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Socialism and Entrepreneurship

  • The formerly communist countries in Central and Eastern Europe (transitional economies in Europe and the Soviet Union – for example, East Germany, Czech Republic, Hungary, Lithuania, Poland, Russia) and transitional economies in Asia – for example, China, Vietnam had centrally planned economies, which did not allow entrepreneurship activities. Despite the political-socioeconomic transformations in transitional economies around 1989, they still had an institutional heritage that affects individuals’ values and attitudes, which, in turn, influence intentions, behaviors, and actions, including entrepreneurship. While prior studies on the long-lasting effects of socialist legacy on entrepreneurship have focused on limited geographical regions (e.g., East-West Germany, and East-West Europe), this dissertation focuses on the Vietnamese context, which offers a unique quasi-experimental setting. In 1954, Vietnam was divided into the socialist North and the non-socialist South, and it was then reunified under socialist rule in 1975. Thus, the intensity of differences in socialist treatment in North-South Vietnam (about 21 years) is much shorter than that in East-West Germany (about 40 years) and East-West Europe (about 70 years when considering former Soviet Union countries). To assess the relationship between socialist history and entrepreneurship in this unique setting, we survey more than 3,000 Vietnamese individuals. This thesis finds that individuals from North Vietnam have lower entrepreneurship intentions, are less likely to enroll in entrepreneurship education programs, and display lower likelihood to take over an existing business, compared to those from the South of Vietnam. The long-lasting effect of formerly socialist institutions on entrepreneurship is apparently deeper than previously discovered in the prominent case of East-West Germany and East-West Europe as well. In the second empirical investigation, this dissertation focuses on how succession intentions differ from others (e.g., founding, and employee intentions) regarding career choice motivation, and the effect of three main elements of the theory of planned behavior (e.g., entrepreneurial attitude, subjective norms, and perceived behavioral control) in transition economy – Vietnam context. The findings of this thesis suggest that an intentional founder is labeled with innovation, an intentional successor is labeled with roles motivation, and an intentional employee is labeled with social mission. Additionally, this thesis reveals that entrepreneurial attitude and perceived behavioral control are positively associated with the founding intention, whereas there is no difference in this effect between succession and employee intentions.

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Author:Lanh Nguyen
Advisor:Prof. Dr. Jörn H. Block
Document Type:Doctoral Thesis
Date of completion:2020/09/28
Publishing institution:Universität Trier
Granting institution:Universität Trier, Fachbereich 4
Date of final exam:2020/09/24
Release Date:2020/10/13
Tag:Socialism, Socialist values and attitudes, Socialist legacy, Literature review, Entrepreneurship intention, Business takeover, Career choice reasons, and TPB model.
GND Keyword:Entrepreneurship; Sozialismus
Number of pages:204
Institutes:Fachbereich 4
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoCC BY-NC-ND: Creative-Commons-Lizenz 4.0 International

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