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Uncertainty Avoidance and the Allocation of Entrepreneurial Activity across Entrepreneurship and Intrapreneurship

Year: 2024

Type: article

Abstract: How uncertainty affects entrepreneurship is a central theme in entrepreneurship research. However, evidence for how a culture of uncertainty avoidance (UA) influences entrepreneurial activity is mixed. Unlike prior research, we theorize and test how UA practices allocate individuals across two modes of opportunity exploitation. Our findings show that uncertainty-avoidant cultures channel individuals toward intrapreneurship rather than entrepreneurship. Moreover, we find a cross-level interaction effect with individuals’ fear of entrepreneurial failure; stronger UA practices direct failure-fearing individuals even more toward intrapreneurship. These findings shed new light on the complex relationship between UA and the prevalence of different forms of entrepreneurial activity. JEL Classification : J24; L26; M13; O43; O57.

Source: Entrepreneurship Theory and Practice

DOI: 10.1177/10422587241302703

Authors: W. J. (Werner) Liebregts, J. P. C. (Coen) Rigtering, N. S. (Niels) Bosma

Institutions: Tilburg University, Utrecht University

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,700