The influence of culture in entrepreneurs’ opportunity exploitation decision in Tanzania

2019 ◽  
Vol 11 (1) ◽  
pp. 22-43 ◽  
Author(s):  
Jia Liu ◽  
Frida Thomas Pacho ◽  
Wang Xuhui
Keyword(s):  
Risk Taking ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Formal Institutions ◽  
Entrepreneurial Opportunity ◽  
Content Type ◽  
Opportunity Exploitation ◽  
Empirical Results ◽  
Two Cities ◽  
Risk Taking Behavior

Purpose The purpose of this paper is to empirically explore the impact of culture (using individualism, power distance and uncertainty avoidance) on entrepreneurial risk taking behavior which leads to the opportunity exploitation decision. Moreover, it also uses risk taking behavior of entrepreneurial as the mediation variable between culture and opportunity exploitations decisions. Design/methodology/approach The study took place in Tanzania, which is allocated in East Africa and is one of under researched countries. In total, 140 entrepreneurs who own venture of 5-99 employees were able to be interviewed using a survey questionnaire. In this study, structural equation modeling (SEM) was used to examine the direct and indirect relationship of culture in entrepreneurial opportunity exploitation decisions. Findings After hypothesis testing, the empirical results showed that Tanzania’s culture has an impact on entrepreneurial risk taking behavior, which influences entrepreneurial opportunity exploitation decision. It also showed culture through individualism and uncertainty avoidance measurements affect entrepreneurial opportunity exploitation decisions. The empirical results on power distance were insignificant. Research limitations/implications This study is a wake-up call to policy makers and formal institutions such as government authorities, education institutions and religion institutions. Thus, culture has an ability to influence the behavior of entrepreneurs and so the performance of ventures if it is consistent and well structured. Therefore it should be not taken for granted. Data for our study are based on only two cities and therefore the results should not be generalized as the whole country’s inference. Generalizability is questioned because the data are from only two cities in Tanzania and therefore future research should include more cities to be able to validate the generalizability. Practical implications This study is a wake-up call to policymakers and formal institutions such as government authorities, education institutions and religion institutions. Thus culture has an ability to influence the behavior of entrepreneurs and so the performance of ventures if it is consistent and well structured. Therefore it should be not taken for granted. Data for our study are based on only two cities and therefore the results should not be generalized as the whole country’s inference. Social implications In the country which has well-structured culture, influence the behavior of entrepreneurs to exploit opportunities. Originality/value This is the first empirical study to use SEM for exploring the culture of individualism, power distance and uncertainty avoidance impact on entrepreneurial opportunity exploitation in Tanzania.

Relationships between policy, teachers' values and professional capital in teacher collaboration in hierarchical Chinese societies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daphnee Hui Lin Lee
Keyword(s):  
Hong Kong ◽  
Student Learning ◽  
Teacher Collaboration ◽  
Risk Taking ◽  
Power Distance ◽  
Transformational Change ◽  
Uncertainty Avoidance ◽  
Content Type ◽  
Professional Capital ◽  
Chinese Societies

PurposeBoth Hong Kong and Singapore leverage teacher collaboration to improve student learning, but state reforms differ in how teacher collaborative capabilities are prioritized. This paper provides a nuanced comparison of Hong Kong and Singapore teachers' values (risk-taking, power distance and uncertainty avoidance) to develop insights into how different policy focuses cultivate teachers' capabilities to focus on improving student learning.Design/methodology/approachEmploying Hargreaves and Fullan's (2012) concept of professional capital, statistical analyses determine teachers' values profiles of high, medium and low professional capital in the respective contexts. Leveraging related research on Singapore teachers (Lee and Lee, 2018), nuances in teachers' values in the Hong Kong results are identified via cluster analysis and explained via structural equation modelling.FindingsMedium professional capital Hong Kong teachers' values matched Singapore's, but teachers in other clusters are nuanced. Compared to Singapore teachers with similar levels of professional capital, high professional capital Hong Kong teachers have higher uncertainty avoidance, while low professional capital teachers are the opposite. In Hong Kong, high uncertainty avoidance values positively influence teacher leadership and focus on student learning. Nevertheless, as with their Singapore counterparts, high professional capital Hong Kong teachers have low power distance and high risk-taking values.Originality/valueThis paper raises awareness regarding policy's influence in cultivating teachers' values and their transformational change capabilities. By comparing two hierarchical Chinese societies, the discussion questions whether Chinese and Western cultural influences are mutually exclusive, and whether transformational change in cultural values, if achievable, is necessary.

