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Intra-cultural differences and causation and effectuation

A qualitative study of how regional culture influences entrepreneurial causation and

effectuation processes

Author: Joan Wolbers Student number: 4716531 E-mail: j.wolbers@student.ru.nl Supervisor: dr. R. Smals

2nd examiner: dr. S. Schembera Radboud University

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Preface

Hereby I present you my master thesis ‘’Intra-cultural differences and causation and

effectuation. A qualitative study of how regional culture influences entrepreneurial causation and effectuation processes’’. This thesis is a product of being a student for four years at Radboud university. These four years represent a great period of my life.

The period of writing my master thesis is characterized by ups and downs. The corona crisis and the exceptional circumstances that are the result of it presented some challenges during the process of writing my thesis. Nevertheless, I succeeded in finishing this project of which I am really proud and I would like to thank a couple of people that assisted me.

To start, I would like to thank my supervisor dr. R. Smals, who helped me to write this thesis at the current level and in the current form. His feedback was always of great value and he helped me to critically reflect on the content and process. Secondly, I would like to thank my second supervisor, dr. S. Schembera, for his valuable feedback on my research proposal. I would also like to thank my family, my boyfriend and my amazing friends for supporting me while writing my master thesis. When I was struggling, they always motivated me to keep going. Last but not least, I would like to thank my friends of the ODD curriculum for helping me by checking this thesis on grammar and supporting me, especially in the final stages.

Joan Wolbers Venlo, 06-10-2020

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Abstract

Entrepreneurship is embedded in a social context and influenced by social and cultural factors (Aldrich & Zimmer, 1986). Values are an important aspect of these cultural factors, because individuals use them to express their culture in their daily life. Culture is subjected to contextual influences, and therefore intra-cultural differences within a nation cannot be ignored (Lomnitz-Adler, 1991; Sackmann & Philips, 2004). Entrepreneurs have to make decisions on a day-to-day basis and pursue opportunities. There can be two approaches followed in entrepreneurial decision-making, each with their own benefits: causation and effectuation. The goal of this research was to give insight in how the relation between regional culture and entrepreneurial causation and effectuation processes is shaped. This has been realized by conducting an exploratory, abductive and qualitative research. Ten

entrepreneurs in the hotels and restaurants industry from two regions in the Netherlands were interviewed and compared. The analysis of the collected data resulted in uncovering multiple potential relations between regional culture and entrepreneurial causation and effectuation processes. A reconceptualization of the concept culture was made in order to be able to describe the regional culture of the respondents. It can be concluded that a strong social cohesion seems to have a relation with effectuation, whereas a weaker social cohesion seems related to causation. Furthermore, progressivism is associated with causation. There was no influence found of introversion/extraversion or power distance on causation or effectuation. Follow up research is necessary in order to validate these assumptions.

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Table of content

1. Introduction ... 6

1.1 Problem statement ... 6

1.2 Goal and research question ... 8

1.3 Relevance ... 8

1.4 Outline ... 9

2. Theory ... 10

2.1 Culture ... 10

2.2 Entrepreneurial processes: causation and effectuation ... 13

2.2.1 Causation ... 14

2.2.2 Effectuation ... 15

2.2.3 Dimensions of causation and effectuation ... 16

2.3 Hotels and restaurants industry ... 18

2.4 Relation and conceptual model ... 18

3. Research design ... 22

3.1 Research strategy ... 22

3.2 Data sources and methods ... 23

3.3 Operationalisation ... 25 3.4 Data analysis ... 26 3.5 Quality criteria ... 27 3.6 Research ethics ... 28 4. Results ... 29 4.1 Culture ... 29

4.2 Entrepreneurial causation and effectuation processes ... 38

4.3 Culture vs. entrepreneurial causation and effectuation processes ... 42

5. Conclusion and discussion ... 47

5.1 Conclusion ... 47

5.2 Discussion ... 48

5.3 Reflexivity ... 50

6. Quality & limitations ... 52

6.1 Methodological reflection ... 52

6.2 Practical relevance ... 54

6.3 Recommendations for follow up research ... 54

References ... 56

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Appendix 1: Interview protocol ... 60 Appendix 2: Operationalisation in table form ... 62 Appendix 3: Code book ... 65

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1. Introduction

1.1 Problem statement

Nowadays entrepreneurs are indispensable in the society we are living in. Entrepreneurship is a broad concept and can be described as the creation and management of new businesses, small- and family businesses and all the characteristics and problems that entrepreneurs encounter when managing these businesses (Gartner, 1990). Entrepreneurship forms the basis of society itself. It permeates all sectors and is the vehicle for creating value, innovation, employment and economic growth. All over the world there is an increasing interest in becoming an entrepreneur. However, not many of the attempts to transform business ideas into reality are successful (Minniti, 2006). When studying entrepreneurship, it is important to involve social and cultural factors, because entrepreneurship is embedded in a social context (Aldrich & Zimmer, 1986). With an eye on the literature it becomes clear that many scholars mainly focus on economic aspects or personality traits of entrepreneurship and entrepreneurs. The social and cultural factors, which are part of the institutions, provide a framework that guides economic activity, reduces uncertainty in decision-making and defines the set of feasible opportunities to entrepreneurs. Institutions determine the rules of the game that influence the behaviours of private actors, including entrepreneurs (Minniti, 2006). In recent entrepreneurship research there is a similar necessity for context. Contextualizing

entrepreneurship means seeing entrepreneurial activities as being influenced and determined by social, historical and ecological factors. Thus, being an entrepreneur is not an activity that is conducted without a context, instead institutions play a major role.

Institutions can be explained as multifaceted, durable structures comprised of elements like rules, regulations, values, norms, shared meanings and common beliefs. These elements can be categorized under three pillars: the regulative pillar, the normative pillar and the cultural-cognitive pillar. The cultural-cultural-cognitive pillar, in particular, help us to understand the world we are living in and assign meaning to social life (Scott, 2008). The cultural-cognitive pillar is socially constructed over time and perceived as objective and outside of the social actor. Thus, it is not intentionally established but naturally there (Bruton, Ahlstrom & Li, 2010). How we perceive the world is for a large part dependent on our internal representation of the environment (Scott, 2008). Cultural-cognitive institutions comprise shared frames of

references which are established in interaction processes between actors within an

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by the social actors within the organizations (Vermeulen, 2012). Culture is a part of the cultural-cognitive pillar and can be analysed at different levels. Culture is a set of values, beliefs and practices people have about the world, and simultaneously the norms of behaviour derived from this set of values, beliefs and practices (Hofstede, 1991; Gorodnichenko & Roland, 2017). Within the concept of culture values are essential because individuals use the values that they hold about life and the world around them to express their culture in their day-to-day life. Culture is a concept that cannot be ignored when facing today’s business world. The dominant logic for scholars when researching culture has been guided by cross-national comparisons and most of the time culture is considered to be equivalent to nation (Sackmann & Phillips, 2004). However, as culture is subjected to contextual influences, intra-cultural differences within a country should be accounted for too. These intra-intra-cultural

differences can be reflected in different regions within a country. The production and reproduction of social spaces are the result of practices of people. These people are social actors whose identities and practical orientations are influenced by the spaces in which they have been socialized. Thus, this relation is reciprocal (Lomnitz-Adler, 1991) and groups of people in different social spaces, and regions, have established significantly different cultures. Entrepreneurs have to take decisions on a day-to-day basis. These decisions are affected by the institutions in their entrepreneurial field, among others the culture that has been

established. Essential in entrepreneurial decision-making is pursuing opportunities

