers’ behaviours and on host community-guest relationships. For example, Eid and El-Gohari (2015) investigated the moderating effect of Islamic religiosity on the relationship between Muslim customer perceived value (MCPV) and Muslim customer satisfaction. Their findings reinforced the importance of religiosity in understanding Muslim customer satisfaction and behaviours. Tavakoli and Mura (2015) also explored Iranian female tourists’ patterns of behaviour travelling in Second Life. Their findings showed that in virtual tourist spaces, participants reject ‘subordinated’ gender-based stereotypes concerning Muslim women's bodily representations in Iran. In addition, investigating the influence of religion on guest and host community relationships, Kirillova et al., (2014) explored how religion is involved in constructing hosts’ understanding of hospitality and hospitable behaviours in private, public, and commercial settings. Their findings revealed that interpretation of hospitality and hospitable behaviours in private and public domains vary according to religious values while commercial hospitality, somewhat influenced by religion, is mostly understood as a money-making venture. Henderson’s (2003) study used Malaysia as a case study to illustrate the problems and opportunities that arise when international guests and the Islamic religion come into contact. Zamani-Farahani and Musa (2012) explored the influence of Islamic religiosity on the perceived socio-cultural impacts of tourism among residents in two tourist areas in Iran. The results showed that respondents who possessed a high level of Islamic Belief also perceived socio-cultural impacts of tourism positively.

These studies made important contribution to the literature by demonstrating the influence of values and religion on individuals’ attitudes and behaviours and also how values and religion shape the relationship between guests and host communities. However, most of these studies investigated the role religion plays in hospitality and tourism utilizing a demand perspective by mainly focusing on how religion can influence consumers’ attitudes and behaviours with a few exceptions. Even though most hospitality and tourism offerings are viewed and consumed as experiences that are produced and delivered through a combination of a diverse array of product and service providers (Jiang et al., 2016; Middleton et al., 2009), previous literature has neglected to capture the interface between religious values and hospitality service and product providers; in particular hospitality entrepreneurs. This is surprising given that hospitality entrepreneurship stimulates innovation and creativity and thus contributes to the economic, social and environmental development of destinations (Altinay et al., 2016) and the extent values and religion influence entrepreneurs’ behaviours could affect the experience of consumers (Altinay and Altinay, 2008). For example, in their study of Turkish entrepreneurs, Altinay and Altinay (2008) found that Turkish entrepreneurs who practice their religion do not sell pork and alcohol in their restaurants and therefore cannot respond to the needs to consumers who demand pork and alcohol.

Considering the fact that belief in God plays an important role in how guests are treated in Islam, it is surprising that Muslim entrepreneurs’ values and how those values can impact their business practices have not received much attention. Therefore, this study aims to examine the influence of hospitality entrepreneurs’ level of commitment to religion on their basic values and their entrepreneurial behaviours, and on the relationships between their basic values and entrepreneurial behaviours. More specifically, this study aims to answer the following four research questions:

  • 1.

    Does Muslim entrepreneurs’ level of religiosity influence their basic values?

  • 2.

    Are there any differences between the values of Muslim entrepreneurs who are more committed to Islam and who are less committed to Islam?

  • 3.

    Are there any differences in any of the four dimensions of entrepreneurial behaviors, namely innovation, risk taking, competitiveness and pro-activeness, between Muslim entrepreneurs who are more committed to Islam and those who are less committed to Islam?

  • 4.

    Does entrepreneurs’ level of religiosity influence the relationship between their basic values and their entrepreneurial behaviors, namely innovation, risk taking, competitiveness and pro-activeness?

Since this is one of the first studies that examine impact of Islam on entrepreneurial behavior, findings of this study are likely to advance our knowledge on the impact of Islamic values on entrepreneurial behaviors by making two distinct contributions. Firstly, the study offers insights into the interface between religion, Islam, and entrepreneurial behaviours by demonstrating the influence of Muslim entrepreneurs’ basic values on their entrepreneurial behaviours, an area neglected by the previous literature. Secondly, the study offers insights into how Muslim entrepreneurs’ level of commitment to their religion can influence the relationships between their basic values and their entrepreneurial behaviours.

Religion is a treasury of the most sacred and precious values of society. Being an integral and inseparable part of an individual’s life, religion also holds collective influence over society through its shaping of human behaviour. As a collection of cultural as well as spiritual systems of worldviews, beliefs, values and norms, religion is an essential component of people’s lifestyles. As a rule, individuals, in particular believers, transfer religious values to their various activities; this includes business practices as well as the working environment (Griebel et al., 2014; Miller and Timothy, 2010; Byrne et al., 2011). Such behaviour is common among religious entrepreneurs who are guided by ethical norms defined by religion during the decision making process (Bornstein and Miller, 2009; Fernando, 2005). This applies to both managing a business and establishing leadership styles (Payne, 2010., Lui and Wilson, 2011., Weaver and Agle, 2002). Religion can serve as an ideal ethical system that promotes spirituality along with benefaction, thereby leading to positive moral behavior based on clemency, trustworthiness and honesty. Nwankwo and Gbadamosi (2013, p. 625) emphasize that believers adhere to these moral principles and act according to these religious values, which are defined as “a synthesizer of entrepreneurial relations” during risk taking, market research, rationalization and positioning.

