Individual resources, property rights and entrepreneurship in China

Sahasranamam, Sreevas and Raman, G. Venkat (2018) Individual resources, property rights and entrepreneurship in China. International Journal of Emerging Markets, 13 (6). pp. 1502-1521. ISSN 1746-8809 (https://doi.org/10.1108/IJoEM-02-2018-0097)

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Abstract

Purpose – In the last decade, the Chinese government enacted two rule-based policy changes related to property rights; namely, a constitutional amendment to protect the lawful rights of the private sector in 2004 and a property rights law in 2007. Using property rights theory, this study hypothesizes the contingent effect that these property rights changes have on the investment of individual human and financial capital towards entrepreneurship. In addition, this study also explores whether property rights changes have a differential effect on the two forms of entrepreneurship, namely, opportunity and necessity entrepreneurship. Design/methodology/approach – This research uses logit regression analysis on a two period model using the Global Entrepreneurship Monitor (GEM) database to test these effects. Findings – Contrary to existing evidence from Western contexts, this study finds that property rights changes have a significant influence on the investment of both forms of capital towards necessity entrepreneurship in China. Research limitations – The use of a secondary database like GEM has certain limitations, such as the non-availability of data on a longitudinal basis, and the need to operationalize certain constructs like human and financial capital as non-continuous variables. Originality/value – There has been limited research on the phenomena of necessity entrepreneurship in economies such as that of China. The findings of this study highlight that property rights protection is equally important for necessity entrepreneurship in institutional contexts like China

ORCID iDs

Sahasranamam, Sreevas ORCID logoORCID: https://orcid.org/0000-0001-9418-4493 and Raman, G. Venkat;
  • Item type:Article
    ID code:64573
    Dates:
    Date
    Event
    29 November 2018
    Published
    20 June 2018
    Accepted
    Notes:Copyright © 2018, Emerald Publishing Limited Sahasranamam, S. and Raman, G.V. (2018), "Individual resources, property rights and entrepreneurship in China", International Journal of Emerging Markets, Vol. 13 No. 6, pp. 1502-1521. https://doi.org/10.1108/IJoEM-02-2018-0097
    Subjects:Social Sciences > Commerce
    Department:Strathclyde Business School > Hunter Centre for Entrepreneurship, Strategy and Innovation
    Depositing user: Pure Administrator
    Date deposited:22 Jun 2018 10:23
    Last modified:11 Nov 2024 12:02
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/64573
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