(Sarasvathy, 2001). Decision-making processes by entrepreneurs were historically considered from planned behaviour approaches, wherein entrepreneurs set pre-determined goals and targets in order to run, build and grow the organization (Ansoff, 1994). According to Sarasvathy (2001) there are two different approaches that can be followed in decision-making: causation and effectuation. Causation is taking use of a planned approach with help from causal reasoning. In the causation approach entrepreneurs rationally plan their ideas by assessing risks of exploiting a business opportunity. Thus, this approach is in line with considered planned behaviour approach and is goal-driven. Effectuation is more an emerging approach, where the entrepreneur is responsive to the dynamic environment. The effectuation approach follows an iterative process which is means-driven and risk-aversive: new

opportunities that arise are not overlooked (Delmar & Shane, 2003). Effectuation, as an entrepreneurial logic, can help individuals improve their entrepreneurship by making use of already existing resources (Sarasvathy & Venkataraman, 2011). The theory is gaining importance since there is an increase in developments, complexity and dynamism of

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organizational environments. Effectuation is not necessarily the better option to choose, as it depends on the circumstances an entrepreneur is operating in. In situations where there is a lot of uncertainty, effectuation is the better option for the entrepreneur to become successful (Sarasvathy, 2001). Studies examining the relationship between culture and entrepreneurial activities have largely ignored the influence of culture on entrepreneurial reasoning and decision-making. Behaviour and perceptions of entrepreneurs are partly shaped by culture. However, there is little research about how culture impacts the effectual behaviour of

entrepreneurs (Strauß, Greven & Brettel, 2020). In organizational decisions, effectuators don’t build hierarchical, procedure-based cultures, instead they are more likely to build strong participatory ones (Sarasvathy, 2001). The relation between culture and entrepreneurial effectuation and causation processes is assumed, but how the relationship is shaped is still unknown. This even though it has a practical relevance to know how culture influences the decision-making processes of entrepreneurs (Laskovaia, Shirokova & Morris, 2017). After all, different regions have different cultures and different ways of doing business. Seeing how different cultures cope with causation and effectuation will be of value for today’s business world.

1.2 Goal and research question

The goal of this research is to provide more insight in the relation between culture and entrepreneurial causation and effectuation by conducting an exploratory, abductive and qualitative research, in which entrepreneurs from two regions in the Netherlands will be questioned and compared. The aim of this research is exploring the relation between (regional) culture and entrepreneurial causation and effectuation in order to gain a better understanding. This goal will be examined with help from the following research question: ‘’What is the influence of (regional) culture on entrepreneurial causation and effectuation

processes of Dutch entrepreneurs in the hotels and restaurants industry?’’ 1.3 Relevance

This research provides insight in the relationship between culture and entrepreneurial causation and effectuation processes. Effectuation is a relatively novel concept which can provide a lot of benefits in the future (Perry, Chandler & Markova, 2011). Effectuation could lead to a new paradigm for entrepreneurial programs (Sarasvathy, 2001). Studies examining the relationship between culture and entrepreneurial activities have largely ignored the influence of culture on entrepreneurial decision-making. There is a need for studies

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Chandler & Markova, 2012). This study provides such knowledge from the regional culture as an antecedent shaping entrepreneurial causation and effectuation processes. This research can be used as a starting point for further, and more in-depth qualitative research. It can act as a stepping stone towards gaining more insights about specific factors and elements that could improve entrepreneurial decision-making. This research also contributes to the field of cultural research. The dominant research paradigm has mainly focused on inter-cultural differences between countries. Mapping the intra-cultural differences within the Netherlands generating differences in entrepreneurial behaviour is completely new.

This research provides insights in potential regional cultural differences entrepreneurs can experience. This is relevant for students, entrepreneurs, policy makers, advisors and

financiers. Entrepreneurs who are going to operate in a different region within their nation can account for these differences. When the differences between entrepreneurial processes in different cultures can be mapped, more precise adjustments in education programs and entrepreneurial thinking can be applied. Policy makers, advisors and financiers can use the information about regional cultural differences and recognize these differences when they are assisting entrepreneurs.

1.4 Outline

In the following chapter the theoretical framework is developed. This theoretical framework consists of the explanation of the central concepts within this research, including the relation between the central concepts and the conceptual model. In chapter 3 the methodology of this research is discussed, including the operationalisation of the central concepts. In chapter 4 the collected data will be analysed and the outcomes will be discussed. Chapter 5 will consist of the conclusion, discussion and reflexivity. In chapter 6 quality, limitations and

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2. Theory

This chapter includes the identification and elaboration of the concepts within this research. First, the independent variable ‘culture’ will be explained as it is a central concept of this research. Subsequently the dependent variable ‘entrepreneurial processes’ with sub concepts ‘causation’ and ‘effectuation’ will be elaborated, which are another central concepts of the research. Subsequently the choice for focusing on hotels and restaurants industry will be shortly explained. At last, the relation between the concepts and the conceptual model will be provided.

2.1 Culture

Schein (1990) explains culture as something that groups collectively possess. Through a certain time frame, the whole group learns something and this then takes root in the group and ultimately this will result in the culture. With other words: it is the accumulated learning of the group that leads to prevailing values and beliefs (Davidsson & Wiklund, 1997). The established culture will be passed on to newcomers as well (Schein, 1990). Hofstede (1980) conducted one of the most influential studies into the concept of culture (Chandy & Williams, 1994). He describes culture as the collective programming of mind which distinguishes the members of one group from another. Gorodnichenko & Roland (2017) define culture as: ‘’the set of values and beliefs people have about how the world (both nature and society) works, as well as the norms of behaviour derived from that set of values’’ (p. 1). This definition will be adopted in this research, because it captures essential aspects about culture and it takes into account the norms of behaviour, which is also an important part of the culture.

Culture can be distinguished on three levels: artefacts, values and underlying assumptions (Shein, 2010). For illustration purposes different scholars use an onion as example (Schein, 2010; Hofstede, 1991; Bunkowske, 2002). Every ring in the onion resembles one of the three levels of culture. On the outside there is a layer, the artefacts, which can be adjusted and changed. How deeper the layer in the onion, how harder it is to change the level of culture. Artefacts are visible on the surface, they consist of what one sees, hears and feels. Examples of artefacts are technology, art and visible and audible behaviour patterns (Schein, 2010). Although the artefacts are easy observable, they are harder to decipher. In the second layer of the onion, one will find the values. Values consist of debatable, overt and espoused values. Values are embedded in a greater level of awareness and not necessarily congruent with actual behaviour. Instead, values are what the cultural group stands for and claims to value.

