The implications of national and regional long-term orientation on entrepreneurial activity

Purpose: The purpose of this paper is to investigate the relationship between culture and entrepreneurial activity at both the national and regional levels of analyses. While there has been significant progress in investigating the effects of culture on entrepreneurial activity, most work overlooks the effects that time-orientation may have on national or regional entrepreneurial activity. Specifically, this study argues for the connection between long-term orientation (LTO) and subsequent levels of entrepreneurship such that the more a nation or region is long-term oriented, the higher the subsequent entrepreneurial activity will be. Design/methodology/approach: Data from the World Value Survey (WVS), which is a global project that measures individuals’ values across 62 countries (World Value Survey, 2011), were used for this project. The final sample consisted of 36,652 individual observations across 29 nations and 262 regions and was analyzed using ecological factor analyses and multilevel modeling. Findings: The findings suggest that LTO as a cultural dimension does influence entrepreneurship activity levels. The findings also suggest that the effects of LTO at the regional and national levels vary widely. Specifically, the authors find LTO to be positively related to entrepreneurship at the regional, but not national, level of analysis. Originality/value: The findings reveal important nuances about the implications that the understudied cultural factor of LTO has on entrepreneurial activity across multiple levels of analysis.