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To what extent do the culture dimensions of tightness/looseness effect the decision making process of entrepreneurs : a study in the Netherlands and Germany

Tjoonk, J.L. (2016) To what extent do the culture dimensions of tightness/looseness effect the decision making process of entrepreneurs : a study in the Netherlands and Germany.

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Abstract:Entrepreneurship is more important than ever and widely researched, because how exactly do entrepreneurs make choices which will be successful and what are the underlying principles used by them? The recent literature proposed two distinct but complementary entrepreneurial decision-making processes: causation and effectuation. The causation process is a goal-driven, deliberate model of decision making which selects mean to create a particular effect. This model mainly focuses on planning, whereas the effectuation model focuses mainly on experimenting. The effectuation process take the means and see which effects they can achieve with that. But how exactly do entrepreneurs choose these decision making models? In this study tightness/looseness principle will be used, where a tight culture can be explained as a culture with many norms and values, and with a low tolerance of deviant behavior and opposite a loose culture has less norms and values and high tolerance towards deviant behavior. This research showed that Dutch entrepreneurs perceive their culture as rather loose and German entrepreneurs perceive their culture as rather tight. This also influences the decision-making process, since Dutch entrepreneurs have the tendency to use the effectuation model whereas German entrepreneurs have the tendency to use the causation model.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:73 cultural anthropology, 85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/71547
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