Cultural values and innovation: The mediating role of entrepreneurial learning capacity

Although both cultural values and innovation are widely acknowledged as collective embodiments of individual values and assets, little is known about the mechanisms through which cultural values influence the likelihood of innovation by some entrepreneurs rather than others. We argue that institutional pressures arising from cultural values affect entrepreneurial learning capacity which in turn impacts innovation activities. Our multi-level analysis of entrepreneurs from 19 countries between 2006 and 2011 suggests that entrepreneurial learning capacity serves as a mediator through which entrepreneurs maximize the innovation-related benefits of cultural values to their businesses.