nach oben

Small Business Economics

Erschienen in:

11.09.2020

Of free markets and a secular mind: the value of economic decentralization and individual secular values in entrepreneurship

verfasst von: Pankaj C. Patel, Marcus T. Wolfe

Erschienen in: Small Business Economics | Ausgabe 1/2022

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Building upon Hayek’s seminal work regarding the benefits of market decentralization, in this study, we examine the complementary role of an individual’s secular values in further explaining the association between decentralization of economic affairs, entrepreneurial activity, and self-employment. We argue that studies on Hayek’s notion of decentralization may be incomplete in their conceptualization without a transition to individual morality based on more secular values. We consider decentralization of economic affairs and secular values to explain why entrepreneurial activity differs across countries. In study 1, we find that the decentralization of economic affairs increases the odds of being an entrepreneur in a startup, but does not influence the likelihood of owning/managing a business or perceptions related to the opportunity to start a business. In study 2, we find evidence of mixed support for decentralization and self-employment; however, with meaningful effect sizes but with marginal significance, we find that an individual’s secular values complement the association between decentralization of economic affairs and self-employment. The findings are robust to alternate specifications. By demonstrating the role of secular values in strengthening decentralization, we lay the foundation for melding economic perspectives with the freedom from religious ethos as an important consideration for entrepreneurial activity. However, the mixed effects of decentralization on different modes of entrepreneurship also call into question the value of decentralization in modern economies.

Plain English Summary Higher levels of individual secular values, even by a small amount, enhance the benefits that economic decentralization can have on entrepreneurial activity. In this paper, we use a two-study approach to examine how individual secular values might influence the effects of economic decentralization on entrepreneurial activity. In study 1, we find that the decentralization of economic affairs increases the odds of being an entrepreneur in a startup, but does not influence the likelihood of owning/managing a business or individual perceptions related to existing opportunities to start a business. In study 2, we find evidence of mixed support for the effects of economic decentralization on self-employment. However, we find some evidence suggesting that an individual’s secular values complement the association between decentralization of economic affairs and self-employment. Thus, the principal implication of this study is that policymakers should take into consideration the overall secular values present in society when making decisions regarding economic decentralization, particularly with regard to understanding the potential effects that decentralization could have on entrepreneurial activity.

Vorheriger Artikel Non-employer establishments and economic development in counties: evidence from cross-border neighbor county-pairs in the US

Nächster Artikel Uncertainty, entrepreneurship, and the organization of corruption

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

We use the ‘WVS_Longitudinal_1981-2016_stata_v20180912.dta’ file provided by the WVS. Source: http://www.worldvaluessurvey.org/WVSDocumentationWVL.jsp

Controlling for these additional dimensions did not alter the inferences in study 1.

Acs, Z. J., Audretsch, D. B., & Evans, D. S. (1994). Why does the self-employment rate vary across countries and over time? : CEPR Discussion Paperso. Document Number).

Altman, M. (2013). Hayek’s complexity assumption, ecological and bounded rationality, and behavioral economics. In Hayek and behavioral economics (pp. 221–262). Berlin: Springer.

Altunc, O. F., & Aydın, C. (2013). The relationship between optimal size of government and economic growth: empirical evidence from Turkey, Romania and Bulgaria. Procedia-Social and Behavioral Sciences, 92, 66–75.

Arenius, P., & Minniti, M. (2005). Perceptual variables and nascent entrepreneurship. Small Business Economics, 24(3), 233–247.

Ashby, N. J. (2007). Economic freedom and migration flows between US states. Southern Economic Journal, 677–697.

Asiedu, E. (2006). Foreign direct investment in Africa: the role of natural resources, market size, government policy, institutions and political instability. The World Economy, 29(1), 63–77.

Åstebro, T., & Tåg, J. (2017). Gross, net, and new job creation by entrepreneurs. Journal of Business Venturing Insights, 8, 64–70.

Audretsch, D. B. (2007). Entrepreneurship capital and economic growth. Oxford Review of Economic Policy, 23(1), 63–78.

Audretsch, D. B., Boente, W., & Tamvada, J. P. (2007). Religion and entrepreneurship. Vol.

Audretsch, D. B., Falck, O., Feldman, M. P., & Heblich, S. (2012). Local entrepreneurship in context. Regional Studies, 46(3), 379–389.

Audretsch, D. B., Lehmann, E. E., & Seitz, N. (2017). Cultural amenities, subcultures and entrepreneurship. In Subcultures and Entrepreneurship (February 14, 2017).

Azoulay, P., Jones, B. F., Kim, J. D., & Miranda, J. (2020). Age and high-growth entrepreneurship. American Economic Review: Insights, 2(1), 65–82.

Balog, A. M., Baker, L. T., & Walker, A. G. (2014). Religiosity and spirituality in entrepreneurship: a review and research agenda. Journal of management, spirituality & religion, 11(2), 159–186.

