Main Article Content
Abstract
Purpose – The purpose of this study is to explore the impact of socio-cultural factors on entrepreneurial failure in Soran City, aiming to identify the key cultural influences that affect entrepreneurial outcomes and to propose a theoretical framework that explains these dynamics.
Methodology – The research employed a qualitative approach, conducting structured interviews with 10 purposively sampled entrepreneurs who hold leadership roles in the entrepreneurial community of Soran. Data collection involved preparing, structuring, and organizing interview transcripts, followed by coding to identify themes and patterns. The analysis then focused on interpreting the socio-cultural significance of the identified factors in relation to entrepreneurial failure.
Findings – This study found that socio-cultural factors significantly influence entrepreneurial outcomes. The key factors identified included societal values and norms, gender roles, family background, and educational background. While gender did not emerge as a prominent factor in this study, other socio-cultural elements played a critical role in shaping entrepreneurial success or failure.
Implications – The findings highlight the importance of understanding cultural nuances in entrepreneurship. The study suggests that promoting an entrepreneurial culture through targeted community training workshops, educational courses, and media initiatives could enhance entrepreneurial activity and reduce the risk of failure in Soran.
Originality – This research introduces the multidimensional socio-cultural constraints theory (MDSC Theory), which provides a novel explanation of how various socio-cultural factors cumulatively contribute to entrepreneurial failure. This theory offers a new perspective on the challenges faced by entrepreneurs in culturally specific contexts, emphasizing the need for culturally informed strategies to foster entrepreneurial success.
Keywords
Article Details
Copyright (c) 2024 Ehsan Salih, Emdad Khaleel Mahmood, Zhian Bwrhan Mustafa, Samian Karim Ado, Rebar Maghdid Ahmad
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References
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- Alam, S. M. I. (2021). Definition, Meaning, and Necessary Characteristics of Entrepreneurship. Entrepreneurship Development, Conference held at Dhaka, Affiliation: Jahangirnagar University. https://doi.org/10.13140/RG.2.2.26469.01765.
- Andrews, M. J., Chatterji, A., Lerner, J., & Stern, S. (Eds.). (2022). The role of innovation and entrepreneurship in economic growth. University of Chicago Press. https://press.uchicago.edu/ucp/books/book/chicago/R/bo151022289.html.
- Aven, T. (2008). Assessing uncertainties beyond expected values and probabilities. Risk analysis. Wiley. https://doi.org/10.1002/9780470694435.
- Baron, R. A., & Tang, J. (2011). The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism. Journal of Business Venturing, 26(1), 49-60. https://doi.org/10.1016/j.jbusvent.2009.06.002
- Baù, M., Sieger, P., Eddleston, K. A., & Chirico, F. (2017). Fail but try again? The effects of age, gender, and multiple–owner experience on failed entrepreneurs’ reentry. Entrepreneurship Theory and Practice, 41(6), 909-941. https://doi.org/10.1111/etap.12233.
- Brownell, K. M., Hechavarria, D. M., Robb, C. C., & Kickul, J. (2024). Culture and social entrepreneurship: the role of value-practice misalignment. Small Business Economics, 1-25. https://doi.org/10.1007/s11187-024-00938-8.
- Brüne, N., & Lutz, E. (2020). The effect of entrepreneurship education in schools on entrepreneurial outcomes: a systematic review. Management Review Quarterly, 70(2), 275-305. https://doi.org/10.1007/s11301-019-00168-3.
- Bryman, A. (2016). Social research methods. Oxford university press. https://archive.org/details/socialresearchme0000brym_o2i8.
- Cardon, M. S., Stevens, C. E., & Potter, D. R. (2011). Misfortunes or mistakes?: Cultural sensemaking of entrepreneurial failure. Journal of Business Venturing, 26(1), 79-92. https://doi.org/10.1016/j.jbusvent.2009.06.004.
- Carton, R. B., Hofer, C. W., & Meeks, M. D. (1998, June). The entrepreneur and entrepreneurship: Operational definitions of their role in society. In Annual International Council for Small Business. Conference, Singapore (pp. 1-12). https://api.semanticscholar.org/CorpusID:154713095.
- Christensen, C. M., (2016). The innovator's dilemma: When new technologies cause great firms to fail. Harvard Business Review Press. https://hbsp.harvard.edu/product/10032-PDF-ENG.
