The effect of family business exposure on individuals' entrepreneurial intentions: an institutional theory perspective

Abstract

Purpose The purpose of this study is to examine the effect of family business exposure on individuals' entrepreneurial intentions (EIs). By applying the institutional framework at the micro level, this study proposed the mediation of three types of institutional forces (coercive, normative and mimetic) between the relationship of family business exposure and EIs. Design/methodology/approach Data were collected from 367 university students in Pakistan. The survey design was used for the data collection. The measurement and hypothesized models were tested using the structural equation modeling technique in Mplus 7.0. Findings The findings of this study revealed that family business exposure positively influenced the institutional forces (coercive, normative and mimetic) which further developed the individuals' EIs. However, family business exposure did not affect the EIs directly that showed the full mediation of institutional forces between the relationship of family business exposure and EIs. Originality/value This is the first study in its nature which applied institutional theory from the macro level to the micro level within the context of family business. The results revealed the institutional forces as the underpinning mechanism which explains the relationship between family business exposure and EIs.