Cultural influences on stigma of failure and entrepreneurial activity

• Published in: Organization management journal 2023-11, Vol.20 (5), p.197-209
• Main Authors: Damaraju, Naga Lakshmi, Barney, Jay B., Dess, Gregory G.
• Format: Article
• Language: English
• Subjects: Business plans; Collectivism; Culture; Entrepreneurs; Entrepreneurship; Failure; Femininity; Hypotheses; Individualism; Influence; Masculinity; Stigma
• ISSN: 2753-8567; 1541-6518; 1541-6518
• DOI: 10.1108/OMJ-01-2023-1711

PurposeThis paper aims to draw from research on culture, stigma and entrepreneurial activity to hypothesize that the relationship of stigma with the level of entrepreneurial activity differs by the dimensions of national culture, i.e. individualism, masculinity, uncertainty avoidance and power distance.Design/methodology/approachThe hypotheses were tested with data from 15 countries spanning over a 15-year period. Poisson regressions were used.FindingsResults from Poisson regressions supported the hypotheses for the differences based on the “individualism,” “masculinity” and “power distance” dimensions of culture on the relationship between stigma of failure and entrepreneurial activity. However, the hypothesis for the differences based on the “uncertainty avoidance” dimension of culture was not supported.Originality/valueFostering entrepreneurship has been important for several countries around the world. A number of factors influence the phenomenon of entrepreneurship. In this paper, research in the areas of culture, stigma and entrepreneurship is brought together to explain how the stigma of failure may be intensified or mitigated in different cultural contexts. The results suggest that policies and attempts to alleviate stigma of failure for promoting entrepreneurship need to consider the complex interactions occurring within the cultural contexts in which entrepreneurs operate. Such initiatives should enhance their effectiveness.