Cross-country differences in innovative entrepreneurial activity An entrepreneurial cognitive view

Purpose: The purpose of this paper is to clarify the relationship between entrepreneurial cognition and innovative entrepreneurial activity (IEA) across countries using an institutional perspective. Design/methodology/approach: The paper tests theoretical model using data collected by the Global Entrepreneurship Monitor, the Global Leadership and Organizational Behavior Effectiveness study and the Index of Economic Freedom (IEF). A multi-level analysis is performed based on set of 1,004,620 observations from 49 countries spanning 13 years (2001–2013). Findings: The results suggest that in terms of formal regulations; the relationship between entrepreneurial cognitions and IEA becomes stronger when there is an increase in intellectual property right and business freedom regulations in a country. On the other hand, in terms of informal institutions the relationship between entrepreneurial cognitions and IEA becomes stronger when the level of institutional collectivism and uncertainty dec...