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When you want to obtain values of cultural groups you have to talk to the individuals within these cultural groups, because they are not directly observable (Schein, 2010). An example of such a value is the degree to which a society considers certain entrepreneurial undertakings like independent thinking and taking risks to be eligible (EstradaCruz, Verdújover & GomezGraz, 2019). The core of the onion consists of underlying assumptions. Underlying assumptions are unconscious and the core and essence of the culture. They consist of the relationship to the environment, nature of reality, time and space and nature of human nature activity and relationships. Underlying assumptions are deeply embedded in the form of taken-for-granted beliefs, perceptions, thoughts and feelings. Underlying assumptions often start as values, but through the time they gradually become taken-for-granted assumptions (Schein, 2010).

Hofstede distinguishes the concept culture in two separate constructs: practices and values. Organizational cultures often are embedded in visible and conscious practices (Hofstede, 2011). Societal cultures are embedded in often unconscious values, in the sense of broad tendencies to prefer certain states of affairs over others (Hofstede, 2001). Within this research the focus is on cultural values, since societal cultures are examined.These values are an essential part of culture, since individuals use the values that they hold about life and the world around them to express culture and its normative qualities (Schein, 2010). Different scholars examined cultural differences dealt with attitudes and values on national level. However, national borders are not most suitable to demarcate cultural boundaries since many countries have large subcultures (House & Javidan, 2004). Therefore, it is important to acknowledge people from one regional place have their own culture. The nation is equal to culture assumption can be tackled in the current context and the intra-cultural differences in a country should no longer be ignored (Sackmann & Phillips, 2004).

There is a relation between people, places and culture. A regional culture is the internally differentiated and segmented culture produced by human interaction. However, in practice cultural regions are often linked to economic and administrative regions, but that’s not the best representation. Regional economic and political systems are more like matrices in which regional culture is produced. Cultural groups can be demarcated according to the kind of symbolic interaction between them and the ways in which they share meaning (Lomnitz-Adler, 1991). Culture motivates individuals in a certain society to engage in behaviours that may not be seen in other societies (EstradaCruz et al., 2019). This is partly caused through our

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socialisation by family, friends and school. Hofstede (1980) distinguished four cultural value dimensions underlying people’s behaviour in different cultural settings, namely:

individualism-collectivism, uncertainty avoidance, power distance and

masculinity-femininity. Later he added a fifth cultural value dimension: long term-short term orientation. Different scholars from various disciplines prefer Hofstede’s framework because of the parsimony and clarity in measuring culture (EstradaCruz et al., 2019). The five cultural value dimensions by Hofstede (1980) can be described as follows:

Individualism-collectivism: This dimension is related to the integration of individuals into

primary groups and the degree to which individuals have to look after themselves or remain integrated in groups. Individualism reflects societies in which the link between individuals is low. One could say that in an individualistic society there is a clear emotional independence of groups and decisions are made solely (Hofstede, 2011). On the contrary there is

collectivism, which reflects societies in which the link between individuals is high. There are certain unified groups in which one belongs to starting from his/her birth. This group protects their members in exchange for loyalty and trustworthiness. In a society, individualism and collectivism strongly affect the nature of the relationship between a person and the

organization to which he or she belongs. In individualistic cultures, autonomy, individual responsibility for results and individualistic rewards are typical characteristics. In

collectivistic cultures, work unit solidarity and team-based rewards are more common (Hofstede, 1980).

Uncertainty avoidance: the degree to which members of a culture are afraid of unknown and

uncertain situations. Uncertainty avoidance is the extent to which members of a society feel uncomfortable with unstructured situations and ambiguity. In this case one should take into account society’s intolerance of ambiguity and uncertainty (Hofstede, 2011). Strong

uncertainty avoidance cultures fully deny uncertainty, which leads to the need to adopt formal rules. Uncertainty avoidance should not be confused with risk avoidance, since members of a high uncertainty avoidance culture take risks as long as they think they know them (Hofstede, 1980).

Power distance: the degree to which less powerful members of organizations and institutions

expect and accept that power is distributed unequally. Large power distance cultures accept that power is distributed unequally as a feature of society (Hofstede, 1980). In this culture some more powerful members are privileged and this is collectively accepted. Power distance influences the extent of formal hierarchy, decision-making structures, rules and regulations as

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Masculinity-femininity: The masculinity dimension displays the extent to which the dominant

values, such as assertiveness, the acquisition of money and objects, heroism, achievement, the quality of life, cooperation, relationships and group decisions, in a society are masculine (Hofstede, 1980). A heroic manager in a masculine culture is decisive, assertive and slightly aggressive (Hofstede, 2001). In contrast to a masculine culture, feminine cultures are more sensitive as they strive for a high quality of life, maintain relationships and care about their co-workers. Managers in feminine cultures are seeking for consensus, intuition and

cooperation. In feminine cultures, there is a preference for a more consultative, considerate leadership style (Hofstede, 2001).

Long term-short term orientation: People who have a long-term orientation value persistence,

perseverance and are able to adapt to changing circumstances. Furthermore, they are more driven, as they are fostering virtues oriented towards future rewards. The focus is mainly on the future. On the contrary, people who have short-term orientation are more focused on the present and the past, instead of the future. People with a short-term orientation are more chauvinistic. They value personal steadiness and stability, tradition, fulfilling social obligations, preservation of face and the social hierarchy (Hofstede, 2001; Hofstede & Minkov, 2010).

Hofstede, Bond & Luk (1993) conducted a study for measuring individuals perceptions of organizational culture. The study of individuals perception of organizational culture proved a distinction for the concept culture. On one side there is psychological culture, which is cognitive and located in the individual’s mind, and on the other side there are the practices. The psychological culture contributes to the way in which the individual experiences organizational culture. It also displays the individual’s personal preference in work and life-related issues and his or her answers to typical cultural dilemmas, such as whether

competition among employees is a good or a bad thing, and his or her work goals. It is a result of differences in values. The psychological culture of individuals can be labelled into six dimensions: personal need for achievement, need for supportive relationships, machismo, workaholism, alienation & authoritarianism. Beforementioned dimensions show overlap with Hofstede’s (1980) cultural value dimensions. However, Hofstede, Bond & Luk’s (1993) psychological culture of individuals is more suitable when measuring culture at one individual. Therefore, Hofstede’s (1980, 2001) cultural value dimensions will be used as guidance for measuring the collective regional culture.