- Damaraju, N.L., Barney, J.B. and Dess, G.G. (2023), "Cultural influences on stigma of failure and entrepreneurial activity", Organization Management Journal , 20(5), 197-209. https://doi.org/10.1108/OMJ-01-2023-1711
- Eisenmann, T. (2021). Why start-ups fail: A new roadmap for entrepreneurial success. Harvard Business Review. https://hbr.org/2021/05/why-start-ups-fail
- Engidaw, A. (2021). Exploring entrepreneurial culture and its socio-cultural determinants: in case of Woldia University graduating students. Journal of Innovation and Entrepreneurship, 10(1), 12. https://doi.org/10.1186/s13731-021-00155-7.
- Galindo, M. Á., & Méndez‐Picazo, M. T. (2013). Innovation, entrepreneurship and economic growth. Management decision, 51(3), 501-514. https://doi.org/10.1108/00251741311309625.
- Giwa, A. H., & Babakatun, A. M. (2019). Effect of socio-cultural factors on women entrepreneurship development in Kaduna State. Journal of Human Resource Management, 7(3), 57-65. https://doi.org/10.11648/j.jhrm.20190703.11.
- Gupta, R. (2024). Exploring the Impact of Socio-Cultural Factors on Entrepreneurship Development in Emerging Markets. https://doi.org/10.21203/rs.3.rs-3938479/v1
- Hahn, D., Minola, T., Bosio, G., & Cassia, L. (2020). The impact of entrepreneurship education on university students’ entrepreneurial skills: a family embeddedness perspective. Small Business Economics, 55, 257-282. https://doi.org/10.1007/s11187-019-00143-y.
- Heinze, I. (2020). Social aspects of entrepreneurial failure (Doctoral dissertation, Kaposvári Egyetem). https://real-phd.mtak.hu/993/2/1576753474-heinze_dissertation_saw_27-11-december19.pdf
- Julius, N. T., & Maru, G. W. (2020). The effects of socio-cultural factors on entrepreneurial performance in selected small scale business organizations in Bori-Ogoni. International Journal of Advanced Academic Research in Social and Management Sciences, 6(1), 114-124. https://www.ijaar.org/articles/Volume6-Number1/Social-Management-Sciences/ijaar-sms-v6n1-jan20-p19.pdf.
- Kautonen, T., Van Gelderen, M., & Fink, M. (2015). Robustness of the theory of planned behavior in predicting entrepreneurial intentions and actions. Entrepreneurship theory and practice, 39(3), 655-674. https://doi.org/10.1111/etap.12056.
- Kritikos, A. S. (2014). Entrepreneurs and their impact on jobs and economic growth. IZA World of Labor. https://doi.org/10.15185/izawol.8.
- Kvale, S., & Brinkmann, S. (2009). Interviews: Learning the craft of qualitative research interviewing. sage. https://archive.org/details/interviewslearni0000kval.
- Lee, M., & Huang, L. (2018). Gender Bias, Social Impact Framing, and Evaluation of Entrepreneurial Ventures. Organization Science, 29(1), 1–16. https://www.jstor.org/stable/48748578
- Liñán, F., Moriano, J. A., & Jaén, I. (2016). Individualism and entrepreneurship: Does the pattern depend on the social context? International Small Business Journal, 34(6), 760–776. https://hdl.handle.net/11441/70209.
- Lyu, M., Li, W., & Xie, Y. (2019). The influences of family background and structural factors on children’s academic performances: A cross-country comparative study. Chinese Journal of Sociology, 5(2), 173-192. https://doi.org/10.1177/2057150X19837908.
- Mamuzo, M. O. (2012). The impact of socio-cultural environment on entrepreneurial emergence: A theoretical analysis of Nigerian society. European Journal of Business and Management, 4(16). https://www.iiste.org/Journals/index.php/EJBM/article/view/3016/3058.
- Masovic, A. (2018). Socio-cultural factors and their impact on the performance of multinational companies. Ecoforum, 7(1), 0-0. https://www.ceeol.com/search/article-detail?id=1048016.
- Noguera, M., Alvarez, C., & Urbano, D. (2013). Socio-cultural factors and female entrepreneurship. International Entrepreneurship and Management Journal, 9, 183-197. https://doi.org/10.1007/s11365-013-0251-x.
- Peter, D. (2024). WITHDRAWN: Understanding the Influence of Cultural Factors on Entrepreneurial Behavior, 20 February 2024. https://doi.org/10.21203/rs.3.rs-3966968/v1
- Pistilli, L., Paccagnini, A., Breschi, S., & Colombo, M. G. (2023). Gender bias in entrepreneurship: What is the role of the founders’ entrepreneurial background? Journal of Business Ethics, 187(2), 325-346. https://doi.org/10.1007/s10551-022-05275-y.
