THE IMPACT OF CULTURAL FACTORS OF ENTREPRENEURIAL PERFORMANCE
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Entrepreneurship practices exist in
most countries of the world, including Nigeria. In Nigeria the development of
entrepreneurship has gone a long way to achieve industrialization and economic
development. Management scholars agree that although management theory and
practices have universal applications, the individual and group with which it
must interact, and the external environment differs in some way. It is acknowledged
by management scholars also that there are many deviations in management theory
all over the world. The attempt to discover the determinants of managerial
success of entrepreneurs has always been a heartthrob among researchers of
various fields of studies. Biographies of successful entrepreneurs and business
men for instance reflected the tendency of the subject of such studies to
explain their success in terms of virtue of handwork, thrift and clean living
(Baridam 1995:15). As an alternative to biographical models are these studies
that, turn the man who manipulates the omnipotent touch (gases 1983:20).
Culture is dynamic in nature but cannot be change mechanically rather could be
modified to suit a give environment. Almost every perception and behavior is
guided by the human invention we call culture. Each culture shapes perception
and behaviour by paving relative attention to some details of realities and
ignoring others or by permitting some actions and forbidding others. Culture
which forms parts of the complex
education-sociological-cultural-political-legal-economic that interact and
effect that performance of productive entrepreneur is often the less treated
and less emphasized amongst these foregoing factors by business people (terpstra
etal 1991:40); this notwithstanding the fact that it forms the bedrock on which
the other factors operate.
Speculations dealing with the supposal effects of
cultural factors of an environment on the performance of productive enterprises
in that environment are on the rife.
However, empirical studies and a careful analysis of this situation in
the context of entrepreneurship operating in developing countries remains to be
exhaustively and satisfactorily treated. Though it can clearly be said that
cultural factors have a substantial impact on managerial or entrepreneurial
effectiveness and productivity measured in a given instance owing to the fact
that sociological and cultural constraints are difficult to measure in quality. This is always a problem when one wishes to deal with human
attitudes and value, it is often hard to distinguish popular misconceptions and
myths from the realities of the situation (farmer etal 1965:60) so, it
therefore becomes patient to test a number of significant and operational
hypothesis in order to explain and predict production efficiency with a high
degree of accuracy and confidence in any given case.
The issue of culture as it affects the performance
of cultural factors affecting the performance of entrepreneur should take into
consideration firstly, the salient cultural constrain that impinge upon the
understanding and secondly, it should be established how these salient cultural
constraints meet in one way or the other in the performance of firm. In addition
socio-cultural variables also have impact on planning and control as well as
the various production functions of these firms enterprises. Such as; research
development, production marketing and finance. This study, will attempt to
identify the various cultural factor that affect entrepreneurial operation in
the understudied environment and also determine how these cultural factor
affect the performance of entrepreneurs in the said environment.
1.2 STATEMENT OF PROBLEM
The fact that entrepreneurs contribute to the
development of less development countries is irrefutable (freeman 1981:50). The
issue that a nation culture and primary socializations produce several constraints
which impinge upon the operation of productive entrepreneurs operating in
developing countries like Nigeria ought to carryout in depth analysis on the
socio-cultural factors inherent in the environment before they proceed with
that venture. The form once it’s established is constrained by various factors
inherent in the environment. Although all constraint areas (educational,
socio-culture, political, legal, economic e.t.c) are come major difficulty that
he in the social-cultural sector (farmer etal 1967:70). This case is very true
, since the aspect of dealing with people oriented with strange custom and
value usually present a problem.
The above issue is reflective of the Nigeria
situation, experts have posited that cultural constraint are the bottom line
when considering the issue of in efficiency and poor performance of enterprises
in Nigeria.
This may not completely be true because whenever one
is dealing human attitudes and value, it is often hand to distinguish popular
misconception from the realities of the situation. These arises therefore, a
need to determine (empirically) whether the cultural constraint in port Harcourt
is significant enough to affect the performance of entrepreneurs operating
therein.
1.3 PURPOSE OF STUDY
The general objectives of this study is to identify
the impact of cultural factors on entrepreneurs and to what extent they affect
them
1.
To identify various cultural factors
that initiate against the performance of entrepreneurs and to what extent they
affect them
2.
To identity the present effect of cultural
factors of entrepreneurial performance
3.
To examine entrepreneurs reaction
towards cultural changes and therir coping strategies.
4.
To examine other non-cultural factors
and the extent to which they affect entrepreneurs.
1.4 RESEARCH QUESTIONS
The following research Question with the study.
1.
To what extent does norms relate with
entrepreneurs performance of some selected private firms in Port Harcourt?
2.
To what extent does belief system relate
with entrepreneurs performance of some selected private firms in Port Harcourt?
3.
To what extent does attitude relate with
entrepreneurs performance of some selected private firms in Port Harcourt?
1.5 RESEARCH HYPOTHESIS
The following research hypothesis will guide the
study.
Ho 1. There is no significant relationship between
norms and the productivity of some selected private firms in Port Harcourt.
Ho 2. There is no significant relationship between
belief system and the productivity of some selected private firms in Port
Harcourt.
Ho 3. There is no significant relationship between
attitude and the productivity of some selected private firms in Port Harcourt.
1.6 SIGNIFICANT OF THE STUDY
This research study will be of great importance to
the entrepreneurs instructiveness with the market and its customers. It will
also be useful to the entrepreneur’s internal decision marketing process and
will also influence the decision to create new business. This finding of the
research will also create awareness of the norms, belief system and attitude of
Nigerians to foreigners who desire to create business in Nigeria.
1.7 SCOPE OF THE STUDY
This study was concluded and limited to target population,
geographical boundary study variable and unit of analysis. Form the above
statement, the target population will focus on selected private firm in Port
Harcourt.
The geographical boundary is Port Harcourt, the
study variable will be divided into two: the independent variable represented
as culture (having dimension as; Norms belief system and attitude) and the
dependent variable represented as entrepreneurial performance (having measures
as; productivity). The unit of analysis is at the organizational level.
1.8 DEFINITION OF TERMS
According to (Cosuala, 1985:80)
definition of terms is the most important facet of the research report, since
without a common understating of essential terms; the value of the research
very be lost through misinterpretation. These level been defined however is
back up this work.
Entrepreneurs: Schumpeter (1934), entrepreneurs
are innovators who use a process of shattering the status quo of the existing
products and service to set up a new product and services.
Entrepreneurship:
According
to Meredith etal (1991), entrepreneurship is the process of organizational and
coordinating the factors of production and taking necessary decision to
establish a business enterprise and keep it in with the pattern of demand and
market value.
Business:
Business
is regarded as the process of creating, procuring or providing goods and
services to customers or those who need them in proper quantities and qualities
at suitable times and places at satisfactory process Nwaeke (2002).
Culture:
Hofsted
(1991) defined culture as the software of the mind and collective phenomena,
shared with people who live in the same social environment.
Vales:
As
a board tendency to prefer certain stakes of affairs over others.
Business
Environment: According to Jones etal (2002), they
are these factors or forces that have potential effect on the way business
operate.
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