Cultural intelligence, entrepreneurial intentions and the moderating role of the institutional environment

Abstract

Purpose

Entrepreneurial intentions have traditionally been linked to an entrepreneur's personal ability to take advantage of opportunities. Yet, entrepreneurs' perceptions of contextual factors, which extend beyond one's control, deserve equal attention. This paper looks at the role played by cultural intelligence and the institutional environment in shaping entrepreneurial intentions.

Design/methodology/approach

The role played by cultural intelligence in entrepreneurial intentions and the mediating role played by the institutional environment were studied quantitatively by analyzing 224 young potential entrepreneurs who had participated in a business plan competition. This study used cross-sectional data, developing an original full collinearity assessment approach to check for any common method bias.

Findings

This study reveals a positive relationship between cultural intelligence and entrepreneurial intentions. Likewise, any favorable perceptions of the institutional environment tend to increase the probability of engaging in entrepreneurship and further strengthen the positive effect of cultural intelligence on entrepreneurial intentions.

Originality/value

This study provides a holistic view of the relationship between the entrepreneur and the context in which ventures are created, explaining the role played by cultural intelligence in entrepreneurship based on evidence drawn from a developing country. This contributes to a critical reflection on personal and environmental factors and the antecedents of entrepreneurial intentions.

Citation

Kromidha, E., Altinay, L., Kinali Madanoglu, G., Nurmagambetova, A. and Madanoglu, M. (2022), "Cultural intelligence, entrepreneurial intentions and the moderating role of the institutional environment", International Journal of Entrepreneurial Behavior & Research, Vol. 28 No. 6, pp. 1581-1608. https://doi.org/10.1108/IJEBR-02-2022-0109