Vrije Universiteit Amsterdam
University of Amsterdam
Master Thesis Entrepreneurship
Political Ideology and the Entrepreneurial Social Perception
An analysis of the relationship between political ideology and the
social perception of entrepreneurs in the Netherlands
Name : Vanelly Ellis ID VU : 2532387 ID UVA : 11960736
Supervisor : dhr. Dr. Yuval Engel Date : August 16, 2018 Words : 10150
Preface
Before you lies the thesis: “Political ideology and the Entrepreneurial Social Perception”. The research underlying this thesis has been performed through a secondary data analysis of two large scale surveys that have been conducted with Dutch citizens and politicians. This thesis has been written to fulfil the requirements of the Entrepreneurship program that is jointly offered by the University of Amsterdam and VU University Amsterdam.
The whole procedure of this thesis was carried out with the ethical norms of a Dutch university. Both the University of Amsterdam and VU University Amsterdam cannot be held accountable for the content of this thesis. I am completely responsible for the content of this thesis. The copyrights of this thesis therefore also rest with me.
The thesis is the result of an internship at the Kieskompas, in which I was able to explore and prepare the data-set, which is the basis of this study. This has provided me with the opportunity to develop a research question that is both in my interest and in line with the data that was available to me. Fortunately, Andre Krouwel and Yordan Kutiyski were always available and willing to help me in the case that I was facing some obstacles with the data.
I would like to thank my supervisor, Yuval Engel, for his guidance and support throughout this whole process. Thanks for all the constructive feedback that you have given me and the genuine interest that you have given in the development of this thesis.
To my other colleagues at Kieskompas: I would like to thank you for your warm inclusion of me in your team and office. All of the resources that I needed for the support of both my internship and my thesis were given to me by you without no hesitation. Last but not least,
thanks to my family and friends. In the times that I displayed a lack of concentration and motivation, you cheered me up and kept me motivated.
Abstract
To which extent does political ideology have an impact on the social perception of entrepreneurs? This research examined the relationship between the political ideology of individuals and the social perception of entrepreneurs in the Netherlands. Multidisciplinary theories have been used as a framework for this research as theories have been taken from the academic literature with regards to the narrative stereotypical representations of entrepreneurs; the socio-psychological functions of both ideology and social perceptions. A secondary data analysis has been performed of a large-scale cross-sectional survey containing citizens in the Netherlands. This has been done through the use of a multiple regression analysis consisting of hierarchical models.
These hierarchical models have made it possible to control the effect of political ideology for demographic characteristics and interpersonal similarity. The results have shown that the ideological position is indeed a significant predictor for the social perception of entrepreneurs. A higher indication of left-wing orientation leads to a more negative evaluation of entrepreneurs both in terms of competence and warmth. A higher indication of right-wing orientation leads to a more positive evaluation of the entrepreneurs on both dimensions. This illustrates that entrepreneurs are not subject to ambivalent stereotypical representations. The ideological framework thus indeed accounts for differences in the social perception that people have of entrepreneurs in the Netherlands. For the competence dimension gender and the level of optimism were also significant determinants. For the warmth dimension age, optimism and entrepreneurial self-efficacy were significant determinants alongside the ideological position.
Table of content
1. Introduction 1
2. Theoretical Framework 5
3. Methodological justification 15
3.1. Procedure and sample 15
3.2. Measures and operational definitions 16
3.3. Analytical strategy 19
4. Results 20
4.1. Political ideology and the perceived warmth of entrepreneurs 20 4.2. Political ideology and the perceived competence of entrepreneurs 24
5. Conclusion & discussion 29
6. References 34
1. Introduction
‘All our knowledge has its origin in our perception’.
- Leonardo Da Vinci (1452-1519)
Different classic views have sought to explain who the entrepreneur is and what kind of function they have in the society. The perception of the entrepreneur has undergone an evolution in which they were viewed as arbitragers, to the coordinators of production, to eventually being viewed as the creators of innovations (Van Praag, 1999). In the present times, entrepreneurs have become widely popular in the modern western societies. This occupation has become the subject of various media attention as it is presented as the antidote to many economic problems in the capitalist society. The likes of Mark Zuckerberg, Bill Gates and Steve Jobs and the enormous social influence of their ventures have catalysed a public perception of entrepreneurs as modern-day superheroes that have managed to overcome great personal obstacles. This all while simultaneously creating new jobs and guiding the world into the future through their innovative spirit (Achtzen, 2016).
Currently, the heroic perception is however under fire and the discussion of the ‘dark side of the entrepreneurs’ has resurfaced through the recent Facebook privacy scandal. This scandal revealed that the analytics firm Cambridge Analytica had collected the data of approximately 50 million Facebook accounts by misleading them into thinking that they were participating in a research (Pages, 2018). The CEO and founder of the company, Mark Zuckerberg, has been portrayed as an evil genius villain who has developed a machine that has the power to become a threat to our privacy. The perception of the entrepreneurial identity and the function of entrepreneurs in society has been the subject of different academic publications (Nicholson and Anderson, 2005; Perren, Peter & Jennings, 2005; Rehn & Taalas, 2004). Welter et al. (2016)
have however made an appeal for diversity in entrepreneurial research when it comes to the understanding of who the entrepreneur is, and thus also as to how entrepreneurs are perceived. Entrepreneurs are thus practicing an occupation that is currently popular in popular culture and which is also the subject of stereotypical representations. These stereotypical representations not only do not reflect the actual experience of entrepreneurs, they also do not reflect the variances that exist with regards to the manner in which entrepreneurs are perceived in a society. While there has been a focus on the relationship between entrepreneurial perception and entrepreneurial intention (Gupta et al., 2009; Gupta et al., 2005), limited attention has been given to explain the variances that exist with regards to the social perception of entrepreneurs. Political ideologies are widely used as an explanation for the differences in the manner in which people perceive and evaluate themselves and their environment. They are reflections of the shared beliefs, opinions and values of different groups in a society, which in turn is stated to have an impact on the behaviour (Jost et al. 2009). Political ideologies are therefore also frequently used in both entrepreneurial and managerial research to explain the differences in the strategic organizational decisions that are made by both entrepreneurs and managers due to the differences in their personal beliefs (Chin & Semadeni, 2017; Gupta, Briscoe & Hambrick, 2017; Gupta & Wawok, 2017).
