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THE ROLE OF CULTURE ON ENTREPRENEURSHIP DEVELOPMENT IN SAUDI ARABIA: INFLUENCE ON ENTREPRENEURIAL CULTURE

THE ROLE OF CULTURE ON ENTREPRENEURSHIP DEVELOPMENT IN SAUDI ARABIA: INFLUENCE ON ENTREPRENEURIAL CULTUREIn other words, individuals with more power is privileged with more advantage and benefit compared to individuals with less power. Study by van Evergingen and Waarts suggested that in high power distance culture, the spread of information can be limited by the hierarchy. Therefore, as information spread is highly important in entrepreneurial innovation, low power distance culture would be an ideal score. Additionally, in low power distance culture communications across operating and managing levels are more common. As a result, the trusts between all lines are increased and improve creative activities among employees. In contrast, bureaucracy constrains in a high power distance culture reduces creativity, restricted the connection of different creative ideas and thoughts and growing more passive workers. With all the reasons described, Hayton et al. proposed that an ideal type of entrepreneurial behavior is low in power distance culture.
Uncertainty avoidance is described by Hofstede (n.d) as the degree of tolerance of a society for uncertainty and ambiguity. High uncertainty avoidance cultures would try to minimize the possibility of novel, unknown, different and surprising situations. Hofstede also reported that people from uncertainty avoiding countries are usually more emotional. They believe that conflict and competition should be avoided because they lead to destructive aggression. On the other hand, the uncertainty accepting, or low uncertainty avoidance cultures could tolerate different opinions from what they are used to, and live only with few rules. They also express fewer emotions compared to uncertainty avoiding cultures. In general, researchers have hypothesized that low in uncertainty avoidance facilitates entrepreneurship. Hofstede also reported that unlike uncertainty accepting cultures, the uncertainty avoiding societies have a greater fear of failure, hence lower willingness to take risks. They are also not ambitious and hardly tolerate ambiguity. The characteristics of uncertainty avoidance described earlier hence show an agreement with Shane’s conclusion that cultural value of uncertainty acceptance has a strong relation to innovation rates. It is also concluded that low uncertainty avoidance culture is supportive of entrepreneurship.
Other than high individualism, low power distance and uncertainty avoidance cultures, cultures with high masculinity are also supportive of entrepreneurship. Masculinity versus femininity cultures indicates the extent to which masculine values dominate the orientation towards achievement and competition. Masculine values include self-assertiveness, independence and career-focused, whereas femininity values involves discretion, modesty, unity and tolerance. Although researchers proposed that masculinity gives no effect on entrepreneurship and innovation, but femininity cultures were found to give certain impacts on economic creativity of a country. The warm climate resulted from discretion and modesty leads to low conflict and high trust that encourages employees to reduce uncertainty related to new ideas. Findings from Steensma, Marino and Weaver supported this by showing that entrepreneurs from countries scoring high in femininity (hence low in masculinity) favor cooperative strategies in innovation. guaranteed payday loans
Hofstede’s fifth dimension discussed in this paper is the long-term orientation cultures. The International Business Center (n.d) described that long-term orientation indicates the degree to which the society accepts or does not accept long-term attachment to traditional values. Countries with high long-term orientation ranking prescribe to the values of long-term commitments and respect for tradition. In this society, business may take a longer time to develop. On the other hand, low long-term orientation cultures, or short-term orientation cultures do not support the concept of long-term, traditional orientation. Changes occur more often and quickly in this culture because long-term traditions and commitments are not the barrier to change.

This post was written by , posted on April 24, 2014 Thursday at 2:02 pm