Emotional intelligence and entrepreneurial intentions: an exploratory meta-analysis

2018 ◽  
Vol 23 (5) ◽  
pp. 497-512 ◽  
Author(s):  
Chao Miao ◽  
Ronald H. Humphrey ◽  
Shanshan Qian ◽  
Jeffrey M. Pollack
Keyword(s):  
Emotional Intelligence ◽  
Positive Relationship ◽  
Meta Analysis ◽  
Power Distance ◽  
Entrepreneurial Intention ◽  
Uncertainty Avoidance ◽  
Entrepreneurial Intentions ◽  
Content Type ◽  
Meta Analyses

Purpose The topic of entrepreneurial intention, which refers to a person’s degree of interest in creating a new business venture, has received close scrutiny in the entrepreneurship literature. The empirical results regarding the relation between emotional intelligence (EI) and entrepreneurial intention were nevertheless mixed across studies. Based on fit theory and trait activation theory, the purpose of this paper is to explain the fundamental reason for the mixed findings in the extant literature thus far. Design/methodology/approach Random-effects meta-analyses, based on 12 studies (along with 12 effect sizes), were performed to not only investigate the overall relation between EI and entrepreneurial intention but also to examine the moderators (i.e. individualism (vs collectivism), masculinity (vs femininity), power distance, long-term orientation (vs short-term orientation), uncertainty avoidance, and indulgence (vs restraint)) that influence this relation. Findings The results of this meta-analysis demonstrated that EI is positively related to entrepreneurial intention; the positive relationship between EI and entrepreneurial intention is stronger in long-term-oriented cultures; and the positive relationship between EI and entrepreneurial intention does not significantly differ based on a culture’s level of collectivism, masculinity, power distance, uncertainty avoidance, and indulgence. Originality/value This meta-analysis advances the current understanding of the relation between EI and entrepreneurial intention from cross-cultural perspectives.

Capital regulation, competition and risk-taking behavior of Indian banks in a simultaneous approach

2018 ◽  
Vol 44 (4) ◽  
pp. 459-477 ◽  
Author(s):  
Santi Gopal Maji ◽  
Preeti Hazarika
Keyword(s):  
Human Capital ◽  
Risk Taking ◽  
Value Added ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Capital Regulation ◽  
Content Type ◽  
Risk Taking Behavior ◽  
Indian Banks ◽  
The Impact

Purpose The purpose of this paper is to investigate the association between capital regulation and risk-taking behavior of Indian banks after incorporating the influence of competition. Further, the study intends to enrich the existing literature by providing empirical evidence on the role of human resources in managing risk along with the influence of other bank specific and macroeconomic variables. Design/methodology/approach Secondary data on 39 listed Indian commercial banks are collected from “Capitaline Plus” corporate data database for a period of 15 years. Capital is measured by capital adequacy ratio as defined by the regulators, and two definitions of risk – credit risk and insolvency risk – are employed. Competition is measured by Herfindahl-Hirschman deposits index, concentration ratio and H-statistic. The value-added intellectual coefficient model is employed to compute human capital efficiency (HCE). Three-stage least squares technique in a simultaneous equation framework is used to estimate the coefficients. Findings The study finds that absolute level of regulatory capital and bank risk are positively associated, although the influence of capital on risk is not statistically significant. The influence of competition on risk is negative for all the models, which supports the “competition stability” view. The impact of human capital on bank risk is also negative for all cases. Practical implications The findings of the study are useful for the decision makers in several ways based on the inverse influence of competition and HCE on bank risk. Further, the observed positive association between capital and risk indicates that the capital regulation is not sufficient to enhance the stability in the banking sector. Originality/value This is the first study in the Indian context that incorporates the competition in the banking industry as an explanatory variable in the extant bank capital and risk relationship.