Therefore, in this thesis there will be an analysis of the manner in which political ideologies impact the entrepreneurial social perception in the Netherlands. The research question that guides this thesis is therefore the following: To which extent does political ideology have an impact on the social perception of entrepreneurs in the Netherlands. This thesis contains a
secondary analysis of a dataset that was developed in 2016 by Kieskompas. This data-set is the result of two large scale surveys that Kieskompas (2016) performed with citizens and politicians in the Netherlands. This thesis only focuses on the survey that was done with the
citizens. In these surveys the respondents had to self-describe themselves in terms of their demographic characteristics; socio-political values and belief; entrepreneurial traits and experience. Furthermore, they also had to describe their perception of entrepreneurs. To test the impact of political ideology on the entrepreneurial social perception, multiple hierarchical regression models have been developed in which the relationship between political ideology and the social perception of entrepreneurs was controlled for demographic characteristics and interpersonal similarity.
In order to answer the main question, this thesis will first provide a theoretical framework consisting of an analysis of political ideology as a social psychological phenomenon in order to define, understand and explain this phenomenon, but also most importantly how it could impact the manner in which people evaluate entrepreneurs (Caprara et al., 2006; Jost et al., 2009;). There will also be an overview of the origin and definition of social perceptions, the formation of stereotypes and the consequences that this has on the behaviour between groups in the society. This will be done by using the stereotype content model (SCM) and the stereotypes (BIAS) map (Cuddy et al., 2007). This will be extended with a brief overview of the existing entrepreneurial social perceptions. Secondly, a methodological justification will be given. Thirdly, the results will be presented and interpreted and finally conclusions will be drawn to provide an answer to the main research question. The study is complemented with reflection on the relevancy and limitations of this research, as well as some recommendations for future research.
This research is an answer to the call of Welter et al. (2017) to bring more diversity in the entrepreneurial research through a diverse understanding of both entrepreneurs and entrepreneurship. While many authors have focused their efforts on identifying the personality, identity and perception entrepreneurs (Berglund & Johansson, 2007; Lowell et al., 1997; Nicholson and Anderson, 2005), there is limited research that aims to explain the differences
in perception that exist when it comes to this occupation. There either exists a dominating stereotype or in the case that different perceptions are acknowledged, there is no explanation for the different perceptions of this occupation. By looking at the manner in which political ideology impacts the entrepreneurial perception, this research aims to empirically test the different lenses through which people perceive and evaluate entrepreneurs.
Smith (2006) has indicated that the representation of entrepreneurs has been based mainly upon the narrative customs instead of the actual realistic experience of entrepreneurs. This thesis contains an empirical testing of the manner in which the political ideology of citizens in a society could impact these stereotypical representations. This research is socially relevant because the manner in which entrepreneurs are perceived has an impact for the entrepreneurial intention of people. It also shows that entrepreneurs may be presented in different ways to different people if the enterprising culture is promoted in a society. The commercial vis-à-vis social notion of entrepreneurship could be less or more interesting to an individual depending upon the political ideology to which someone adheres to.
Cuddy, Glick & Beninger (2011) have indicated that people also engage in stereotype formation of occupational roles such as entrepreneurship, and that these stereotypes reinforce the notion that members of some groups are a better match for entrepreneurship than others. Understanding how these perceptions are impacted by the political ideology could thus be effective in terms of making the occupation of entrepreneurship more attractive to different types of people. An understanding of this and targeting of this could thus enhance the entrepreneurial intention for groups in the society that normally would not be inclined to pursue this occupation due to their ideological framework.
2. Theoretical Framework
In this section there will be an overview of the existing theories that will be used for the research in this thesis. This includes the theory with regards to social perception that underlies the Stereotype Content Model (SCM) and the bias map (BIAS). Furthermore, literature on the definition and socio-psychological function of ideology has also been consulted, in particular with regards to the left-right schema. This has been extended with literature that looks at the relationship between political ideology and decision-making processes at the individual level. In order to comprehend this in the context of entrepreneurship, entrepreneurial literature with regards to the stereotypical representation of entrepreneurs have also been added in this theoretical framework.
Social perceptions are the results of the survival instinct that people possess in which it is crucial to determine if an individual or social group has good or bad intentions. This is followed by the need to determine if someone is able to act upon their intentions, especially if it is bad (Fiske et al., 2007). Therefore, there are two universal dimensions of social perceptions that have been identified, which are the following: warmth and competence. The warmth dimension refers to the interpretation and evaluation of the character and intention of an individual/social group. The competence dimension refers to the evaluation of the capabilities of an individual/social group.
People and social groups thus evaluate each other on the basis of the level in which they like or trust each other (warmth) and by the level in which they respect each other (competence). These two dimensions also apply for the analysis of the social perceptions of occupations (Cuddy et al., 2011). Cuddy et al. (2011) have analyzed the organizational outcomes of the judgements that are made on the basis of these two dimensions. They have indicated that the
model is also applicable for an analysis of the social perceptions that arise with regards to occupations and organizational divisions.
Entrepreneurs practice an occupation that has experienced different stereotypical representations in which the level of their perceived warmth is fluctuating. There are dominating representations of the entrepreneur that seem to have a recurring role in the literature. Smith (2006) has found that our social perception of entrepreneurs may be more influenced to narrative representative customs than to the true experience of entrepreneurs. Entrepreneurs are either perceived as: heroes that bring economic growth to fruition through the creation of jobs and technological innovation or as villains that have the ability to accumulate an alarming level of power at the expense of others (Nicholson et al., 2005; Perren, Peter & Jennings, 2005; Rehn & Taalas, 2004; Van Praag, 1999).
Currently, the Schumpeterian view of entrepreneurship, which reflects the Silicon Valley model of entrepreneurship, seems to be the dominant and popular perspective. In the Schumpeterian perspective entrepreneurs are unique individuals that come up with new revolutionary ideas that lead to creative destruction of the status quo. The entrepreneur in this case is a different special breed of human that possesses rare characteristics when compared to other people (Van Praag, 1999).
