On the Importance of a Motivational Agency Variable: Being a Formal Business in Developing Countries Is Only Helpful for Growth if Business Owners Show a High Degree of Personal Initiative
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In: Journal of Applied Psychology, Vol. 104, No. 9, 09.2019, p. 1181-1194.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - On the Importance of a Motivational Agency Variable
T2 - Being a Formal Business in Developing Countries Is Only Helpful for Growth if Business Owners Show a High Degree of Personal Initiative
AU - Jacob, Gabriel Henry
AU - Frese, Michael
AU - Krauss, Stefanie I.
AU - Friedrich, Christian
PY - 2019/9
Y1 - 2019/9
N2 - This article advances the understanding of when and how formal status of small-scale entrepreneurs can contribute to higher growth in comparison to their informal counterparts. Our integrative framework suggests that both formal status and personal initiative (PI) behavior have a common pathway to predict firm growth. More importantly, formal firms improve their growth perspectives only if the entrepreneurs show a high degree of PI. The integrative framework was tested using longitudinal data with 2 measurement points with a total of 190 formal and informal entrepreneurs in the Sub-Saharan African country of Zimbabwe. Results show that both formal status and PI have indirect effects on firm growth through available resources. Further, PI has a dual-path moderating effect on the indirect effect of formal status to firm growth such that the indirect effect of formal status on firm growth via available resources is strongest when entrepreneurs have high PI, but there is no indirect effect when PI is low. Our research shows the importance of considering the interplay of institutional and psychological factors for explaining firm growth in developing countries.
AB - This article advances the understanding of when and how formal status of small-scale entrepreneurs can contribute to higher growth in comparison to their informal counterparts. Our integrative framework suggests that both formal status and personal initiative (PI) behavior have a common pathway to predict firm growth. More importantly, formal firms improve their growth perspectives only if the entrepreneurs show a high degree of PI. The integrative framework was tested using longitudinal data with 2 measurement points with a total of 190 formal and informal entrepreneurs in the Sub-Saharan African country of Zimbabwe. Results show that both formal status and PI have indirect effects on firm growth through available resources. Further, PI has a dual-path moderating effect on the indirect effect of formal status to firm growth such that the indirect effect of formal status on firm growth via available resources is strongest when entrepreneurs have high PI, but there is no indirect effect when PI is low. Our research shows the importance of considering the interplay of institutional and psychological factors for explaining firm growth in developing countries.
KW - Entrepreneurship
KW - Business psychology
UR - http://www.scopus.com/inward/record.url?scp=85062293101&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/8ac48c85-8bfa-3374-a59a-a3205c24c7df/
U2 - 10.1037/apl0000398
DO - 10.1037/apl0000398
M3 - Journal articles
C2 - 30829511
AN - SCOPUS:85062293101
VL - 104
SP - 1181
EP - 1194
JO - Journal of Applied Psychology
JF - Journal of Applied Psychology
SN - 0021-9010
IS - 9
ER -