ABSTRACT
This chapter focuses on the specific role that cultural proximity may play for innovative entrepreneurs. Departing from the Upper Echelons Theory which proposes that organizational outcomes, strategic choice, and performance levels are influenced by the experience and personal characteristics of the entrepreneur, here, we will discuss how the personal beliefs of entrepreneurs determine the way external information, conditions, and stimuli are filtered, interpreted, and integrated into decisions. In this context, cultural proximity refers to the similarity in the perceptions, interpretations, understanding, and evaluations that actors have of the world. It also increases the likelihood of inter-organizational collaboration by reducing the cognitive distance between partner organizations in search for mutual benefits. Ultimately, it provides identities for organizations looking for exchange partners. The role of cultural proximity in entrepreneurial networks will therefore be discussed in detail.