Busenitz & Barney (1997) have researched the differences between entrepreneurs and managers in large organizations. Their results indicate that entrepreneurs have a greater need for achievement, greater propensity for risk-taking and tolerance for ambiguity than managers. Entrepreneurs also display high degree of optimism and believe that they control their own destiny. They are innovators that epitomize their new ideas in high growth ventures. These are the entrepreneurs that capture the attention of the media and the general public across many countries and these are the traits that are mainly linked with entrepreneurs.
In this perspective they are treated on the one hand as heroes that bring economic growth to fruition through the creation of jobs and technological innovation or as villains that have the ability to accumulate an alarming level of power (Perren, Peter & Jennings, 2005; Rehn & Taalas (2004). Perren, Peter & Jenning (2005) have performed a discourse analysis of the government websites of seven countries. They have identified a power discourse in which entrepreneurs are perceived as economically crucial heroes that conquer the world. Rehn & Taalas (2004) on the other hand question the assumption that entrepreneurs are the key driver of economic vitality in the capitalist society. They indicated that entrepreneurs could also be subversive and could increase the level of inequality within a society.
Nicolson and Anderson (2005) have performed a content analysis in which they have examined the ways that entrepreneurs are depicted in major newspapers. They have found the image of the entrepreneur as either a supernatural (male) hero or the entrepreneur as a rational figure that is not always successful, and more like a natural human being. In this case the entrepreneur is a relatable individual that could also need help and guidance. The lower level of exclusivity and the smaller scope of these entrepreneurs lead to less media attention and less popularity when compared to the Schumpeterian entrepreneurs. However, this also leads to less scrutiny when it comes to the potential damage that could be done by these entrepreneurs to the societies. (Nicholson & Anderson, 2005).
Jost et al. (2009) have researched the social-psychological functions of political ideologies and the consequences that they have with regards to attitudes and evaluations. The ideology that people adhere to reflects and reinforces their social and personal values and preferences. The differences in political ideologies also lead to differences in evaluative processes in many areas outside the realm of formal politics. Political ideology is a mean that is used for people to make sense of a complex world that is subject to constant rapid changes (Fuchs & Klingemann, 1990). There are many studies that research the impact that political ideologies have on either
the decision-making process of individuals or the actions that are undertaken by these same individuals (Gupta et al., 2006; Gupta & Wowak, 2017; Jost et al. 2009).
Variance in political ideologies reflects variances in the world view of people and therefore also seem to account for differences that arise in the social perceptions that people have. In this thesis, the assumption is thus that political ideologies could provide a framework that explains the existence of the different social perceptions of entrepreneurs. Based on the theories it seems plausible that the political ideology reflects the different values and attitudes that people have towards the role of the government vis-à-vis private enterprises in a society; the level of emphasis that is put on individual freedom and development vis-à-vis equality and communality, which in turn also establishes the perception that arises with regards to the character and capabilities of the entrepreneur.
While there is a narrative of the entrepreneur in which the competence is questioned (Nicholson & Anderson, 2005), the left-right schema seems to predict that moving towards the left will be accompanied with an ambivalent stereotypical perception of entrepreneurs. In this case the intent of the entrepreneur and the possible consequences that this has for the rest of the society is questioned. The capabilities of the entrepreneur are however not questioned in this case as the entrepreneur is perceived as being competent. Therefore, the first hypotheses are the following:
Hypothesis 1:
The ideological orientation of individuals explains significant variance in their social
perception of the warmth of entrepreneurs.
Hypothesis 2:
The ideological orientation of individuals does not predict significant variance in their social
There is disagreement with regards to the amounts of dimensions that are part of political ideologies. The most well-known perspective is that ideological views could be classified along one single left-right dimension. This is the most used classification of political ideologies. The unidimensional perspective is however challenged by the notion that ideological views with regards to social and cultural issues could be different from the ideological views with regards to economic issues. Within this perspective ideological views should be classified with a multidimensional approach, consisting of an economic dimension and a cultural dimension. The argument is that people could be social liberals and economic conservatives and the other way around. This however seems to be a rare case. (Jost, 2006).
Fuchs & Klingemann (1990) have performed a cross-national analysis of the interpretation of the left-right schema in three western democracies including the Netherlands. Their findings show that approximately 90% of the respondents in the Netherlands recognized the left-right schema. While education was predicted to account for a wide gap with regards to the recognition and understanding of the left-right schema, this did not seem to be the case in the Netherlands. There was a widespread familiarity that was not only reserved for the elite. In the Netherlands the ‘left’ seemed to be mostly associated with the values of equality, solidarity and freedom. These values are mostly the values that underpin the ‘socialist’ political ideology.
This was accompanied with an association of the left with favoring market systems in which the economy is regulated by the government with an emphasis on wealth distribution. The government is in this case viewed as being responsible for the protection of the less fortunate against ‘big businesses. The social groups that were mostly associated with the left in the Netherlands were the following: workers; lower class; the poor; minorities (Fuchs & Klingemann, 1990).
The ‘right’ on the other hand was mostly associated with values related to individualism, freedom for personal development and achievement. This was accompanied with an association of the right with limited government interference, the free market system, competitive capitalism and the belief that private enterprises should be responsible for economic growth, job creation and wealth creation. The social groups that were mostly associated with the right in the Netherlands were the following: the upper class; the rich; entrepreneurs; the people; middle class; the educated (Fuchs & Klingemann, 1990).
Piurko, Schwartz and Davidov (2011) have performed a cross-national analysis to determine the meaning that is given to “left” and “right” in 20 different countries, including the Netherlands. Their results show that the dimension in liberal democracies reflects the differences in views that exist within a society with regards to the following: supporting or rejecting social change as opposed to tradition; accepting or rejecting inequality within a society.
