The Influence of the Cultural Dimension Tightness/Looseness on the Decision-Making of Entrepreneurs: A study of the Netherlands, Germany and Indonesia

Gardien, J.M. (2017) The Influence of the Cultural Dimension Tightness/Looseness on the Decision-Making of Entrepreneurs: A study of the Netherlands, Germany and Indonesia.

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Abstract:The theory of effectuation suggests that entrepreneurs can apply effectual and causal decision making. Individuals applying effectual logic begin with a given set of means and choose between possible effects that they can create with those means. Individuals applying causal logic select a desired effect and try to change the means they have in order to create that effect. The theory further suggests that the underlying beliefs of entrepreneurs influence the decision to use effectual or causal logic. It is theorized that these underlying beliefs are influenced by the tight of loose cultural background of the entrepreneurs. In tight nations, strong norms and values and low tolerance for deviant behavior of these norms and values have emerged. In loose nations, there consist weak norms and values and a high tolerance for deviant. For this paper, novice entrepreneurs from the Netherlands, Germany and Indonesia filled in a questionnaire. Using this data, this paper provides an analysis of the influence of the tight or loose background of novice entrepreneurs on the decision to apply effectual or causal decision making. The results show that both causal and effectual decision making are used by entrepreneurs in tight and loose nations.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/72025
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