The effects of internal locus of control on entrepreneurship: the mediating mechanisms of social capital and human capital

Chan Hsiao, Yi Hsuan Lee, Hsiang Heng Chen*

*Corresponding author for this work

Research output: Contribution to journalArticle

22 Scopus citations

Abstract

This paper proposes the research framework that locus of control enhances entrepreneurship through the mediating mechanisms of increased social capital in interpersonal networks and improved human capital in personal development. We adopted structural equation modeling to examine the research hypothesis. The research participants comprised managers from 14 enterprises in China; a total of 1002 valid questionnaires were collected. The results revealed that social and human capital mediate the effect that internal locus of control exerts on entrepreneurship. This study provides the following research contributions: first, the findings address the gaps in previous studies regarding the effect that a single dimension (i.e. personality traits) produces on entrepreneurship. Second, by employing the social exchange and human capital theories, we integrated interpersonal and individual perspectives into the research framework to explore factors affecting entrepreneurship, identifying that social and human capital are key-mediating mechanisms through which locus of control influences entrepreneurship.

Original languageEnglish
Pages (from-to)1158-1172
Number of pages15
JournalInternational Journal of Human Resource Management
Volume27
Issue number11
DOIs
StatePublished - 16 Jun 2016

Keywords

  • entrepreneurship
  • human capital
  • locus of control
  • mediating effect
  • social capital

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