Using data from 90 countries from the Global Entrepreneurship Monitor and the World Bank, we examine the country-level determinants of entrepreneurs’ sensing, seizing, and transforming capabilities, three clusters of dynamic capabilities. Our findings reveal that both the quality of entrepreneurship education and an autonomous culture promote entrepreneurs’ capabilities. However, these relationships differ depending on the country type (innovation-driven, efficiency-driven, and factors-driven countries). An autonomous culture positively influences entrepreneurs’ sensing and seizing capabilities, but not transforming capabilities. Additionally, institutional support for entrepreneurship education enhances dynamic capabilities, especially in developing countries. The research uncovers institutional mechanisms that explain cross-country variations in entrepreneurs’ dynamic capabilities, providing a deeper understanding of the interplay between culture, institutions, and dynamic capabilities.
Urbano et al. (Wed,) studied this question.