Starting a Business is not an Easy Business: Relationship between Resilience and Entrepreneurial Intention
Haw Ran Wong (Assistant Professor, Department of Business Administration, Fu Jen Catholic University, Xinzhuang Dist., Taipei, Taiwan), and Leemen Lee*(Assistant Professor, Department of Business Administration, Fu Jen Catholic University, Xinzhuang Dist., Taipei, Taiwan), *Corresponding author'sEmail
Wong, Haw Ran and Lee, Leemen (2015), “Starting a Business is not an Easy Business: Relationship between Resilience and Entrepreneurial Intention”, MERC Global’s International Journal of Management, Vol. 3, Issue 2, pp. 56-78.
Submitted: January 12, 2015, Revision received: February 03, 2015, Accepted: February 16, 2015
The study was motivated by the fact
that resilience is an important trait for entrepreneurs in facing uncertainties
and adversities. A substantial body of entrepreneurship studies has analysed the
entrepreneurial intention and its predictors such as desirability, feasibility,
and propensity to act; however, research emphasising resilience and integrating
resilience with entrepreneurial intention is still lacking. Therefore, this
study has been endeavoured to explore the relationship between resilience and
entrepreneurial intention. This study used the structural equation modelling
technique for analysis, and the results confirmed a positive relationship
between resilience and entrepreneurial intention. This research defined
resilience with five dimensions: sense of meaning, self-perseverance,
self-assurance, equanimity, and self-contentment. Among the five dimensions of
resilience, self-contentment was found to possess the highest factor loading in
the estimated structural model relating resilience to entrepreneurial
intention, and the sense of meaning carried the second highest factor loading.
Austin, J.; Stevenson, H. and Wei‐Skillern, J. (2006), “Social and commercial entrepreneurship: same, different, or both?”, Entrepreneurship Theory and Practice, Vol. 30, No. 1, pp. 1-22.
Battle, K. D. (2010), Resilience in African-American and Caucasian Caregivers of Family Members With Alzheimer’s Disease or Related Dementia (ADRD), Doctoral Dissertation, The Catholic University of America, Washington, DC.
Bird, B. (1988), “Implementing entrepreneurial ideas: The case for intention”, Academy of Management Review, Vol. 13, No. 3, pp. 442-453.
Blatt, R. (2009), “Resilience in entrepreneurial teams: Developing the capacity to pull through”, Frontiers of Entrepreneurship Research, Vol. 29, No. 11, article 1.
Blunch, N. (2008), Introduction to Structural Equation Modelling Using SPSS and AMOS, Sage, London.
Byrne, B. M. (2012), Structural Equation Modeling with Mplus: Basic Concepts, Applications, and Programming, Routledge, New York, NY.
Cameron, C. A.; Ungar, M. and Liebenberg, L. (2007), “Cultural understandings of resilience: Roots for wings in the development of affective resources for resilience”, Child and Adolescent Psychiatric Clinics of North America, Vol. 16, No. 2, pp. 285-301.
Carsrud, A. and Brännback, M. (2011), “Entrepreneurial motivations: what do we still need to know?”, Journal of Small Business Management, Vol. 49, No. 1, pp. 9-26.
Chandler, G. N.; DeTienne, D. R.; McKelvie, A. and Mumford, T. V. (2011), “Causation and effectuation processes: A validation study”, Journal of Business Venturing, Vol. 26, No. 3, pp. 375-390.
De Vries, H. and Shields, M. (2005), “Entrepreneurial resilience: An analysis of the resilience factors in SME owner-managers”, working paper, School of Business, Christchurch College of Education, Christchurch, New Zealand, No. 2001, available at: http://sbaer.uca.edu/research/icsb/2005/paper201.pdf (accessed 30 Jun2 2014).
De Vries, M. F. R. (1977), “The entrepreneurial personality: a person at the crossroads”, Journal of Management Studies, Vol. 14, No. 1, pp. 34-57.
Dew, N.; Read, S.; Sarasvathy, S. D. and Wiltbank, R. (2009), “Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices”, Journal of Business Venturing, Vol. 24, No. 4, pp. 287-309.
Diamantopoulos, A. and Winklhofer, H. M. (2001), “Index construction with formative indicators: an alternative to scale development”, Journal of Marketing Research, Vol. 38, No. 2, pp. 269-277.
Earvolino‐Ramirez, M. (2007), “Resilience: A concept analysis”, Nursing Forum, Vol. 42, No. 2, pp. 73-82.
Fiet, J. O. (2002), The Systematic Search for Entrepreneurial Discoveries, Quorum Books, Westport, CT.
Fini, R.; Grimaldi, R.; Marzocchi, G. L. and Sobrero, M. (2012), “The determinants of corporate entrepreneurial intention within small and newly established firms”, Entrepreneurship Theory and Practice, Vol. 36, No. 2, pp. 387-414.
Fornell, C. and Larcker, D. F. (1981), “Structural equation models with unobservable variables and measurement error: Algebra and statistics”, Journal of Marketing Research, Vol. 18, No. 3, pp. 382-388.
Friedman, B. A.; Aziz, N.; Keles, I. and Sayfullin, S. (2012), “Predictors of students’ desire to be an entrepreneur: Kyrgyzstan, Georgia, and the United States”, Eurasian Journal of Business and Economics, Vol. 5, No. 9, pp. 129-140.
Grotberg, E. H. (2004), “Children and caregivers: The role of resilience”, July, paper presented at the International Council of Psychologists (ICP) Convention, Jinan, China, available at: http://resilnet.uiuc.edu/library/grotberg2004_children-caregivers-china.pdf (accessed 27 June 2014).
Hedner, T.; Abouzeedan, A. and Klofsten, M. (2011), “Entrepreneurial resilience”, Annals of Innovation & Entrepreneurship, Vol. 2, No. 1, pp. 1-4.
