Decoding cultural mechanisms: an FsQCA approach to Hofstede’s cultural dimensions and regional entrepreneurship

Abstract This study uses FsQCA to identify combinations of Hofstede’s cultural dimensions—specifically power distance, uncertainty avoidance, masculinity, and individualism—that lead to regional entrepreneurship in Europe. The analysis reveals two cultural configurations conducive to regional entrepreneurship: one emphasizing equality, tolerance for uncertainty, and cooperation, and another highlighting individual autonomy alongside the former two values. This study thus enhances our understanding of how cultural dimensions combine to explain entrepreneurial activity. The findings further suggest that different types of entrepreneurship are shaped by distinct cultural mechanisms. Additionally, the study underscores the importance of employing methods that effectively capture the complexities of the culture-entrepreneurship relationship, particularly at more appropriate spatial levels.