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The influence of culture and cognition on the entrepreneurial strategy of Start-Ups: the case of Turkey.

Sahbaz, A.T. (2017) The influence of culture and cognition on the entrepreneurial strategy of Start-Ups: the case of Turkey.

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Abstract:Why do some start-up entrepreneurs make entrepreneurial decisions based on effectual logic and others on causal logic? People have the ability to make decisions based on either their intuitive-experiential- or analytical-rational system. The question is whether one of these is linked to the entrepreneurial decision-making logics: effectuation or causation. Previous studies have shown that culture plays a role in how people in general process information. For example, in some countries the majority of the population make their decisions based on their intuitive-experiential system, whereas in other countries the majority make decisions based on their analytical-rational system. The goal of this study is finding out whether the entrepreneurial logic of effectuation or causation is related to the entrepreneur’s decision-making and culture. The following research question has been drawn up for this purpose: To what extent do entrepreneurs have a tendency for effectual(reasoning) over/vs causal (reasoning) and does culture have an interacting effect? This research has been conducted to assess the effects of differences between cultures and the effects on people’s decision-making with a view to whether people live in a tight or a loosely organised environment. Two types of cultures have been taken as the basis for this study: a tight culture with many strong norms and a low tolerance of deviant behaviour as well as a loose culture with weak social norms and a high tolerance of deviant behaviour. A survey has been conducted among Turkish start-up entrepreneurs as a basis for this study. The findings show that these entrepreneurs prefer causation over effectuation and they demonstrate no clear difference in the way they process information. They obviously perceive their culture as rather tight. It appears that entrepreneurs who make their decisions based on effectuation generally process information depending on an intuitive-experiential system, but as soon as culture is taken into account this relation largely disappears. However, entrepreneurs who use causation in their decision-making do not directly process information based on an analytical-rational system. In contrast, when culture is taken into account, the relation between causation and the analytical-rational system becomes significant. These outcomes suggest that culture plays an important role in the relation between entrepreneurial decision-making and a cognitive style. This paper highlights the importance of the entrepreneur’s cultural background in the way how information is processed and how entrepreneurial decisions are made. Therefore, in further entrepreneurial and cognition studies, culture may not be neglected in order to reach a comprehensive outcome in any study on this subject.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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