Since religion shapes and coordinates entrepreneurial behavior, it affects intrinsic motivational goals described by Schwartz (1992) as a system of values integrating 10 dimensions which are categorized as self-focused orientations representing power, achievement, hedonism, stimulation, and self-direction, as well as other-focused intentions including universalism, benevolence, tradition, conformity, and security. Based on the “Five Factor Model” analysis, Roccas et al. (2002) have investigated the correlations of both values and personality traits with religiosity, and emphasized expressive interconnections between values and religion. Further research (e.g., Schwartz and Huismans, 1995), through the prism of theological, sociological and psychological approaches, has revealed explicit correlations between religious orientation and values where “conformity/tradition” is argued to be mainly correlated with the religious faith of individuals, while less positive associations related to “security” and “benevolence” (Saroglou et al., 2004). Inclination to “conformity/tradition” values expresses the importance of customs defined by a religion as well as the acceptance of a certain level of conservatism in actions or during the decision making process. “Security” values relate to uncertainty avoidance and imply social order protection, while benevolence refers to possessing good intention towards others. Findings additionally indicate that religiosity reduces the importance of hedonistic values which is evidenced by the most negative correlation coefficient (Fontaine et al., 2000). Moreover, “stimulation” and “self-direction” values are less expressively, and yet negatively correlated with religion (Saroglou et al., 2004). Additionally, religiosity is not associated by a significant meaning attributed to “power” connected to prestige, or “achievement” indicating respectable status in society, and “universalism” representing humans’ welfare (Schwartz et al., 2001; Saroglou et al., 2004).

Schwartz, (2012) has conceptualized the model of value relations expanding on conformity as well as contradiction between 10 value dimensions. According to Schwartz’s conceptual model, values are clustered as two bipolar measurements, contrasting “openness to change” versus “conservation” on the one hand, and “self-enhancement” versus “self-transcendence” on the other hand. The first category of bipolar dimensions represents the oppositions between motivational values associated with the challenge oriented, independent action and novelty seeking behavior and values that prioritize the importance of relationships, stability and conservatism. The second category of measurements covers the discrepancy between values that define motivational goals oriented towards competent performance, social predominance and controlling power and values indicating social welfare, tolerance and supportive relationships. As defined by Schwartz (2012), “hedonism” contains a dual characteristic; consequently it can be associated with both “openness to change” and “self-enhancement”. “Conformity” along with “tradition” shares the similar system of desirable goals, and is therefore located in a joint sector (See Fig. 1). Moreover, Schwartz (2012) has expanded the conceptual framework of value systems and described the relations of values to anxiety that is considered as individuals’ perceptions regarding uncertainty (See Fig. 1). “Self-enhancement” and “Conservation” dimensions are categorized as anxiety-based values mainly oriented to self-protection, while “openness to change” and “self-transcendence” reflect anxiety-free motives generally focusing on growth and self-expansion.

Studies investigating the relationship between Islam and entrepreneurship has found that Islamic values affect the main aspects of business enterprises such as management (Dyck, 2014, Abuznaid, 2009); organizational ethics, including responsible business conduct (Ismaeel and Blaim, 2012., Graafland et al., 2006); marketing (Arham, 2010; Elfakhani and Ahmed, 2013); capital and fund raising (Elfakhani and Ahmed, 2013). For example, Islam shapes the behaviours of Muslim entrepreneurs by redirecting internal motivational forces from utility maximization, associated with a material reward system, to spiritual gains: assuming the system of benefits and welfare created not only for oneself but also for others (Gümüsay, 2015). Graafland et al. (2006, p. 392) state that “a Muslim businessman should be driven by a socially useful service motive instead of a profit motive”. Hoque et al. (2013) identify traits of Islamic entrepreneurs such as honesty, hardworking, truthfulness, patience, morality, strategic thinking, social welfare, etc. which can be considered as the most influential values shaping the behaviour of individuals at the micro-level. However, depending on the individual level of spirituality, Muslim believers may possess different levels of devotion and ethical recognition (Ismaeel and Blaim, 2012). Therefore, in order to provide clear insights into the interrelation between religion and entrepreneurship, Altinay (2008) suggests demarcating two concepts such as “practising Muslim believers” and “non-practising Muslims”. The distinction is important for research because these two categories of entrepreneurs demonstrate different models of entrepreneurial behaviour according to the different levels of religiosity, and depending on the extent to which entrepreneurs apply religious values to everyday life. For example, Altinay (2008) in the case of ethnic Turkish Muslims, argues that entrepreneurs with a weak religious bias are more inclined to deviate from the common norms proscribed by Islam (such as taking interest-based financial loans, selling alcohol and pork) in order to more easily exploit opportunities in long-standing markets; this is instead of seeking new opportunities in a niche market (Halal and Muslim-friendly) which in turn may require additional monetary as well as non-monetary costs, and likely needs an innovative approach to entrepreneurial exploitation.

