IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v9y2019i4p19n4.html
   My bibliography  Save this article

How do Institutions Inspire Ambitions? Differentiating Institutional Effects on Entrepreneurial Growth Intentions: Evidence from China

Author

Listed:
  • Li Yaokuang

    (Hefei University of Technology, Hefei230009, China)

  • Wang Jing

    (Hefei University of Technology, Hefei230009, China)

  • Long Dan

    (Hefei University of Technology, Hefei230009, China)

Abstract

Entrepreneurial growth intention, as an outcome of the entrepreneur’s cognition, has been found to be influenced by the institutional context. However, the cognitive rationale for the institutional impact on entrepreneurial growth intention is still unknown. This article builds upon the framework of institutional theory to reveal how the perceptions of institutional environment foster entrepreneurial growth intention via the entrepreneur’s specific cognitive process. Based on an extended model of the theory of planned behavior, we find that perceptions of different institutional dimensions exert important but distinct influence on the way in which entrepreneurs view and perceive venture growth and then indirectly inspire their ambitions in the post-entry stage of entrepreneurship. The entrepreneur’s perception of behavioral control plays a key role in this process. The implications for entrepreneurial practice and future research are then discussed.

Suggested Citation

  • Li Yaokuang & Wang Jing & Long Dan, 2019. "How do Institutions Inspire Ambitions? Differentiating Institutional Effects on Entrepreneurial Growth Intentions: Evidence from China," Entrepreneurship Research Journal, De Gruyter, vol. 9(4), pages 1-19, October.
  • Handle: RePEc:bpj:erjour:v:9:y:2019:i:4:p:19:n:4
    DOI: 10.1515/erj-2018-0161
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/erj-2018-0161
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.1515/erj-2018-0161?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Johan Wiklund & Dean Shepherd, 2003. "Aspiring for, and Achieving Growth: The Moderating Role of Resources and Opportunities," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 1919-1941, December.
    2. Frédéric Delmar & Johan Wiklund, 2008. "The Effect of Small Business Managers’ Growth Motivation on Firm Growth: A Longitudinal Study," Entrepreneurship Theory and Practice, , vol. 32(3), pages 437-457, May.
    3. Rajib Roy & Fatima Akhtar & Niladri Das, 2017. "Entrepreneurial intention among science & technology students in India: extending the theory of planned behavior," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1013-1041, December.
    4. Gavin Cassar, 2007. "Money, money, money? A longitudinal investigation of entrepreneur career reasons, growth preferences and achieved growth," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(1), pages 89-107, January.
    5. Magnus Henrekson & Dan Johansson, 2010. "Gazelles as job creators: a survey and interpretation of the evidence," Small Business Economics, Springer, vol. 35(2), pages 227-244, September.
    6. Chung-Ming Lau & Lowell W. Busenitz, 2001. "Growth Intentions of Entrepreneurs in a Transitional Economy: The People's Republic of China," Entrepreneurship Theory and Practice, , vol. 26(1), pages 5-20, October.
    7. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2009. "Better Means More: Property Rights and High-Growth Aspiration Entrepreneurship," IZA Discussion Papers 4396, Institute of Labor Economics (IZA).
    8. repec:kap:iaecre:v:13:y:2007:i:4:p:443-453 is not listed on IDEAS
    9. Haiyang Li & Yan Zhang, 2007. "The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 791-804, August.
    10. Dutta, Dev K. & Thornhill, Stewart, 2008. "The evolution of growth intentions: Toward a cognition-based model," Journal of Business Venturing, Elsevier, vol. 23(3), pages 307-332, May.
    11. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    12. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
    13. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    14. Michael Wyrwich & Michael Stuetzer & Rolf Sternberg, 2016. "Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions," Small Business Economics, Springer, vol. 46(3), pages 467-492, March.
    15. Diamantopoulos, Adamantios & Riefler, Petra & Roth, Katharina P., 2008. "Advancing formative measurement models," Journal of Business Research, Elsevier, vol. 61(12), pages 1203-1218, December.
