Exploring cultural orientation on the entrepreneur competencies in the globalization era
Abstract
The existence of globalization concept absolutely brings consequences for business environment. Based on international literature, cultural orientation was required on business management in the globalization era. Nevertheless, there have been few numbers of cross-cultural entrepreneurship research. Previous research tended to focus on discussing cultural dimensions or using them in entrepreneurship. Therefore, this study proposes a different perspective which is to explore the cultural dimensions for the formation of entrepreneur competencies. Thus, this study aims at suggesting conceptual models and providing empirical evidence concerning national and individual cultural orientation including its role in influencing the formation of Small and Medium Enterprises (SMEs) entrepreneur competencies in facing the globalization era. For this purpose, the survey questionnaire was distributed to 129 SMEs entrepreneurs in the fashion sector in West Java – Indonesia, which was then tested by using VSM 1994 Formula, SPSS method and Partial Least Square (PLS) method. The findings and originality of this study were the novelty of national and its individual cultural values for Indonesia. Moreover, this study discovered that Cultural Orientation significantly influenced the form of entrepreneur competencies. Thus, the role of cultural orientation cannot be ignored in enhancing the ability of SMEs entrepreneurs to face the globalization era.
Keyword : Small and Medium Enterprises (SMEs), cultural orientation, national culture, individual cultural, entrepreneur competencies, globalization
How to Cite
Mutiara, M. R., Primiana, I., Joeliaty, J., & Cahyandito, M. F. (2019). Exploring cultural orientation on the entrepreneur competencies in the globalization era. Business: Theory and Practice, 20, 379-390. https://doi.org/10.3846/btp.2019.36
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Khalid S, Bhatti K (2015) Entrepreneurial competence in managing partnerships and partnership knowledge exchange: Impact on performance differences in export expansion stages. Journal of World Business 50 (3). https://doi.org/10.1016/j.jwb.2015.01.002
Lee E (2016) The cultural competency for working with Asian American clients scale: Development and validation. Research on Social Work Practice. https://doi.org/10.1177/1049731516652730
Lee SM, Peterson SJ (2001) Culture, entrepreneurial orientation, and global competitiveness. Journal of World Business 35 (4): 401-416. https://doi.org/10.1016/S1090-9516(00)00045-6
Lim L (2001) Work-related values of Malays and Chinese Malaysians. International Journal of Cross Cultural Management 1 (2): 209-226. https://doi.org/10.1177/147059580112005
Man TWY, Lau T, Chan KF (2002) The competitiveness of small and medium enterprises A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing 17 (2): 123-142. https://doi.org/10.1016/S0883-9026(00)00058-6
Muzychenko O (2008) Cross-cultural entrepreneurial competence in identifying international business opportunities. European Management Journal 26 (6). https://doi.org/10.1016/j.emj.2008.09.002
Neneh NB, Vanzyl J (2012) Towards establishing long term surviving small and medium enterprises (SMEs) in South Africa: An entrepreneurial approach. African Journal of Business Management 6 (28): 8327-8343. https://doi.org/10.5897/AJBM-11-2572
Ngoasong MZ (2017) Digital entrepreneurship in a resource-scarce context: A focus on entrepreneurial digital competencies. Journal of Small Business and Enterprise Development. https://doi.org/10.1108/JSBED-01-2017-0014
Richter NF, Hauff S, Schlaegel C, Gudergan S, Ringle CM, Gunkel M (2016) Using cultural archetypes in cross-cultural management studies. Journal of International Management 22 (1): 63-83. https://doi.org/10.1016/j.intman.2015.09.001
Rujirawanich P, Addison R, Smallman C (2011) The effects of cultural factors on innovation in a Thai SME. Management Research Review 34 (12): 1264-1279. https://doi.org/10.1108/01409171111186397
Sajilan S, Tehseen S (2015) Cultural orientations, entrepreneurial competencies and SMEs business success: The contingent roles of environmental turbulence and network competence. Review of Integrative Business and Economics Research 4 (2): 20 http://sibresearch.org/uploads/3/4/0/9/34097180/riber_k15-003_20-35.pdf
SeonYoo (2015) A comparative study of cultural dimension as an influencing factor to entrepreneurial orientation. International Journal of Business and Social Science 6 (2): February 2015 http://ijbssnet.com/journals/Vol_6_No_2_Febru-ary_2015/24.pdf
Steensma HK, Marino L, Weaver KM (2000) Attitudes toward cooperative strategies: A cross-cultural analysis of entrepreneurs. Journal of International Business Studies 31 (4): 591-609. https://doi.org/10.1057/palgrave.jibs.8490924
Taras V, Kirkman BL, Steel P (2010) Examining the impact of Culture’s consequences: A three-decade, multilevel, meta-analytic review of Hofstede’s cultural value dimensions. Journal of Applied Psychology 95 (3): 405-439. https://doi.org/10.1037/a0018938
Temtime ZTPJ (2005) Managerial competency and organizational flexibility in small and medium enterprises in Botswana. Problems & Perspectives in Management and Labor Studies (1): 25-36.
