How do Institutions Inspire Ambitions? Differentiating Institutional Effects on Entrepreneurial Growth Intentions: Evidence from China

Abstract

Abstract Entrepreneurial growth intention, as an outcome of the entrepreneur’s cognition, has been found to be influenced by the institutional context. However, the cognitive rationale for the institutional impact on entrepreneurial growth intention is still unknown. This article builds upon the framework of institutional theory to reveal how the perceptions of institutional environment foster entrepreneurial growth intention via the entrepreneur’s specific cognitive process. Based on an extended model of the theory of planned behavior, we find that perceptions of different institutional dimensions exert important but distinct influence on the way in which entrepreneurs view and perceive venture growth and then indirectly inspire their ambitions in the post-entry stage of entrepreneurship. The entrepreneur’s perception of behavioral control plays a key role in this process. The implications for entrepreneurial practice and future research are then discussed.

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