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Making decisions is really important within the management and sociology disciplines. Examples of such decisions are decisions in the hiring process, strategy and product price. Decisions can be made on several levels: individual, firm, market and even economy level. However, every decision is biased of central artefacts and the context of business (Sarasvathy, 2001). Thus, in context of this research: every decision that is made is on some level is

influenced by the firm itself, the context and the culture. Causation processes can be explained as seeing a particular effect or result as given, and from there one needs to select between means in order to get to that effect (Sarasvathy, 2001). A simple example to illustrate this: a client wants a certain product and the entrepreneur has to order the resources for the product and then actually produce the product. Effectuation processes focus on taking a set of means as given and focus on selecting between possible effects and results that can be created with the set of means given (Sarasvathy, 2001). An example of effectuation processes is: a client wants something fast so he asks the entrepreneur to look between the available

resources to produce some product that can suffice. Note, these are simple examples which do not include dynamism and contingencies, but the essence remains the same. The difference between effectuation and causation is in the set of choices. Causation processes lead to many-to-one mappings and effectuation processes lead to one-to-many mappings (Sarasvathy, 2001). Traditional strategic business decisions in existing markets are based on causation decision-making logic. Causation is the most favorable, dominant decision-making strategy in well-established static environments (Chandler, DeTienne, McKelvie & Mumford, 2011). However, when entrepreneurs face constant uncertainty, they need another strategy in decision-making (Sarasvathy, 2001).

2.2.1 Causation

In entrepreneurship research rational goal-driven behaviour is considered when entrepreneurs pursue opportunities (Perry, Chandler & Markova, 2011). Thus, the predominant decision-making model for entrepreneurs is a goal-driven, deliberate model of decision-decision-making processes, which Sarasvathy (2001) refers to as causation. The theoretical foundations for causation derive from neo-classical rational decision making processes. In causation processes the entrepreneur takes an existing market opportunity and with help from resources he creates a sustainable competitive advantage (Sarasvathy, 2008). Entrepreneurs who take a causal frame, see the future as predictive and a continuation from the past. Prediction is important since it is both necessary and useful (Dew, Read, Sarasvathy & Wiltbank, 2009). The basis for taking action is goal-oriented (Sarasvathy, 2001). In causation processes, goals, even when constrained by limited means, determine sub-goals and action. A competitive attitude towards

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outsiders is common. Furthermore, uncertainty and contingencies are avoided in this approach (Dew et al., 2009). Causation models are preferable when certain knowledge forms the source of competitive advantage (Sarasvathy, 2001). Accurate predictions, careful planning and unwavering focus on targets are essential within the causation processes (Dew et al., 2009). 2.2.2 Effectuation

Entrepreneurs employ effectuation processes when pursuing opportunities. In the effectuation processes entrepreneurs start with a generalized aspiration, and they want to fulfil this

aspiration with use from resources they have at their immediate disposal (Perry, Chandler & Markova, 2011). In effectuation processes the entrepreneur develops opportunities by experimenting and changing direction as soon as new information becomes available

(Sarasvathy, 2001). In the core Sarasvathy (2001) idea is as following: when somebody really wants to achieve something, he can start directly by asking himself three questions: Who am I? What I know? Whom I know? The answers on these questions are the starting point for the project, together with the resources available. The growing interest in effectuation can be explained by the changes in society. Environments of enterprises are getting more dynamic and complex. The era of blueprint, long-term business plans are over because these plans don’t survive in the dynamic and complex environments. Entrepreneurs who take an effectual frame are creative and see the future as partially shaped. Prediction is therefore neither easy nor useful (Dew et al., 2009). The basis for action is means-oriented, goals emerge by imagining courses of action based on given means. The actors in the process determine what can and needs to be done. In effectuation processes, partnerships are common and the attitude towards outsiders is cooperative, instead of competitive (Sarasvathy, 2001). This cooperation can help because with help from the partnerships new markets can be created. Uncertainties and contingencies in the environment are seen as opportunities. Shortly summarized: avoiding predictions, imaginative rethinking of possibilities and continual transformations characterize effectuation (Dew et al., 2009).

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Figure 1: The theory of effectuation (Sarasvathy, 2001, p. 253)

The growing interest in effectuation can be explained by the changes in society. Environments of enterprises are getting more dynamic and complex. The time of blueprints and long-term plans are over, because these plans don’t survive in the dynamic and complex environments that long (Sarasvathy, 2008).

2.2.3 Dimensions of causation and effectuation

Kraaijenbrink (2012) proposes that it is more fruitful to focus on the dimensions underlying causation and effectuation, rather than on the two models. This because entrepreneurs are not focusing solely on causation or effectuation, but rather are combining dimensions of the two approaches. There are some dimensions that repeatedly occur in the causation and

effectuation literature: goals-driven versus means-driven, control versus prediction, expected return versus affordable loss, competition versus cooperation and avoiding versus leveraging contingencies (Kraaijenbrink, 2012; Drew et al., 2009)

Goals-driven versus means-driven

The key distinction between causation and effectuation models are the different starting points of these models. Causation models start with an objective goal as a given and the basic

decision is what means should be accumulated to achieve the goal. Exploiting pre-existing capabilities and resources is important in the causation approach (Chandler et al., 2011). In effectuation models it is the opposite way: means are given and it is all about which goals can

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be achieved while using these means (Sarasvathy, 2001). This principle emphasizes the steps you can take today, related to available resources, skills, network and knowledge. It is not necessary or essential to make extensive business plans and expect outcomes beforehand. The essence of effectuation is to look at what you already have and what you can achieve while making use of it (Sarasvathy, 2008). The focus is on short-term experiments to identify business opportunities in an unpredictable future: exploiting of environmental contingencies while remaining flexible is important (Chandler et al., 2011).

Prediction versus control

The causation models focus on predictable aspects of an uncertain future. The past is used in causal logic frames to predict the future (Dew et al., 2009). It assumes that you can control the future to the extent that you can predict it (Sarasvathy, 2001). Business planning and

competitive analysis are used to predict an uncertain future (Chandler et al., 2011).

Effectuation models focus on the controllable aspects of an unpredictable future. It assumes that you don’t need to predict the future to the extend that you can control it (Sarasvathy, 2001). Effectuation, thus, focuses on the aspects that are controllable instead of predictable. The future is shaped, at least partially, by wilful agents (Chandler et al., 2011). The solution here is to not cling tightly to the plan, but to exploit contingencies along the way. Instead of only seeing the worst in the process, you have to be open to surprises. Although the future cannot be predicted, entrepreneurs are in control like a pilot who can control factors that determine future course. Choosing an unpredictable strategy instead of a predictable strategy can shape the ideal future for effectuators (Sarasvathy, 2008).

Expected return versus affordable loss

In this third dimension the focus is on risk. Causation focuses on maximizing returns by selecting optimal strategies. Some entrepreneurs might find it tensive to take certain steps, or are avoiding uncertainty because the chance of success is not worthy for them. On the other hand, effectuation begins with the choice of how much one is willing to lose (Sarasvathy, 2001). It focuses on projects where the loss is in the worst case affordable (Chandler et al., 2011). This principle revolves around the question: how many of the available resources are you willing to put on risk? The focus here is on the downside risk. It is important to choose the path that provide the most benefits, even if there are some disadvantages. The affordable loss principle is about entrepreneurs committing in advance what they are willing to lose, rather than investing in calculations about the expected return of the project (Sarasvathy, 2008).

