IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i21p12323-d674515.html
   My bibliography  Save this article

The Formation of Subsequent Entrepreneurial Intention: Happiness Matters

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/21/12323/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/21/12323/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hsu, Dan K. & Burmeister-Lamp, Katrin & Simmons, Sharon A. & Foo, Maw-Der & Hong, Michelle C. & Pipes, Jesse D., 2019. "“I know I can, but I don't fit”: Perceived fit, self-efficacy, and entrepreneurial intention," Journal of Business Venturing, Elsevier, vol. 34(2), pages 311-326.
    2. Teemu Kautonen & Marco van Gelderen & Erno T. Tornikoski, 2013. "Predicting entrepreneurial behaviour: a test of the theory of planned behaviour," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 697-707, February.
    3. David R. Marshall & Robert Gigliotti, 2020. "Bound for entrepreneurship? A career-theoretical perspective on entrepreneurial intentions," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 287-303, March.
    4. Robert Cummins, 2000. "Personal Income and Subjective Well-being: A Review," Journal of Happiness Studies, Springer, vol. 1(2), pages 133-158, June.
    5. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    6. Powell, Gary N. & Eddleston, Kimberly A., 2013. "Linking family-to-business enrichment and support to entrepreneurial success: Do female and male entrepreneurs experience different outcomes?," Journal of Business Venturing, Elsevier, vol. 28(2), pages 261-280.
    7. Jose Plehn-Dujowich, 2010. "A theory of serial entrepreneurship," Small Business Economics, Springer, vol. 35(4), pages 377-398, November.
    8. Fayolle, Alain & Liñán, Francisco, 2014. "The future of research on entrepreneurial intentions," Journal of Business Research, Elsevier, vol. 67(5), pages 663-666.
    9. Cooper, Arnold C. & Artz, Kendall W., 1995. "Determinants of satisfaction for entrepreneurs," Journal of Business Venturing, Elsevier, vol. 10(6), pages 439-457, November.
    10. Robert A. Baron & Michael D. Ensley, 2006. "Opportunity Recognition as the Detection of Meaningful Patterns: Evidence from Comparisons of Novice and Experienced Entrepreneurs," Management Science, INFORMS, vol. 52(9), pages 1331-1344, September.
    11. 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.
    12. Bhuiyan, Muhammad Faress & Ivlevs, Artjoms, 2019. "Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh," Journal of Business Venturing, Elsevier, vol. 34(4), pages 625-645.
    13. Westhead, Paul & Wright, Mike, 1998. "Novice, portfolio, and serial founders: are they different?," Journal of Business Venturing, Elsevier, vol. 13(3), pages 173-204, May.
    14. Ryff, Carol D., 2019. "Entrepreneurship and eudaimonic well-being: Five venues for new science," Journal of Business Venturing, Elsevier, vol. 34(4), pages 646-663.
    15. David G. Blanchflower & Andrew J. Oswald, 2004. "Money, Sex and Happiness: An Empirical Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(3), pages 393-415, October.
    16. Paul Westhead & Mike Wright, 1998. "Novice, Portfolio, and Serial Founders in Rural and Urban Areas," Entrepreneurship Theory and Practice, , vol. 22(4), pages 63-100, July.
    17. Martin Binder & Alex Coad, 2013. "Life satisfaction and self-employment: a matching approach," Small Business Economics, Springer, vol. 40(4), pages 1009-1033, May.
    18. Francisco Linan & Alain Fayolle, 2015. "A systematic literature review on entrepreneurial intentions : citation, thematic analyses, and research agenda," Post-Print hal-02313298, HAL.
    19. Martin Carree & Ingrid Verheul, 2012. "What Makes Entrepreneurs Happy? Determinants of Satisfaction Among Founders," Journal of Happiness Studies, Springer, vol. 13(2), pages 371-387, April.
    20. Caputo, Andrea & Pizzi, Simone & Pellegrini, Massimiliano M. & Dabić, Marina, 2021. "Digitalization and business models: Where are we going? A science map of the field," Journal of Business Research, Elsevier, vol. 123(C), pages 489-501.
    21. Vera Rocha & Mirjam van Praag, 2020. "Mind the gap: The role of gender in entrepreneurial career choice and social influence by founders," Strategic Management Journal, Wiley Blackwell, vol. 41(5), pages 841-866, May.
