1 The influence of national culture on entrepreneurial processes The usage of causation and effectuation among Dutch and Polish student entrepreneurs Master Thesis To obtain the Master of Science degree at the University of Twente By: Robin Steentjes Born on January 21, 1988 in Enterbroek, The Netherlands Student number: s1133314 Business Administration Specialization: International Management Supervisory committee: First Supervisor: R. Harms Second Supervisor: M. Stienstra 2 Index Index .................................................................................................................................................................2 List of figures ................................................................................................................................................5 1. Management summary .....................................................................................................................6 2. Foreword ...............................................................................................................................................7 3. Thesis Outline ......................................................................................................................................8 3.1 Introduction of the thesis .............................................................................................................8 3.2 Purpose and scope of the research ........................................................................................ 10 3.3 EPIC-C project ................................................................................................................................ 11 3.4 Research relevance ...................................................................................................................... 11 3.5 Research strategy ......................................................................................................................... 12 4 Theoretical Framework ..................................................................................................................... 14 4.1 Outline .............................................................................................................................................. 14 4.2 Entrepreneurship ......................................................................................................................... 14 4.2.1 Introduction of the concept of entrepreneurship .................................................... 14 4.2.3 Entrepreneurial processes ................................................................................................ 15 4.2.4 Discovery and creation theory ........................................................................................ 16 4.2.5 Pattern recognition .............................................................................................................. 17 4.2.6 Opportunity development................................................................................................. 18 4.2.7 Causation & Effectuation ................................................................................................... 20 4.2.8 Effectuation and Causation compared ......................................................................... 22 4.3 Culture .............................................................................................................................................. 25 4.3.1 Introduction of the concept of culture ......................................................................... 25 4.3.2 Cultural values ....................................................................................................................... 25 4.3.3 Cultural dimensions ............................................................................................................ 26 4.3.3.1 Hofstede’s Cultural Dimensions .................................................................................. 26 4.3.3.2 Trompenaars & Hampden-Turner’s Cultural Dimensions ............................... 28 4.3.3.3 GLOBE’s Cultural Dimensions ...................................................................................... 32 4.4 Business culture in Poland & The Netherlands ............................................................ 35 3 4.5 Literature Review Conclusion ........................................................................................... 41 5. Hypotheses......................................................................................................................................... 42 5.1 Hypotheses Outline...................................................................................................................... 42 5.2 Hypotheses development .......................................................................................................... 42 5.2.1 Goal-driven/Means-based ..................................................................................................... 43 5.2.2 Expected returns/Affordable loss ...................................................................................... 44 5.2.3 Competitive analysis/Use of alliances or partnerships ............................................. 45 5.2.4 Existing market knowledge/Exploration of contingency ......................................... 46 5.2.5 Predictions of the future/Non-predictive control........................................................ 47 5.2.6 Emphasis on analysis of data/Distrusting or opposing (marketing) research. 47 5.3 Conclusion ....................................................................................................................................... 48 6 Methodology ........................................................................................................................................... 49 6.1 Overview of the experiment ..................................................................................................... 49 6.2 Procedures ...................................................................................................................................... 49 6.2.1 Think aloud method: “Please, keep talking.” ............................................................. 49 6.3 Materials .......................................................................................................................................... 52 6.3.1 Business Case ......................................................................................................................... 52 6.3.2 Additional interview ........................................................................................................... 53 6.4 Statistical Analysis ....................................................................................................................... 53 7 Results ...................................................................................................................................................... 54 7.1 Goal-driven/Means-based ........................................................................................................ 55 7.2 Expected returns/Affordable loss .......................................................................................... 55 7.3 Competitive analysis/Use of alliances or partnerships ................................................. 55 7.4 Existing market knowledge/Exploration of contingency ............................................. 56 7.5 Predictions of the future/Non-predictive control ........................................................... 56 7.6 Emphasis on analysis of data/Distrusting or opposing (marketing) research .... 56 7.7 Conclusion ....................................................................................................................................... 57 8 Discussion................................................................................................................................................ 58 8.1 Review of the findings ................................................................................................................ 58 8.2 Limitations ...................................................................................................................................... 59 8.3 Further research ........................................................................................................................... 60 4 9. Appendix ................................................................................................................................................. 61 9.1 Polish Interview Results ............................................................................................................ 61 9.2 Dutch Interview Results ............................................................................................................ 63 9.3 Overview intercultural theories ............................................................................................. 64 9.3.1 Hofstede’s Cultural Dimensions ...................................................................................... 64 9.3.2 Trompenaars & Hampden-Turner’s Cultural Dimensions ................................... 65 9.3.3 GLOBE’s Cultural Dimensions .......................................................................................... 66 10. Sources .................................................................................................................................................. 68 5 List of figures