The effect of national culture on entrepreneurs' networks: A comparison of the MENA region and Denmark

This study examines the effect of cultural variables onentrepreneurs’ networks in the Middle East and North Africa (MENA) regioncountries and Denmark. Using data collected by the GEM surveys andclustered for the purpose of this research, analysis is undertaken on the effect ofcultural variables on entrepreneurs’ private networks in addition to their work,professional, market and international networks. The major cultural contrast inthe empirical analysis is between Denmark and the MENA countries.Traditionalism dominates in the MENA region while secular-rationalismpervades Denmark: trust is widespread in Denmark, but more limited to familymembers in MENA; and collectivism prevails in MENA while Denmark ismore individualistic. Analyses show that both traditional culture andcollectivism promote networking in the private sphere, which explains theintensity of private networking in MENA and the lower level of privatenetworking in Denmark. Trust in society, generally promotes networking, andspecifically networking in the public spheres of the work-place, the professions,the market and the international environment. This explains the greaterprevalence and intensity of networks and networking in the public domain inDenmark compared to that in the MENA region.