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This dimension considers the attitude towards outside firms. Causation focuses on

competition. The dominant assumption is that it is better to constrain task relationships with customers and suppliers to only what is necessary. In effectuation processes, the focus is on cooperative partnerships. On basis of these partnerships with customers, suppliers and prospective competitors, entrepreneurs and partners collectively can build a market (Sarasvathy, 2001).

Avoiding contingencies versus leveraging contingencies

Because causation is revolved around careful planning and predicting, contingencies are seen as obstacles and therefore being avoided (Drew et al., 2009). On the other hand, exploiting of environmental contingencies while remaining flexible is important in the effectuation

approach (Chandler et al., 2011). Imaginative thinking of possibilities and continual transformations characterize the effectuation approach. Contingencies are seen as opportunities, and therefore need to be leveraged (Drew et al., 2009).

2.3 Hotels and restaurants industry

In this section the choice for the hotels and restaurants industry will be shortly elaborated. The hotels and restaurant industry scores high on demand uncertainty, which means they have often difficulties in predicting demand for their services (Dyer, Furr & Lefrandt, 2014). There are many factors that influence whether, when and where people decide to eat out or travel to. This has the result that entrepreneurs in the hotels & restaurant industry often have to take decisions concerning their business operations. Furthermore, businesses in the hotels and restaurants industries are often locally oriented. A previous study has revealed a relation between culture on managerial behaviour of entrepreneurs in the hotels and restaurants industry (Pizam, Pine, Mok & Young Shin, 1997).

2.4 Relation and conceptual model

In this section the possible relation between culture and entrepreneurial causation and effectuation processes will be elaborated. First, the potential relation for each of Hofstede’s (1980, 2001) cultural value dimensions and causation or effectuation will be elaborated. Second, the relation between culture and entrepreneurial causation and effectuation processes as a whole will be discussed.

The potential relation for each of Hofstede’s (1980, 2001) cultural value dimensions and entrepreneurial causation and effectuation processes is as follows:

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In collectivistic cultures there is a need for harmony, and direct confrontation will be limited as much as possible. People in this culture tend to be more introvert and personal relations are more important than the task that need to be executed (Hofstede, 1980). People in

collectivistic cultures might be more cooperative, which is an effectual approach. Countries with high collectivism are associated with use of associations and alliances. Effectual entrepreneurs tend to focus more on alliances with the social group they are a part of (EstradaCruz et al., 2019). Therefore, the proposition is that collectivistic cultures are

associated with effectuation. On the other side there is the more individualistic culture. In this culture people value expressing their honest opinion. Furthermore, they think that

relationships have to be self-chosen and maintained. People in this culture tend to be more extraverted. People who are individualistic rely more on themselves and the outside world has a submissive role (Hofstede, 1980). The input of outsiders are less leading for individualistic entrepreneurs, and the development of causal entrepreneurs will stem more from themselves. Causal entrepreneurs are more likely to focus on competitive analysis (EstradaCruz et al. 2019). The proposition is that entrepreneurs in an individualistic culture tend to be more causal, especially towards outsiders.

2. The ways to deal with uncertainties and contingencies (uncertainty avoidance)

In high uncertainty avoidance cultures business practitioners are more likely to be intolerant of any deviations from group and organizational norms than their counterparts in low uncertainty avoidance cultures. In high uncertainty avoidance cultures members of a society feel uncomfortable with unstructured situations and ambiguity and desire formalisation and rules. People tend to be more conservative and they feel safer in stable environments (Hofstede, 1980). The proposition is that high uncertainty avoidance cultures are related to causation processes. Business planning and competitive analysis are used to predict an uncertain future, and thus avoid uncertainties. The causal dimensions ‘predict’ and ‘avoiding contingencies’ are expected to be associated with high uncertainty avoidance. In low

uncertainty avoidance cultures people tend to experience little stress and tension. There is an emphasize on more risky investments with higher profits. In this culture there don’t need to be more rules than necessary and there is a tolerance for ambiguity and chaos (Hofstede, 1980). The proposition is that low uncertainty avoidance cultures are associated to effectual

processes. Entrepreneurs in low uncertainty avoidance cultures are more likely to exploit any relationship based on their closed networks (EstradaCruz et al., 2019). As a result,

entrepreneurs in low uncertainty avoidance cultures are expected to create more partnerships. Besides that, entrepreneurs in low uncertainty avoidance cultures are expected to leverage

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3. Social inequality, among which the attitude towards certain behaviour (power distance) In large power distance cultures organizations tend to have more supervisory personnel. There are bigger differences in relationships between superiors and subordinates and decision-making is centralized. Privileges and status symbols are common in large power distance cultures (Hofstede, 1980). In small power distance cultures decentralization is more popular. There are only pragmatic relationships between superiors and subordinates, and privileges and status symbols are undesirable (Hofstede, 1980). Large power distance cultures often occur in bureaucratic organizations. The proposition is that in large power distance cultures people tend to be more goal-driven. The distance between superiors and subordinates makes that subordinates just do their work and are not really able to alter these goals when better means occur. In smaller power distance cultures, people have more autonomy in changing the goals when better means are available.

4. The desired division of roles and the desired dominant values (masculinity/femininity) In masculine cultures individuals, especially males, are encouraged to be ambitious, assertive, competitive and striving for material success. In masculine cultures there is a big emphasize on challenging tasks, salary, recognition and promotion. People tend to live for their work, make choices based on career opportunities and have blown up ego’s (Hofstede, 1980). The expectation is that masculinity partly overlaps with causation, because of the characteristics which are more competitive and goal-driven. The assertive, competitive and material

characteristics of masculine entrepreneurs lead to competition in the marketplace, because the entrepreneurs are determined to achieve their goals. In feminine cultures there is an

emphasize for relationships and quality of living. Both men and women need to be modest, and the ego has a submissive role (Hofstede, 1980). Previous studies analysed gender, but not the masculinity/femininity dimension of culture to entrepreneurial decision-making

(EstradaCruz et al., 2019). However, the expectation is that femininity partly overlaps with effectuation because of the more cooperative characteristics.

5. The focus on long-term or short-term orientation when dealing with problems (long-term/short-term orientation)

Long-term orientation occurs when individuals in a cultural group are focused on the future and adaptive to changing circumstances (Hofstede, 2001; Hofstede & Minkov, 2010). The main point is the fostering of virtues oriented towards future rewards, especially perseverance and thrift (EstradaCruz et al., 2019). Short-term orientation is when people are focused on the present and the past. The emphasis is on quick results. Stability, respect for tradition,

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preservation of face and fulfilling social obligations are considered important (Sarasvathy, 2001). When entrepreneurs search for this short-term personal stability and security,

contingencies are being avoided. On the contrary, an adaptive entrepreneur is more likely to take advantage of these contingencies (EstradaCruz et al., 2019). By this logic, the

expectation is that short-term orientation is linked to causation, and long-term orientation is linked to effectuation.