    22. Douglas, Evan J. & Shepherd, Dean A., 2000. "Entrepreneurship as a utility maximizing response," Journal of Business Venturing, Elsevier, vol. 15(3), pages 231-251, May.
    23. Paul Westhead & Deniz Ucbasaran & Mike Wright & Martin Binks, 2005. "Novice, Serial and Portfolio Entrepreneur Behaviour and Contributions," Small Business Economics, Springer, vol. 25(2), pages 109-132, September.
    24. Ed Diener & Ronald Inglehart & Louis Tay, 2013. "Theory and Validity of Life Satisfaction Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(3), pages 497-527, July.
    25. Ari Hyytinen & Pekka Ilmakunnas, 2007. "What distinguishes a serial entrepreneur?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(5), pages 793-821, October.
    26. Kirkwood, Jodyanne & Tootell, Beth, 2008. "Is entrepreneurship the answer to achieving work–family balance?," Journal of Management & Organization, Cambridge University Press, vol. 14(3), pages 285-302, July.
    27. Wim Naudé & José Ernesto Amorós & Oscar Cristi, 2011. "‘Surfeiting, The Appetite May Sicken’: Entrepreneurship and the Happiness of Nations," Working Papers 2011/07, Maastricht School of Management.
    28. Edmund R. Thompson, 2009. "Individual Entrepreneurial Intent: Construct Clarification and Development of an Internationally Reliable Metric," Entrepreneurship Theory and Practice, , vol. 33(3), pages 669-694, May.
    29. Ruut Veenhoven, 1991. "Is happiness relative?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 24(1), pages 1-34, February.
    30. Maija Renko & Ayman Tarabishy & Alan L. Carsrud & Malin Brännback, 2012. "Entrepreneurial Leadership and the Family Business," International Studies in Entrepreneurship, in: ALAN CARSRUD & Malin Brännback (ed.), Understanding Family Businesses, chapter 0, pages 169-184, Springer.
    31. Melissa S. Cardon & Colleen P. Kirk, 2015. "Entrepreneurial Passion as Mediator of the Self–Efficacy to Persistence Relationship," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1027-1050, September.
    32. Marco Gelderen & Teemu Kautonen & Joakim Wincent & Marina Biniari, 2018. "Implementation intentions in the entrepreneurial process: concept, empirical findings, and research agenda," Small Business Economics, Springer, vol. 51(4), pages 923-941, December.
    33. Teemu Kautonen & Marco van Gelderen & Matthias Fink, 2015. "Robustness of the Theory of Planned Behavior in Predicting Entrepreneurial Intentions and Actions," Entrepreneurship Theory and Practice, , vol. 39(3), pages 655-674, May.
    34. Pauric McGowan & Caroline Lewis Redeker & Sarah Y. Cooper & Kate Greenan, 2012. "Female entrepreneurship and the management of business and domestic roles: Motivations, expectations and realities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(1-2), pages 53-72, January.
    35. Zahra, Shaker A. & Garvis, Dennis M., 2000. "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 469-492.
    36. Lindblom, Arto & Lindblom, Taru & Wechtler, Heidi, 2020. "Dispositional optimism, entrepreneurial success and exit intentions: The mediating effects of life satisfaction," Journal of Business Research, Elsevier, vol. 120(C), pages 230-240.
    37. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
    38. Kelly G. Shaver & Linda R. Scott, 1992. "Person, Process, Choice: The Psychology of New Venture Creation," Entrepreneurship Theory and Practice, , vol. 16(2), pages 23-46, January.
    39. Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008. "Entrepreneurial aspirations, motivations, and their drivers," Small Business Economics, Springer, vol. 31(3), pages 323-339, October.
    40. Jeffrey E. McGee & Mark Peterson & Stephen L. Mueller & Jennifer M. Sequeira, 2009. "Entrepreneurial Self–Efficacy: Refining the Measure," Entrepreneurship Theory and Practice, , vol. 33(4), pages 965-988, July.
    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. Evelien Croonen & Hans van Der Bij & Rozenn Perrigot & Assaad El Akremi & Olivier Herrbach, 2022. "Who wants to be a franchisee? Explaining individual intentions to become franchisees," Post-Print hal-03281669, HAL.
    2. Ricardo Figueiredo Belchior & Roisin Lyons, 2021. "Explaining entrepreneurial intentions, nascent entrepreneurial behavior and new business creation with social cognitive career theory – a 5-year longitudinal analysis," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1945-1972, December.
