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Entrepreneurship by circumstances and abilities: the mediating role of job satisfaction and moderating role of self-efficacy

Wong, Poh Kam and Lee, Lena and Leung, Aegean (2006): Entrepreneurship by circumstances and abilities: the mediating role of job satisfaction and moderating role of self-efficacy.

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Abstract

Prior studies have found that job dissatisfaction and self-efficacy are significant factors influencing individuals’ entrepreneurial propensity. Existing literature on entrepreneurship often regards job dissatisfaction as an entrepreneurial push factor and self-efficacy as an entrepreneurial pull factor. The argument is that individuals who are dissatisfied with their jobs are more likely to seek alternative mode of employment such as self-employment. In other words, poor job circumstances may push individuals to leave their paid employment to start their own businesses. On the other hand, personal abilities such as self-efficacy may pull individuals toward starting their own businesses in areas where they are confident and competent in. Despite the importance of job dissatisfaction and self-efficacy for new venture creation, few if any studies have examined the entrepreneurial phenomena from a holistic perspective. Utilizing concepts from the P-E fit and self-efficacy literatures, this paper argues that the path to entrepreneurship is a multi-faceted interactive process between individuals’ personal attributes and their work environment. We specifically examined how IT professional’s personal attributes such as innovation orientation and self-efficacy condition individuals for an entrepreneurial career in unsatisfactory work environments.

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