The Institutional Context and Entrepreneurial Intentions: A Cross-National Study

Amir Hossein Maleki

This dissertation investigates how formal and informal institutional context influence entrepreneurial intentions through three essays. The first essay examines the effects of social trust and trust in governments on an individual's entrepreneurial intention, and the moderating effect of the relationship between an individuals’ fear of failure to start a business and their willingness to start a business. Building on theories of planned behavior, institutional, and social systems, this multilevel, cross-national research shows that in countries with higher levels of social trust, individuals are less likely to have entrepreneurial intention. Also, the results show that in such countries, the impact of fear of failure is lower on intention to start a business. Finally, I find that trust in governments can strengthen the negative impact of fear of failure on entrepreneurial intentions. The second essay investigates the impact of perceived family support on the perceived desirability and feasibility of youth entrepreneurship. Building on the theory of entrepreneurial event model, this cross-level study shows the influence of family support, on youth entrepreneurial intentions. I also find that the impact of perceived family support on perceived feasibility and desirability of young individuals is contingent on the national cultural dimensions. The results show that in countries showing power distance or uncertainty avoidance as the dominant culture, the impact of family support on the perceived feasibility of starting a new business is weaker than in low power distance cultures or cultures that are more tolerant toward ambiguity. Also, the impact of perceived family support on perceived feasibility is stronger in individualistic or short-term oriented countries compared to collectivist or long-term oriented ones. The third essay examines the direct and indirect effects of national social security systems on entrepreneurial intentions. The results show that individuals in countries with higher levels of public social expenditure are less likely to expose entrepreneurial intentions. The results on cross-level moderating effects also clarify the interacting effect of private social expenditure and fear of failure on entrepreneurial intentions. I suggest that higher levels of private social spending weaken the negative impact of fear of failure on intentions to start a business.

The Institutional Context and Entrepreneurial Intentions: A Cross-National Study

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