Examining the effect of functional diversity on organizational team innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gladys Esinu Abiew ◽  
Eugene Okyere-Kwakye ◽  
Florence Yaa Akyia Ellis
Keyword(s):  
Functional Diversity ◽  
Structural Equation ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Content Type ◽  
Team Innovation ◽  
The Relationship ◽  
Moderating Role

Purpose Underpinned by the information processing theory, this study aims to investigate the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation. Design/methodology/approach A quantitative research method was used using a structured questionnaire as a tool to collect data from 251 respondents drawn from research institutions in Ghana. Data was analysed using simple regression and hierarchical multiple regression. In addition, a structural equation model was used to conduct confirmatory factor analyses to examine whether the variables in the hypothesized model for the study captured distinct constructs that the variables were designed to measure. Findings The study revealed that functional diversity was positively related to team innovation. The study also found that functionally diverse groups are more innovative when they exhibit low uncertainty avoidance, femininity and low power distance. Practical implications These findings suggest that practices such as team communication, honesty, respect and trust would foster team unity and commitment, which would enable members to share diverse expertise towards the creation and execution of new ideas and improvement of productivity in the country. Originality/value The study examined the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation.

Country culture moderators of the relationship between gender and organizational commitment

2019 ◽  
Vol 14 (3) ◽  
pp. 389-410
Author(s):  
Mark F. Peterson ◽  
Aycan Kara ◽  
Abiola Fanimokun ◽  
Peter B. Smith
Keyword(s):  
Organizational Commitment ◽  
Social Learning ◽  
Hierarchical Linear Modeling ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Gender Effects ◽  
Large Power ◽  
Content Type ◽  
Alternative Modernities ◽  
The Relationship

Purpose The present study consists of managers and professionals in 26 countries including seven from Central and Eastern Europe. The purpose of this paper is to investigate whether culture dimensions predict country differences in the relationship between gender and organizational commitment. The study integrated theories of social learning, role adjustment and exchange that link commitment to organizational roles to explain such differences in gender effects. Findings indicate that an alternative modernities perspective on theories of gender and commitment is better warranted than is a traditional modernities perspective. Design/methodology/approach This study examined the relationship between gender and organizational commitment using primary data collected in 26 counties. The cross-level moderating effects of individualism, masculinity, uncertainty avoidance, power distance and restraint vs indulgence was examined using hierarchical linear modeling. Findings Organizational commitment is found to be higher among men than women in four countries (Australia, China, Hungary, Jamaica) and higher among women than men in two countries (Bulgaria and Romania). Results shows that large power distance, uncertainty avoidance, femininity (social goal emphasis) and restraint (vs indulgence) predict an association between being female and commitment. These all suggest limitations to the traditional modernity-based understanding of gender and the workplace. Originality/value This study is unique based on the three theories it integrates and because it tests the proposed hypothesis using a multi-level nested research design. Moreover, the results suggest a tension between an alternative modernities perspective on top-down governmental effects on commitment through exchange and bottom-up personal effects on commitment through social learning with role adjustment in an intermediate position.

scholarly journals Identifying and predicting the factors affecting end-users’ risk-taking behavior

2018 ◽  
Vol 26 (3) ◽  
pp. 306-326 ◽  
Author(s):  
Manal Alohali ◽  
Nathan Clarke ◽  
Fudong Li ◽  
Steven Furnell
Keyword(s):  
Personality Traits ◽  
Personality Trait ◽  
Risk Taking ◽  
Predictive Ability ◽  
End Users ◽  
Content Type ◽  
Security Behavior ◽  
User Centric ◽  
Risk Taking Behavior ◽  
Survey Responses

