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To what extent does the cultural dimension of tightness/ looseness of a nation influences the decision-making process of novice entrepreneurs

Kirschner, Katharina (2017) To what extent does the cultural dimension of tightness/ looseness of a nation influences the decision-making process of novice entrepreneurs.

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Abstract:During the industrial age the developed world was characterized by big businesses and mass production. Nowadays, with the world being increasingly globally connected it has given way to a so called entrepreneurial economy, which focuses especially on the service sector, technological advances, demographic shifts and the availability of capital. This has encouraged start-up ventures to challenge conventional wisdom and experiment with new approaches to the market. Consequently, entrepreneurship as a subject has caused an increasing amount of interest and attention among researchers in the last decade. A new concept, namely effectuation was introduced to entrepreneurial literature. When using an effectual approach, the entrepreneurs look for opportunities to employ their actual and limited resources in an uncertain environment and in situation which future is unpredictable. The second angle which has been distinguished with regards to decision-making processes in new ventures, is causation. Causation takes an effect as given and focuses on selecting between means to create that effect. The concepts of effectuation and causation are integral parts of human reasoning that can occur simultaneously, overlapping and intertwining. Entrepreneurs use both models. The purpose of this research is to first investigate the perceived cultural tightness-looseness of the nations and following to measure the influence it has on the use of causal or effectual reasoning. Cultures that are tight, have many strong norms and a low tolerance of deviant behavior versus loose cultures, that have weak social norms and a high tolerance of deviant behavior. This paper aims at contributing to the existing literature and at expanding previous work by gathering and analyzing data from an additional country. Mexico as a Latin American and as a developing country can significantly contribute to further understand how decision making is made by analyzing the perceived influence of a tight or loose cultural perception on entrepreneurial decision making
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/72726
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