Henderson, R. and Robertson, M. (2000), “Who wants to be an entrepreneur? Young adult attitudes to entrepreneurship as a career”, Career Development International, Vol. 5, No. 6, pp. 279-287.
Hu, L. T. and Bentler, P. M. (1999), “Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives”, Structural Equation Modeling: A Multidisciplinary Journal, Vol. 6, No. 1, pp. 1-55.
Kline, R. B. (2011), Principles and Practice of Structural Equation Modeling, Guilford Press, New York, NY.
Klofsten, M. and Norrman, C. (2010), “An integrated approach of measuring the development of innovative spin-off ventures”, Frontiers of Entrepreneurship Research, Vol. 30, No. 9, article 5.
Kuratko, D. F. (2007), “Entrepreneurial leadership in the 21st century”, Journal of Leadership and Organisational Studies, Vol. 13, No. 4, article 1.
Leadbeater, B.; Dodgen, D. and Solarz, A. (2005), “The resilience revolution”, in Peters, R.D., Leadbeater, B. and McMahon, R.J. (Eds.), Resilience in Children, Families, and Communities: Linking Context to Practice and Policy, Kluwer, New York, NY, pp. 47-63.
Lee, L. and Yang, C. L. (2013), “Key success factors in female micro entrepreneurship: A study of the catering business”, Service Science and Management Research, Vol. 2, No. 3, pp. 39-47.
Lee, L.; Wong, H. R. and Hu, J. S. (2014), “An architectural innovation approach to re-designing businesses and products for sustainability”, Journal of Economics and Sustainable Development, Vol. 5, No. 5, pp. 86-92.
Lee, S. M.; Lim, S. B.; Pathak, R. D.; Chang, D. and Li, W. (2006), “Influences on students attitudes toward entrepreneurship: a multi-country study”, The International Entrepreneurship and Management Journal, Vol. 2, No. 3, pp. 351-366.
Mair, J. and Noboa, E. (2003), “Social entrepreneurship: how intentions to create a social enterprise get formed”, working paper No. D/521, IESE Business School, University of Navarra, Barcelona, Spain, available at: http://ssrn.com/abstract=462283 (accessed 15 July 2014).
Netemeyer, R. G.; Bearden, W. O. and Sharma, S. (2003), Scaling Procedures: Issues and Applications, Sage, London.
Roxas, B. G.; Cayoca-Panizales, R. and de Jesus, R. M. (2008), “Entrepreneurial knowledge and its effects on entrepreneurial intentions: development of a conceptual framework”, Asia-Pacific Social Science Review, Vol. 8 No. 2, pp. 61-77.
Rutter, M. (2008), “Developing concepts in developmental psychopathology” in Hudziak, J. J. (Ed.), Developmental Psychopathology and Wellness: Genetic and Environmental Influences, American Psychiatric Publishing, Arlington, VA, pp. 3-22.
Sarasvathy, S. D. (2001), “Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency”, Academy of Management Review, Vol. 26, No. 2, pp. 243-263.
Sarasvathy, S. D. (2008), Effectuation: Elements of Entrepreneurial Expertise, Edward Elgar Publishing, Northampton, MA.
Segal, G.; Borgia, D. and Schoenfeld, J. (2005), “The motivation to become an entrepreneur”, International Journal of Entrepreneurial Behaviour & Research, Vol. 11, No.1, pp. 42-57.
Sheeran, P. (2002), “Intention—behavior relations: A conceptual and empirical review”, European Review of Social Psychology, Vol. 12, No. 1, pp. 1-36.
Stewart, W. H. and Roth, P. L. (2007), “A meta‐analysis of achievement motivation differences between entrepreneurs and managers”, Journal of Small Business Management, Vol. 45, No. 4, pp. 401-421.
Tubbs, M. E. and Ekeberg, S. E. (1991), “The role of intentions in work motivation: Implications for goal-setting theory and research”, Academy of Management Review, Vol. 16, No. 1, pp. 180-199.
Turker, D. and Selcuk, S. S. (2009), “Which factors affect entrepreneurial intention of university students?”, Journal of European Industrial Training, Vol. 33, No.2, pp. 142-159.
Wagnild, G. (2003), “Resilience and successful aging: Comparison among low and high income older adults”, Journal of Gerontological Nursing, Vol. 29, No. 12, pp. 42-49.
Wagnild, G. and Young, H. M. (1990), “Resilience among older women”, Image: The Journal of Nursing Scholarship, Vol. 22, No. 4, pp. 252-255.
Wiltbank, R.; Dew, N.; Read, S. and Sarasvathy, S. D. (2006), “What to do next? The case for non‐predictive strategy”, Strategic Management Journal, Vol. 27, No. 10, pp. 981-998.
Yalcin, S. and Kapu, H. (2008), “Entrepreneurial dimensions in transitional economies: A review of relevant literature and the case of Kyrgyzstan”, Journal of Developmental Entrepreneurship, Vol. 13, No. 2, pp. 185-204.
Zautra, A. J.; Hall, J. S. and Murray, K. E. (2010), “A new definition of health for people and communities”, in Reich, J.W., Zautra, A.J. and Hall, J.S. (Eds.), Handbook of Adult Resilience, Guilford, New York NY, pp. 3-29.
Zhao, H. and Seibert, S. (2006), “The big five personality dimensions and entrepreneurial status: A meta-analytic review”, Journal of Applied Psychology, Vol. 91, Issue 2, pp. 259-271.
Zhao, H.; Seibert, S. E. and Hills, G. E. (2005), “The mediating role of self-efficacy in the development of entrepreneurial intentions”, Journal of App. Psy., Vol. 90, No. 6, pp. 1265-72.