Ünay FG, Zehir C (2012) Innovation intelligence and entrepreneurship in the fashion industry. International Conference on Leadership, Technology and Innovation Management 41: 315-321. https://doi.org/10.1016/j.sbspro.2012.04.036
Van Deursen AJAM, Van Dijk JAGM (2009) Using the internet: Skill related problems in users’ online behavior. Interacting with Computers. https://doi.org/10.1016/j.intcom.2009.06.005
Wang D, Feng T, Freeman S, Fan D, Zhu CJ (2014) Unpacking the “skill–cross-cultural competence” mechanisms: Empirical evidence from Chinese expatriate managers. International Business Review 23 (3): 530-541. https://doi.org/10.1016/j.ibusrev.2013.09.001
Yoo B, Donthu N, Lenartowicz T (2011) Measuring Hofstede’s five dimensions of cultural values at the individual level: Development and validation of CVSCALE. Journal of International Consumer Marketing 23 (3-4): 193-210.
Ahmad NH (2007) A cross cultural study of entrepreneurial competencies and entrepreneurial success in SMEs in Australia and Malaysia. The University of Adelaide website http://hdl.handle.net/2440/48199
Bacigalupo M et al. (2016) EntreComp: The entrepreneurship competence framework. J. S. f. P. Report, Europe Commision. Bird B (1995) Toward a theory of entrepreneurial competency: Advances in entrepreneurship. Firm Emergence and Growth 2 (1): 51-72.
BPS-Bekraf (2016) Laporan Badan Ekonomi Kreatif Tahun 2010–2015 [Report of the Creative Economy Agency for 2010–2015] http://www.bekraf.go.id/pustaka/page/data-statistik-dan-hasil-survei-khusus-ekonomi-kreatif
Bruin A (2005) Multi-level entrepreneurship in the creative industries: New Zealand’s screen production industry. International Journal of Entrepreneurship and Innovation. https://doi.org/10.5367/0000000054662791
Caligiuri P, Tarique I (2012) Dynamic cross-cultural competencies and global leadership effectiveness. Journal of World Business 47 (4): 612-622. https://doi.org/10.1016/j.jwb.2012.01.014
Cao TDQ (2012) Cultural dimensions in leadership development in joint ventures: The case of Vietnam. Doctoral dissertation, Auckland University of Technology https://core.ac.uk/download/pdf/56363151.pdf
Casero JC, Mogollón R, Roldán JL (2012) A structural model of the antecedents to entrepreneurial capacity. International Small Business Journal. https://doi.org/10.1177/0266242610385263
Chin WW (1998) The partial least squares approach to structural equation modeling. In: Marcoulides GA (Ed) Modern methods for business research. Mahwah, NJ: Lawrence Erlbaum Associates, 295-336 pp.
Cooper DR, Schindler PS (2014) Business research methods (12 ed). New York: McGraw-Hill International Edition.
Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 39-50. http://doi.org/10.2307/3151312
Gerli F, Gubitta P, Tognazzo A (2011) Entrepreneurial competencies and firm performance: An empirical study. Human Resource Management Conference Proceedings, Seville.
Groves KS, Feyerherm AE (2011) Leader cultural intelligence in context: Testing the moderating effects of team cultural diversity on leader and team performance. Group & Organization Management 36 (5): 535-566. https://doi.org/10.1177/1059601111415664
Hasan SMJ (2007) Cross-cultural implications of entrepreneurial competencies. Eastern Washington University. https://doi.org/10.2139/ssrn.1688129
Hofstede G (1980) Culture’s consequences: International differences in work-related values (integral ed.). Sage.
Hofstede G (1983) The cultural relativity of organizational practices and theories. Journal of international business studies 14 (2): 75-89. https://doi.org/10.1057/palgrave.jibs.8490867
Hofstede G (1991) Cultures and organizations: Intercultural cooperation and its importance for survival. Software of the mind. London: Mc Graw-Hill.
Hofstede G (1994) Values Survey Module 1994 questionnaire (VSM 94). Institute for Research on Intercultural Cooperation (IRIC), Tilburg, Netherlands.
Hofstede G (2001) Culture’s consequences: Comparing values, behaviors, institutions and organizations across nations. Sage publications.
