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The influence of uncertainty and cultural tightness-looseness on the decision-making processes of entrepreneurs in South Africa

Soer, T.F. (2019) The influence of uncertainty and cultural tightness-looseness on the decision-making processes of entrepreneurs in South Africa.

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Abstract:Entrepreneurs are of fundamental importance in a fast-changing economy. But how do entrepreneurs make their choices and which factors influence these choices? This study focused on the influence of cultural tightness-looseness and uncertainty on the decision-making process of entrepreneurs. To examine this, data of 230 entrepreneurs were collected in South Africa. The outcomes show a positive significant effect of the perceived cultural tightness on the use of causation, while cultural tightness does not influence the use of effectuation. The perceived cultural tightness has a positive significant effect on the level of uncertainty of an entrepreneur. Moreover, the level of uncertainty has a significant positive effect on the use of causation and does not affect the use of effectuation. By adding empirical data, there is more insight into the antecedents of causation and effectuation and increase the reliability and validity of the different measurement scales. The results indicate that perceived cultural tightness and uncertainty influence the usage of causation. More research is needed to test the reliability of these outcomes. More cross-country research is needed to test the robustness of the possible antecedents on the decision-making process of entrepreneurs. To increase the understanding of different antecedents that affect causation and effectuation.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/79904
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