Impact of entrepreneurial orientation from the influences of the national culture, industry culture and organization culture : a cross-cultural study

Abstract

 A considerable number of studies have focused on EO, which influences company performance and has a significant effect on company results. Studies have also examined the interaction among national culture (NC), industry culture (IC) and corporate culture (CC) and its influence on company EO. The complexity of the market environment, varied cultures of different countries and the uniqueness of corporate culture give rise to EO and delivers company performance. This study aims to determine the key dimensions of cultural factors, namely, innovation, proactiveness, and risk-taking that come from NC, IC and CC and company EO. It also explores the interaction effect of the three cultural factors on the relationship with company EO. Data collection was conducted through email and online survey and a total of 458 samples (N=458) from different industries in the USA, China, Germany, and Taiwan were collected. The study results indicate that NC, particularly individualism and power distance, had strong correlations with a company’s EO. The results further show that IC (dynamic industry and reliable industry) had a positive relationship with a company’s EO and that a positive relationship exists between CC (results-oriented, employee-oriented and tight control) with a company’s EO. It also shows the strong interaction effect between NC (individualism, power distance), IC (dynamic industry, reliable industry) and CC (result-oriented, employee-oriented and tight control) with a company’s EO. It also finds a positive relationship between uncertainty avoidance and a company’s EO. The implication of the study is that the changing technology infrastructure and customer behaviour influence the cultural factors which in turn influence a company’s EO. The tight control of corporate culture and reliable industrial culture can also be related positively to a company’s EO. Thus, companies need to adapt to the competitive environment and shape their directions and strategies to keep the company leadership and position.