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IQ and governance contribute to entrepreneurship, but in different ways

Previous studies have revealed that national average intelligence (IQ) is a strong indicator of national entrepreneurial potential. This study examined the role of governance quality in regulating the effect of IQ on entrepreneurial activity measured as new business entry density. Employing robust r...

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Main Authors: Suhaimi, Siti Shazwani, Burhan, Nik Ahmad Sufian, Sabri, Mohamad Fazli, Abdul Rahman, Abdul Razak, Ibrahim, Saifuzzaman
Format: Article
Language:English
Published: Council for Social and Economic Studies 2020
Online Access:http://psasir.upm.edu.my/id/eprint/89466/1/IQ.pdf
http://psasir.upm.edu.my/id/eprint/89466/
https://www.proquest.com/
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spelling my.upm.eprints.894662021-09-02T00:12:48Z http://psasir.upm.edu.my/id/eprint/89466/ IQ and governance contribute to entrepreneurship, but in different ways Suhaimi, Siti Shazwani Burhan, Nik Ahmad Sufian Sabri, Mohamad Fazli Abdul Rahman, Abdul Razak Ibrahim, Saifuzzaman Previous studies have revealed that national average intelligence (IQ) is a strong indicator of national entrepreneurial potential. This study examined the role of governance quality in regulating the effect of IQ on entrepreneurial activity measured as new business entry density. Employing robust regression analysis, IQ was found to be nonsignificant on entrepreneurial activity, while the effect of governance was found to be both positive and significant. However, there was strong evidence of the negative interaction between IQ and governance, which suggests that good governance raises entrepreneurial activity more in low-IQ than in high-IQ countries. Additional regressions were also carried out employing the ease of doing business (EDB) index as a measure of entrepreneurship. Here, the results demonstrated that IQ, and not governance was highly significant on the EDB. Moreover, the interaction between IQ and governance was non-significant, which implies that the governance quality did not regulate the effect of IQ on the EDB. This study concluded that national average IQ is effective at providing nations with an excellent regulatory environment for entrepreneurship. However, it requires good governance, and not IQ, in order to build people's confidence before they start new entrepreneurial ventures given it involves risks and uncertainty. Council for Social and Economic Studies 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/89466/1/IQ.pdf Suhaimi, Siti Shazwani and Burhan, Nik Ahmad Sufian and Sabri, Mohamad Fazli and Abdul Rahman, Abdul Razak and Ibrahim, Saifuzzaman (2020) IQ and governance contribute to entrepreneurship, but in different ways. Journal of Social, Political, and Economic Studies, 45 (3/4). 230 - 259. ISSN 0278-839X https://www.proquest.com/
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description Previous studies have revealed that national average intelligence (IQ) is a strong indicator of national entrepreneurial potential. This study examined the role of governance quality in regulating the effect of IQ on entrepreneurial activity measured as new business entry density. Employing robust regression analysis, IQ was found to be nonsignificant on entrepreneurial activity, while the effect of governance was found to be both positive and significant. However, there was strong evidence of the negative interaction between IQ and governance, which suggests that good governance raises entrepreneurial activity more in low-IQ than in high-IQ countries. Additional regressions were also carried out employing the ease of doing business (EDB) index as a measure of entrepreneurship. Here, the results demonstrated that IQ, and not governance was highly significant on the EDB. Moreover, the interaction between IQ and governance was non-significant, which implies that the governance quality did not regulate the effect of IQ on the EDB. This study concluded that national average IQ is effective at providing nations with an excellent regulatory environment for entrepreneurship. However, it requires good governance, and not IQ, in order to build people's confidence before they start new entrepreneurial ventures given it involves risks and uncertainty.
format Article
author Suhaimi, Siti Shazwani
Burhan, Nik Ahmad Sufian
Sabri, Mohamad Fazli
Abdul Rahman, Abdul Razak
Ibrahim, Saifuzzaman
spellingShingle Suhaimi, Siti Shazwani
Burhan, Nik Ahmad Sufian
Sabri, Mohamad Fazli
Abdul Rahman, Abdul Razak
Ibrahim, Saifuzzaman
IQ and governance contribute to entrepreneurship, but in different ways
author_facet Suhaimi, Siti Shazwani
Burhan, Nik Ahmad Sufian
Sabri, Mohamad Fazli
Abdul Rahman, Abdul Razak
Ibrahim, Saifuzzaman
author_sort Suhaimi, Siti Shazwani
title IQ and governance contribute to entrepreneurship, but in different ways
title_short IQ and governance contribute to entrepreneurship, but in different ways
title_full IQ and governance contribute to entrepreneurship, but in different ways
title_fullStr IQ and governance contribute to entrepreneurship, but in different ways
title_full_unstemmed IQ and governance contribute to entrepreneurship, but in different ways
title_sort iq and governance contribute to entrepreneurship, but in different ways
publisher Council for Social and Economic Studies
publishDate 2020
url http://psasir.upm.edu.my/id/eprint/89466/1/IQ.pdf
http://psasir.upm.edu.my/id/eprint/89466/
https://www.proquest.com/
_version_ 1710677184416317440
score 13.211869

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