- Rahman, H., Besra, E., & Nurhayati, N. (2020). Psycho-economic phenomena, opportunistic behavior, and impacts on entrepreneurial failure. Advances in Business, Management and Entrepreneurship (pp. 997-1005). CRC Press. https://www.taylorfrancis.com/chapters/edit/10.1201/9780429295348-211/psycho-economic-phenomena-opportunistic-behavior-impacts-entrepreneurial-failure-rahman-besra-nurhayati.
- Rhaiem, K., & Amara, N. (2021). Learning from innovation failures: a systematic review of the literature and research agenda. Review of Managerial Science, 15, 189-234. https://doi.org/10.1007/s11846-019-00339-2.
- Saldaña, J. (2020). Qualitative data analysis strategies. In P. Leavy (Ed.), The Oxford handbook of qualitative research (2nd ed., online ed.). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780190847388.013.33
- Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of management Review, 26(2), 243-263. https://www.jstor.org/stable/259121.
- Shane, S. (2012). Reflections on the 2010 AMR decade award: Delivering on the promise of entrepreneurship as a field of research. Academy of management review, 37(1), 10-20. http://www.jstor.org/stable/23218849.
- Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of management review, 25(1), 217-226. https://www.jstor.org/stable/259271.
- Simmons, S. A., Lee, C. K., Young, S., Shelton, L., & Massey, M. (2024). Effects of gender equality and social costs of failure on early-stage entrepreneurship activity. New England Journal of Entrepreneurship. https://doi.org/10.1108/NEJE-01-2023-0003
- South, M., Dana, J., White, S. E., & Crowley, M. J. (2011). Failure is not an option: Risk-taking is moderated by anxiety and also by cognitive ability in children and adolescents diagnosed with an autism spectrum disorder. Journal of Autism and Developmental Disorders, 41, 55-65. https://doi.org/10.1007/s10803-010-1021-z.
- Thornton, P. H., Ribeiro-Soriano, D., & Urbano, D. (2011). Socio-cultural factors and entrepreneurial activity: An overview. International small business journal, 29(2), 105-118. https://doi.org/10.1177/0266242610391930.
- Timan, E., Babiker, Y. H., & Ali, M. E. M. (2023). Educational and socio-cultural factors influencing the growth of entrepreneurial activities in Khartoum State, Sudan. Research in Business and Management, 10(1), 28-53.https://doi.org/10.5296/rbm.v10i1.21485
- Vogt, C., van Gils, S., Van Quaquebeke, N., Grover, S. L., & Eckloff, T. (2021). Proactivity at work: The roles of respectful leadership and leader group prototypicality. Journal of Personnel Psychology, 20(3), 114–123. https://doi.org/10.1027/1866-5888/a000275
- Wennberg, K., Pathak, S., & Autio, E. (2013). How culture moulds the effects of self-efficacy and fear of failure on entrepreneurship. Entrepreneurship & Regional Development, 25(9-10), 756-780. https://doi.org/10.1080/08985626.2013.862975.
- World Bank. (2019). SME finance. World Bank. Retrieved from https://www.worldbank.org/en/topic/smefinance.
References
Adiza, G. R., Alamina, U. P., & Aliyu, I. S. (2020). The influence of socio-cultural factors on the performance of female entrepreneurs. International Journal of Financial, Accounting, and Management, 2(1), 13-27. https://doi.org/10.35912/ijfam.v2i1.161.
Alam, S. M. I. (2021). Definition, Meaning, and Necessary Characteristics of Entrepreneurship. Entrepreneurship Development, Conference held at Dhaka, Affiliation: Jahangirnagar University. https://doi.org/10.13140/RG.2.2.26469.01765.
Andrews, M. J., Chatterji, A., Lerner, J., & Stern, S. (Eds.). (2022). The role of innovation and entrepreneurship in economic growth. University of Chicago Press. https://press.uchicago.edu/ucp/books/book/chicago/R/bo151022289.html.
Aven, T. (2008). Assessing uncertainties beyond expected values and probabilities. Risk analysis. Wiley. https://doi.org/10.1002/9780470694435.
Baron, R. A., & Tang, J. (2011). The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism. Journal of Business Venturing, 26(1), 49-60. https://doi.org/10.1016/j.jbusvent.2009.06.002
Baù, M., Sieger, P., Eddleston, K. A., & Chirico, F. (2017). Fail but try again? The effects of age, gender, and multiple–owner experience on failed entrepreneurs’ reentry. Entrepreneurship Theory and Practice, 41(6), 909-941. https://doi.org/10.1111/etap.12233.
