Similar but yet different: individual cognitive traits and family contingencies as antecedents of intrapreneurship and self-employment

Entrepreneurship significantly impacts individuals, families, and society. Intrapreneurship, undertaking ventures within established organizations, is gaining prominence. However, understanding how individuals choose between intrapreneurship, self-employment, and non-entrepreneurship remains a challenge. Existing research on entrepreneurial ventures often focuses on the rational assessment of risks and returns, neglecting the complexities of choosing between different entrepreneurial paths. This study bridges this gap by proposing an integrated framework to understand entrepreneurial choice. It addresses the key question of whether the factors driving intrapreneurship are similar to those influencing self-employment, exploring why individuals might favor one over the other. The research emphasizes the role of individual cognitive traits and family-related factors in this decision-making process, acknowledging that entrepreneurial choice is not merely about opportunity identification and development, but also about resource conservation, investment, and loss avoidance.

The literature on entrepreneurial choice often frames it as a process of identifying and developing business opportunities, with individuals selecting self-employment for higher entrepreneurial rents or paid employment otherwise. Recent studies highlight intrapreneurship and hybrid entrepreneurship (simultaneously being employed and self-employed). This study focuses on the distinction between intrapreneurship (developing opportunities within an organization) and self-employment, considering hybrid entrepreneurship as a form of self-employment. While earlier research suggested similarities between intrapreneurship and entrepreneurship, the unique embeddedness of intrapreneurs as employees needs to be considered. Existing literature explores individual and organizational factors in intrapreneurship but fails to explain why individuals choose one path over another, even with similar entrepreneurial talents. The role of family in this decision-making process has also been largely overlooked, particularly regarding its impact on intrapreneurship. This study draws upon a family embeddedness perspective and the theory of conservation of resources to address this research gap. The study examines the influence of socio-cognitive traits, specifically entrepreneurial alertness (EA) and entrepreneurial self-efficacy (ESE), on entrepreneurial choice and investigates the contingency roles of work-family conflict and household income.

The study employs a two-study design. Study 1 utilizes secondary data from the Global Entrepreneurship Monitor (GEM) database (2011-2019), encompassing 704,515 observations from 97 economies. The data includes measures of entrepreneurial choice (intrapreneurship, self-employment, non-entrepreneurship), entrepreneurial alertness (EA), entrepreneurial self-efficacy (ESE), household size (proxy for work-family conflict), household income, and control variables (gender, age, education, GDP per capita, unemployment rate). Multinomial logistic regression models are used to analyze the data. Model 1 examines the effects of EA and ESE on entrepreneurial choice. Model 2 uses intrapreneurship as the baseline group. Model 3 adds the interaction between EA and ESE. Model 4 incorporates household size as a moderator. Model 5 introduces household income as a moderator. Study 2 involves a replication survey in China (n=363) using validated scales for intrapreneurship behavior, self-employment, EA, ESE, work-to-family conflict (WFC), family-to-work conflict (FWC), household income, and control variables. Linear regression models are employed to test the hypotheses, considering interactions and moderating effects of WFC, FWC, and household income. Confirmatory factor analysis is used to assess the measurement model.

Study 1's findings support the hypotheses that EA and ESE positively influence both intrapreneurship and self-employment, with stronger effects on self-employment. The interaction between EA and ESE negatively affects intrapreneurship but shows a non-significant positive effect on self-employment. Household size (proxy for work-family conflict) weakens the positive effect of the EA x ESE interaction on self-employment. Household income strengthens the negative effect of the EA x ESE interaction on intrapreneurship and strengthens the positive effect on self-employment. Study 2 confirms that EA and ESE positively affect intrapreneurship and self-employment, respectively. The interaction between EA and ESE negatively affects intrapreneurship and positively affects self-employment. FWC positively moderates the effect of the EA x ESE interaction on intrapreneurship, while household income negatively moderates this effect. WFC shows a marginal positive effect on the EA x ESE interaction for self-employment, while FWC negatively moderates this effect. Figures illustrate the interactions and moderating effects, demonstrating the nuanced relationships between the variables.

The findings largely support the hypotheses, providing evidence for the roles of individual cognitive traits and family contingencies in entrepreneurial choice. The study highlights the distinct yet overlapping factors influencing intrapreneurship and self-employment, challenging the assumption of complete similarity. The interaction effects reveal the importance of considering both EA and ESE together, rather than in isolation. The moderating effects of family factors underscore the context-dependent nature of entrepreneurial choices. The contrasting effects of WFC and FWC on self-employment suggest different entrepreneurial motivations. The study advances the understanding of entrepreneurial choice by incorporating a more holistic perspective that considers individual resources and family context.

This research contributes to the literature by integrating intrapreneurship and self-employment within a comprehensive entrepreneurial choice framework. It demonstrates the distinct yet overlapping effects of entrepreneurial alertness and self-efficacy, highlighting the importance of their interaction and the moderating roles of family-related factors. Future research should explore alternative scales for EA and ESE, mitigate common method bias through longitudinal studies, investigate the mechanisms through which work-family conflict influences entrepreneurial decisions, and consider the role of gender in the context of entrepreneurial choice. Additionally, exploring the interplay between intrapreneurship, hybrid entrepreneurship, and self-employment would provide a more nuanced understanding of the entrepreneurial process.

Study 1 relied on single-item measures for EA and ESE, potentially affecting construct validity. Household size served as a proxy for work-family conflict, which might not fully capture the complexities of work-family dynamics. Common method bias may affect self-reported data. Study 2 attempted to mitigate some limitations through multiple data collection sites and question balancing. However, the reliance on self-reported cross-sectional data still poses limitations, especially concerning the interpretation of interaction effects. The time lag in GEM data release (3 years) also affects the timeliness of conclusions.