The decisions entrepreneurs need to make, whether it is based on causation or effectuation models, are affected by the entrepreneur’s culture. The national culture of entrepreneurs influences entrepreneurial spirit on a significant level (Zahra, 2007). Based on this, the

relation between (regional) culture and entrepreneurial causation and effectuation processes is assumed. In causation the future relies on the logic continuation of the past. Culture is

integrated in the past and the entrepreneur uses his culture in order to justify certain decisions. In effectuation theory, entrepreneurs begin with a given set of means: who they are, what they know and whom they know (Sarasvathy, 2001). Culture is a part of who these entrepreneurs are. It belongs to the identity of the entrepreneurs (EstradaCruz et al., 2019). The effectuator has a given set of means, consisting of among others social networks, resources and

demographics. This set of means also plays a role in shaping the culture of the effectuator. In effectuation theory the influence of the dynamic environment is central, and the culture is a part of it. Thus, culture has an influence on the chosen effect (outcome of the decision-making process) of the effectuator.

Figure 2: Conceptual model

Culture Entrepreneurial causation and effectuation processes

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3. Research design

In previous chapters the necessity for this study, along with the central concepts and the theoretical framework have been elaborated. This chapter provides an overview of the methods used in this research. Besides that, the choices regarding the methodology will be discussed. Furthermore, more information interviewees is provided and quality issues and research ethics will be elaborated.

3.1 Research strategy

This research is of qualitative nature, in which the aim is to examine how we understand and experience the world. This can be achieved by studying things as interactions and behaviour. Qualitative theorists believe in multiple constructed realities. These multiple constructed realities generate different meanings for different individuals. Furthermore, the interpretation of these different meanings are dependent on the lens that is taken by the researcher

(Onwuegbuzie & Leech, 2005). In this study the influence of culture on entrepreneurial causation and effectuation processes is examined. In the literature, culture is often measured in a quantitative manner on the basis of survey. The use of surveys is seen by many scholars as a product of the researcher rather than the participant’s point of view and therefore it is not an appropriate manner for measuring culture (Ouchi & Wilkins, 1988). Culture is a part of the constructed reality of a group and can be measured through individuals, hence qualitative research is more suitable. In this research an interpretivist philosophy is followed. The interpretivist philosophy is interested in how people experience the world in the specific contexts that they occupy. Social meanings are at the centre of the analysis (Symon & Cassell, 2012). The research is theory-oriented. In theory-oriented research the goal is to contribute to the literature. The goal in this study is to increase the understanding of the causality between culture and entrepreneurial causation and effectuation processes. In this study the abductive approach is followed. This approach is useful if the researcher’s objective is to discover new things: other variables and relationships. In contrast to the inductive approach, the abductive approach is suitable for theory development. The systematic combining in this research builds more on refinement of existing theories than on inventing new ones (Dubois & Gadde, 2002). From existing literature, the relation between culture and entrepreneurial causation and effectuation processes is not clear. However, there are several frameworks for measuring culture and entrepreneurial causation and effectuation processes. This study aims to create deeper understanding of the nature of this relation. The study, thus, is exploratory since it is conducted to gain a better understanding, and new theory is developed. However, this study

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does not provide extensive validation of the new relation discovered. An interview study is most suited in the contemporary context. Interviews are an appropriate method when the goal is to collect in-depth information on people’s opinions, experiences, feelings and thoughts. In this study a reflexive position is taken (Symon & Cassel, 2012). This means there is an iterative process between the newly acquired knowledge and the research. This is done with help from so-called memos. In reflexivism the interview process, and not merely the content, is a vital form of evidence. Consistent with the interpretivist philosophy, the reflexive position in interviewing is accounting for the presence of the inevitable partiality that is always part of research relations (Symon & Cassell, 2012). In the light of the concepts of this study: for culture and entrepreneurial causation and effectuation processes, which might both be different for each single entrepreneur, it is essential to highlight the presence of partiality. 3.2 Data sources and methods

The data source in this research consists of persons. The unit of analysis of this study consists of seven entrepreneurs from Venlo and three entrepreneurs from Amsterdam. Venlo is a relatively small city located in the province of Limburg in the south of the Netherlands, close to the German border. The people from Venlo have their own dialect and cultural customs. People living in Limburg are considered as modest, friendly and have a closed attitude (Derks, 2014). They tend to have a more ‘softer’ way of communicating where they don’t always say what they mean (Vrouwen ondernemen, 2019). Amsterdam is the capital of the Netherlands and part of the Randstad. People from the Randstad are considered to be very directly, more exuberant and open. Furthermore, they are considered less shy than people from Limburg and they have a quick judgement which they will tell you out loud (Derks, 2014). The choice for these two cities is based on the differences between the cities, including the differences in culture. When selecting entrepreneurs, there is looked at whether they are occupied with doing their business on fulltime basis. Furthermore, the entrepreneurs had to do business in the hotels and restaurants industry and have entrepreneurial experience for at least five years. These criteria have been drawn up because experience as entrepreneur as well as doing business fulltime is important in order to be able to give grounded insights in culture and entrepreneurial causation and effectuation processes. In this study the choice for hotels and restaurant industry is mainly made in order to avoid the influence of type of industry on the ultimate relation measured. In table 1 an overview is given of all the respondents and the total interview time. Now, the respondents will be introduced and discussed in detail, in order to clarify what kind of businesses they run.

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Respondent 1 (R1) is entrepreneur of a popular grand café located in the heart of Venlo. At this café you can sit outside at the terrace, inside the brown café, on the first floor where the restaurant is located or you can celebrate at the second floor in the banquet hall. The café has a total capacity of 440 guests and 54 employees.

Respondent 2 (R2) has an ice cream shop at the Maasboulevard in Venlo. It is a young dynamic business with ambition to expand. Outside the ice cream shop there is a terrace at the port of the Maas. Respondent 2 runs the business with his brother and 30 employees.

Respondent 3 (R3) has an own enterprise with a companion which whom he does festival production and events. Furthermore, he did the tour management for Afrojack and does it now for Dimitri Vegas & Like Mike, number one DJ’s in the world. Respondent 3 is born and raised in Venlo. He has done his thesis about culture in Venlo as well, only then more towards the events industry.

Respondent 4 (R4) has a cosy brown eatery with an outdoor terrace and is located on a cycling route that leads at a short distance from the centre in the outskirts of Venlo. Respondent 3 runs the business with his wife, his son, and 21 employees.

Respondent 5 (R5) runs an eatery and bed & breakfast together with her brother in the city centre of Venlo. Their guests are mainly German tourists. Her brother runs multiple eateries in Venlo. Together they have around 30 employees.

Respondent 6 (R6) runs a delivery platform with a local approach, together with his companion who owns an eatery in the centre of Venlo as well. When they started the platform, they aimed at three sectors: retail, catering and groceries. The platform has the biggest success. He and his companion intend to roll out the concept nationally. Respondent 6 has around 70 employees.

