IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i17p10662-d898781.html
   My bibliography  Save this article

The Impact of Digital Technology Use on Passive Entrepreneurial Exit in Rural Households: Empirical Evidence from China

Author

Listed:
  • Yiran Wang

    (College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Zhijian Cai

    (College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Jie Wang

    (College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

Abstract

To reduce the passive entrepreneurial exit of rural families and improve the quality of rural entrepreneurship, we theoretically discuss how digital technology can help rural families to obtain resources in the process of entrepreneurship from a micro perspective to inhibit the passive entrepreneurial exit, and perform an empirical test by using the data of three consecutive periods of China’s household finance survey in 2015, 2017, and 2019. The results show that: First, digital technology use has a significant inhibitory effect on the passive entrepreneurial exit of rural families. Second, the role of digital technology lies in effectively improving the social capital, human capital, and financial capital of entrepreneurial families, thus inhibiting the passive entrepreneurial exit of rural families. Third, the role of digital technology is related to the development level of village social networks and county economic development levels. The average marginal effect of data technology in villages or counties with high development levels is higher. The policy implications are as follows: We should accelerate the improvement of rural digital infrastructure construction, accelerate the expansion of digital services for the people, and enhance the ability of farmers to use digital technology while increasing policy support for farmers’ entrepreneurship.

Suggested Citation

  • Yiran Wang & Zhijian Cai & Jie Wang, 2022. "The Impact of Digital Technology Use on Passive Entrepreneurial Exit in Rural Households: Empirical Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:17:p:10662-:d:898781
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/17/10662/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/17/10662/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bauernschuster, Stefan & Falck, Oliver & Woessmann, Ludger, 2014. "Surfing alone? The internet and social capital: Evidence from an unforeseeable technological mistake," Journal of Public Economics, Elsevier, vol. 117(C), pages 73-89.
    2. Rasha Mostafa & Colin Wheeler & Marian Jones, 2005. "Entrepreneurial orientation, commitment to the Internet and export performance in small and medium sized exporting firms," Journal of International Entrepreneurship, Springer, vol. 3(4), pages 291-302, December.
    3. Dawn R. DeTienne & Francesco Chirico, 2013. "Exit Strategies in Family Firms: How Socioemotional Wealth Drives the Threshold of Performance," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1297-1318, November.
    4. Masatoshi Kato & Yuji Honjo, 2015. "Entrepreneurial human capital and the survival of new firms in high- and low-tech sectors," Journal of Evolutionary Economics, Springer, vol. 25(5), pages 925-957, November.
    5. Stiglitz, Joseph E., 2000. "Capital Market Liberalization, Economic Growth, and Instability," World Development, Elsevier, vol. 28(6), pages 1075-1086, June.
    6. Vera Rocha & Anabela Carneiro & Celeste Varum, 2015. "Entry and exit dynamics of nascent business owners," Small Business Economics, Springer, vol. 45(1), pages 63-84, June.
    7. Batjargal, Bat, 2007. "Internet entrepreneurship: Social capital, human capital, and performance of Internet ventures in China," Research Policy, Elsevier, vol. 36(5), pages 605-618, June.
    8. DeTienne, Dawn R., 2010. "Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development," Journal of Business Venturing, Elsevier, vol. 25(2), pages 203-215, March.
    9. Bae, Kee-Hong & Ozoguz, Arzu & Tan, Hongping & Wirjanto, Tony S., 2012. "Do foreigners facilitate information transmission in emerging markets?," Journal of Financial Economics, Elsevier, vol. 105(1), pages 209-227.
    10. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    11. Xu, Jingjing & Zhang, Yan, 2018. "Family CEO and information disclosure: Evidence from China," Finance Research Letters, Elsevier, vol. 26(C), pages 169-176.
    12. Ronald S. Burt, 1998. "The Gender Of Social Capital," Rationality and Society, , vol. 10(1), pages 5-46, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yunwen Zhou & Zhijian Cai & Jie Wang, 2023. "Digital Rural Construction and Rural Household Entrepreneurship: Evidence from China," Sustainability, MDPI, vol. 15(19), pages 1-17, September.
    2. Shiyu Ji & Jincai Zhuang, 2023. "The Impact Path of Digital Literacy on Farmers’ Entrepreneurial Performance: Based on Survey Data in Jiangsu Province," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    3. Lijuan Huang & Jing Tan & Guojie Xie & Yu Tian, 2024. "The driving pathways for the construction of rural e-commerce entrepreneurial ecosystem based on the TOE framework," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.

