Rural entrepreneurship capital and firm performance: A youth perspective
DOI:
https://doi.org/10.24914/jeb.v23i1.2644Keywords:
entrepreneurship capital, firm performance, youth entrepreneur, rural entrepreneurshipAbstract
This study aims to review the concept of entrepreneurship capital in the context of rural entrepreneurship. Rural entrepreneurship is becoming increasingly popular because it is considered as the proper instrument in stemming urbanization. This research examines the relationship between entrepreneurship and firm performance in the perspective of resource-based theory. The researcher used a structural equation model approach as a tool to measure the relationship. The unit of analysis of this study is a rural youth entrepreneur domiciled in East Java Province, Malang Regency, Bojonegoro, and Tuban. This study used a quantitative approach involving 733 youth entrepreneurs with a purposive sampling technique. The results of the study found that not all elements of entrepreneurship capital were able to influence firm performance. The three elements are cultural capital, social capital, and human capital. Other findings show financial capital is no longer as a major consideration to support entrepreneurship as in previous studies.
Downloads
References
Aldrich, D. P., & Meyer, M. A. (2014). Social Capital and Community Resilience. American Behavioral Scientist, 59(2), 254-269.
Audretsch, D., & Keilbach, M. (2004). Entrepreneurship Capital and Economic Performance. Regional Studies, 38(8), 949-959.
Augusto Felício, J., Couto, E., & Caiado, J. (2014). Human capital, social capital and organizational performance. Management Decision, 52(2), 350-364.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120
Barney, J. B. (2016). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643-650.
Beneke, J., Blampied, S., Dewar, N., & Soriano, L. (2016). The impact of market orientation and learning orientation on organisational performance: A study of small to medium-sized enterprises in Cape Town, South Africa. Journal of Research in Marketing and Entrepreneurship, 18(1), 90-108.
Bosworth, G. (2009). Commercial counterurbanisation: an emerging force in rural economic development. Environment and Planning A, 42(A), 966-981.
Bourdieu, P. (1986). The form of capitals. In J. G. Richardson (Ed.), Handbook of Theory and Research for the Sociology of Education. New York: Greenwood Press.
Castaño, M.-S., Méndez, M.-T., & Galindo, M.-Á. (2015). The effect of social, cultural, and economic factors on entrepreneurship. Journal of Business Research, 68(7), 1496-1500.
Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen Jr., D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443-456.
Dunn, T., & Holtz-Eakin, D. (2000). Financial capital, human capital, and the transition to self-employment: evidence from intergenerational links. Journal of Labor Economics, 18(2), 282-304.
Erikson, T. (2002). Entrepreneurial capital: the emerging venture’s most important asset and competitive advantage. Journal of Business Venturing, 17, 275–290.
Franzen, A. (2006). Social Networks and Labour Market Outcomes: The Non-Monetary Benefits of Social Capital. European Sociological Review, 22(4), 353-368.
Fuller‐Love, N., Midmore, P., Thomas, D., & Henley, A. (2006). Entrepreneurship and rural economic development: a scenario analysis approach. International Journal of Entrepreneurial Behavior & Research, 12(5), 289-305.
Gelderblom, D. (2018). The limits to bridging social capital: Power, social context and the theory of Robert Putnam. The Sociological Review, 66(6), 1309-1324.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis 7th_Edition: Pearson Prentice Hall.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2014). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
Hughes, M., & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651-661.
Istiqomah, & Adawiyah, W. R. (2018). Development of rural group entrepreneurship in Indonesia: benefits, problems, and challenges. International Journal of Entrepreneurship and Small Business, 34(3), 330-342.
Jaakkola, M. (2014). Market-driven innovation cabability and financial performance: Moderating effect of environmental turbulance. The Sustainable Global Marketplace, 320.
Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36, 15-23.
Orser, B. J., Riding, A. L., & Manley, K. (2006). Women entrepreneurs and financial capital. Entrepreneurship Theory and Practice, 30(5), 643-665
Pato, M. L., & Teixeira, A. A. C. (2016). Twenty Years of Rural Entrepreneurship: A Bibliometric Survey. Sociologia Ruralis, 56(1), 3-28.
Prieur, A., & Savage, M. (2013). Emerging Forms of Cultural Capital. European Societies, 15(2), 246-267.
Shan, P., Song, M., & Ju, X. (2015). Entrepreneurial orientation and performance: Is innovation speed a missing link? Journal of Business Research.
Shaw, E., Marlow, S., Lam, W., & Carter, S. (2009). Gender and entrepreneurial capital: Implications for firm performance. International Journal of Gender and Entrepreneurship, 1(1), 25-41.
Shaw, J. D., Park, T.-Y., & Kim, E. (2013). A resource-based perspective on human capital losses, HRM investments, and organizational performance. Strategic Management Journal, 34(5), 572-589.
Stam, W., Arzlanian, S., & Elfring, T. (2014). Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. Journal of Business Venturing, 29(1), 152-173.
Thorsby, D. (1999). Cultural Capital. Journal of Cultural Economics, 2, 3-12.
Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341-358.
Uzzi, B. (1999). How social relations and networks benefit firms seeking financing. American Sociological Association, 64(4), 481-505.
Roomi, M. A. (2011). Entrepreneurial capital, social values and Islamic traditions: Exploring the growth of women-owned enterprises in Pakistan. International Small Business Journal, 31(2), 175-191.
Shaw, E., Marlow, S., Lam, W., & Carter, S. (2009). Gender and entrepreneurial capital: implications for firm performance. International Journal of Gender and Entrepreneurship, 1(1), 25-41.
Shaw, J. D., Park, T.-Y., & Kim, E. (2013). A resource-based perspective on human capital losses, HRM investments, and organizational performance. Strategic Management Journal, 34(5), 572-589.
Stam, W., Arzlanian, S., & Elfring, T. (2014). Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. Journal of Business Venturing, 29(1), 152-173.
Thorsby, D. (1999). Cultural Capital. Journal of Cultural Economics, 2, 3-12.
Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341-358.
Uzzi, B. (1999). How social relations and networks benefit firms seeking financing. American Sociological Association, 64(4), 481-505.
Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: a comparison of approaches. The Academy of Management Review, 11(4), 801-814.
Wei, Z., Song, X., & Wang, D. (2017). Manufacturing flexibility, business model design, and firm performance. International Journal of Production Economics
Weijters, B., Cabooter, E., & Schillewaert, N. (2010). The effect of rating scale format on response styles: the number of response categories and response category labels. International Journal of Research in Marketing, 27(3), 236-247.
Wortman, M. S. (1990). Rural entrepreneurship research: An integration into the entrepreneurship field. Agribusiness, 6(4), 329-344.
Downloads
Published
How to Cite
Issue
Section
License
Jurnal Ekonomi dan Bisnis is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License