Respondent 7 (R7) has a chip shop and fish stall located near each other in the city centre of Venlo. Respondent 7 has 25 employees.

Respondent 8 (R8) has two café-restaurants in Amsterdam-Amstel with big terraces. Both his businesses have a rich history. Respondent 8 has 140 employees.

Respondent 9 (R9) has a typical Amsterdam café in the Rivierenbuurt. He runs this café together with his wife.

Respondent 10 (R10) has a restaurant in Amsterdam, and thereby runs a small hotel in the heart of Amsterdam. At this business there work around 35 employees.

The methods used in this research are semi-structured interviews. In semi-structured interviews the questions are formulated beforehand. The questions are open-ended so the

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respondents can formulate their answers more deeply and in their own words. The interview will be conducted at their enterprises or via telephone. During the interview the respondents won’t be interrupted. The purpose during the interviews is to let the respondents talk most of the time. In order to conduct the interview a protocol was used as guidance, but deviations had been made when necessary. This protocol can be founded in Appendix 1.

Abbreviation Function Interview time Interview method R1 Owner 42:07 Face-to-face R2 Owner 58:23 Face-to-face R3 Owner 53:11 Face-to-face R4 Owner 49:25 Face-to-face R5 Co-owner 51:56 Face-to-face R6 Owner 35:16 Face-to-face R7 Owner 49:01 Face-to-face R8 Owner 39:11 Telephone R9 Owner 46:05 Telephone R10 Owner -- Written interview

Table 1: Overview respondents (Source: Author’s own data) 3.3 Operationalisation

Within this research the concepts ‘culture’ and ‘entrepreneurial causation and effectuation processes’ are central. On the first hand both concepts are too abstract to be measured. An operationalisation is used in order to make them measurable. The concept culture can be defined as: ‘’the set of values and beliefs people have about how the world (both nature and society) works, as well as the norms of behaviour derived from that set of values’’

(Gorodnichecnko & Roland, 2017, p. 1). In this research the literature of Hofstede is used to study culture (Hofstede, 1980; Hofstede, 2001). The operational definition of culture is: ‘’the set of values and beliefs entrepreneurs (from one regional place) have about how the world (both nature and society) works, as well as the norms of behaviour derived from that set of values’’. Dimensions, indicators and items are established in order to operationalize the variable culture. These are distracted from the studies of Hofstede and used as guidance. The dimensions that are established are: collectivism-individualism, power distance, uncertainty

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avoidance, masculinity-femininity and long-short-term orientation. The items derived from the theory can be found in Appendix 2.

The second variable in this research is entrepreneurial causation and effectuation processes. Entrepreneurial (causation and effectuation) processes can be defined as: ‘’processes where you identify the next, best step in order to achieve your goals, by assessing the resources available, while continuously balancing these goals with your actions and resources or acquiring new resources in order to achieve your goals‘’ (Sarasvathy, 2001). Dimensions, indicators and items are established in order to operationalize the variable entrepreneurial processes. These are distracted from the literature of Sarasvathy (2001). The dimensions that are relevant for entrepreneurial processes are: causation and effectuation.

Causation can be defined as: ‘’processes which take a particular effect as given and focus on selecting between means to create that effect’’ (Sarasvathy, 2001, p. 245). This is also the operational definition of causation, since the concept of entrepreneurs is already embedded in causation. The indicators that are relevant to established enterprises in the hotels and

restaurants industry are: goals-driven, prediction, expected return, avoiding contingencies and competition.

Effectuation can be defined as: ‘’Effectuation processes take a set of means as given and focus on selecting between possible effects that can be created with that set of means’’ (Sarasvathy, 2001, p. 245). This is also the operational definition of effectuation, since the concept of entrepreneurs is already embedded in effectuation. The indicators that are relevant to established enterprises in the hotels & restaurants industry are: means-driven, control, affordable loss, leveraging contingencies and cooperative.

3.4 Data analysis

In this research the abductive research method is followed in order to analyse the data.

Abductive research is a mix between inductive and deductive research. In the beginning of the data analysis, existing frameworks are used as guidelines. As the analysis progresses, these frameworks can be altered. Using an abductive research method means that the conceptual theory can be reconstructed, in order to support the explanation and understanding of the results (Fisher, 2001).

After the interviews were conducted, the verbatim transcripts have been written down. In other words: the audio recordings of the interviews were written down literally. In this way, the data collection is complete, can be literally checked and it is possible to interpret silences

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and slip of the tongue. The verbatim transcripts are anonymised to guarantee the respondents are anonymous.

Analysing the interviews is done with help from template analysis. With help from template analysis one is able to balance a relatively high degree of structure in the process of analysing textual data. Furthermore, it provides the flexibility to adapt it to the needs of a particular study (Symon & Cassell, 2012). It is most suitable for analysing individual interviews. Template analysis is conducted with help from a coding template which is based on a subset of the data, which is subsequently applied to further data, revised and reapplied. Template analysis, thus, is an iterative process of analysing. Within this research, the framework of Hofstede (1980, 2001) and study of Sarasvathy (2001) were used to establish a coding template. While analysing, codes were added to the template. Template analysis within the interpretivist philosophy means acknowledging the multiple constructed realities of the phenomenon. Concern with code reliability therefore is irrelevant: the emphasis is on the reflexivity of the researcher (Symon & Cassell, 2012). Since the interpretivist philosophy is followed, there is a high flexibility of the coding structure. There are some a priori themes developed based on the theoretical framework, with the possibility these priori themes are going to be redefined or discarded (Symon & Cassell, 2012). These themes must be relatively distant from each other. Note: within this research the coding template was a bit more specific as usual in template analysis.

When the coding process started, labels were added to a section of text to index it as relating to a theme. A key feature of template analysis is hierarchical coding, with groups of similar codes clustered together to produce more general higher order codes. The extent to which main themes are elaborated, reflected in how rich they proved to be related to offering

insights into the topic area of this study (King, 2012). Besides hierarchical coding, in template analysis there is parallel coding of segments of texts whereby the same segment becomes multiple codes at the same level (Symon & Cassell, 2012). Within this research, both hierarchical and parallel codes were found.

3.5 Quality criteria

The small amount of observation units within qualitative research are a serious challenge for the extern validity, hence the results in this study cannot be generalised. A challenge for the controllability of this study is the fact the researcher is continuously involved in the research, which has the result it cannot be guaranteed that results don’t come from previous

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prevent this as much as possible. There is a probability that the social entities that are examined within this study, possibly have been changed, because they were actually

examined (Symon & Cassell, 2012). The respondent accounts the presence of the researcher and this possibly results in socially desirable answers. It is possible the respondents have provided socially desirable answers, because they don’t trust the anonymity of the research. Besides that, people tend to have a selective memory which limits the data provided. Since the interpretivist philosophy is used, more problems for the quality of the study arise. First, the objectivity criterion cannot be met. The researcher cannot stand outside of that which he or she is studying (Yanow, 2006). People have multiple constructed realities which are heterogeneous, so the answers from the respondents will be in some cases conflicting. In chapter 6, further problems concerning the quality of this study are discussed.