There are many studies that research the impact that political ideologies have on either the decision-making process of individuals or the actions that are undertaken by these same individuals (Chin 2016; Gupta et al., 2006; Gupta & Wowak, 2016; Jost et al. 2009). Caprara et al. (2006) have researched how values and traits of individuals influence their political choice in elections. Their results show that people that are friendlier and more open for change are more attracted to the center left. This is because the center left has an emphasis on solidarity and the collective well-being. On the other hand, energetic and dominant people are more attracted to the center right as the center right has more of a focus on individual entrepreneurship and business freedom. The center right’s emphasis on entrepreneurship and the market economy is compatible with voters that prioritize values related to power, security and achievement.
Gupta & Wowak (2016) have shown with their research that companies that are liberal (left) oriented engage more in Corporate Social Responsibility than companies that are conservative (right) oriented. Chin et al. (2016) show that firms liberal CEO’s display more egalitarian behavior. This leads to a reduction of the differences in the pay amongst top managers and the difference between CEO bonus pay and the bonus pay of the other top managers. In another research Gupta & Wowak (2016) reinforce these results as they show that conservatives boards pay CEO’s more than liberal boards. These researches once again illustrate the differences between left oriented and right oriented people when it comes to their views on equality, diversity and solidarity.
Cuddy et al. (2008) present the stereotype content model (SCM), which contains an overview of the different social perceptions that arise through the two dimensions of social perception and how they eventually lead to different social perceptions and emotional reactions. They illustrate that different combinations are possible. When it comes to social perception it is possible for someone to be evaluated either positive or negative on both dimensions. Ambivalent combinations are also possible (Cuddy et al., 2008). Different social perceptions, emotional reactions and behavior arise through these two dimensions as different combinations are possible. Positive evaluations on both dimensions generates emotional reactions of admiration and respect. Negative evaluations on both dimensions generates an emotional reaction of disgust (Fiske et al., 2007).
The extent to which someone is perceived to be an in-group vs. an outgroup however not only seems to be based upon their intent and their capabilities to act upon their intentions, interpersonal similarity also has an impact on this (Cuddy et al., 2009). Cuddy et al. (2009) have performed a cross-cultural research of the stereotype content model (SCM) in which it becomes clear that demographic characteristics also has an impact on manner in which people
evaluate the competence and warmth of people. For example, in the United States the following groups were categorized as the in-group (high warmth-high competence): middle class, whites & students. Liviatan et al. (2008) have shown that interpersonal similarity with regards to personality characteristics also have an influence on the social perception as the social distance is reduced due to the similarity. This in turn enables people to develop more in-depth accurate judgments of a person that is more similar instead of their perception being based upon stereotypical representations.
The social perceptions that arise from ambivalent combinations are however more complex. The individuals or groups that are perceived as being low on warmth but high on competence generate an emotional reaction of envy from the perceivers. This is because their intention is perceived as a threat. A high evaluation on the warmth dimension in combination with a low evaluation of the competence dimension unleashes an emotional reaction of pity. As was mentioned before, there are also behavioral consequences that arise from certain combinations of the two dimensions. The warmth dimension predicts ‘active behaviors’, which determines to which extent people either help or attack each other depending on the level that they like and trust each other. The competence dimension predicts passive ‘behaviors’, which determines to which extent people either choose to associate themselves with another person or social group or choose to neglect this individual or social group.
The in-groups that are perceived as being both warm and competent thus evoke both active and passive facilitation. This means that people choose to either help or associate themselves with this group. The groups that are perceived as being low on the warmth dimension and low on the competence dimension are either treated with active attacks or passive neglects. The ambivalent groups are again more complex. The individuals or groups that are perceived as being low on warmth but high on competence, invoke either passive association or active harm,
depending upon the level in which their intention is perceived as a threat. The individuals or groups that are perceived as being high on warmth but low on competence elicit either active helping or passive neglect, depending upon the level in which their low competence is attributed to their own choices or actions (Fiske et al., 2007). See figure.1 for a visual representation of the stereotype content model and the stereotypes (BIAS) map.
Figure 1. The Stereotype content model (SCM) and stereotypes (BIAS) map
Source: Cuddy et al. (2007)
Entrepreneurs either seem to be positively evaluated on both dimensions as they are portrayed as individuals that elicit respect and admiration due to their unique capabilities or they seem to be portrayed as being highly competent individuals that could use their capabilities against the interest of certain social groups. This insinuates that the other perspective reflects an ambivalent social perception of entrepreneurs in which they are evaluated positively on the competence dimensions, but negatively on the warmth dimension. `This thesis hypothesizes, that the people that identify with the left-wing values and perspectives are more likely to have a more negative perception of entrepreneurs on the warmth dimension. The skills and capabilities of the entrepreneur however do not seem to be questioned, as they are seen as villains that have the capabilities to act on their intent, with negative consequences as a result for the society.
Taking the understanding of the right schema in the Netherlands into account the left-oriented people appear to be more inclined to see equality as a priority and look for the government to protect them against the ‘big businesses’ through wealth distribution, while the right will have more of an inclination towards the environment and actors that are part of the business world. There are thus different values, personalities and priorities with regards to the role of the government vis-à-vis private enterprises in a society; the level of emphasis that is put on individual freedom and development vis-à-vis equality and communality, which in turn also establishes the perception that arises with regards to the intent of the entrepreneur. Therefore, the third hypothesis is the following:
Hypothesis 3:
A higher left-orientation predicts a more negative perception of the warmth of entrepreneur,
whereas a higher right-orientation predicts a more positive perception of the warmth of
entrepreneurs
Figure 2. shows the conceptual framework of this thesis
Political Ideology (Jost et al., 2009) - Left-right self-placement Entrepreneurial Social Perception (Cuddy et al., 2007) - Warmth - Competence
3. Methods
This section contains an overview and justification of the method that has been used to conduct the research. Firstly, the research design and strategy that have been selected will be outlined. This will be followed by a description of the sample and an overview of the sample strategy. Furthermore, the measures will be presented with their accompanying operational definitions. Last but not least, the choices that have been made with regards to the analytical strategy will also be discussed.
