Entrepreneurial intentions in the context of a natural disaster

Abstract

Purpose

This research aims to explore the moderating effect of a natural disaster on the well-studied relationship between entrepreneurship-oriented beliefs (behavioral, normative, and control beliefs) and entrepreneurial intentions.

Design/methodology/approach

This study relies on data from the Global Entrepreneurship Monitor before and after the earthquake that took place in Chile on February 27, 2010. The study was performed by applying a multilevel hierarchical logit regression over a sample of 14,724 individuals from the six more affected regions.

Findings

The results indicate that a natural disasters shape the relationship between entrepreneurial intentions and all its three motivational antecedents, however in opposing directions. The results also suggest that a natural disaster strengthens the relationship between entrepreneurial attitudes and entrepreneurial intentions; nevertheless the effect of subjective norms becomes less relevant in shaping entrepreneurial intentions. Furthermore, the authors found that the earthquake had a positive effect on the relationship between perceived behavioral control and entrepreneurial intentions.

Originality/value

This study advances the emerging stream of research on the micro-level consequences of exogenous shocks and how they shape individual functioning. A key implication for policymakers wishing to facilitate the recovery phase after a natural disaster is that it is important to focus on fostering entrepreneurship by developing individuals' personal attitude and perceived control over the firm-creation behavior, rather than relying on the perceived social pressure to become an entrepreneur.

Citation

Bustamante, C., Poblete, C. and Amorós, J.E. (2022), "Entrepreneurial intentions in the context of a natural disaster", International Journal of Emerging Markets, Vol. 17 No. 5, pp. 1198-1217. https://doi.org/10.1108/IJOEM-10-2019-0846