Belenzon, S., Bennett, V. M., & Patacconi, A. (2019). Flexible production and entry: institutional, technological, and organizational determinants (no. 0898-2937): National Bureau of Economic Researcho. Document Number).

Bennett, D. L. (2019). Local economic freedom and creative destruction in America. Small Business Economics, 1–21.

Bennett, D. L., & Nikolaev, B. (2020). Historical disease prevalence, cultural values, and global innovation. Entrepreneurship Theory and Practice, 1042258720914506.

Bjuggren, C. M., Johansson, D., & Stenkula, M. (2012). Using self-employment as proxy for entrepreneurship: some empirical caveats. International Journal of Entrepreneurship and Small Business, 17(3), 290–303.

Blanchflower, D. G. (2004). Self-employment: more may not be better. Swedish Economic Policy Review, 11(2), 15–74.

Boudreaux, C. J., & Nikolaev, B. (2019). Capital is not enough: opportunity entrepreneurship and formal institutions. Small Business Economics, 53(3), 709–738.

Boudreaux, C. J., Nikolaev, B. N., & Holcombe, R. G. (2018). Corruption and destructive entrepreneurship. Small Business Economics, 51(1), 181–202.

Boudreaux, C. J., Nikolaev, B. N., & Klein, P. (2019). Socio-cognitive traits and entrepreneurship: the moderating role of economic institutions. Journal of Business Venturing, 34(1), 178–196.

Cadogan, J. W., & Lee, N. (2013). Improper use of endogenous formative variables. Journal of Business Research, 66(2), 233–241.

Carree, M., Van Stel, A., Thurik, R., & Wennekers, S. (2002). Economic development and business ownership: an analysis using data of 23 OECD countries in the period 1976–1996. Small Business Economics, 19(3), 271–290.

Carree, M., Van Stel, A., Thurik, R., & Wennekers, S. (2007). The relationship between economic development and business ownership revisited. Entrepreneurship and Regional Development, 19(3), 281–291.

Carrion-i-Silvestre, J. L., Espasa, M., & Mora, T. (2008). Fiscal decentralization and economic growth in Spain. Public Finance Review, 36(2), 194–218.

Dana, L. P. (2009). Religion as an explanatory variable for entrepreneurship. The International Journal of Entrepreneurship and Innovation, 10(2), 87–99.

De Mello, L., & Barenstein, M. (2001). International Monetary Fund. In Fiscal decentralization and governance: a cross-country analysis.

Dean, H., Larsen, G., Ford, J., & Akram, M. (2019). Female entrepreneurship and the metanarrative of economic growth: a critical review of underlying assumptions. International Journal of Management Reviews, 21(1), 24–49.

Dodd, S. D., & Gotsis, G. (2007). The interrelationships between entrepreneurship and religion. The International Journal of Entrepreneurship and Innovation, 8(2), 93–104.

Doran, J., McCarthy, N., & O’Connor, M. (2018). The role of entrepreneurship in stimulating economic growth in developed and developing countries. Cogent Economics & Finance, 6(1), 1442093.

Dziobek, C., Gutierrez Mangas, C. A., & Kufa, P. (2011). Measuring fiscal decentralization-exploring the IMF's databases. In IMF Working Papers (pp. 1–30).

Ebenstein, A. (2016). Hayek’s journey: the mind of Friedrich Hayek. Berlin: Springer.

Erken, H., Donselaar, P., & Thurik, R. (2018). Total factor productivity and the role of entrepreneurship. The Journal of Technology Transfer, 43(6), 1493–1521.

Fedelino, M. A. (2010). Making fiscal decentralization work: cross-country experiences. International Monetary Fund.

Fiori, S. (2010). Is HA Simon a theoretician of decentralized planning? A comparison with FA Hayek on planning, market, and organizations. Constitutional Political Economy, 21(2), 145–170.

Foss, N. J., Klein, P. G., & Bjørnskov, C. (2019). The context of entrepreneurial judgment: organizations, markets, and institutions. Journal of Management Studies, 56(6), 1197–1213.

Giraudo, E., Giudici, G., & Grilli, L. (2019). Entrepreneurship policy and the financing of young innovative companies: evidence from the Italian Startup Act. Research Policy, 48(9), 103801.

Global Entrepreneurship Monitor. (2016). GEM 2016/2017 global report. London Google Scholar: Global Entrepreneurship Research Association.

Gwartney, J. D., Lawson, R., & Block, W. (1996). Economic freedom of the world, 1975–1995. The Fraser Institute.

Hayek, F. A. (1945). The use of knowledge in society. The American Economic Review, 35(4), 519–530.

Hayek, F. A. (1992). Why I am not a conservative: centre for independent studies.