Brownell, K. M., Hechavarria, D. M., Robb, C. C., & Kickul, J. (2024). Culture and social entrepreneurship: the role of value-practice misalignment. Small Business Economics, 1-25. https://doi.org/10.1007/s11187-024-00938-8.
Brüne, N., & Lutz, E. (2020). The effect of entrepreneurship education in schools on entrepreneurial outcomes: a systematic review. Management Review Quarterly, 70(2), 275-305. https://doi.org/10.1007/s11301-019-00168-3.
Bryman, A. (2016). Social research methods. Oxford university press. https://archive.org/details/socialresearchme0000brym_o2i8.
Cardon, M. S., Stevens, C. E., & Potter, D. R. (2011). Misfortunes or mistakes?: Cultural sensemaking of entrepreneurial failure. Journal of Business Venturing, 26(1), 79-92. https://doi.org/10.1016/j.jbusvent.2009.06.004.
Carton, R. B., Hofer, C. W., & Meeks, M. D. (1998, June). The entrepreneur and entrepreneurship: Operational definitions of their role in society. In Annual International Council for Small Business. Conference, Singapore (pp. 1-12). https://api.semanticscholar.org/CorpusID:154713095.
Christensen, C. M., (2016). The innovator's dilemma: When new technologies cause great firms to fail. Harvard Business Review Press. https://hbsp.harvard.edu/product/10032-PDF-ENG.
Damaraju, N.L., Barney, J.B. and Dess, G.G. (2023), "Cultural influences on stigma of failure and entrepreneurial activity", Organization Management Journal , 20(5), 197-209. https://doi.org/10.1108/OMJ-01-2023-1711
Eisenmann, T. (2021). Why start-ups fail: A new roadmap for entrepreneurial success. Harvard Business Review. https://hbr.org/2021/05/why-start-ups-fail
Engidaw, A. (2021). Exploring entrepreneurial culture and its socio-cultural determinants: in case of Woldia University graduating students. Journal of Innovation and Entrepreneurship, 10(1), 12. https://doi.org/10.1186/s13731-021-00155-7.
Galindo, M. Á., & Méndez‐Picazo, M. T. (2013). Innovation, entrepreneurship and economic growth. Management decision, 51(3), 501-514. https://doi.org/10.1108/00251741311309625.
Giwa, A. H., & Babakatun, A. M. (2019). Effect of socio-cultural factors on women entrepreneurship development in Kaduna State. Journal of Human Resource Management, 7(3), 57-65. https://doi.org/10.11648/j.jhrm.20190703.11.
Gupta, R. (2024). Exploring the Impact of Socio-Cultural Factors on Entrepreneurship Development in Emerging Markets. https://doi.org/10.21203/rs.3.rs-3938479/v1
Hahn, D., Minola, T., Bosio, G., & Cassia, L. (2020). The impact of entrepreneurship education on university students’ entrepreneurial skills: a family embeddedness perspective. Small Business Economics, 55, 257-282. https://doi.org/10.1007/s11187-019-00143-y.
Heinze, I. (2020). Social aspects of entrepreneurial failure (Doctoral dissertation, Kaposvári Egyetem). https://real-phd.mtak.hu/993/2/1576753474-heinze_dissertation_saw_27-11-december19.pdf
Julius, N. T., & Maru, G. W. (2020). The effects of socio-cultural factors on entrepreneurial performance in selected small scale business organizations in Bori-Ogoni. International Journal of Advanced Academic Research in Social and Management Sciences, 6(1), 114-124. https://www.ijaar.org/articles/Volume6-Number1/Social-Management-Sciences/ijaar-sms-v6n1-jan20-p19.pdf.
Kautonen, T., Van Gelderen, M., & Fink, M. (2015). Robustness of the theory of planned behavior in predicting entrepreneurial intentions and actions. Entrepreneurship theory and practice, 39(3), 655-674. https://doi.org/10.1111/etap.12056.
Kritikos, A. S. (2014). Entrepreneurs and their impact on jobs and economic growth. IZA World of Labor. https://doi.org/10.15185/izawol.8.
Kvale, S., & Brinkmann, S. (2009). Interviews: Learning the craft of qualitative research interviewing. sage. https://archive.org/details/interviewslearni0000kval.
Lee, M., & Huang, L. (2018). Gender Bias, Social Impact Framing, and Evaluation of Entrepreneurial Ventures. Organization Science, 29(1), 1–16. https://www.jstor.org/stable/48748578
Liñán, F., Moriano, J. A., & Jaén, I. (2016). Individualism and entrepreneurship: Does the pattern depend on the social context? International Small Business Journal, 34(6), 760–776. https://hdl.handle.net/11441/70209.
