Hofstede’s Cultural Indicators, Knowledge Economy and Entrepreneurship in Arab Countries

Driouchi, Ahmed and Gamar, Alae (2014): Hofstede’s Cultural Indicators, Knowledge Economy and Entrepreneurship in Arab Countries.

Abstract

Abstract: This paper looks at the links between cultural variables, knowledge indices and entrepreneurship in Arab countries. It uses the Hofstede’s cultural dimensions and World Bank data to show how these variables are connected. The outputs from Arab countries are also compared to those from the Eastern European economies. The outcomes do clearly indicate the existence of links between cultural dimensions, access to knowledge and enterprise creation with of a gap between Arab and Eastern European Economies. The results show also that entrepreneurship is linked to cultural variables in Arab countries. This implies that further economic and social policies are needed to ensure the promotion of the culture of the knowledge economy and entrepreneurship in Arab countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: Keywords: Hofstede dimensions, Knowledge economy, Entrepreneurship, Arab countries, Eastern Europe
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

References

References Acs, Z., and. Audretsch D, B.(1990). Innovation and Small Firms. Cambridge: MIT Press.

Acs Z., Braunerhjelm, P, Audretsch, D.B and Carlsson, B. (2009). The knowledge spillover theory of entrepreneurship. Small Bus Econ 32(1):15–30

Acs, Z., and Nicola Virgill, N.(2010). "Entrepreneurship in Developing Countries", Foundations and Trends in Entrepreneurship: Vol. 6: No 1, pp 1-68. http://dx.doi.org/10.1561/0300000031

Al-Yahya, K., and Vengroff, R. (2004). Human Capital Utilization, Empowerment, and Organizational Effectiveness: Saudi Arabia in Comparative Perspective. Journal of Global Development Studies, 3: 251-95.

Banerjee, A., Duflo, E., Glennerster, R. and Kinnan, C. 2009., “The miracle of microfinance? Evidence from a randomized evaluation”, 2010 working paper, Accessed January 10th, 2013, http://economics.mit.edu/files/4162 Birch, D. L. (1987). Job Generation in America. The Free Press: New York

Birch, D. L.(1979). The Job Generation Process. U.S. Department of Commerce, National Technical Information Service.

Black, S. and Strahan, P, E. (2002). Entrepreneurship and the Availability of Bank Credit. Journal of Finance, November, 67(6): 2807-2833.

Bloom, N.Aprajit Mahajan, A., McKenzie, D. and John Roberts, J. (2010) American Economic Review: Papers & Proceedings 2010, 100:2, 619–623 http://www.aeaweb.org/articles.php?doi=10.1257/aer.100.2.619

Bruhn, M., Karlan, D. and Schoar, A. 2012. The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico, CEPR Discussion Papers No 8887.

Bruhn, M., Karlan, D. and Scholar, A. 2010. What Capital is Missing in Developing Countries, American Economic Review Papers & Proceedings, Volume 100:2, pp.629-634

Dalglish. 2009. A sustainable model for supporting entrepreneurship in developing countries. In Gillin, L (Ed.) Proceedings of the 6th International AGSE Entrepreneurship Research Exchange, Feb 3-6, 2009, ECIC, University of Adelaide, South Australia, Australia, Swinburne University of Technology, Adelaide, Australia , pp. 723-733.

Dalglish. 2007. From the Informal to the Formal Sector: Micro-enterprises in a Developing Economy. Regional Frontiers of Entrepreneurship Research, 2007.

Das, T. and Bing-Sheng. 1997. Time and Entrepreneurial Risk Behavior. Academic journal article from Entrepreneurship: Theory and Practice, Vol. 22, No. 2

De Mel, S., McKenzie, D., and Christopher Woodruff, C. 2008. “Returns to Capital: Results from a Randomized Experiment.” Quarterly Journal of Economics, 123(4): 1329-1372.

Dew, N., Sarasathy, S., and Wiltbank, R.. 2009. Affordable loss: behavioral economic aspects of the plunge decision. Strategic Entrepreneurship Journal, Volume 3, Issue 2, pages 105–126, June 2009. DOI: 10.1002/sej.66

Dias, J. and McDermott, J. (2006). Institutions, education, and development: The role of entrepreneurs. Journal of Development Economics 80, 299– 328.