3.1. Procedure and sample
A secondary data analysis of panel data that has been collected by Kieskompas (2016) has been performed in this thesis. The dataset is the result of a cross-sectional research consisting of two large scale surveys for citizens in the Netherlands. The respondents for the sample of the citizens were recruited through the use of a follow-up option for future surveys on an online Dutch Vote Advice Application (Krouwel et al., 2012). The dataset originally contains variables that provide information ranging from: demographic characteristics; entrepreneurial traits; entrepreneurial experience; entrepreneurial activities; entrepreneurial perception to the socio-political values and beliefs of the respondents. The dataset has been restructured and prepared in order to make it suitable for a multiple linear regression analysis that is suited to this research.
The thesis follows a quantitative research strategy, empirically testing the theories that suggest that political ideologies could provide explanations for the different social perceptions of entrepreneurs. The limitation of this research design is related to the lack of internal validity that cross-sectional research inherently has, as it mainly provides the possibility to examine the relationship between variables. A causal relationship cannot be determined with certainty. As
it is a secondary data analysis of a cross-sectional survey with another purpose, the thesis is also limited in the extent to which confounding and spurious factors are considered that could also influence the social perception of the entrepreneurs (Bryman, 2016).
3.2. Measures
The independent variable in this research is political ideology. The political ideology of the respondents was measured by looking at their ideological self-identification. The respondents had to answer the following question: Where would you place yourself on a scale of left (0) to right (11). The respondents thus had to perform a self-location on a left-right scale ranging from extreme left to extreme right. Fuchs & Klingemann (1990) state that the ideological self-identification has explanatory power as it has an impact on the behaviour and attitudes of people. While there is a general awareness of the left-right schema in the Netherlands, Levitin and Miller (1979) has suggested that ideological labels can serve an orientation function for individuals even if the understanding of those labels is at a basic and unsophisticated level. The dependent variable in this research is the social perception of entrepreneurs. The social perception of entrepreneurs consists of two dimensions, which are: warmth and competence (Fiske et al., 2007). In order to measure the social perception of entrepreneurs, the respondents evaluated the entrepreneur on 8 traits using a seven-point (1=not at all characteristic, 7= extremely characteristic) Likert-type scale. Half of the traits measured traits that are related to competence (capable, efficient, organized, skillful). The other half measured traits related to warmth (good-natured, sincere, warm, trustworthy). The Cronbach alpha of the items that measure the social perception of the competence of entrepreneurs was .786. The Cronbach alpha of the items that measure the social perception of the warmth of entrepreneurs was .886. The four items of both dimensions have been recoded into indexes that summarize the perception of the warmth and competence of entrepreneurs.
The Respondents indicated their socio-demographic background as they indicated their gender, level of education, income and age. The participants also complete a self-description with regards to the following entrepreneurial traits: optimism, risk-tolerance and entrepreneurial self-efficacy. These were used as control variables for the analysis. The entrepreneurial traits were used as control variables because interpersonal similarity with regards to personality characteristics also is related to the judgment that arises with regards to another person or group. A higher presence of interpersonal distance also has an impact on the accuracy and depth to which people perceive others. (Liviatan et al., 2008). These are the traits that have been mentioned to be the personality characteristics that are more predominantly visible in entrepreneurs, when compared to others in society. (Busenitz & Barney, 1997).
Optimism was measured using a 10-item scale (alpha=.895) that has been developed by Scheier et al. (1995). The items were measured on a 7-point Likert scale (1=strongly disagree, 7= strongly agree). Example of items include (1) In uncertain times, I usually expect the best (2) I’m always optimistic about my future. However, there were also items that measured pessimism and fillers. The items that measured pessimism were reverse coded (1=strongly agree, 7=strongly disagree) for the analysis. An index that excluded the fillers was created as a summary of the self-described optimism of the respondents.
Entrepreneurial self-efficacy was measured using a 4-item scale (alpha=.839) that has been developed by Zhao et al. (2005). The respondents were asked to indicate to which extent they feel confident to perform specific entrepreneurial tasks. The items were measured on a 5-point Likert scale (1=strongly disagree, 7= strongly agree). Example of items include (1) identifying new business opportunities (2) thinking creatively. These items were also recoded into a new index variable that provides a summary of the self-described entrepreneurial self-efficacy of the respondents. The risk tolerance was measured by letting respondents evaluate their willingness to take risks on a scale from 0 to 10 (Dohmen et al., 2011). Table 3.1. presents an
overview of the means and standard deviations of the variables. In the appendix there is also an illustration of the correlations between the variables that measure political ideology and the social perception.
Table 3.1. Means and standard deviations
Variables N Mean Std. deviation
1. Gender 2140 1.32 0.47 2. Age 2136 40.22 17.61 3. Education 2137 2.18 1.12 4. Income 9176 2.37 1.11 5. Optimism 9811 4.99 0.90 6. Entr. self-efficacy 9704 3.35 0.92 7. Risk 9862 6.64 1.89 8. Left-right position 2132 5.35 2.19 9. Competence 9427 5.08 0.89 10. Warmth 9423 4.42 1.22
Note: Gender: 1= Male, 2=Female; Age is reported in birthyears, 1=2004/14 years; Education
ranges from 1=doctoral degree to 7=no education; Income is reported in years 1= less than 25.000 to 8= more than 400.000. Source: Kieskompas [Vote Compass] Panel Data (2016). Amsterdam: Kieskompas.
3.3. Analytical strategy
To be able to examine the relationship among the variables that are relevant to this research, the research contains a regression analysis. Hierarchical multiple linear regression models have been generated with the use of IBM SPSS. Two separate models have been generated for the two dimensions of social perception. This means that there is one output in which the impact of the political ideology is tested on the perceived competence of entrepreneurs. There is also another output in which the impact of the political ideology is tested on the perceived warmth of entrepreneurs. This makes it possible to determine to which extent political ideology has an impact on the two dimensions that encompass social perception. To control the effect of the demographic variables and entrepreneurial traits, a hierarchical regression has been performed for both models. These models show the relationship between political ideology and social perception when this is controlled for entrepreneurial traits and demographic characteristics. The models have also been computed separately to examine the effect that the control variables and political ideology have separately on the social perception of entrepreneurs in order to gain more insight.