Purpose The end-user has frequently been identified as the weakest link; however, motivated by the fact that different users react differently to the same stimuli, identifying the reasons behind variations in security behavior and why certain users could be “at risk” more than others is a step toward protecting and defending users against security attacks. This paper aims to explore the effect of personality trait variations (through the Big Five Inventory [BFI]) on users’ risk level of their intended security behaviors. In addition, age, gender, service usage and information technology (IT) proficiency are analyzed to identify what role and impact they have on behavior. Design/methodology/approach The authors developed a quantitative-oriented survey that was implemented online. The bi-variate Pearson two-tailed correlation was used to analyze survey responses. Findings The results obtained by analyzing 538 survey responses suggest that personality traits do play a significant role in affecting users’ security behavior risk levels. Furthermore, the results suggest that BFI score of a trait has a significant effect as users’ online personality is linked to their offline personality, especially in the conscientiousness personality trait. Additionally, this effect was stronger when personality was correlated with the factors of IT proficiency, gender, age and online activity. Originality/value The contributions of this paper are two-fold. First, with the aid of a large population sample, end-users’ security practice is assessed from multiple domains, and relationships were found between end-users’ risk-taking behavior and nine user-centric factors. Second, based upon these findings, the predictive ability for these user-centric factors were evaluated to determine the level of risk a user is subject to from an individual behavior perspective. Of 28 behaviors, 11 were found to have a 60 per cent or greater predictive ability, with the highest classification of 92 per cent for several behaviors. This provides a basis for organizations to use behavioral intent alongside personality traits and demographics to understand and, therefore, manage the human aspects of risk.

How do national cultures impact the operations strategy process?

2018 ◽  
Vol 38 (10) ◽  
pp. 1937-1963 ◽  
Author(s):  
Camila Lee Park ◽  
Ely Laureano Paiva
Keyword(s):  
Corporate Strategy ◽  
Power Distance ◽  
Functional Integration ◽  
Uncertainty Avoidance ◽  
Operations Strategy ◽  
Manufacturing Strategy ◽  
National Cultures ◽  
Content Type ◽  
Cultural Aspects

PurposeThe purpose of this paper is to analyze the extent to which different patterns of cross-functional integration and the operations strategy (OS) process may be explained by national cultures differences.Design/methodology/approachPerceptual survey data from 105 manufacturing plants in four countries were used to validate the constructs and to test the hypotheses. The plants are located in two Western and two Eastern countries with different industrialization and development backgrounds (Brazil, China, Germany and South Korea). CFA validated the constructs, and ANOVA andt-tests evaluated the differences between levels of four Hofstede’s elements (i.e. power distance, individualism vs collectivism, uncertainty avoidance and long-term vs short-term orientation) on the OS process enablers (i.e. leadership for cross-functional integration and functional integration) and elements (i.e. manufacturing strategy linkage to corporate strategy and formulation of manufacturing strategy).FindingsResults suggest that different OS and OM processes are present in different national cultures. Leadership for cross-functional integration and manufacturing strategy linkage to corporate strategy differ between levels of power distance, individualism vs collectivism and uncertainty avoidance. Functional integration and formulation of manufacturing strategy also present differences according to the degree of individualism vs collectivism and long-term orientation.Originality/valueResults indicate that national culture is a key aspect for the OS process. Prior studies usually do not consider cultural aspects. Therefore, the OS process varies in different countries and contexts. Managers need to adjust their OS process when they are developing a global OS.

Impact of national culture on organizations’ use of selection practices

2019 ◽  
Vol 41 (6) ◽  
pp. 1145-1161 ◽  
Author(s):  
Nicholas Ryan Prince ◽  
Rüdiger Kabst
Keyword(s):  
National Culture ◽  
Design Methodology ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Psychometric Tests ◽  
Content Type ◽  
Ability Tests ◽  
The Impact ◽  
Panel Interviews ◽  
Selection Practices

Purpose The purpose of this paper is to investigate the impact of national culture on organizations’ use of selection practices, specifically to investigate the impact of in-group collectivism, uncertainty avoidance and power distance on interview panels, one-on-one interviews, applications forms, references, ability, technical and psychometric tests. Design/methodology/approach This study uses survey data from the 2008–2010 CRANET database. It uses OLS regression analysis to test the impact of national culture on organizations’ use of selection practices. Findings In-group collectivism increases the use of panel interviews and technical tests, and decreases the use of one-on-one interviews and application forms. Uncertainty avoidance increases the use of panel interviews and technical tests, and a decrease in one-on-one interviews, applications ability, and psychometric tests. Power distance leads to an increase in one-on-one interviews, applications and ability tests, and a decrease in panel interviews, psychometric tests and references. Originality/value This paper investigates the use of the impact of national culture on selection practices. Specifically, it looks at the use of a large number of selection practices panel interviews, one-on-one interviews, applications and references, and several different tests, ability, technical and psychometric.