Djankov, S; La Porta, R; de Silanes F, L; and Shleifer. A. (2002). The Regulation of Entry. Quarterly Journal of Economics 117 (1): 1–37

Driouchi Ahmed and Karim Malki (2011): Enterprise creation & anti-commons in developing economies: evidence from World Bank doing business data; http://mpra.ub.uni-muenchen.de/32373/ MPRA Paper 32373, Munich Personal RePEc Archive (MPRA), July 2011.

Duflo, A., & Karlan, D..2012. Can Management Consulting Help Small Firms Grow? Stanford Social Innovation Review, Economic Development, Summer 2012.

Duflo, A., & Karlan, D..2012. Training to Save? Stanford Social Innovation Review, Education, May 2012.

Fairlie, R., Karlan, D. and Zinman, J. 2012. Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training. Yale Economics Department, Working paper 95, Available at http://ssrn.com/ssrn 2008446.

Farzanegan, M. R. (2012). Resource Wealth and Entrepreneurship: A Blessing or a Curse?. Marburg: Philipps-University of Marburg Center for Near and Middle Eastern Studies (CNMS).

Giné, X. and Mansuri, G. 2011. Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan, World Bank.

Hofstede, G. (1980). Culture’s Consequences: International Differences in Work-Related Values. p. 25, Beverly Hills, CA: Sage.

Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations. Thousand Oaks, CA: Sage, 2nd Edition.

Hofstede, G. (2010). The GLOBE debate: Back to relevance. Journal of International Business Studies, 41, 1339–1346.

Imran, H., and Bakhtiar, A. 2011. Impact of Entrepreneurial Orientation, Entrepreneurial Management and Environmental Dynamism on Firm’s Financial Performance. Journal of Economics and Behavioral Studies Vol. 3, No. 2, pp. 101-114, Aug 2011 (ISSN: 2220-6140)

Karlan, D. and Valdivia, M. 2006. Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions. Yale University Economic Growth Center Discussion Paper 941; Center for Global Development Working Paper 108, Available at SSRN, http://ssrn.com 920487.

Karlan, D., Knight, R. and Udry, C. 2012. Hoping to Win, Expected to Lose: Theory and Lessons on Micro Enterprise Development. NBER Working Paper No. 18325.

King, R., and Levine, R. 1993. “Finance and Growth: Schumpeter Might Be Right.” Quarterly Journal of Economics, 108(3): 717–737.

Klapper, L. Laeven, L. and Rajan, R. (2006). Entry regulation as a barrier to entrepreneurship. Journal of Financial Economics 82 (3): 591– 629.

Lingelbach, D., De La Vina, L. and Asel, P. 2005. What’s Distinctive about Growth-Oriented Entrepreneurship in Developing Countries ?. UTSA College of Business Center for Global Entrepreneurship, Working paper 1, Available et SSRN http://ssrn 742605.

Matthews, Dalglish & Tonelli. (2012). Entrepreneurship in a developing economy: preliminary findings. In: Proceedings of AOM2012 Academy of Management Annual Meeting: The Informal Economy, Academy of Management, Boston, Mass.

Minniti, M. and Lévesque, M. 2008. Recent developments in the economics of entrepreneurship. Editorial, Journal of Business Venturing 23 (2008) 603–612.

Rajan, R., and Zingales, L. 1998. “Financial Dependence and Growth.” American Economic Review, 88(3): 559–586.

Schwalje, W. (2011). Knowledge-based Economic Development as a Unifying Vision in a Post-awakening Arab World. London: London School of Economics, MPRA, Working Paper Version 1.0.

Schwalje, W. (2012). Measuring Value for Money in Education System Reform for Knowledge-based Development in Qatar. London: London School of Economics. UNESCO. (2003). Annual report 2003. UNESCO Publication UNESCO. (2010). Annual report 2010. UNESCO Publication World Bank Group. (2010). Doing Business Home. The World Bank Group. http://www.doingbusiness.org/ (accessed November 25th, 2010)