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Preliminary results from new venture creation in an international comparison: the case of the Netherlands versus Malaysia

Bode, L. (2013) Preliminary results from new venture creation in an international comparison: the case of the Netherlands versus Malaysia.

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Abstract:The research question in this bachelor thesis is: To which degree influences national culture the different types of entrepreneurial processes? First, a theoretical framework was constructed which made it possible to formulate 3 hypotheses. Thereafter, data was collected in order to test the hypotheses. Based on the results of these tests, the hypotheses could be rejected or not. This made it possible to give an answer regarding the research question. “Culture influences entrepreneurs in their way of operating in practice” (Wennekers & Thurik, 1999, p.52). In this study the emphasis was on the link between national culture and entrepreneurial processes. The concept of entrepreneurial processes has been operationalized by means of the effectual and causal reasoning (Sarasvathy, 2001). “Effectual reasoning takes a set of means as given and focuses on selecting between possible effects that can be created with that set of mean” (Sarasvathy, 2001, p.245). “Causal reasoning takes a particular effect as given and focuses on selecting between means to create that effect” (Sarasvathy, 2001, p.245). Sarasvathy (2001) introduced 5 effectual principles, whereby she distinguishes between the causal and effectual reasoning. The concept of national culture has been operationalized using 3 dimensions: Individualism versus collectivism, which describes the relationship between the individual and the community in which someone is living (Hofstede, 2001). Universalism versus particularism, which defines how people judge other people’s behavior (Trompenaars & Hampden-Turner, 1998). Individualism versus communitarianism, which covers the way people relate to each other (Trompenaars & Hampden-Turner, 1998). The theories of Hofstede (2001) and Trompenaars & Hampden-Turner (1998) form the basis regarding the operationalization of national culture. By linking the 2 concepts, 3 hypotheses are formulated: 1. The higher the degree of individualism in a national culture, the more entrepreneurs will use expected returns (Van den Ham, 2012); 2. The higher the degree of particularism in national culture, the more entrepreneurs will embrace contingencies; 3. The higher the degree of particularism in a national culture, the more partnerships or alliances entrepreneurs will use. Given the difference in degree of individualism between the Netherlands and Malaysia, a comparison is made between the use of effectual and causal principles among Dutch and Malaysian student entrepreneurs. Before the start of the experiment, the subjects were asked to comply with the think-aloud protocol. In the experiment, the data is obtained by means of a business case where ten business problems emerged in the context of setting up, growing and managing a new company. The data from the Netherlands and Malaysia were used to test the hypotheses and were compared to determine whether there are differences in both samples. Based on the results per hypothesis, a relationship between the dimensions individualism versus collectivism and universalism versus particularism of national culture and the use of different types of entrepreneurial processes is found. It can be concluded the degree of individualism in a national culture has a positive effect on the use expected returns among entrepreneurs and the degree of particularism in national culture has a positive effect on the use of embrace contingencies and no effect on the use of partnerships among entrepreneurs.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (56834)
Link to this item:http://purl.utwente.nl/essays/63754
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