As suggested by the preceding discussion, entrepreneurs’ religiosity is likely to affect their values, attitudes and behaviours. This study aims to understand the impact of level of commitment to religion on values and entrepreneurial behaviour by drawing upon human values across power, achievement, hedonism, stimulation, self-direction, universalism, benevolence, tradition, conformity, and security dimensions. In particular, this study will offer new insights into our understanding of the impacts of religiosity on the relationship between these values and entrepreneurial behaviours namely innovation, risk taking, competitiveness and pro-activeness.

Data for this study were collected from the owners of small and medium enterprises (SME) who were members of one of the SME associations located in Turkey. The SME association has around 600 members. Even though the association is open to all SME owners, most of the members of this SME association are Muslim SME owners. Considering the fact that Islam is the main religion in Turkey, this is not very surprising. One of the authors of this study has been serving as a consultant to the SME association for over 10 years and, therefore, has very close relationships with the SME association. Utilizing the personal contacts in the SME association, permission was received from the SME association’s board of directors to conduct a survey. A cross-sectional, self-administered survey instrument was used to gather data during the monthly meeting of the SME association. Right before the monthly meeting, the self-administered survey was distributed to the members of the SME association. Completed surveys were collected right after the meeting. A total of 330 completed surveys were received. However, only 300 of the responses from entrepreneurs were used in this study because either the response was incomplete or the respondent did not answer the question that measured the respondent’s religious orientation; whether the respondent is a practicing Muslim entrepreneur or a non-practicing Muslim entrepreneur.

Respondents’ motivationally distinct value orientations were measured utilizing the basic human values scale developed by Swartz (1992). A total of 10 dimensions of basic human values were measured by 57 questions included in the original Swartz Value Scale (SVS) (Schwartz, 1992). These 10 basic values included Power, Achievement, Hedonism, Stimulation, Self-Direction, Universalism, Benevolence, Tradition, Conformity, and Security. Scores on these 10 value scales have been shown to load on two dimensions: Conservation versus Openness to Change and Self-Transcendence versus Self-Enhancement (Schwartz, 1992). Since the data were collected from entrepreneurs in Turkey, the instrument was back translated to Turkish by a native speaker of Turkish. The participants were asked to rate the importance they would give to the 57 value items as life-guiding principles on a 9-point rating scale ranging from −1 (opposed to my principles), 0 (not important), 3 (important), to 7 (of supreme importance). After collecting the data, a summated scale was generated for each value dimension utilizing a priori loading approach for each dimension. These summated scales were used in the analysis.

Respondents risk taking behaviours (if there is a possibility of failure in a new endeavour, you should not take a chance (this was reverse coded); Taking risk is a prerequisite for success), competitiveness behaviours (I like competing against others; competitive behaviours should be encouraged) and pro-activeness behaviours (if you work hard enough, nothing is impossible; if you work hard, you will succeed no matter what) were measured using two items. Innovation behaviour was measured by a single questions (creativeness and innovation is a must for success). Individuals’ level of commitment to the Islamic religion was also measured by a single questions; how would you describe your religious orientation. Responses were categorized into two groups based on their responses: 1) I strictly follow the guidelines of Islam and 2) I believe in Good but I do not practice.

Data were analysed utilizing a two-step process. First, a series of t-test were conducted to examine the influence of entrepreneurs’ level of commitment to religion on 10 dimensions of basic human values, and entrepreneurs risk taking, competitiveness, pro-activeness and innovation behaviours. In the second step, a series of regression model were tested in order to identify the influence of individuals’ level of commitment to religion on the relationships between values and entrepreneurial behaviours. First, all value dimensions were regressed on each entrepreneurial behaviour. Afterwards, a separate multiple regression was run for practicing Muslim entrepreneurs group and non-practicing Muslim entrepreneurs group; all value dimensions were regressed on each entrepreneurial behaviour for each group.

Section snippets

Results and discussion

Findings of the t-tests indicated significant differences in three values of individuals who practice religion and those who believe in God but do not practice religion as presented in Table 1. Significant differences between traditional values of practicing Muslim entrepreneurs (M = 4.90, SD = 1.23) and traditional values of non-practicing Muslim entrepreneurs (M = 4.26, SD = 1.37) were found at the p < 0.05 level. This finding suggest that practicing Muslim entrepreneurs have more respect for,

Conclusions

Hospitality industry is among the few industries that offer significant business opportunities to individuals with strong drive and entrepreneurial spirit because a large portion of hospitality services are provided by small and medium sized businesses. Even though entrepreneurship and small businesses play a critical role in the delivery of multidimensional hospitality products, which are usually consists of a series of experiences’ achieved through a combination of a diverse array of products

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