    16. Rajib Roy & Fatima Akhtar & Niladri Das, 0. "Entrepreneurial intention among science & technology students in India: extending the theory of planned behavior," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-29.
    17. Garry D. Bruton & David Ahlstrom & Han–Lin Li, 2010. "Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future?," Entrepreneurship Theory and Practice, , vol. 34(3), pages 421-440, May.
    18. Andrew Atherton & Alex Newman, 2016. "The emergence of the private entrepreneur in reform era China: re-birth of an earlier tradition, or a more recent product of development and change?," Business History, Taylor & Francis Journals, vol. 58(3), pages 319-344, April.
    19. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
    20. Karl Wennberg & Saurav Pathak & Erkko Autio, 2013. "How culture moulds the effects of self-efficacy and fear of failure on entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(9-10), pages 756-780, December.
    21. Dominic S.K. Lim & Eric A. Morse & Ronald K. Mitchell & Kristie K. Seawright, 2010. "Institutional Environment and Entrepreneurial Cognitions: A Comparative Business Systems Perspective," Entrepreneurship Theory and Practice, , vol. 34(3), pages 491-516, May.
    22. Francesc Miralles & Ferran Giones & Brian Gozun, 2017. "Does direct experience matter? Examining the consequences of current entrepreneurial behavior on entrepreneurial intention," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 881-903, September.
    23. Aldrich, Howard E. & Cliff, Jennifer E., 2003. "The pervasive effects of family on entrepreneurship: toward a family embeddedness perspective," Journal of Business Venturing, Elsevier, vol. 18(5), pages 573-596, September.
    24. Robert Huggins & Daniel Prokop & Piers Thompson, 2017. "Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(3-4), pages 357-389, March.
    25. Devi R. Gnyawali & Daniel S. Fogel, 1994. "Environments for Entrepreneurship Development: Key Dimensions and Research Implications," Entrepreneurship Theory and Practice, , vol. 18(4), pages 43-62, July.
    26. Yuen-Ping Ho & Poh-Kam Wong, 2007. "Financing, Regulatory Costs and Entrepreneurial Propensity," Small Business Economics, Springer, vol. 28(2), pages 187-204, March.
    27. Silvia Ardagna & Annamaria Lusardi, 2010. "Heterogeneity in the Effect of Regulation on Entrepreneurship and Entry Size," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 594-605, 04-05.
    28. Tatiana S. Manolova & Candida G. Brush & Linda F. Edelman & Kelly G. Shaver, 2012. "One size does not fit all: Entrepreneurial expectancies and growth intentions of US women and men nascent entrepreneurs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(1-2), pages 7-27, January.
    29. Polona Tominc & Miroslav Rebernik, 2007. "Growth Aspirations and Cultural Support for Entrepreneurship: A Comparison of Post-Socialist Countries," Small Business Economics, Springer, vol. 28(2), pages 239-255, March.
    30. Francisco Liñán & Francisco Santos, 2007. "Does Social Capital Affect Entrepreneurial Intentions?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(4), pages 443-453, November.
    31. Colin Mason & Ross Brown, 2013. "Creating good public policy to support high-growth firms," Small Business Economics, Springer, vol. 40(2), pages 211-225, February.
    32. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    33. Kuen-Hung Tsai & Hui-Chen Chang & Chen-Yi Peng, 2016. "Extending the link between entrepreneurial self-efficacy and intention: a moderated mediation model," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 445-463, June.
    34. Guo, Hai & Xu, Erming & Jacobs, Mark, 2014. "Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms," Journal of Business Research, Elsevier, vol. 67(2), pages 116-127.
    35. Nancy Carter & Candida Brush & Patricia Greene & Elizabeth Gatewood & Myra Hart, 2003. "Women entrepreneurs who break through to equity financing: The influence of human, social and financial capital," Venture Capital, Taylor & Francis Journals, vol. 5(1), pages 1-28, January.
    36. Andrew D. Brown, 1998. "Narrative, Politics and Legitimacy in an IT Implementation," Journal of Management Studies, Wiley Blackwell, vol. 35(1), pages 35-58, January.
    37. Cliff, Jennifer E., 1998. "Does one size fit all? exploring the relationship between attitudes towards growth, gender, and business size," Journal of Business Venturing, Elsevier, vol. 13(6), pages 523-542, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chong Kyoon Lee & Griffin W. Cottle & Sharon A. Simmons & Johan Wiklund, 2021. "Fear not, want not: Untangling the effects of social cost of failure on high-growth entrepreneurship," Small Business Economics, Springer, vol. 57(1), pages 531-553, June.