Hull CEK, Hung YTC, Hair N, Perotti V, DeMartino R (2007) Taking advantage of digital opportunities: A typology of digital entrepreneurship. International Journal of Networking and Virtual Organizations 4 (3): 290-303. https://doi.org/10.1504/IJNVO.2007.015166
Hulland J (1999) Use of Partial Least Squares (PLS) in Strategic Management Research: A review of Four Recent Studies. Strategic Management Journal 20: 195-204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7
Ilomäki L, Kantosalo A, Lakkala M (2011) What is digital competence? European Schoolnet http://linked.eun.org/web/guest/in-depth3
International Computer Driving License (ICDL) Asia (2018) http://www.icdlasia.org
International Labour Organization (ILO) (2015) Regional model competency standards: Core competencies / regional skills programme. ILO Regional Office for Asia and the Pacific http://www.ilo.org/wcmsp5/groups/public/@asia/@ro-bang-kok/documents/publication/wcms_420961.pdf
Johnson JP, Lenartowicz T (1998) Culture, freedom and economic growth: Do cultural values explain economic growth? Journal of World Business. https://doi.org/10.1016/S1090-9516(99)80079-0
Johnson JP, Lenartowicz T, Apud S (2006) Cross-cultural competence in international business: Toward a definition and a model. Journal of International Business Studies 37 (4): 525-543 http://www.jstor.org/stable/3875168
Khalid S, Bhatti K (2015) Entrepreneurial competence in managing partnerships and partnership knowledge exchange: Impact on performance differences in export expansion stages. Journal of World Business 50 (3). https://doi.org/10.1016/j.jwb.2015.01.002
Lee E (2016) The cultural competency for working with Asian American clients scale: Development and validation. Research on Social Work Practice. https://doi.org/10.1177/1049731516652730
Lee SM, Peterson SJ (2001) Culture, entrepreneurial orientation, and global competitiveness. Journal of World Business 35 (4): 401-416. https://doi.org/10.1016/S1090-9516(00)00045-6
Lim L (2001) Work-related values of Malays and Chinese Malaysians. International Journal of Cross Cultural Management 1 (2): 209-226. https://doi.org/10.1177/147059580112005
Man TWY, Lau T, Chan KF (2002) The competitiveness of small and medium enterprises A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing 17 (2): 123-142. https://doi.org/10.1016/S0883-9026(00)00058-6
Muzychenko O (2008) Cross-cultural entrepreneurial competence in identifying international business opportunities. European Management Journal 26 (6). https://doi.org/10.1016/j.emj.2008.09.002
Neneh NB, Vanzyl J (2012) Towards establishing long term surviving small and medium enterprises (SMEs) in South Africa: An entrepreneurial approach. African Journal of Business Management 6 (28): 8327-8343. https://doi.org/10.5897/AJBM-11-2572
Ngoasong MZ (2017) Digital entrepreneurship in a resource-scarce context: A focus on entrepreneurial digital competencies. Journal of Small Business and Enterprise Development. https://doi.org/10.1108/JSBED-01-2017-0014
Richter NF, Hauff S, Schlaegel C, Gudergan S, Ringle CM, Gunkel M (2016) Using cultural archetypes in cross-cultural management studies. Journal of International Management 22 (1): 63-83. https://doi.org/10.1016/j.intman.2015.09.001
Rujirawanich P, Addison R, Smallman C (2011) The effects of cultural factors on innovation in a Thai SME. Management Research Review 34 (12): 1264-1279. https://doi.org/10.1108/01409171111186397
Sajilan S, Tehseen S (2015) Cultural orientations, entrepreneurial competencies and SMEs business success: The contingent roles of environmental turbulence and network competence. Review of Integrative Business and Economics Research 4 (2): 20 http://sibresearch.org/uploads/3/4/0/9/34097180/riber_k15-003_20-35.pdf
SeonYoo (2015) A comparative study of cultural dimension as an influencing factor to entrepreneurial orientation. International Journal of Business and Social Science 6 (2): February 2015 http://ijbssnet.com/journals/Vol_6_No_2_Febru-ary_2015/24.pdf
Steensma HK, Marino L, Weaver KM (2000) Attitudes toward cooperative strategies: A cross-cultural analysis of entrepreneurs. Journal of International Business Studies 31 (4): 591-609. https://doi.org/10.1057/palgrave.jibs.8490924
Taras V, Kirkman BL, Steel P (2010) Examining the impact of Culture’s consequences: A three-decade, multilevel, meta-analytic review of Hofstede’s cultural value dimensions. Journal of Applied Psychology 95 (3): 405-439. https://doi.org/10.1037/a0018938
Temtime ZTPJ (2005) Managerial competency and organizational flexibility in small and medium enterprises in Botswana. Problems & Perspectives in Management and Labor Studies (1): 25-36.
Ünay FG, Zehir C (2012) Innovation intelligence and entrepreneurship in the fashion industry. International Conference on Leadership, Technology and Innovation Management 41: 315-321. https://doi.org/10.1016/j.sbspro.2012.04.036
Van Deursen AJAM, Van Dijk JAGM (2009) Using the internet: Skill related problems in users’ online behavior. Interacting with Computers. https://doi.org/10.1016/j.intcom.2009.06.005
Wang D, Feng T, Freeman S, Fan D, Zhu CJ (2014) Unpacking the “skill–cross-cultural competence” mechanisms: Empirical evidence from Chinese expatriate managers. International Business Review 23 (3): 530-541. https://doi.org/10.1016/j.ibusrev.2013.09.001
Yoo B, Donthu N, Lenartowicz T (2011) Measuring Hofstede’s five dimensions of cultural values at the individual level: Development and validation of CVSCALE. Journal of International Consumer Marketing 23 (3-4): 193-210.