Hechavarría, D. M. (2016). The impact of culture on national prevalence rates of social and commercial entrepreneurship. International Entrepreneurship and Management Journal, 12(4), 1025–1052.

Henrekson, M., & Sanandaji, T. (2014). Small business activity does not measure entrepreneurship. Proceedings of the National Academy of Sciences, 111(5), 1760–1765.

Henry, C., Foss, L., & Ahl, H. (2016). Gender and entrepreneurship research: a review of methodological approaches. International Small Business Journal, 34(3), 217–241.

Hessels, J., Rietveld, C. A., & van der Zwan, P. (2017). Self-employment and work-related stress: the mediating role of job control and job demand. Journal of Business Venturing, 32(2), 178–196.

Holtz-Eakin, D., Joulfaian, D., & Rosen, H. S. (1993). Entrepreneurial decisions and liquidity constraints (No. 0898-2937): National Bureau of Economic Researcho. Document Number).

Huang, Z., Li, L., Ma, G., & Xu, L. C. (2017). Hayek, local information, and commanding heights: decentralizing state-owned enterprises in China. American Economic Review, 107(8), 2455–2478.

Huther, J., & Shah, A. (1998). Applying a simple measure of good governance to the debate on fiscal decentralization (Vol. 1894): World Bank Publications.

Inglehart, R., & Oyserman, D. (2004). Individualism, autonomy and self-expression: the human development syndrome.

Inglehart, R., & Welzel, C. (2005). Modernization, cultural change, and democracy: the human development sequence. Cambridge: Cambridge University Press.

Inglehart, R., Haerpfer, C., Moreno, A., Welzel, C., Kizilova, K., Diez-Medrano, J., . . . Puranen, B. (2016). World values survey: round six - country-pooled Datafile version: http://www.worldvaluessurvey.org/WVSDocumentationWV6.jsp. In J. S. Institute (Ed.). Madrid.

Kahneman, D. (2003). Maps of bounded rationality: psychology for behavioral economics. American Economic Review, 93(5), 1449–1475.

Kratochwil, F. (2005). Religion and (inter-)national politics: on the heuristics of identities, structures, and agents. Alternatives, 30(2), 113–140.

Kreft, S. F., & Sobel, R. S. (2005). Public policy, entrepreneurship, and economic freedom. Cato Journal, 25, 595.

Krueger, N., Liñán, F., & Nabi, G. (2013). Cultural values and entrepreneurship. Taylor & Francis.

la Cour, P., & Hvidt, N. C. (2010). Research on meaning-making and health in secular society: secular, spiritual and religious existential orientations. Social Science & Medicine, 71(7), 1292–1299.

Langevang, T., Namatovu, R., & Dawa, S. (2012). Beyond necessity and opportunity entrepreneurship: motivations and aspirations of young entrepreneurs in Uganda. International Development Planning Review, 34(4), 439–460.

Lau, R. R., & Redlawsk, D. P. (2001). Advantages and disadvantages of cognitive heuristics in political decision making. American Journal of Political Science, 951–971.

Li, L. M. W., & Bond, M. H. (2010). Does individual secularism promote life satisfaction? The moderating role of societal development. Social Indicators Research, 99(3), 443–453.

Lin, J. Y., & Liu, Z. (2000). Fiscal decentralization and economic growth in China. Economic Development and Cultural Change, 49(1), 1–21.

Lumpkin, G. T., Cogliser, C. C., & Schneider, D. R. (2009). Understanding and measuring autonomy: an entrepreneurial orientation perspective. Entrepreneurship Theory and Practice, 33(1), 47–69.

Mahmood, S. (2009). Religious reason and secular affect: an incommensurable divide? Critical Inquiry, 35(4), 836–862.

Maniyalath, N., & Narendran, R. (2016). The human development index predicts female entrepreneurship rates. International Journal of Entrepreneurial Behavior & Research.

Martinez-Vazquez, J., & McNab, R. M. (2003). Fiscal decentralization and economic growth. World Development, 31(9), 1597–1616.

Mayrl, D. (2015). How does the state structure secularization? European Journal of Sociology/Archives Européennes de Sociologie, 56(2), 207–239.

Meek, W. R., Pacheco, D. F., & York, J. G. (2010). The impact of social norms on entrepreneurial action: evidence from the environmental entrepreneurship context. Journal of Business Venturing, 25(5), 493–509.

Minniti, M., & Bygrave, W. (1999). The microfoundations of entrepreneurship. Entrepreneurship Theory and Practice, 23(4), 41–52.

Nwankwo, S., Gbadamosi, A., & Ojo, S. (2012). Religion, spirituality and entrepreneurship. Society and business review.

Oosterbeek, H., Van Praag, M., & Ijsselstein, A. (2010). The impact of entrepreneurship education on entrepreneurship skills and motivation. European Economic Review, 54(3), 442–454.