3.6 Research ethics

When conducting organizational research, it is important to treat respondents in an ethical manner. To ensure this research does not violate any ethical concerns, some measures are taken. All the respondents are well informed about the research project, the goal of the study and their role in the study. The researcher, thus, was transparent to the respondents.

Participation in the research was on a voluntary basis. When the interview started, the respondent was asked if the interview could be recorded. The names of the respondents and their enterprises are anonymised, in order to protect the respondent from any harm and prevent violations of privacy laws. The transcript of the study are not be included in the final thesis and they are only available to researcher and supervisor. Besides that, the data is stored securely. If the respondent wanted to see their transcript in order to check if everything was written out correctly, it would be sent to them. If the respondent wanted to receive the final thesis, they received a copy once the project was finished.

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4. Results

In this chapter the results are being presented. First, the concept of culture will be elaborated. Secondly, the concept of the entrepreneurial causation and effectuation processes will be elaborated and at last the relation between both the concepts will be discussed.

4.1 Culture

The analysis first was started with Hofstede’s culture dimensions as starting point. However, the dimensions of Hofstede didn’t turn out to describe the culture in a good way. This could be caused by the fact that Hofstede’s study to culture was conducted within a large

organization that operates in different countries and aimed at measuring corporate culture. The organizations in this study are less formal and hierarchically oriented, and thereby all located within the same country. While analysing, new better codes were found in order to describe the regional culture in the Netherlands.

Social cohesion

Social cohesion is a new dimension which was found when analysing from the starting point of Hofstede’s individualism/collectivism dimension. While analysing, it seemed that Venlo has, different from Amsterdam, more characteristics of a collectivistic culture. However, the whole concept of collectivism could not be attributed to Venlo. It seems more like Venlo has an individualistic culture with collectivistic characteristics. Although the community in Venlo is close, the people won’t put the communities needs ahead of individual’s needs. Therefore, this new dimension was found in order to be able to make the distinction.

The social cohesion in Venlo is high, and this is emphasized several times by the respondents. Respondent 2 thinks the community in Venlo is close, and this is reflected in the hotel and restaurant industry businesses located in the city. The approach is very personal, there are just a couple larger businesses, but overall there are more smaller one-man businesses: ‘’Then it remains nice and personal, which is very important, that people here actually always have the feeling that we really know them, you know, certainly the people from Venlo itself, we actually know most of them who come here’’ (Respondent 2). Respondent 4 emphasizes multiple times how much he loves the solidarity among the people in Venlo. He thinks that this solidarity is unique in Venlo, and you don’t find it back in many other places in the Netherlands. To illustrate this claim, he names the example that he was painting the outside of a building in the

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streets of Venlo, listened to songs from Venlo and was singing along. In that moment there came a car and a lady stepped out of the car, and she took out her groceries and she started to sing along as well: ‘’And then you look at each other once and then you have, yes then you have a bond, because that's a song that only we know, uh, up there they've never heard of it and yes that makes us bond, you look at each other, you understand each other and without saying anything, to introduce yourself or whatever and yes, I find that very special about Venlo’’.

Respondent 1 thinks people from Venlo value social obligations and tradition more as in the Randstad. This is mainly reflected in the involvement in associations and participation in volunteer work. Respondent 2, 4 and 5 are on exactly the same page, and thinks that people from Venlo value social obligations and traditions a lot. Especially the local events like carnival, ‘Venloop’ and ‘Zomerparkfeesten’ are sacred and people do not want these to be altered (Respondent 5). The same goes for the voluntary sector and associations which is really alive in Venlo and stems from far in history: ‘’take for example the youth version of the carnival association, it is just unprecedented how they continue to grow every year, while you would normally say carnival is no longer loved among the youth, what we notice is that the youth also find the traditions that have been for years very important and that they continue to be part of it’’ (Respondent 4). Respondent 4 thinks that people from Venlo are chauvinistic and proud, which also applies to himself since he speaks of ‘’our Venlo’’. The closed

community characteristic of Venlo comes back with the local events. Carnival, for example, is celebrated exuberantly through the whole city. Respondent 5 says about carnival:

‘’Chauvinistic, yes, I see that too, and we can, we can be a little bit chauvinistic. I think with

carnival, the events in the city centre, that belongs to us, we started with it, and we can be proud of it’’. Furthermore, it comes back during the Venloop, which is a city walk and a

really big running competition through Venlo, and during the Zomerparkfeesten, which is a five-days festival organized in the heart of Venlo. What strikes is that people from Venlo are often very integrated in the voluntary sector. Respondent 1 says: ‘’I am also active as

volunteer at different occasions, at different associations, of course that’s all a bit coherent’’.

Respondent 4 is integrated in this sector as well. He is a member of the technical commission of the biggest carnival association in the city. A disadvantage of living in a social cohesive culture is, according to respondent 3, that you always meet the same people, and if something happens while going out or something, everyone knows in an instance: ‘’My nephew, last weekend, had looked a little too deep into the bottle. Behind café the Loco, he fell backwards into the bushes and before we could said it to his parents, his parents knew already’’

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Respondent 8 and 10 mention that the culture of Amsterdam is very international. When you walk around the streets on a casual weekday, you can find a lot of different nationalities in the city. You don’t find just the typical Amsterdam people, but also famous Dutchmen, tourists and expats. Respondent 8 thinks there is to a great extent solidarity among the people from Amsterdam, whereas respondents 9 and 10 think that the solidarity in Amsterdam is decreasing. The community in Amsterdam is less close, as a result of changes in the

population composition. Respondent 9 says: ‘’You come to Amsterdam as a student but you

leave at age 35, because you want children and you cannot afford to buy a home in

Amsterdam. People who start to work somewhere else, or go back and expats who go back to their homeland after working here, that makes the cohesion in the population decrease’’. He

furthermore states that the solidarity in the suburbs is larger than in the city center, because house prices are really high in the city center causing to be only the rich able to live there. Besides that, many houses are bought up and turned into shops or offices. Respondent 10’s point of view is that the younger generation in Amsterdam is more individualistic causing the social cohesion to decrease.

There are several differences between the social cohesion in Venlo and Amsterdam. To start, Venlo is a smaller community where more people know about each other’s existence. There is a great appreciation of several annual traditions, which increases the solidarity among the people. Amsterdam, on the other hand, has almost a million inhabitants of which many people are students and expats who mainly live there for study or work. This makes life in

Amsterdam more anonymous. Amsterdam is divided in multiple neighborhoods with each their own catering establishments. Although some of the neighborhoods are more social cohesive as others, as a whole the social cohesion is not as strong as it is in Venlo. The voluntary sector and associations are less prevalent in Amsterdam as they are in Venlo. In Venlo a lot of people are participating in the voluntary sector and associations, which strengthens the relationships between the citizens. In table 2 the characteristics the social cohesion as found in this study are summarized.

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