Post-materialistic values and entrepreneurial intention – the case of Saudi Arabia

Abstract

Purpose

The purpose of this paper is to investigate how cultural values influence the entrepreneurial process. It conceptualises the relationship between post-materialistic values and entrepreneurial intention to explain low entrepreneurial activity.

Design/methodology/approach

The study was conducted in Saudi Arabia with non-entrepreneurs. An online survey returned 405 valid questionnaires, representing a 27 per cent response rate. The data were analysed using partial least structural equation modelling.

Findings

The paper identifies key factors that explain the influence of changing cultural values on entrepreneurial activity. The results show that post-materialistic values influence entrepreneurial intention by decreasing desirability and entrepreneurial self-efficacy.

Research limitations/implications

The study conceptualises the interplay between cultural values and entrepreneurial intention in Saudi Arabia. Further insights can be developed by comparing Saudi Arabia with other countries. The study was conducted as a “snapshot” of the current situation of entrepreneurship in Saudi Arabia with a cross-sectional survey design.

Practical implications

The paper holds important implications for entrepreneurship educators when addressing unsupportive cultures for entrepreneurial activity. Cultural and motivational approaches are suggested. While the former focuses on aspects that encourage the desire and confidence to start a business, the latter involves encouraging setting venture creation as a goal.

Originality/value

Previous studies indicated that post-materialistic values negatively influence entrepreneurship; this paper contributes further by exploring how this relationship manifests by exploring the intervening factors between post-materialistic values and entrepreneurial intention. It advances entrepreneurship research by investigating deep assumptions underlying the formulation of entrepreneurial intentions. It also responds to the need to understand the difference in the levels of entrepreneurial activity across countries.

Citation

Alammari, K., Newbery, R., Haddoud, M.Y. and Beaumont, E. (2019), "Post-materialistic values and entrepreneurial intention – the case of Saudi Arabia", Journal of Small Business and Enterprise Development, Vol. 26 No. 1, pp. 158-179. https://doi.org/10.1108/JSBED-12-2017-0386