Intrapreneurship or entrepreneurship? Determining the most important driver behind the allocation of entrepreneurial talent

Abstract

Entrepreneurial talents typically exploit opportunities either individually (entrepreneurship) or inside a corporate (intrapreneurship). This allocation of entrepreneurial talents is influenced by multiple country-level determinants. Consequently, cross-country differences in these determinants seem to matter. Previous literature identifies the individual significance of the determinants ‘culture’, ‘law’, ‘economic development’, ‘managerial practices’, and ‘labour market institutions’. However, the question remains; “What determinant predicting the allocation of entrepreneurial talent is the most important from a cross-country level?”. This paper performs a Heckman selection model on both individual and national-level data from the GEM,WMS, WB, and Hofstede 6-cultural dimensions datasets. Thereby providing a framework that includes the total effect of each determinant. Following this analysis, this paper identifies ‘law’ as the most important determinant concerning the allocation of entrepreneurial talent. Subsequently, this paper provides economic policy implications on determining and influencing the allocation of these entrepreneurial talents.