scholarly journals Influence of economic freedom and its subcomponents on risk-taking behavior

2019 ◽  
Vol 12 (4) ◽  
pp. 335-356 ◽  
Author(s):  
Rafik Harkati ◽  
Syed Musa Alhabshi ◽  
Salina Kassim
Keyword(s):  
Risk Taking ◽  
Economic Freedom ◽  
Banking Sector ◽  
Banking System ◽  
Islamic Banks ◽  
Content Type ◽  
Economic Freedom Index ◽  
Risk Taking Behavior ◽  
The Government ◽  
Conventional Banks

Purpose The purpose of this paper is to investigate the influence of economic freedom and six relevant subcomponents of it on the risk-taking behavior of banks in the Malaysian dual banking system. It also aims to make a comparative analysis between Islamic and conventional banks operating in this dual banking sector. Moreover, the study is an effort to enrich the existing literature by presenting empirical evidence on the argument that the risk-taking behavior of the two types of banks is indistinguishable given that they operate in the same regulatory environment. Design/methodology/approach Secondary data of all banks operating in the Malaysian banking sector are collected from FitchConnect database, in addition to the economic freedom index from Foundation Heritage for the period 2011–2017. Generalized least squares technique is employed to estimate the influence of economic freedom and the six relevant subcomponents of it on the risk-taking behavior of banks. Findings The level of economic freedom influenced risk-taking behavior within the banking sector as a whole, conventional and Islamic banking sectors negatively during the study period (2011–2017). Risk-taking behavior of conventional and Islamic banks is similar. However, conventional banks turn to be less influenced by economic freedom level as compared to Islamic banks. Practical implications The government and regulators may benefit from the results by rethinking and setting the best economic freedom index that better serves the stability of the banking system, and lessens banks’ risk-taking inclination. Originality/value To the present time, this paper is thought to be of a significant contribution. Given the argument that Islamic and conventional banks behave in the same way. This is one of the first attempts to address this issue in light of the influence of economic freedom and six subcomponents of it on the risk-taking behavior of banks operating in a dual banking system.

Determinants of non-performing loans in Chinese banks

2018 ◽  
Vol 12 (3) ◽  
pp. 273-289 ◽  
Author(s):  
Muhammad Umar ◽  
Gang Sun
Keyword(s):  
Risk Taking ◽  
Inflation Rate ◽  
Banking Industry ◽  
Foreign Exchange Rate ◽  
Bank Risk ◽  
Content Type ◽  
Credit Quality ◽  
Independent Variables ◽  
Chinese Banks ◽  
Risk Taking Behavior

Purpose The study aims to explore macroeconomic and banking industry-specific determinants of non-performing loans (NPLs) for Chinese banks, spanning from 2005 to 2014. Design/methodology/approach It uses three different models to explore the determinants. The first model has only macroeconomic variables as regressors; the second model has only banking industry-specific variables as independent variables; and the third model has macroeconomic and banking industry-specific variables as explanatory variables. Furthermore, system generalized method of moments estimation technique has been used to measure the coefficients of independent variables. Findings Gross domestic product (GDP) growth rate, effective interest rate, inflation rate, foreign exchange rate, type of bank, bank risk-taking behavior, ownership concentration, leverage and credit quality are significant determinants of NPLs in Chinese banks. Furthermore, the determinants of NPLs for listed and unlisted banks differ. Determinants of NPLs of listed banks include GDP, bank risk-taking behavior and credit quality. However, variation in NPLs of unlisted banks is explained by GDP, inflation rate, foreign exchange rate, bank risk-taking behavior, leverage and credit quality. Originality/value This study also finds that using only macroeconomic or banking industry-specific variables as regressors is not a right approach because it may lead to erroneous conclusions.

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