4. Results
This section contains an overview of the results of the research that has been conducted. This will be done along the two dimensions of social perception. There will thus first be an overview of the extent to which political ideologies impact the perceived competence of entrepreneurs, when the control variables are considered. This will be followed by an overview of the extent to which political ideologies impact the perceived warmth of entrepreneurs, when the control variables are considered.
4.1. Political Ideology and the perceived competence of entrepreneurs
Hypothesis 1 proposed that the political ideology would account for a significant variance in the perceived warmth of entrepreneurs. Hypothesis 2 proposed that the political ideology would not account for a significant variance in the perceived competence of entrepreneurs. To test these hypotheses separate models had to be computed for the warmth and competence dimension of social perception. Table 4.1 shows the relationship between the left-right position and the rating that was given to entrepreneurs with regards to their competence. This shows that the left-right position has a significant effect on the manner in which the competence of entrepreneurs is perceived. The left-right position has a positive significant relationship with the perceived competence of entrepreneurs. In the operationalization it has been noted that a higher placement on the left-right scale means that the respondent is more oriented towards the right. It has also been noted that a higher value with regards to the competence reflects a more positive evaluation in terms of their competence.
Table 4.1 Political ideology and the perception of the competence of entrepreneurs
Competence Overall model
Left-right position .103*** .009 .126*** .010
Pseudo R² .010 .051
N 1897 1697
Note: *** p < .001 **p<.01 *p<.05 Source: Kieskompas [Vote Compass] Panel Data (2016). Amsterdam: Kieskompas.
This thus means that the results show that a higher self-placement towards the right-wing significantly predicts a more positive evaluation of the competence of entrepreneurs. On the other hand, a self-placement that is more towards the left-wing significantly predicts a more negative evaluation of the competence of entrepreneurs. This includes the level to which they are perceived as being capable, efficient, organized and skilful. The political ideology thus does explain variance in the manner in which the competence of entrepreneurs is perceived. While the impact of political ideology is significant, it is not very strong. Furthermore, only 1% of variance in the social perception of the competence of entrepreneurs is explained by the political ideology of the respondents.
Table 4.2. Political Ideology and the demographic control variables
Control variables Overall model
B SE B SE
Gender .111 .048*** .116 .048***
Age -.043 .001 -.038 .001
Education -.014 .020 -.027 .020
Pseduo R² .012 .051
N 1710 1697
Note: *** p < .001 **p<.01 *p<.05 Source: Kieskompas [Vote Compass] Panel Data (2016). Amsterdam: Kieskompas.
Table 4.2. Political ideology and the control variables measuring interpersonal similarity Control variables Overall model
B SE B SE Optimism .137 .011*** .153 .024*** Ent. Self-efficacy .055 .012*** .033 .026 Risk .036 .006** .016 .012 Pseduo R² .031 .051 N 8332 1697
Note: *** p < .001 **p<.01 *p<.05 Source: Kieskompas [Vote Compass] Panel Data (2016). Amsterdam: Kieskompas.
While this was not expected, it could imply that the skills and capabilities that entrepreneurs have to possess to build their enterprise are less appreciated by the left-oriented repsondents when compared to the group that identifies as being more to the right due to their different values, priorities and most importantly their goals. They could for example be perceived as being less ‘capable’ to create wealth distribution and equality by the respondents that are left-oriented. It could also imply that individuals that are left-oriented are less inclined to have the heroic perception of entrepreneurs as a special breed of human and instead see them as rational
human beings that do not possess superior qualities when compared to the rest (Nicholson & Anderson, 2005).
The effect of political ideology becomes even stronger when the control variables are taken into consideration. The results however also show that the gender and level of optimism of the respondents, also have a significant positive impact on the perceived competence of entrepreneurs. This suggests that females have a more positive perception on the capabilities of entrepreneurs than males. Furthermore, it also suggests that the people that self-describe themselves as being more optimistic also have a more positive perception on the capabilities of entrepreneurs. The effects of these variables are however weaker than the impact of the political ideology. Graph 4.3. provides a visual illustration of the significant predictors of the social perception of the competence of entrepreneurs.
Graph 4.3 perception of entrepreneurial competence
.126 .116 .153 Left-right position Gender Optimism Competence of entrepreneurs
4.2. Political Ideology and the perceived warmth of entrepreneurs
Hypothesis 3 proposed that a higher left-orientation would predict a more negative perception of the warmth of entrepreneurs, whereas a higher right orientation would predict a more positive perception of the warmth of entrepreneurs. Table 4.2. shows that the left-right position also has a positive significant relationship with the perceived warmth of entrepreneurs. This means that a higher self-placement towards the right-wing significantly predicts a more positive perception of the warmth of entrepreneurs. On the other hand, a higher self-placement towards the left-wing predicts a more negative perception of the warmth of entrepreneurs. The left-right conceptualization of ideology reflects the differences in views with regards to equality and solidarity. Jost et al. (2009) states that the left-wing orientation is associated with a belief in diversity, social concern for others and communalism. The right-wing orientation however, is more associated with individualistic values and attitudes. The entrepreneurs seem to be the in-group for the people that identify with the right-wing orientation. Cuddy et al. (2007) indicates that a group that is perceived as being both warm and competent elicits admiration and respect. Furthermore, people are more inclined to associate themselves with this group and actively help them. The results thus imply that a higher indication of a right-wing ideological position is more in line with an entrepreneurial social perception that reflects the view of the entrepreneur as a unique superhero that has the ability to bring economic vitality.
The results on the other hand also imply that a higher indication of a left-wing ideological position leads to an entrepreneurial social perception that is more in line with the possible negative perception of entrepreneurs that has been presented by Rehn & Taalas (2004). Rehn & Taalas (2004) illustrated that entrepreneurs could also be perceived as subversive and as agents that increase the level of inequality within a society. This type of evaluation mostly
elicits disgust and is accompanied by active attacks or passive neglects. In this logic it also seems plausible that the people that are more centrist of nature also have a centrist perspective on entrepreneurs. Nicholson and Anderson et al. (2005) have stated that entrepreneurs could also be perceived as rational figures that are not supernatural human beings and not always successful in terms of their achievement. As the results indicate that moving to the extremes leads to extreme negative or extreme positive social perceptions of entrepreneurs on both dimensions, a more centrist approach is also related to a more nuanced perception of entrepreneurs.
