Fostering Corporate Entrepreneurship: Cross-Cultural Comparisons of the Importance of Individualism Versus Collectivism

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Universityof the Pacific Duane L. Davis** and Jeffrey W. Allen***

Universityof CentralFlorida

Abstract. This study reports on results of a cross-cultural, empirical investigation designed to assess the impact of individualism/ collectivism upon organizational entrepreneurship. The findings indicate individualism/collectivism is an important factor in understanding entrepreneurial behavior in the firm. Implications of these findings are discussed. INTRODUCTION While much has been written about the need for established firms to become more entrepreneurial (e.g., Brandt [1986]; Cornwall and Perlman [1990]; MacMillan et al. [1986]; Waterman [1987]), only limited progress has been made in determining exactly how entrepreneurshipcan be accomplished and sustained in these organizations [Burgelman and Sayles 1986; Jennings and Young 1990; Kanter 1983; Morris and Trotter 1990; Stefflre 1985; Stewart 1989]. Attempts to address this issue appear to emphasize the differences, *MichaelH. Morrisholdsa Ph.D.in marketingfromVirginiaPolytechnicInstitute andis currentlythe FletcherJonesProfessorof Entrepreneurship at the University of the Pacific.Dr. Morrishas publishedin numerousjournals,is authorof several textbooks,andcontributesfrequentlyto nationalandregionalconferences.Professor Morriswas recentlya FulbrightScholarattheUniversityof Capetown,SouthAfrica. **DuaneL. Davis holds a D.B.A. in marketingfrom the Universityof Kentucky and is currentlya professorin the Departmentof Marketingat the Universityof

CentralFlorida.Dr.Davisis theauthorof Business Research for Decision Making,

thirdedition,andhas publishedextensivelyin a wide varietyof journals.Professor Davis was recently a FulbrightScholar at the Universidadedo Porto and the Universidadedo Algarvein Portugal. ***JeffreyW. Allen holdsa D.B.A. in marketingfromthe Universityof Kentucky and is currentlyan assistantprofessorat the Universityof CentralFlorida'sDaytonaBeach Campus.Dr. Allen has publishedin a varietyof journalsandproceedings. Dr. Allen's research interests include social responsibility, distribution managementandthe developmentof marketingstrategy. The authorswish to expresstheirappreciationto ProfessorCarlosBarraland the InstitutoSuperior De EstudosEmpresariais,Universidadedo Porto,Porto,Portugalfor theirassistanceandsupportin this study. Received:September1992;Revised:July 1993;Accepted:September1993. 65

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JOURNAL OF INTERNATIONALBUSINESS STUDIES, FIRST QUARTER 1994

rather than the similarities between independent start-ups and established firms [MacMillan 1983; Miller 1983; Sinetar 1985; Smith and Miner 1983]. The assumption seems to be that entrepreneurshipin a corporate setting is a relatively unique phenomenon [Cornwall and Perlman 1990; Pinchot 1985; MacMillan et al. 1986]. This assumption warrantsfurtheranalysis, as no evidence has been produced to suggest the factors most responsible for succe