    2. José Pedro Carreón-Gutiérrez & José Manuel Saiz-Álvarez, 2019. "Opportunity Motivation and Growth Aspirations of Mexican Entrepreneurs: The Moderating Role of the Household Income," Sustainability, MDPI, vol. 11(22), pages 1-15, November.
    3. Besnik A. Krasniqi & Sameeksha Desai, 2016. "Institutional drivers of high-growth firms: country-level evidence from 26 transition economies," Small Business Economics, Springer, vol. 47(4), pages 1075-1094, December.
    4. Ioannis Giotopoulos & Alexandra Kontolaimou & Aggelos Tsakanikas, 2017. "Drivers of high-quality entrepreneurship: what changes did the crisis bring about?," Small Business Economics, Springer, vol. 48(4), pages 913-930, April.
    5. Schmutzler, Jana & Andonova, Veneta & Díaz Serrano, Lluís, 2015. "When culture does (not) matter: role models and self-efficacy as drivers of entrepreneurial behavior," Working Papers 2072/247806, Universitat Rovira i Virgili, Department of Economics.
    6. M. Knockaert & M. Der Foo & T. Erikson, 2011. "Determinants of entrepreneurs’ growth intentions. A cognitive style perspective," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/720, Ghent University, Faculty of Economics and Business Administration.
    7. HERMANS, Julie & VANDERSTRAETEN, Johanna & DEJARDIN, Marcus & RAMDANI, Dendi & STAM, Erik & VAN WITTELOOSTUIJN, Arjen, 2012. "Ambitious entrepreneurship: Antecedents and consequences," Working Papers 2012023, University of Antwerp, Faculty of Business and Economics.
    8. Leonidas A. Zampetakis & Maria Bakatsaki & Konstantinos Kafetsios & Vassilis S. Moustakis, 2016. "Sex differences in entrepreneurs’ business growth intentions: an identity approach," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-20, December.
    9. Francisco Díez-Martín & Alicia Blanco-González & Camilo Prado-Román, 2016. "Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1079-1102, December.
    10. Douglas, Evan J., 2013. "Reconstructing entrepreneurial intentions to identify predisposition for growth," Journal of Business Venturing, Elsevier, vol. 28(5), pages 633-651.
    11. Ivano Dileo & Thaís García Pereiro, 2019. "Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1393-1441, December.
    12. Watson, John & Stuetzer, Michael & Zolin, Roxanne, 2017. "Female underperformance or goal-oriented behavior?," MPRA Paper 88403, University Library of Munich, Germany.
    13. Eva Christine Erhardt, 2022. "Prevalence and Persistence of High-Growth Entrepreneurship: Which Institutions Matter Most?," Journal of Industry, Competition and Trade, Springer, vol. 22(2), pages 297-332, June.
    14. Jana Schmutzler & Veneta Andonova & Luis Diaz-Serrano, 2019. "How Context Shapes Entrepreneurial Self-Efficacy as a Driver of Entrepreneurial Intentions: A Multilevel Approach," Entrepreneurship Theory and Practice, , vol. 43(5), pages 880-920, September.
    15. R. Sandra Schillo & Ajax Persaud & Meng Jin, 2016. "Entrepreneurial readiness in the context of national systems of entrepreneurship," Small Business Economics, Springer, vol. 46(4), pages 619-637, April.
    16. Mohd Hizam Hanafiah, & Sheikh Usman Yousaf, & Bushra Usman,, 2017. "The influence of psychological capital on the growth intentions of entrepreneurs: A study on Malaysian SME entrepreneurs," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(5), pages 556-569, December.
    17. Erkko Autio & Saurav Pathak & Karl Wennberg, 2013. "Consequences of cultural practices for entrepreneurial behaviors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
    18. Jan Ole Rypestøl, 2017. "Regional industrial path development: The role of new entrepreneurial firms," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-19, December.
    19. Colin Donaldson, 2019. "Intentions resurrected: a systematic review of entrepreneurial intention research from 2014 to 2018 and future research agenda," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 953-975, September.
    20. Yongseok Jang & Woo Jin Lee & Brandy Hadley, 2020. "Interactive Effects of Business Environment Assessment and Institutional Programs on Opportunity Entrepreneurship," Sustainability, MDPI, vol. 12(13), pages 1-18, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:erjour:v:9:y:2019:i:4:p:19:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.