Table 4.2. Political ideology and the perceived warmth of entrepreneurs
Warmth Overall model
B SE B SE
Left-right position .146*** .013 .126*** .014
Pseduo R² .038 .052
N 8327 1697
Note: *** p < .001 **p<.01 *p<.05 Source: Kieskompas [Vote Compass] Panel Data (2016). Amsterdam: Kieskompas.
The perception of the warmth of entrepreneurs includes the level to which they are perceived as being trustworthy, sincere, good-natured and warm. While the relationship is still significant, in the case of the warmth dimension it becomes weaker when the relationship is controlled for the demographic variables and interpersonal similarity of the respondents with entrepreneurs. This could be the case because when it comes to the perception of the warmth of entrepreneurs, more variables are significant predictors of the social perception.
Age, optimism and entrepreneurial self-efficacy also seem to be significant predictors of the perception of the warmth of the entrepreneurs. Age has a significant negative relationship with the perception of the warmth of entrepreneurs. Higher values in terms of age indicate an older age as it was measured in birthyears. The results thus show that older people have a more negative perception of entrepreneurs in terms of their warmth. Optimism and entrepreneurial self-efficacy have a significant positive relationship with the perception of the warmth of entrepreneurs, which means that a higher self-identification of the presence of these traits is related to a more positive perception of entrepreneurs with regards to their warmth. This shows that the strength of the relationships is the same in both final models. The political ideology thus has the same impact on both dimensions.
Control variables Overall model
B SE B SE Gender -.021 .067 .006 .067 Age -.082 .002** -.065 .002* Education .026 .028 .010 .028 Income .070 .030* -.006 .031 Pseduo R² .006 .052 N 1709 1697
Note: *** p < .001 **p<.01 *p<.05 Source: Kieskompas [Vote Compass] Panel Data (2016). Amsterdam: Kieskompas.
Control variables Overall model B SE B SE Optimism .075 .015*** .077 .034** Ent. Self-efficacy .140 .016*** .138 .036*** Risk .038 .008** .025 .017 Pseduo R² .038 .052 N 8327 1697
Note: *** p < .001 **p<.01 *p<.05 Source: Kieskompas [Vote Compass] Panel Data (2016). Amsterdam: Kieskompas.
It is remarkable that entrepreneurial self-efficacy and age are significant predictors for the perception of the character of entrepreneurs as this was not the case for the perception of the competence. A possible explanation for this is related to the emergence and promotion of the entrepreneurial culture that has begun in the 90’s with the emergence of the (neo)liberal right-wing agenda (Peters, 2009). Furthermore, the younger people have also grown up with images of successful tech entrepreneurs that have managed to disrupt the status quo and in the process of this generate wealth for themselves and their society (Achtzen, 2016). The character of the entrepreneurs could thus be questioned less by the younger people when compared to the older people. Furthermore, possessing the belief in one’s own ability to perform entrepreneurial tasks could make people less intimidated and sceptical of the intention of entrepreneurs, as it also
has an influence on the entrepreneurial intention that people have (Boyd,1994; Zhao et al., 2005).
These findings also illustrate that entrepreneurs do not seem to be subject to ambivalent stereotypical representations from people that are more left-oriented. This goes against what was expected. The entrepreneur seems to be either evaluated more positively on both dimensions, or more negatively on both dimensions depending upon the position on which people position themselves on the left-right scale. This also implies that a centrist position is related to a more neutral stance towards the capabilities and character of entrepreneurs. Graph 4.3. .126 -.065 .077 .138 Left-right position Age Optimism Entr. Self-Warmth of entrepreneurs
5. Conclusion & discussion
Entrepreneurs practice an occupation that seems to be sensitive to stereotypical representations. The representation of the entrepreneurs, especially in the popular media, is more related to narrative customs instead of being based on accurate representations of the experience of entrepreneurs. (Smith,2006). These representations also do not illustrate the diversity of entrepreneurship as there is mainly a focus on a particular profile of an entrepreneur or particular form in which entrepreneurship is practiced. (Welter et al., 2007).
In these narrative customs, the entrepreneur on the hand seems to be celebrated as a special breed of human that functions as an engine for the creation of jobs, and thus the economic wealth of a society. On the other hand, the entrepreneur is viewed as an individual that engages in activities that are not in the interest of other groups in the society, with a focus on the wealth distribution. Nicholson & Anderson (2006) also show that entrepreneurs sometimes are also represented more realistically as individuals that need help and guidance in the process of starting their own business.
These narrative customs seem to reflect the underlying different perspectives with regards to the enterprise culture and entrepreneurs that are prominent in political ideology. As political ideology also has proven to have explanatory power for the evaluative attitudes and behaviour of people, this thesis aimed to empirically test the impact that the political ideology has on the social perception of entrepreneurs in the Netherlands. Understanding how the social perception of entrepreneurs is impacted by the political ideology of citizens is important, because entrepreneurial perceptions that people have seems to impact their entrepreneurial intention. In the existing literature considerate amount of attention has been paid to this, with a particular focus on gender-role stereotypes. Political ideology has been extensively used to explain differences with regards to organizational decision-making for both entrepreneurs and
managers. However, it seems that limited attention is given to the possible explanatory power that political ideology could have on the variances that exist with regards to the perception of entrepreneurs. This research is relevant as it provides an empirical explanation for the diversity that exists with regards to the social perception of entrepreneurs. The research thus contributes to the academic discussion that exists with regards to the entrepreneurial social perception, stereotype formation and political ideology, as it incorporates multidisciplinary theories coming from the areas of entrepreneurship, psychology and political science.
The research was done through the use of hierarchical multiple regression models. Education, age, gender and income were included as demographic controlling variables. Optimism, risk and entrepreneurial self-efficacy were also included as controlling variables to control for the effect of interpersonal similarity. Separate models were generated for the two dimensions that form the social perception according to the stereotype content model (SCM). Hierarchical models were created in order to determine to which extent political ideology has an impact on the social perception of entrepreneurs, when this is controlled for demographic characteristics and interpersonal similarity.
