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The Formation of Subsequent Entrepreneurial Intention: Happiness Matters

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  • Jia Bao

    (School of Management, Zhejiang University, Hangzhou 310058, China)

  • Junsheng Dou

    (School of Management, Zhejiang University, Hangzhou 310058, China)

Abstract

Subsequent entrepreneurial intention is a good predictor of serial entrepreneurial endeavors which facilitate the sustainability of economic growth. Previous research has investigated the influence of economic outcomes on continuous engagement in entrepreneurial activities. However, despite frequent calls by scholars, limited attention has been given to the psychological factors that could explain how economic performance influences intention. This study aims at answering some of these questions, including whether entrepreneurs are willing to continue creating new ventures after achieving positive economic feedback from their current business, and what the psychological drivers are behind such intentions. Borrowing insights from the field of positive psychology, this study develops a framework to understand the role of the performance of a firm and happiness in the subsequent intention formation process, testing the mediated moderation effect using data collected from 1019 entrepreneurs in China. The results show that current firm performance significantly enhances subsequent entrepreneurial intention, while the relationship is mediated by the happiness of the entrepreneurs. Family cohesion attenuates the influence of firm performance on happiness, which shows that for entrepreneurs, family issues play an important role in their mental state. The theoretical and practical implications of the framework are also discussed.

Suggested Citation

  • Jia Bao & Junsheng Dou, 2021. "The Formation of Subsequent Entrepreneurial Intention: Happiness Matters," Sustainability, MDPI, vol. 13(21), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:12323-:d:674515
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    1. Irina Alina Popescu & Paulo Jorge Reis Mourão, 2024. "Exploring the nexus between national innovation performance and happiness," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.

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