    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. Eugene Kaciak & Izabela Koladkiewicz & Narongsak (Tek) Thongpapanl & Marta Wojtyra, 0. "The role of social networks in shaping entrepreneurial exit strategies," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    2. Eugene Kaciak & Izabela Koladkiewicz & Narongsak (Tek) Thongpapanl & Marta Wojtyra, 2021. "The role of social networks in shaping entrepreneurial exit strategies," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1619-1655, December.
    3. Noni Symeonidou & Dawn R. DeTienne & Francesco Chirico, 2022. "The persistence of family firms: How does performance threshold affect family firm exit?," Small Business Economics, Springer, vol. 59(2), pages 477-489, August.
    4. Sanguineti, Francesca & Majocchi, Antonio & Cavusgil, S. Tamer, 2022. "Founding entrepreneur’s dilemma: Stay or exit the firm following an acquisition? An international comparison," International Business Review, Elsevier, vol. 31(1).
    5. M. Nesij Huvaj, 2020. "A Co-opetition View of the Entrepreneur–Investor Relationship: Modelling Entrepreneurial Exit Pathways," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(2), pages 365-394, September.
    6. Hsu, Dan K. & Wiklund, Johan & Anderson, Stella E. & Coffey, Betty S., 2016. "Entrepreneurial exit intentions and the business-family interface," Journal of Business Venturing, Elsevier, vol. 31(6), pages 613-627.
    7. Navaz Naghavi & Muhammad Shujaat Mubarik & Devinder Kaur, 2018. "Financial Liberalization And Stock Market Efficiency: Measuring The Threshold Effects Of Governance," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 1-24, December.
    8. Khelil, Nabil, 2016. "The many faces of entrepreneurial failure: Insights from an empirical taxonomy," Journal of Business Venturing, Elsevier, vol. 31(1), pages 72-94.
    9. Cunfei Liao & Guohao Tang & Xiaoying Xu, 2024. "Smart money or chasing stars: Evidence from northbound trading in China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1781-1803, April.
    10. Ye, Zhiqiang & Zhang, Fangfang & Zhang, Shunming, 2021. "Export effect and influence mechanism of foreign ownership," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 258-276.
    11. Shahid, Pirzada Syed Rizwan, 2023. "Founder's Human Capital and the Entrepreneurial Process Duration," OSF Preprints yf6mg, Center for Open Science.
    12. Marta Widz & Nadine Kammerlander, 2023. "Entrepreneurial exit intentions in emerging economies: a neoinstitutional perspective," Small Business Economics, Springer, vol. 60(2), pages 615-638, February.
    13. Singaram, Raja & Radu-Lefebvre, Miruna & Gartner, William B., 2023. "Gordian knot uncut: Understanding the problem of founder exit in social ventures," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    14. Hiremath, Gourishankar S. & Kattuman, Paul, 2017. "Foreign portfolio flows and emerging stock market: Is the midnight bell ringing in India?," Research in International Business and Finance, Elsevier, vol. 42(C), pages 544-558.
    15. Jie Wang & Zhijian Cai, 2022. "The Effect of Dependency Burden on Household Entrepreneurial Exit Behavior: Empirical Evidence from Chinese Households," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    16. Arndt Werner & Sabrina Schell & Ljuba Haunschild, 2021. "How does a succession influence investment decisions, credit financing and business performance in small and medium-sized family firms?," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 423-446, March.
    17. Bird, Miriam & Wennberg, Karl, 2016. "Why family matters: The impact of family resources on immigrant entrepreneurs' exit from entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(6), pages 687-704.
    18. Massimo Baù & Philipp Sieger & Kimberly A. Eddleston & Francesco Chirico, 2017. "Fail but Try Again? The Effects of Age, Gender, and Multiple–Owner Experience on Failed Entrepreneurs’ Reentry," Entrepreneurship Theory and Practice, , vol. 41(6), pages 909-941, November.
    19. Jianing Dong & Xiao Wang & Xuanwei Cao & David Higgins, 2022. "More Prosocial, More Ephemeral? The Role of Work-Related Wellbeing and Gender in Incubating Social Entrepreneurs’ Exit Intention," IJERPH, MDPI, vol. 19(7), pages 1-21, March.
    20. Rizwan Khalid & Choudhry Tanveer Shehzad & Bushra Naqvi, 2023. "Impact of capital account liberalization on stock market crashes," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 3700-3726, October.

    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:gam:jsusta:v:14:y:2022:i:17:p:10662-:d:898781. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.