Patel, B., & Chavda, K. (2013). Rural entrepreneurship in India: challenge and problems. International Journal of Advance Research in Computer Science and Management Studies, 1(2).

Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: an assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761–787.

Rodríguez-Pose, A., & Ezcurra, R. (2010). Is fiscal decentralization harmful for economic growth? Evidence from the OECD countries. Journal of Economic Geography, 11(4), 619–643.

Sanina, A., Balashov, A., Rubtcova, M., & Satinsky, D. M. (2017). The effectiveness of communication channels in government and business communication. Information Polity, 22(4), 251–266.

Servant, R. (2018). Spontaneous growth, use of reason, and constitutional design: is FA Hayek’s social thought consistent? Journal of the History of Economic Thought, 40(3), 353–376.

Shane, S. A. (1992). Why do some societies invent more than others? Journal of Business Venturing, 7(1), 29–46.

Shane, S. A. (2003). A general theory of entrepreneurship: The individual-opportunity nexus: Edward Elgar Publishing.

Smallbone, D. (2016). Entrepreneurship policy: Issues and challenges. Small Enterprise Research, 23(3), 201–218.

Soejoto, A., Subroto, W. T., & Suyanto, Y. (2015). Fiscal decentralization policy in promoting Indonesia human development. International Journal of Economics and Financial Issues, 5(3), 763–771.

Sow, M., & Razafimahefa, M. I. F. (2017). Fiscal decentralization and fiscal policy performance: International Monetary Fund.

Stegarescu, D. (2005). Public sector decentralisation: measurement concepts and recent international trends. Fiscal Studies, 26(3), 301–333.

Stephan, U., & Pathak, S. (2016). Beyond cultural values? Cultural leadership ideals and entrepreneurship. Journal of Business Venturing, 31(5), 505–523.

Stephan, U., & Uhlaner, L. M. (2010). Performance-based vs socially supportive culture: a cross-national study of descriptive norms and entrepreneurship. Journal of International Business Studies, 41(8), 1347–1364.

Taylor, M. Z., & Wilson, S. (2012). Does culture still matter?: The effects of individualism on national innovation rates. Journal of Business Venturing, 27(2), 234–247.

Thornton, J. (2007). Fiscal decentralization and economic growth reconsidered. Journal of Urban Economics, 61(1), 64–70.

Tsofa, B., Molyneux, S., Gilson, L., & Goodman, C. (2017). How does decentralisation affect health sector planning and financial management? A case study of early effects of devolution in Kilifi County, Kenya. International Journal for Equity in Health, 16(1), 151.

Urbano, D., Aparicio, S., & Audretsch, D. (2019). Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned? Small Business Economics, 53(1), 21–49.

Welzel, C. (2013). Freedom rising. Cambridge: Cambridge University Press.

Wennekers, S., & Thurik, R. (1999). Linking entrepreneurship and economic growth. Small Business Economics, 13(1), 27–56.

Wenting, R., Atzema, O., & Frenken, K. (2011). Urban amenities and agglomeration economies? The locational behaviour and economic success of Dutch fashion design entrepreneurs. Urban Studies, 48(7), 1333–1352.

Westmoreland, R. (1998). Hayek: The rule of law or the law of rules? : JSTOR.

Wiklund, J., Nikolaev, B., Shir, N., Foo, M.-D., & Bradley, S. (2019). Entrepreneurship and well-being: past, present, and future. Berlin: Elsevier.

Williams, N., & Williams, C. C. (2014). Beyond necessity versus opportunity entrepreneurship: some lessons from English deprived urban neighbourhoods. International Entrepreneurship and Management Journal, 10(1), 23–40.

Wong, E. M., Ormiston, M. E., & Tetlock, P. E. (2011). The effects of top management team integrative complexity and decentralized decision making on corporate social performance. Academy of Management Journal, 54(6), 1207–1228.

Zelekha, Y., Avnimelech, G., & Sharabi, E. (2014). Religious institutions and entrepreneurship. Small Business Economics, 42(4), 747–767.

Zhang, T., & Acs, Z. (2018). Age and entrepreneurship: nuances from entrepreneur types and generation effects. Small Business Economics, 51(4), 773–809.

Titel: Of free markets and a secular mind: the value of economic decentralization and individual secular values in entrepreneurship
verfasst von: Pankaj C. Patel
Marcus T. Wolfe
Publikationsdatum: 11.09.2020
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 1/2022
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-020-00401-4

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 1/2022

Age effect on entry to entrepreneurship: embedded in life expectancy

Strong client orientation, little leverage in nonprofit firms?

Publishing in Small Business Economics: An Entrepreneurship Journal

Small business economics journal editor of the year award

What happens in criminal firms after godfather management removal? Judicial administration and firms’ performance

CEOs’ religiosity and corporate green initiatives

Premium Partner