Entrepreneurial effectiveness and achievement in Arab culture

Entrepreneurial effectiveness and achievement in Arab culture

ELSEVIER Entrepreneurial Effectiveness and Achievement in Arab Culture New Evidence to Rekindle Interest in an Old Predictor M a h m o u d Yasin EAST...

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ELSEVIER

Entrepreneurial Effectiveness and Achievement in Arab Culture New Evidence to Rekindle Interest in an Old Predictor M a h m o u d Yasin EASTTENNESSEEUNIVERSITY

The relationship between need for achievement (n-Ach), entrepreneurial effectiveness, and satisfaction are examined for a sample of22OJordanian entrepreneurs in the context of a conceptual framework.formulated based on existing literature. The results are discussed in the context oJMcClelland's (1961) economic growth framework. Finally, policy implications Jot Jordan and businesses seeking a global competitive advantage are explored, j BUSN RES 1996. 35.69--77 tudents from several domains of knowledge have long been fascinated by the nature, dimensions, and manifestations of achievement motivation. The intense interest behind unraveling the different facets of achievement motivation is theoretically based, yet practically justified. Motivated by the promise of a wide spectrum of business-related applications, businessoriented achievement research has been steadily forthcomingespecially research dealing with need for achievement as a predictor of entrepreneurial effectiveness. Whereas this line of research has flourished in the past, it stands to become even more significant in the future. This contention is based on the new realities of the global marketplace. The increasingly competitive and effectiveness-driven global business environment dictates the understanding of the motivational drive of entrepreneurs operating in different cultural settings. In this regard, research designed to enhance our understanding the achievement orientation of Arab entrepreneurs has theoretical as well as practical implications. In 1961, McClelland proposed a theoretical framework that associated the economic growth of a given society with the collective need for achievement (n-Ach) of its members. This framework, as outlined in The Achieving Society, was consistent with Weber's view that attributed the economic growth of the West to the Protestant ethic (Weber, 1958). McClelland's framework can be summarized in a form of sequential propositions, as depicted in Figure 1. The framework assumed a lag of 50 years between a society's concern Address correspondence to Mahmoud M. Yasin, Box 70625, Department of Management and Marketing, East Tennessee State Unive~ity, Johnson City, TN 37614-625. Journal of Business Research 35, 69-77 (1996) © 1996 Elsevier Science Inc. 655 Avenue of the Americas, New York, NY 10010

for n-Ach and its rapid economic growth. Some general conclusions can be drawn from McClelland's work as documented in The Achieving Society. First, a high n-Ach is the engine that drives entrepreneurial activities. Second, there is a strong linkage between economic growth of a society and the collective n-Ach of its members. Third, religious backgrounds tend to impact the n-Ach of their followers. For example, McClelland concluded that Jews and Protestants tended to have higher n-Ach than Catholics. One of McClelland's (1961) major conclusions is that a high n-Ach is the essential ingredient for economic growth. This conclusion leads to some interesting questions. What is n-Ach? What are the characteristics of one who has a high n-Ach? Murray (1936) is credited for articulating one of the earliest definitions of n-Ach, which involves: the tendency or desire to do things as rapidly and/or as well as possible. (It also includes the desire to accomplish something difficult). To master, manipulate, and organize physical objects, human beings or ideas. To do this as rapidly and independently as possible. To overcome obstacles and attain a high standard. To excel one's self. To rival and surpass others. To increase self regard by successful exercise of talent (Murray, 1938, p. 164). McClelland et al. (1953) defined n-Ach to mean the positive or negative affect aroused in situations that involve competition with a standard of excellence, where performance in such situations can be evaluated as successful or unsuccessful. This view of n-Ach is consistent with Murray's (1938) concept of the achievement motive. Veroff et al. (1975) cited the following characteristics of a man who is high in n-Ach as opposed to one who is low in n-Ach. These characteristics are: 1. works harder in tasks perceived to be of moderate difficulty; 2. sets more realistic goals; ISSN 0148-2963/96/$15.00 SSDI 0148-2963(95)00050-3

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M. Yasin

Protestantism and Its Values

Independent and Mastery Training of Children by Parents

l

Development of High Need for Achievement in Children

|

Roudshment of the Entrepreneurship Spirit of the Society

i The Economic Growth of the Nation Figure 1.

