AN ITERCULTURAL STUDY ABOUT STRATEGIES, PERSONALITY AND SUCCESS WITH BRAZILIAN AND GERMAN SMES

Abstract

For decades cross-cultural research has emphasized the strong impact of culture on organizational structures and leadership styles. Most models of entrepreneurial success neglect the cultural business environment, however. This study investigates the impact of entrepreneurial behavior and personal characteristics on venture success, depending on cultural background. The main hypothesis is based on a fit model, which states that culturally adequate behavior and characteristics of a small business owner relate to the success of their venture. We define small business owners as culturally adequate when their personal characteristics and behaviors fit the values and norms of the cultural environment in which their venture operates. In a culture high in uncertainty avoidance, for example, success should be predicted by a low tolerance for ambiguity, low levels of risk-taking, and a strong emphasis on time management by the entrepreneur, while in a low uncertainty-avoiding culture the opposite should be true. Similar hypotheses should hold for the cultural dimensions of collectivism/individualism (operationalized by self efficacy and internal locus of control) and human orientation (operationalized by mastery orientation). The fit-model is tested with German and Brazilian small business owners. This allows us to test for predictors of venture success and to compare success factors across cultures. The results indicate little support for the fit model. Culturally adequate behavior and personal characteristics do not seem to be necessarily related to venture success