Perceived barriers and entrepreneurial exit intentions: moderating role of regular versus sustainable entrepreneurship

Subhan Shahid

36 citations0/0 files storedEuropean Business Review

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Entrepreneurship Studies and Influences Firm Innovation and Growth Migration, Ethnicity, and Economy

Abstract

Purpose This study aims to untangle how perceived barriers provoke entrepreneurial exit intentions during an entrepreneurial engagement. Drawing on the social cognitive theory (SCT), the study also theorizes the mediating role of self-efficacy and moderating effects of the nature of entrepreneurship activity (regular versus sustainable entrepreneurship) on the barriers–exit relationship. Design/methodology/approach The survey data were collected from 302 entrepreneurs in the UK in two waves using a time-lagged method and analyzed through the structural equation modeling technique Findings The results indicate that perceived barriers positively related to entrepreneurial exit intentions, whereas self-efficacy served as an effective intervening mechanism to untangle the barriers–exit relationship. In addition, consistent support was found for the moderating role of the nature of entrepreneurship activity for the hypothesized relationships. Practical implications The investigation unfolds that perceived barriers lead entrepreneurs to stimulate exit intentions. Therefore, it is recommended that all the stakeholders, including government, industries and academia, must collaborate and provide a favorable institutional environment where sustainable entrepreneurship can thrive and nourish. Originality/value Unlike studies that exhibited perceived barriers as an inhibitor to entrepreneurial intentions, the study theorizes the relevance of perceived barriers during entrepreneurial engagement and demonstrates how it determines entrepreneurial exit intentions. The study also comprehends the exiting knowledge by underpinning the SCT construct self-efficacy as an intervening factor in explaining the barriers–exit relationship.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1999Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives 2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.2001Social Cognitive Theory: An Agentic Perspective 2000Prior Knowledge and the Discovery of Entrepreneurial Opportunities 2011INDIVIDUAL RISK ATTITUDES: MEASUREMENT, DETERMINANTS, AND BEHAVIORAL CONSEQUENCES 2005The Mediating Role of Self-Efficacy in the Development of Entrepreneurial Intentions.2016Understanding and Tackling Societal Grand Challenges through Management Research

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