Hypothesis 1 can be confirmed. The overall model of warmth shows that there is a significant relationship between the political ideology of the respondents and the manner in which they perceive the character of the entrepreneurs in terms of their warmth. The level in which entrepreneurs are perceived as warm, trustworthy, sincere and good-natured is thus to some extent as was predicted determined by the political ideology that someone self-identifies with. Hypothesis 2 cannot be confirmed. The overall model of competence shows that there also is a significant relationship between the political ideology of the respondents and their evaluation of entrepreneurs in terms of their capabilities. The level in which entrepreneurs are perceived as skilful, capable, efficient and organized could also significantly be predicted by the political
ideology of an individual. This goes against the expectations and implies that entrepreneurs are not subject to ambivalent stereotypical perceptions. The findings also show that the strength of the relationship is the same for both dimensions, which further proves that political ideology has the same impact on both dimensions.
Hypothesis 3 can be confirmed. The overall model of warmth shows that there is a significant positive relationship between political ideology and the ratings of entrepreneurs with regards to their warmth. This means that a higher indication on the left-right scale predicts a higher rating of entrepreneurs on the items that measured the perception of the warmth of entrepreneurs. A higher indication of left-wing orientation thus as expected is related to a more negative perception of the character of entrepreneurs in terms of their warmth. A higher indication of right-wing orientation on the other hand is more related to a more positive perception of the character of entrepreneurs in terms of their warmth. The results show that the same relationship also exists when it comes to the perception of the competence of entrepreneurs.
The relationship was controlled for demographic characteristics and interpersonal similarity. It still remained significant. In the case of the competence dimension, the relationship even became stronger with the inclusion of the control variables. In the case of the warmth dimension, the relationship became weaker. This could be because more determinants were predictors of the warmth dimension. Besides the political ideology, gender and level of optimism were significant predictors for the perception of the competence of entrepreneurs. For the perception of the warmth of entrepreneurs age, optimism and entrepreneurial self-efficacy were also significant factors.
The results illustrate that different ideological frameworks create variation in the social perception of entrepreneurs. There is thus diversity when it comes to the evaluation of both the
capabilities and characters of entrepreneurs. Different worldviews significantly seem to impact the manner in which people perceive the intent of entrepreneurs and their capabilities to act upon their intent. This in turns has an impact on the extent to which they are admired and respected or despised by other groups in a society. Contrary to what was expected entrepreneurs do not seem to be subject to ambivalent stereotypical perceptions. Both ideological extremes seem to reflect more deterministic and extreme stereotyping of entrepreneurs as either superheroes or villains, while a centrist ideological positioning most likely displays a more nuanced perception of entrepreneurs.
This is understandable as the left in the Netherlands mostly seems to be associated with a priority on equality and wealth distribution by the government as a protection of the working class against the big businesses. This group would thus indeed be inclined to have more negative perceptions towards entrepreneurs and the enterprising culture as a whole when compared to the right-wing oriented people that prioritize individualism, limited government interference and an enterprising culture.
The implication of the results is that depending upon the context the presentation of the ‘entrepreneur’ can be aligned with the ideological positions of particular target groups. The left-oriented people may for example be more inclined to gain a positive perception of entrepreneur when presented as a ‘social entrepreneur’ instead of a ‘commercial entrepreneur’. Targeting this could enhance the entrepreneurial intention of the people that normally would not have a positive perception of entrepreneurs due to the ideological framework with which they evaluate the occupation.
This research has a few limitations. Firstly, the research has been done through a secondary analysis of existing data that has been collected with another purpose. This has its limitations, as there are more variables that could account for variation in the entrepreneurial social
perception, which are not included in this analysis. Furthermore, the measurement of the ideological position also has displayed some limitations, as the respondents had to position themselves on a scale. This means that different respondents could have limited and different interpretations of left-right. Fuchs & Klingemann (1990) however indicated that there is a wide-recognition in the Netherlands of the left-right schema and there is also a unified understanding of this schema.
The unidimensional approach however did not make it possible to analyse if there were differences across the economic and the cultural dimension of the left-right notion. The use of multiple regression models also has its limitations as it is not possible to prove that there is a causal relationship between the variables. The research only indicated the extent to which variation occurs due to the determinants. Last but not least, the focus of this thesis was on the citizens in the Netherlands. This has limitations with the extent to which the findings can be generalized. These are all points that should be included in future researches that tackle this theme in order to provide a better view of the factors that impact different entrepreneurial social perceptions.
A comparative cross-national analysis of the relationship between ideological position and the entrepreneurial social perception is thus recommended. This combined with structural equation modelling could provide more strength to the research as this makes it possible to analyse causal relationships. An interesting future research could be to further this model by including the emotional reactions and behaviour that arise as reactions to the stereotype formation. This could provide insights into the manner in which entrepreneurs are not only ‘perceived’, but also treated in societies. Another interesting approach would be to research if there is a relationship between the political ideology of entrepreneurs and their choice to engage in social entrepreneurship versus commercial entrepreneurship.
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Appendix Table 1.1. Descriptive Statistics left-right positioning
N Minimum Maximum Mean Std. deviation
Left-right position 2132 1 11 5.35 2.191
Valid N (listwise) 2132
Table 1.2. Descriptive statistics birthyear
N Minimum Maximum Mean Std. deviation
Birthyear 2136 6 82 40.22 17.606
Valid N (listwise) 2136
Table 1.3. Descriptive statistics gender
Frequency Valid Percent Cumulative Percent
Male 1464 68.4% 68.4%
Female 676 31.6% 100.0%
Appendix
Graph 1.4. Descriptive statistics income Graph 1.5. Descriptive statistics Education
Table 2.1. Bivariate correlation matrix
Measure Competence Warmth Left-right positioning M SD
Competence 1 .412** .104** 5.0684 .88261
Warmth .412** 1 .150** 4.3821 1.23639