Lyu, M., Li, W., & Xie, Y. (2019). The influences of family background and structural factors on children’s academic performances: A cross-country comparative study. Chinese Journal of Sociology, 5(2), 173-192. https://doi.org/10.1177/2057150X19837908.
Mamuzo, M. O. (2012). The impact of socio-cultural environment on entrepreneurial emergence: A theoretical analysis of Nigerian society. European Journal of Business and Management, 4(16). https://www.iiste.org/Journals/index.php/EJBM/article/view/3016/3058.
Masovic, A. (2018). Socio-cultural factors and their impact on the performance of multinational companies. Ecoforum, 7(1), 0-0. https://www.ceeol.com/search/article-detail?id=1048016.
Noguera, M., Alvarez, C., & Urbano, D. (2013). Socio-cultural factors and female entrepreneurship. International Entrepreneurship and Management Journal, 9, 183-197. https://doi.org/10.1007/s11365-013-0251-x.
Peter, D. (2024). WITHDRAWN: Understanding the Influence of Cultural Factors on Entrepreneurial Behavior, 20 February 2024. https://doi.org/10.21203/rs.3.rs-3966968/v1
Pistilli, L., Paccagnini, A., Breschi, S., & Colombo, M. G. (2023). Gender bias in entrepreneurship: What is the role of the founders’ entrepreneurial background? Journal of Business Ethics, 187(2), 325-346. https://doi.org/10.1007/s10551-022-05275-y.
Rahman, H., Besra, E., & Nurhayati, N. (2020). Psycho-economic phenomena, opportunistic behavior, and impacts on entrepreneurial failure. Advances in Business, Management and Entrepreneurship (pp. 997-1005). CRC Press. https://www.taylorfrancis.com/chapters/edit/10.1201/9780429295348-211/psycho-economic-phenomena-opportunistic-behavior-impacts-entrepreneurial-failure-rahman-besra-nurhayati.
Rhaiem, K., & Amara, N. (2021). Learning from innovation failures: a systematic review of the literature and research agenda. Review of Managerial Science, 15, 189-234. https://doi.org/10.1007/s11846-019-00339-2.
Saldaña, J. (2020). Qualitative data analysis strategies. In P. Leavy (Ed.), The Oxford handbook of qualitative research (2nd ed., online ed.). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780190847388.013.33
Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of management Review, 26(2), 243-263. https://www.jstor.org/stable/259121.
Shane, S. (2012). Reflections on the 2010 AMR decade award: Delivering on the promise of entrepreneurship as a field of research. Academy of management review, 37(1), 10-20. http://www.jstor.org/stable/23218849.
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of management review, 25(1), 217-226. https://www.jstor.org/stable/259271.
Simmons, S. A., Lee, C. K., Young, S., Shelton, L., & Massey, M. (2024). Effects of gender equality and social costs of failure on early-stage entrepreneurship activity. New England Journal of Entrepreneurship. https://doi.org/10.1108/NEJE-01-2023-0003
South, M., Dana, J., White, S. E., & Crowley, M. J. (2011). Failure is not an option: Risk-taking is moderated by anxiety and also by cognitive ability in children and adolescents diagnosed with an autism spectrum disorder. Journal of Autism and Developmental Disorders, 41, 55-65. https://doi.org/10.1007/s10803-010-1021-z.
Thornton, P. H., Ribeiro-Soriano, D., & Urbano, D. (2011). Socio-cultural factors and entrepreneurial activity: An overview. International small business journal, 29(2), 105-118. https://doi.org/10.1177/0266242610391930.
Timan, E., Babiker, Y. H., & Ali, M. E. M. (2023). Educational and socio-cultural factors influencing the growth of entrepreneurial activities in Khartoum State, Sudan. Research in Business and Management, 10(1), 28-53.https://doi.org/10.5296/rbm.v10i1.21485
Vogt, C., van Gils, S., Van Quaquebeke, N., Grover, S. L., & Eckloff, T. (2021). Proactivity at work: The roles of respectful leadership and leader group prototypicality. Journal of Personnel Psychology, 20(3), 114–123. https://doi.org/10.1027/1866-5888/a000275
Wennberg, K., Pathak, S., & Autio, E. (2013). How culture moulds the effects of self-efficacy and fear of failure on entrepreneurship. Entrepreneurship & Regional Development, 25(9-10), 756-780. https://doi.org/10.1080/08985626.2013.862975.
World Bank. (2019). SME finance. World Bank. Retrieved from https://www.worldbank.org/en/topic/smefinance.