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Factors affecting peasant entrepreneurs’ intention in the Chinese context

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Abstract

In the extant literature, research attention has been largely given to explore the issue of Chinese peasant entrepreneurship based on strategic entrepreneurial perspective. The current study examines the intention of Chinese peasant entrepreneurs based on entrepreneurial behavior perspective and hypothesizes that self-efficacy positively moderates the relationship between the need for power and entrepreneurial intention and the relationship between institutional environment and entrepreneurial intention. An analysis of a sample of 298 Chinese peasants proved most of the hypotheses. Results show that the need for power has a positive influence on the entrepreneurial intentions of the selected low-social-status population. Results also reveal the positive effect of the institutional environment perceived by individuals on entrepreneurial intention. The finding indicates that the government can enhance the entrepreneurial intention of rural individuals by updating entrepreneurial policies, by training and education in entrepreneurial activities that target the rural masses, and by promoting a successful entrepreneurial model. Moreover, positive moderation of self-efficacy on the relationship between the need for power and entrepreneurial intention is proven, which indicates that the effects of these two factors on entrepreneurial intention mutually reinforce each other. The finding also indicates that moderation of self-efficacy on the relationship between the institutional environment and entrepreneurial intention is negative that shows that self-efficacy and institutional environment can substitute for each other.

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Acknowledgments

Support by Chinese National Natural Science Foundation (71072023).

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Authors and Affiliations

  1. Business School, Central University of Finance and Economics, Beijing, China

    Song Lin

  2. Zhejiang University, Hangzhou, China

    Steven Si

  3. Bloomsburg University of Pennsylvania, Bloomsburg, USA

    Steven Si

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  1. Song Lin
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Correspondence to Song Lin.

Appendix

Appendix

Questionnaire

Entrepreneurial intention

Indicate your level of agreement with the following statements from 1 (total disagreement) to 5 (total agreement)

  1. 1)

    I am ready to do anything to be an entrepreneur

  2. 2)

    My professional goal is to become an entrepreneur

  3. 3)

    I will make every effort to start and run my own firm

  4. 4)

    I am determined to create a firm in the future

  5. 5)

    I have very seriously thought of starting a firm

  6. 6)

    I have the firm intention to start a firm some day

The results of confirmatory factor analysis are: CMIN/DF = 12.335 (P = 0.000), GFI = 0.892, IFI = 0.977, CFI = 0.944, NFI = 0.939, RMSEA = 0.195.

Need for power

Indicate your level of agreement with the following statements from 1 (total disagreement) to 5 (total agreement)

  1. 1)

    I would probably enjoy being elected to an influential political position.

  2. 2)

    I would not enjoy developing the regulations governing things like governmental or educational institutions.

  3. 3)

    I would not enjoy supervising other people.

  4. 4)

    I would enjoy functioning in a high-level, decision-making capacity.

  5. 5)

    I would enjoy influencing the career decisions of my associates.

  6. 6)

    I would not enjoy directing decision-making processes.

  7. 7)

    I would not enjoy functioning in a managerial or executive capacity for a corporation.

  8. 8)

    It is unlikely that I will ever seek a leadership position.

  9. 9)

    I would enjoy making the arrangements for an organization’s activities.

  10. 10)

    I would enjoy deciding how institutional procedures or regulations should be interpreted.

  11. 11)

    I would enjoy influencing the social relationships of my associates.

  12. 12)

    I would dislike managing or being in charge of the financial resources of an institution.

  13. 13)

    I would enjoy deciding upon educational or social standards.

  14. 14)

    I would dislike having to make the decisions concerning who should be promoted.

  15. 15)

    1 would dislike having to set the work-schedules or the work-standards for other people.

  16. 16)

    I would enjoy assessing the qualifications of trainees in my field.

  17. 17)

    I would be interested in being involved in personnel decisions concerning who should be hired for certain jobs.

  18. 18)

    If I were in a professional field, I would not wish to serve on a committee in charge of admitting new members to the field.

  19. 19)

    I would dislike delegating work to subordinates.

  20. 20)

    1 would enjoy being in a position to decide points in a merit system.

  21. 21)

    I would not be interested in deciding who is best qualified for a particular assignment or mission.

  22. 22)

    I would enjoy being employed by a prestigious institution.

  23. 23)

    I would enjoy being appointed director of a department in government or industry.

  24. 24)

    I would not care to be regarded as an influential person in the community.

  25. 25)

    I would find influencing the lives of others to be a very rewarding experience.

The results of confirmatory factor analysis are: CMIN/DF = 6.464 (P = 0.000), GFI = 0.708, IFI = 0.647, CFI = 0.644, NFI = 0.590, RMSEA = 0.111.

Institutional environment

Indicate your level of agreement with the following statements from 1 (total disagreement) to 5 (total agreement)

  1. 1)

    Government organizations in this country assist individuals with starting their own business.

  2. 2)

    The government sets aside government contracts for new and small businesses.

  3. 3)

    Local and national governments have special support available for individuals who want to start a new business.

  4. 4)

    The government sponsors organizations that help new businesses develop.

  5. 5)

    Even after failing in an earlier business, the government assists entrepreneurs in starting again.

  6. 6)

    Individuals know how to legally protect a new business.

  7. 7)

    Those who start new businesses know how to deal with much risk.

  8. 8)

    Those who start new businesses know how to manage risk.

  9. 9)

    Most people know where to find information about markets for their products.

  10. 10)

    Turning new ideas into businesses is an admired career path in this country.

  11. 11)

    In this country, innovative and creative thinking is viewed as the route to success.

  12. 12)

    Entrepreneurs are admired in this country.

  13. 13)

    People in this country tend to greatly admire those who start their own business.

The results of confirmatory factor analysis are: CMIN/DF = 2.984 (P = 0.000), GFI = 0.917, IFI = 0.957, CFI = 0.957, NFI = 0.590, RMSEA = 0.082.

Self-efficacy

Entrepreneurial Self-Efficacy was measured by asking respondents to rate themselves against their peers on the following measures. 1 means much worse and 5 means much better.

  1. 1)

    Being able to solve problems

  2. 2)

    Managing money

  3. 3)

    Being creative

  4. 4)

    Getting people to agree with you

  5. 5)

    Being a leader

  6. 6)

    Making decisions

The results of confirmatory factor analysis are: CMIN/DF = 2.793 (P = 0.000), GFI = 0.970, IFI = 0.982, CFI = 0.982, NFI = 0.972, RMSEA = 0.078.

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Lin, S., Si, S. Factors affecting peasant entrepreneurs’ intention in the Chinese context. Int Entrep Manag J 10, 803–825 (2014). https://doi.org/10.1007/s11365-014-0325-4

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