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Effect of entrepreneurial satisfaction on personal initiative: The role of institutional trust and industry attractiveness

We investigated the effect of entrepreneurial satisfaction on personal initiative using a sample of 581 entrepreneurs in China. Entrepreneurial satisfaction was classified into 2 dimensions: satisfaction with income and satisfaction with firm size. The moderating roles of institutional trust and industry attractiveness were examined. We found that entrepreneur’s personal initiative was lower for those who were more satisfied with their entrepreneurial progress, particularly satisfaction with firm size. Regarding the contingency effect, industry attractiveness assuaged the negative relationship between entrepreneurial satisfaction and personal initiative, but institutional trust did not. The study promotes understanding about Chinese entrepreneurial behaviors and has relevant practical implications for policymakers and new venture management.