    3. Aurora A. C. Teixeira & Rosa Portela Forte, 2017. "Prior education and entrepreneurial intentions: the differential impact of a wide range of fields of study," Review of Managerial Science, Springer, vol. 11(2), pages 353-394, March.
    4. José Alberto Martínez-González & Urszula Kobylinska & Francisco J. García-Rodríguez & Lukasz Nazarko, 2019. "Antecedents of Entrepreneurial Intention among Young People: Model and Regional Evidence," Sustainability, MDPI, vol. 11(24), pages 1-29, December.
    5. Yuji Honjo & Kenta Ikeuchi & Hiroki Nakamura, 2022. "The Mediating Effect of Financial Motives in the Association between Entrepreneurial Experience and Subjective Well-Being: Evidence from Japan," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 1043-1067, April.
    6. Douglas, Evan J. & Shepherd, Dean A. & Venugopal, Vidhula, 2021. "A multi-motivational general model of entrepreneurial intention," Journal of Business Venturing, Elsevier, vol. 36(4).
    7. Leon Schjoedt, 2021. "Exploring differences between novice and repeat entrepreneurs: does stress mediate the effects of work-and-family conflict on entrepreneurs’ satisfaction?," Small Business Economics, Springer, vol. 56(4), pages 1251-1272, April.
    8. Colin Donaldson & Francisco Liñán & Joaquin Alegre, 2021. "Entrepreneurial Intentions: Moving the Field Forwards," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 30(1), pages 30-55, March.
    9. Pham, Dung & Jones, Paul & Dobson, Stephen & Liñán, Francisco & Viala, Céline, 2021. "Entrepreneurial implementation intention as a tool to moderate the stability of entrepreneurial goal intention: A sensemaking approach," Journal of Business Research, Elsevier, vol. 123(C), pages 97-105.
    10. Diana Traikova & Tatiana S. Manolova & Judith Möllers & Gertrud Buchenrieder, 2017. "Corruption Perceptions And Entrepreneurial Intentions In A Transitional Context–The Case Of Rural Bulgaria," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-21, September.
    11. Jeffery S. McMullen & Katrina M. Brownell & Joel Adams, 2021. "What Makes an Entrepreneurship Study Entrepreneurial? Toward A Unified Theory of Entrepreneurial Agency," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1197-1238, September.
    12. Mariano Rojas & Karen Watkins-Fassler & Lázaro Rodríguez-Ariza, 2022. "The Life Satisfaction of Owner-Manager Entrepreneurs When the Business of Business is not only Business," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(4), pages 2251-2275, August.
    13. Mario Rosique-Blasco & Antonia Madrid-Guijarro & Domingo García-Pérez-de-Lema, 2018. "The effects of personal abilities and self-efficacy on entrepreneurial intentions," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 1025-1052, December.
    14. 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.
    15. Brunella Arru, 2020. "An integrative model for understanding the sustainable entrepreneurs’ behavioural intentions: an empirical study of the Italian context," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3519-3576, April.
    16. Jelle Schepers & Wim Voordeckers & Tensie Steijvers & Eddy Laveren, 2021. "Entrepreneurial intention-action gap in family firms: bifurcation bias and the board of directors as an economizing mechanism," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 451-475, September.
    17. Carmen Păunescu & Mihaela Cornelia Popescu & Matthias Duennweber, 2018. "Factors Determining Desirability of Entrepreneurship in Romania," Sustainability, MDPI, vol. 10(11), pages 1-22, October.
    18. Asim Nasar & Suzilawati Kamarudin & Adriana Mohd Rizal & Vu Thi Bich Ngoc & Samar Mohammad Shoaib, 2019. "Short-Term and Long-Term Entrepreneurial Intention Comparison between Pakistan and Vietnam," Sustainability, MDPI, vol. 11(23), pages 1-26, November.
    19. Binder, Martin & Blankenberg, Ann-Kathrin, 2021. "Self-employment and subjective well-being," University of Göttingen Working Papers in Economics 411, University of Goettingen, Department of Economics.
    20. Sanawi M. Sharahiley, 2020. "Examining Entrepreneurial Intention of the Saudi Arabia’s University Students: Analyzing Alternative Integrated Research Model of TPB and EEM," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 67-84, March.

    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:13:y:2021:i:21:p:12323-:d:674515. 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.