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Entrepreneurial processes in a Western-Asian context

Weynschenk, Michelle (2012) Entrepreneurial processes in a Western-Asian context.

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Abstract:Entrepreneurial processes are becoming more and more important, especially in a cultural context. When looking at the processes crossing boarders, risk of failures increases. So, it is very important to take a very careful look at the way entrepreneurs conduct their processes, while doing business. A constantly growing global economy is a well-known fact, which increases the importance of cultural differences among countries. These particular differences are scoped in to differences between Western and Asian cultures due to consequently growing Western-Asian Business relationships. Although there is a lot of research about entrepreneurial processes and Western-Asian business relationships, the link to put them together is actually still missing. This master thesis aims to fill this literature gap by conducting a research about entrepreneurial processes in one western, and one Asian country, the Netherlands and Indonesia. The countries are chosen because of their on-going relationship, which is established by almost 4 decades of colonial history. Because Indonesia is still struggling with a non-Ignorable poverty, this research has a deeper focus in the differences within Indonesia. There are two important processes to divide: Causation and Effectuation and will show which process is mainly used in Indonesia and the Netherlands and if cultural differences could explain the result. To gain more insight about these factors, a well- known and cited research about effectuation and causation is used in both countries. To compare the results of the entrepreneurial processes in a cultural context, the research of Hofstede is used. Conducting a mixed methodology, which consisted of a questionnaire, case study with think aloud protocol and an additional interview, gave interesting answers concerning these two countries. First of all, Indonesia and Holland are both fond of using merely the causation process compared with the effectuation process. Practical, this appears in a more goal driven process with dimensions like return based decision making process, existing market knowledge usage, competitive analysis, and emphasis on marketing research for example. However both countries are using a causational process in entrepreneurship, they cope with a big gap in cultural differences. Looking at the dimensions of Hofstede, the proposition should be that the Netherlands would enjoy a casual way of entrepreneurship, and Indonesia a more effectual way of entrepreneurship. ‘Bersama’ one of the most used words in Indonesia, shows that a strong network and community are everything for the Indonesian citizens. Indonesia is actually scoring the highest ranking on collectivism, compared with all countries in the world. This implies that the culture of the Netherlands has a greater influence on the entrepreneurial processes, compared with the Indonesians. Going deeper in the Indonesian entrepreneurial processes, 4 several dimensions came out very strong. Like existing market knowledge and making decisions based on returns. Additionally, Indonesia is also a goal driven country, with a very high score, which means that they build a new company, by pursuing a predetermined goal. In contrast, Indonesia is also a big user of a means driven strategy, which is actually a form of effectuation (using own friends etcetera). However, this is in line with the high score of collectivism of Indonesia. These findings give new insights in the way entrepreneurial processes exist in Indonesia and the Netherlands. It could be the starting point for new research in order to create more development, especially in Indonesia because of the low GDP rate. And taken in account that this research is support that culture, in the way that Hofstede explained them, has no immediate influence on the entrepreneurial processes. Companies, who aim a Western-Asian business relationship, should have the entrepreneurial processes in mind. It can be very helpful to take in account that Indonesia judges the mean driven strategy as highly important. Indonesian entrepreneurs and companies could keep encounter the way that the Netherlands values competitive advantage very high. In this perspective, the findings will help both the Netherlands, and Indonesia.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/63060
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