Summary of McClelland'sframework for economic growth.

3. seeks excellence and is not satisfied with current success; and 4. is more future-oriented. These characteristics were derived based on the work of researchers such as McClelland, Atkinson, Veroff, Feather, and Winter.

McClelland's Framework McClelland's framework, as proposed in The Achieving Society, has not been universally accepted. Frey (1984) criticized the empirical validity of the framework on several grounds related to methodological shortcomings and data interpretation. Others (Cover and Johnson, 1976) argued that the level of achievement of a community tends to fluctuate in response to business conditions rather than the other way around, as suggested by McClelland. Bhagat and McQuaid (1982) cited several studies criticizing McClelland's work. These criticisms centered around the notion that McClelland ignored the significance of the social context in his work. Howard et al. (1983) argued that although the Japanese are known to be successful entrepreneurs, they tended to have high need for affiliation, which contradicted McClelland's framework. Last but not least, McClelland's notion that Protestants have a higher n-Ach than Catholics was challenged by Veroff and others (1962). Thus, the question of the impact of religion on its followers' n-Ach is questioned. Criticisms of McClelland's framework withstanding, the bulk of evidence seems to be in favor of McClelland with regard to the relationships between high n-Ach and entrepreneurial satisfaction and effectiveness. In general, the associations between entrepreneurial satisfaction, effectiveness, and high n-Ach have

been very well supported (McClelland, 1961, 1965a, 1965c; Meyer and Walker, 1961; Hines, 1973; Cummin, 1967; Durand, 1975; Miron and McClelland, 1979; Singh, 1978, 1979). Some of these findings were based on cross-cultural studies. For example, Singh's (1978, 1979) findings reported an association between n-Ach and entrepreneurial effectiveness in India. Furthermore, the significance of achievement training, as a means to enhance entrepreneurial effectiveness, was stressed. Hines (1973) showed that entrepreneurs in New Zealand, with a high n-Ach, reported more job satisfaction (less turnover than their low n-Ach counterparts). Recent years have witnessed growing interest in crosscultural achievement research as it relates to entrepreneurial effectiveness in different cultural settings (Robinson and Hogan, 1993; Puffer, 1993; Okectiuku and Man, 1991; Zinkhan, Hond, and Lawson, 1990). In an extensive review of entrepreneurship research Perry (1991) concluded the following. First, the literature tends to equate achievement motivation with n-Ach. Second, n-Ach seems to consistently distinguish entrepreneurs from non-entrepreneurs. This conclusion is consistent with Kirkpatrick and Locke (1991). Third, thematic apperception test measures of n-Ach were found to be unreliable. Using a newly developed instrument to measure n-Ach, Robinson et al. (1991) concluded that the linkage between entrepreneurship and n-Ach exists and blamed unreliable instruments for missing the linkage. Yarzebinski (1992) recommended that communities seeking economic growth should attempt to attract entrepreneurs by understanding their n-Ach. Based on an extensive literature review related to achievement and entrepreneurship research, Johnson (1990) concluded that more systematic research is called for. Johnson pointed out that the achievement measurement field is still suffering from unreliable and inconsistent instruments. Furnham, Kirkcaldy, and Lynn (1994) in a study of 1,200 subjects from 41 countries reported findings addressing the relationship between achievement motivation and several other variables. The studies cites previously no doubt represent a renewed interest in research dealing with the relationship between achievement and entrepreneurship effectiveness in different cultural settings. Studies seeking to assess the empirical relationships among motivational variables, effectiveness, and job satisfaction in the business environment of the Arab world have not been forthcoming. This fact was confirmed by an exhaustive literature review (Yasin and Stahl, 1990a). This literature review underscored the lack of systematic research addressing motivational effectiveness in the Arab business environment. This fact is rather surprising, given the nature, role, size, and potential of the Arab business environment in the context of the global business environment. One would think that such a rich and consumption-oriented business environment stands to offer a great deal to those who understand it. Therefore, an understanding of the behavior, practices, and motivation of the players in such a business environment should go a long way toward facilitating strategic alliances and joint ventures. These business

Need for Achievement in Arab Culture

I

he Islamic Values . S h o ~ ) • Maktoob (it is written). • Obligation to the family. • Equality in the eyes of God. • Riba (prohibition of lending money for interest) The

J Busn Res 1996:35:69-77

]

_ The Culture l.Troditional and religious. / ~i-Rasistance to change. • Promotion of an J I affiliation motivation. l.Limited role of women.

Family

• Extended family. • Mutual dependence training of children. -Punishment and shame as a means ol controlling behavior, • Unequal treatment of boys and gids. • Loyalty to the family and the tribe, • Other-directed individual.

The

Market Ethic -Mixed capitalism-socialism. -Government regulates the economy. • Allocation of resources ] based on blood relationship.

S

The Business Organizationl •Flat structure. •Team effort. L • Unsystematic rewards. " •Loss of responsibility I and accountability. I J .Group decision making. I

The Individual • Mutually dependent entity. • Others oriented. -Vertical communication with others, • Affiliation based form of entrepreneurship effectiveness

The

Liberty Ethic~

• No separation of church I and state. | I•A government controlled I j environmant. /

Business Effectiveness • Balanced affiliation and power motivation. -Personal success measuredbased on high salary. • Social success measuredbased on fulfillment of social obligations.

Figure 2. Cultural view of motivational effectiveness in the Arab business environment. alliances are increasingly being demanded by the global business environment. To facilitate this needed understanding, a conceptual framework was constructed based on an extensive literature review (Yasin and Stahl, 1990a) and the experience of the author. Later, this framework was empirically tested (Yasin and Stahl, 1990b, 1990c). A revised version of this framework is depicted in Figure 2. Two empirical studies cited earlier (Yasin and Stahl, 1990b, 1990c) in the context of the conceptual framework derived some interesting conclusions. It was concluded that although the Arab culture was affiliation-oriented, managerial effectiveness and satisfaction were associated with need for power, but technical effectiveness and satisfaction were associated with n-Ach. Also, a significant association between the level of formal education and n-Ach was reported for Arab subjects. Entrepreneurial effectiveness and satisfaction, as related to motivation, were not investigated in the earlier studies. It is to be noted here that excluding issues related to entrepreneurial motivational effectiveness from the initial phase of this ongoing research effort has to do with the attempt to narrow the scope of the different phases of this study. It is shown later that these issues are extremely relevant and worthy of empirical investigations.

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Objective and Background The objective of this study is to investigate the relationships among n-Ach, entrepreneurial satisfaction, and effectiveness in the developing Arab country of Jordan and how these variables interact with the religious, economic, and social facets of Jordanian culture. Therefore, it is not the intention of this study to test or validate McClelland's framework of economic growth in its entirety. In this context, the study stresses the impact of n-Ach on entrepreneurship activity rather than the impact of n-Ach on the economic growth of Jordan. The scope of this investigation is limited to gaining some insight as to the motivational drive of Arab entrepreneurs and how it relates to other entrepreneurs in different cultural settings. Whereas Jordan is a small country that lacks natural resources, it is rich in human resources. The population of Jordan is largely Muslim, however, Jordan has an active Christian business community. This fact facilitates testing the impact of religious affiliation on the n-Ach of its followers. The fact that Jordan has no known oil or coal deposits of commercial value means that wealth is earned as opposed to being gained through the sale of natural resources. Such reality allows for testing the pure relationship between entrepreneurial effectiveness and n-Ach. Also, recently, Jordan went through difficult economic conditions due to the Gulf War. This unfortunate fact facilitates testing the relationship between n-Ach and business conditions before and after the Gulf War. Although unanticipated, at the time of the study, the recent welcomed peaceful developments between Israel and the Palestinians are bound to add significance and relevance to this study scope and setting. Jordan stands to serve as the focal entrepreneurial base for efforts to reactivate commerce and industry in the West Bank. Such efforts, no doubt, have significant implications for Jordan as it continues to expand its private sector, and for the global business community as it seeks to participate in the renewal of the business sector of the West Bank.

Research Hypotheses The research hypotheses stated below were derived and later tested in the context of the following background: 1. The literature related to McClelland's framework, as summarized in Figure 1. 2. The literature related to motivation and effectiveness in the Arab culture, as summarized in Figure 2. 3. The specific economic and demographic realities related to Jordan. HI: There is no difference between Muslim and Christian

entrepreneurs with regard to n-Ach. H2: For entrepreneurs, there is no association between

n-Ach and job satisfaction. H3: For entrepreneurs, there is no association between

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n-Ach and effectiveness (annual income) when correcting for the number of years in business.

M. Yasin

Table 1. Participant's Profile Variable

Mean (%)

SD

54.6 12a = high school diploma 42,150 Jordanian dinars 31,872 Jordanain dinar 30.8" 62.3 b

5.8 35

H4: For entrepreneurs, there is no association between n-Ach and economic conditions.

H5: For entrepreneurs, there is no association between job satisfaction and effectiveness (income).

H6: For entrepreneurs, there is no association between number of years of formal education and n-Ach.

Subjects and Data Collection Procedure The participants of this study were Jordanian entrepreneurs whose business addresses were obtained from the Jordanian Ministry of Commerce and Industry. These businesses in manufacturing, service, trade, and construction were located throughout the major cities of Jordan. Table 1 presents some background data on the participants and their businesses. For the purpose of this study, an entrepreneur was defined as one who owned and managed a business. In this regard, an entrepreneur had the full responsibility for decisions and their effects on the business. The definition of an entrepreneur used in this study was consistent with Meyer et al. (1961) and McClelland (1961). Data for this study were collected in December 1987 and December 1991 based on a random sample from the list of the potential participants obtained earlier. Personal contacts in the business and academic communities of Jordan were utilized to contact the participants, distribute research questionnaires, arid collect responses. In 1987, 300 entrepreneurs were contacted and asked to participate in the study. Of the 255 responses obtained, 240 were usable; t-tests indicated no significant (oe = 0.05) differences in age, income, education between participants who provided usable responses and the 15 participants who provided unusable responses. This resulted in a response rate of 80%, which was in line with other surveys conducted in Arab countries (Yavas, Luqmani, and Quraeshi, 1990; Yavas, 1992). As the study sample was drawn randomly out of the list of all potential subjects, differences between participants and nonparticipants would not be expected. Of the respondents 70% (168) were Muslims and 30% (72) were Christians. The instrument used in this study to measure n-Ach has a built-in feature to detect the reliability of the answers provided by the participants. For any given participant, an R2 of less than 0.315 indicates a lack of reliability in responding to the instruments. This means that the participants either did not understand the instrument or were answering the questions randomly. The reliability of the study sample with regard to the achievement scale was assessed using the Cronbach's oe and the retest method. The Cronbach's oes for both the 1987 and 1991 samples of 0.941 and 0.944 respectively were significant. The retest method also yielded a significant correlation of r 2 = 0.965. Similar results were found regarding the job satisfaction scale (oes of 0.921, 0.925, and r = 0.943). In 1991, subjects who provided usable responses in 1987

Age Years of formal education Income for 1984, 1985, 1986 and 1987 (1987 sample) Income for 1988, 1989, 1990 and 1991 (1991 sample) Number of years in business Number of employees Type of business Manufacturing Trade Service Construction

10,200 11,600 9.3 15.9

[101 [35] [40l [15]

an 220, 1991 sample. b n - 440, 1987and 1991 samplescombined. - -

were contacted again and asked to participate in the second phase of this study. Of the respondents, l 5 were unable to participate and five provided unusable responses. Differences between those who provided usable versus unusual responses were not significant (o~ = 0.05). Therefore, 220 usable responses were obtained in December of 1991, out of which there were 151 Muslims and 69 Christians. Finally, the 1987 data set was adjusted by deleting the 20 responses missing from the 1991 data set so the two data sets would have the same participants, t-tests indicated no significant differences (oe = 0.05) in age, education, average income, and n-Ach between the nonparticipants (the 15 subjects in 1991) and the remaining 220 participants.

Variables and Measurements Responses to variables such as name, title, address, age, educational level, number of years of business, type of business, number of employees, and the average income of the last four years were derived directly from the respondents' answers to the background questions.

Job Satisfaction Job satisfaction was measured based on the subjects' responses to four questions. Each of the four questions had seven measurement points ranging from the most unfavorable response to the most favorable response. The four questions were as follows: 1. Which of the following shows how much of the time you feel satisfied with your job? 2. Choose one of the following statements that best tells how well you like your job? 3. Which one of the following best tells how you feel about changing your job?

Need for Achievement in Arab Culture

4. Which one of the following shows how you think you can compare with other people? This measure was developed by Hoppock (1935). A largescale study that sought to assess the utility of this job satisfaction measure, using different populations, concluded that the measure is valid, reliable, and practical (McNichols et al., 1978). Reliability data from the current study seem to support this conclusion.

Effectiveness Effectiveness was measured using the average annual income for the last four years. The use of income as a measure of effectiveness is consistent with the literature (Cummin, 1967; Yasin and Stahl, 1990b, 1990c). The use of average income (INC) over the last four years rather than just last year's income is a more stable way to measure effectiveness. This is especially true in the case of the participants in this study (entrepreneurs), where income may deviate from one year to the next due to nonsystematic reasons. It is to be noted here that for participants in this study personal income and business (company) income are the same.

n-Ach The idea of using a fantasy-based approach for the measurement of motivation is an old one (Murray, 1938). In the early 1950s, McClelland and others developed what seemed to be a valid method for measuring the achievement motivation, using content analysis of the thematic apperception test (TAT) of what is known as the TAT stories. The TAT involves writing a story in response to a certain picture, then the story is scored for cues of certain motives. This approach was later extended for use in affiliation and power motivations. McClelland, as a developer of the TAT, continued to advocate its use as the best way to measure the need for certain motivations (McClelland, 1961, 1962, 1965, 1975, 1977, 1979, 1980, 1982). However, serious questions about the reliability and validity of the TAT have been voiced. Clarke (1972), Entwistle (1977), and Fineman (1977), in three major studies, have dealt with questions of validity and reliability of both fantasy-based and self-reported questionnaires measures of motivation. Generally, they found that fantasy-based measures like the TAT had low reliability, whereas self-reported questionnaires were found to have reasonable reliability. However, it is suggested that such measures may be biased toward social desirability. Similar conclusions were reported more recently (Perry, 1991; Robinson et al., 1991). To avoid the problems associated with both these approaches to the measurement of motivation, this study utilized the job choice exercise (JCE). The JCE is a decision modeling approach to the measurement of n-Ach, need for affiliation, and need for power. It was developed and used by Stahl and Harrell (Stahl and Harrell, 1979, 1982, 1983; Harrell and Stahl, 1981; Stahl, 1986). Although recently other instruments to measure n-Ach

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have been proposed (Johnson, 1990; Cassidy and Lynn, 1989), at the time of this study theJCE was the most promising instrument in terms of reliability, validity, and overcoming problems associated with the TAT approach to measuring n-Ach. The attractiveness of the JCE has to do with these features: 1. The instrument, unlike the TAT, proved to be reliable and valid for a sample of more than 2,000 respondents (Harrell and Stahl, 1981; Stahl and Harrell, 1982). Reliability data obtained from the current study are consistent with the earlier findings. 2. A check of the respondent's consistency and reliability can be performed through a test for a nonsignificant regression equation. This feature of the JCE was used in this study to check for the reliability of responses. As indicated earlier, for any given respondent, an R2 of less than 0.315 indicates a lack of reliability in responding to the instrument. Therefore, such responses were deleted before the data analysis. As a result five responses were deleted from the 1991 sample, and 15 were deleted from the 1987 sample. Stahl (1983) pointed out the significance of this feature for the selection of managers for certain positions. 3. The JCE overcomes problems associated with the TAT (e.g., need for trained persons to score the stores and variations due to scorers). Also, since it does not ask the respondent for direct self-reported motivation the JCE eliminates problems of basing the responses in the direction of social desirability (Stahl, 1983). A sample of the JCE is provided in Table 2. Table 2. Sample of the Job Choice Exercise Job #1 : In this job, the likelihood that a major portion of your duties will involve: (a) establishing and maintaining friendly relationships with others is ............................... very high (95%) (b) influencing the activities or thoughts of a number of individuals is ........................... very high (95%) (c) accomplishing difficult (but feasible) goals and later receiving detailed information about your personal performance is ...................................................... very high (95%) Decision A. With the factors and associated likelihood levels shown above in mind, indicate the attractiveness of this job to you. - 5 - 4 - 3 - 2 - 1 0 +1 +2 +3 +4 +5 very very unattractive attractive Further information about job #1 : If you exert a great deal of effort to get this job, the likelihood that you will be successful is medium (50%) Decision B. With both the attractiveness and likelihood information presented above, you would exert to get this job: 0

i

zero effort to get it

2

3

4

5

6

7

8

9

i0

great effort to get it

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M. Yasin

Table 3. Differences in n-Ach Due to Religious Background

Sample

Subject

n

Mean n-Ach

SD

Decision to Accept/Reject Hypotheses of No Difference Based on ~ = 0.05 a

1987

Muslim Christian

15] 69

0.610 0.615

0.170 0.175

Accept (t = -0.20)

1991

Muslim Christian

151 69

0.611 0.612

0.180 0.178

Accept (t = -0.04)

a Comparisons

Table 4. Regression of Income on Number of Years in Business and n-Ach Regression Stage

1

2

Regression Model

t-Value

1NC = f(NYB) Intercept NYB

6.18 a 3.59 a

INC = f(NYB+ n -Ach) Intercept NYB n-Ach

4.962 3.48 a Y25 a

R2

Change in R2

0.]82

0.355

0.173

a r e b a s e d o n t-tests. n = 440 " p < 01

Because Arabic is the language used in Jordan, the JCE was translated into Arabic. A double translation procedure was used to translate and validate theJCE. This procedure is consistent with Yasin and Stahl (1990b, 1990c).

Results Table 1 presents a summary of the sample profile.

Hypotheses Testing Hypothesis 1 was tested using two sample t-tests. Based on the results shown in Table 3, hypothesis 1 was not rejected. It was concluded that there was no evidence of difference between Muslim and Christian entrepreneurs with regard n-Ach. In a separate analysis, the Hoteling's T 2 statistic showed no differences (c~ = 0.05) between Christian and Muslim entrepreneurs with regard to the mean vectors of n-Ach, job satisfaction, and effectiveness. Hypothesis 2 was tested using a Pearson correlation coefficient. The correlation coefficient between n-Ach and job satisfaction was found to be significant (r = 0.663, p < .01, n = 440). Therefore, hypothesis 2 was rejected. It was concluded that for entrepreneurs a positive association existed between n-Ach and job satisfaction. Hypothesis 3 was tested using hierarchical regression. In the first stage, the independent variable number of years in the business (NYB) was used in the regression model, which has the variable average number (INC) (the average income over the last four years) as the dependent variable. In the second stage, the variable n-Ach was entered into the model to assess its contribution in explaining the variation in average income (INC), given the presence of number of years in the business (NYB) already in the model. Table 4 displays the results of the hierarchical regression procedure. Based on these results, hypothesis 3 was rejected. It was concluded that for entrepreneurs, n-Ach tended to be positively associated with average income when correcting for number of years in business. The interactions between the independent variables (NYB and n-Ach) in the regression models were tested for significance and were found to be insignificant (c~ = 0.05). Therefore, the models in

Table 4 have no interaction terms. This is consistent with earlier findings (Yasin and Stahl, 1990b, 1990c). In a separate analysis, a Chow test revealed no significant differences (or = 0.05) in the regression coefficients for Muslim and Christian subjects. Also, when the pre-war Ach scores were used to predict the post-war average income, the result was significant (r = 0.864, p < .01, n = 220). This seems to indicate that the relationship between n-Ach and average income, as a measure of effectiveness, is very stable. Hypothesis 4 was tested using a paired t-test. The difference in the subjects' (n = 220) n-Ach between 1987 and 1991 was found to be not significant at p = .05 (t = 0.022). Therefore, hypothesis 4 was not rejected. It was concluded that there is no evidence to indicate that need for achievement for entrepreneurs had changed between 1987 and 1991. Hypothesis 5 was tested using a Pearson correlation coefficient. The correlation coefficient between average income (for the last four years) and job satisfaction was found to be significant (r = 0.426, p < .01, n = 440). Therefore, hypothesis 5 was rejected. It was concluded that a positive association existed between average income and job satisfaction for entrepreneurs. Hypothesis 6 was tested using a Pearson correlation coefficient. The correlation coefficient between the number of years of formal education and n-Ach was found to be significant (r = 0.527, p < .01, n = 220). Therefore, hypothesis 6 was rejected. It was concluded that a positive association existed between the number of years of formal education and n-Ach for entrepreneurs. In separate analysis, the relationship between n-Ach and age was found not to be significant (oe = 0.05). Also, the relationship between n-Ach and the size of business was found not to be significant (o~ = 0.05).

Discussion The findings of this study, as reported in the results section, are examined in the context of the existing literature. The re-

Need for Achievement in Arab Culture

suit of testing hypothesis 1 suggested no difference between Muslim and Christian entrepreneurs with regard to n-Ach. This finding contradicted McClelland's (1961) notion that religious backgrounds tend to influence their followers' n-Ach. The fact that Muslims and Christians in Jordan share common cultural elements such as language, customs, and family structure could explain their similarity with regard to n-Ach. In short, the common social context may be a better predictor of n-Ach than religious backgrounds. It is to be noted that other researchers have criticized McClelland's framework for ignoring the social context (Bhagat and McQuaid, 1982). The result of testing hypothesis 2 suggested the existence of a positive relationship between n-Ach and job satisfaction for entrepreneurs. This finding was consistent with findings by Hines (1973), using a sample of entrepreneurs from New Zealand. This finding was not surprising because the nature of entrepreneurial activities and the characteristics of a person with a high n-Ach are similar. Such a match may very well lead to job satisfaction. The results of testing hypothesis 3 suggested a positive association between effectiveness, as measured by average income over the previous four years, and n-Ach existed. This finding was consistent with findings reported from other cultural settings (Durrand, 1975; Singh, 1978, 1979; Robinson and Hogan, 1993; Puffer, 1993; Okectiuku and Man 1991; Zinkhan, Hond, and Lawson, 1990). However, it contradicts the existing literature regarding the Arab culture. Such literature tends to associate effectiveness with need for affiliation (n-Aft) rather than n-Ach as in Figure 2. Perhaps n-Ach and n-Aft may exist in paralld where n-Aft is related to social effectiveness and n-Ach is related to business effectiveness. The result of testing hypothesis 4 suggested that n-Ach remained the same when business conditions changed significantly. This finding was consistent with McClelland's (1961) notion that n-Ach impacts business conditions through the entrepreneurial mode. This was contrary to Corner and Johnson's (1976) conclusion that the level of achievement fluctuates according to business conditions. The Gulf War had an adverse impact on business conditions in Jordan. In 1991, unemployment reached 30%, real growth in GNP was -8.0%, and the Jordanian dinar was equivalent to $1.45 U.S. This in contrast to 1987 when unemployment was below 8%, real growth in GNP was a positive 1.7%, and the Jordanian dinar was equivalent to $2.95 U.S. The adverse change in business conditions was reflected in the decline of the study's participants' average income from 42,190 Jordanian dinars for the 19871984 period to 31,872 Jordanian dinars for the 1991-1988 period, yet their n-Ach level remained the same. The result of testing hypothesis 5 suggested the existence of a positive association between job satisfaction and income. This was consistent with Stahl (1986) and Yasin and Stahl (1990b). The result of testing hypothesis 6 suggested a positive association between the level of formal education and n-Ach. This finding was consistent with Yasin and Stahl (1990c).

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Conclusions and Implications Based on the findings of this study, some conclusions with theoretical and practical implications can be drawn. Conclusions with theoretical implications are addressed first. The linkage between n-Ach and entrepreneurship was confirmed. This conclusion is viewed to be consistent with conclusions from other cultures reported in the literature. However, it is seen in contradiction with the myths and fictions founded in the literature dealing with the Arab culture, which tends to lead one to believe that such a linkage should be absent. Also, entrepreneurs with high n-Ach were found to be highly satisfied and effective. Furthermore, the level of achievement was not found to be a function of the existing business conditions. It appears that the political instability caused by the Gulf War has no impact on the achievement orientation of the participants. Perhaps this is an indicator of the stability of the achievement motivation as measured by n-Ach. These conclusions are supportive of McClelland's conclusion and most recent cross-cultural findings regarding the relationship between n-Ach and entrepreneurship. The linkage between religious backgrounds and n-Ach was not confirmed by this study. The social context rather than religious backgrounds alone may very well explain the difference in n-Ach among different subjects. In this regard, criticisms of McClelland's framework, for ignoring the social context, appear to be justified. From a practical point of view, investment in education, achievement training, and the strengthening of the entrepreneurial mode may, indeed, have significant implications to underdeveloped Arab countries like Jordan-especially as these countries chart their difficult road ahead toward economic growth. Although Jordan lacks natural resources, it is rich in human resources. With half of its population under the age of 15 and a population growth rate of 3.9%,Jordan has both great potential and a significant challenge ahead. It appears that the way to ensure employment for the growing population is through expanding the private sector and encouraging entrepreneurial activities. In this regard, achievement training and investing in education may be useful in stimulating the entrepreneurial mode ofJordan. Based on this study, Jordanian entrepreneurs are finding ways to earn more than 20 times the per capita income of $1,730 U.S. Like entrepreneurs in western countries, theJordanian entrepreneurs are driven by the need to achieve. International firms seeking competitive advantages in the global marketplace may find Jordan to be a very attractive market. Jordan with its liberal investment environment, highly educated and highly skilled young population, and achievementoriented entrepreneurs has a great deal to offer to international businesses as they chart their global, competitive strategies.

References Akande, Adebowale, Coping With Entrepreneurial Stress: A Nigerian Case Study. Leadership and Organization DevelopmentJournal 13 (1992): 27-32. Akande, Adebowale, Coping With Entrepreneurial Stress: Evidence

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