How Context Shapes Entrepreneurial Self-Efficacy as a Driver of Entrepreneurial Intentions: A Multilevel Approach

We study how the proximate and distal sociocultural environments affect the well-established relationship between entrepreneurial self-efficacy and entrepreneurial intentions. We focus on the institutional individualism-collectivism orientation of nations and the presence of nascent entrepreneurs as moderators of this relationship to account for the multilayered nature of the context. We observe that for individuals with entrepreneurial self-efficacy the positive effect of knowing nascent entrepreneurs as a driver of entrepreneurial intentions is weaker than for individuals who do not believe to be able to successfully launch a business venture. This effect is contingent on the individualistic-collectivistic character of the national culture.