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Cross-country differences in innovative entrepreneurial activity: An entrepreneurial cognitive view

Ali Raza (Department of Industrial Engineering, Universita degli Studi di Padova, Padova, Italy)
Moreno Muffatto (Department of Industrial Engineering, Universita degli Studi di Padova, Padova, Italy)
Saadat Saeed (Management & Marketing Faculty, Durham University Business School, Durham, UK)

Management Decision

ISSN: 0025-1747

Article publication date: 5 December 2018

Issue publication date: 4 September 2020

Abstract

Purpose

The purpose of this paper is to clarify the relationship between entrepreneurial cognition and innovative entrepreneurial activity (IEA) across countries using an institutional perspective.

Design/methodology/approach

The paper tests theoretical model using data collected by the Global Entrepreneurship Monitor, the Global Leadership and Organizational Behavior Effectiveness study and the Index of Economic Freedom (IEF). A multi-level analysis is performed based on set of 1,004,620 observations from 49 countries spanning 13 years (2001–2013).

Findings

The results suggest that in terms of formal regulations; the relationship between entrepreneurial cognitions and IEA becomes stronger when there is an increase in intellectual property right and business freedom regulations in a country. On the other hand, in terms of informal institutions the relationship between entrepreneurial cognitions and IEA becomes stronger when the level of institutional collectivism and uncertainty decreases and performance orientation increases.

Originality/value

The study indicates that entrepreneurship by innovation increases when the individuals possess high level of entrepreneurial cognition under suitable institutional conditions (e.g. intellectual property right, business freedom, institutional collectivism, uncertainty avoidance and performance orientation).

Keywords

Acknowledgements

This article forms part of a special section “Entrepreneurial cognition”, guest edited by Brandon Randolph-Seng, Jean S. Clarke and Yasemin Atinc.

Citation

Raza, A., Muffatto, M. and Saeed, S. (2020), "Cross-country differences in innovative entrepreneurial activity: An entrepreneurial cognitive view", Management Decision, Vol. 58 No. 7, pp. 1301-1329. https://doi.org/10.1108/MD-11-2017-1167

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited