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...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Council for Social and Economic Studies
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/89466/ http://psasir.upm.edu.my/id/eprint/89466/1/IQ.pdf |
| _version_ | 1848860859998142464 |
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| author | Suhaimi, Siti Shazwani Burhan, Nik Ahmad Sufian Sabri, Mohamad Fazli Abdul Rahman, Abdul Razak Ibrahim, Saifuzzaman |
| author_facet | Suhaimi, Siti Shazwani Burhan, Nik Ahmad Sufian Sabri, Mohamad Fazli Abdul Rahman, Abdul Razak Ibrahim, Saifuzzaman |
| author_sort | Suhaimi, Siti Shazwani |
| building | UPM Institutional Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-15T12:51:56Z |
| format | Article |
| id | upm-89466 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:51:56Z |
| publishDate | 2020 |
| publisher | Council for Social and Economic Studies |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-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/ |
| 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 |
| title | 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_short | IQ and governance contribute to entrepreneurship, but in different ways |
| title_sort | iq and governance contribute to entrepreneurship, but in different ways |
| url | http://psasir.upm.edu.my/id/eprint/89466/ http://psasir.upm.edu.my/id/eprint/89466/ http://psasir.upm.edu.my/id/eprint/89466/1/IQ.pdf |