Socio-cultural factors explaining technology-based entrepreneurial activity: Direct and indirect role of social security

Nurturing technology-based ventures requires consideration of societal factors besides economic factors. This study aims to analyze the direct effect as well as moderation effect of social security on technology-based entrepreneurial activity. Research hypotheses are tested through panel data analysis. National level data on 45 countries for 8 years (2006–2013) are obtained from multiple sources, including Global Entrepreneurship Monitor, World Competitiveness Yearbook, Hofstede's national culture dimensions, and so forth. The results imply that social security, as it is known, has a negative relationship with the overall rate of entrepreneurial activity. However, social security has a positive effect on the share of technology-based entrepreneurial activity. In addition, the positive impact of social security shows a gradual decline as individualism increases. Our findings provide solid empirical evidence on the relationship between social security and entrepreneurial activity, which was ambiguous in the previous studies. The research examines the interaction effects between social security and national culture for the first time. These are expected to provide a practical insight for policy makers seeking to promote entrepreneurial activity at the national level.