Individualism and the Modern Corporation: Implications for Innovation and Entrepreneurship

Abstract

The extent to which entrepreneurship in established firms is the result of a more individualistic versus collectivistic culture is explored. Hypotheses are tested in which it is proposed that a curvilinear relationship exists between individualism-collectivism and corporate entrepreneurship. Findings are reported from a survey completed separately by three functional area managers in each of eighty-four industrial firms. The results support the hypotheses, such that entrepreneurship is highest under conditions of balanced individualism-collectivism, and declines in highly individualistic and more collectivistic environments.