Why ethnic minority groups’ online-startups are booming in China’s tight cultural ecosystem?

Abstract

Purpose

Although most Chinese ethnic minority groups (EMGs) hold conservative thinking to online-startups, the new entrepreneurial model is booming on live streaming platforms. In China’s tight cultural ecosystem, the tight cultural control would lead EMG entrepreneurs to keep conservative thinking and avoid challenging careers. Still, it would be helpful for Chinese Governments to issue systematical entrepreneurial policies and improve online-startup environment for EMGs. To discover the relationships among influencing factors and EMGs’ online-startup motivation, this paper aims to draw on the tight and loose cultural theory and the capability-opportunity-motivation-behaviour (COM-B) behaviour changing theory and establishes the research model based on China’s tight cultural ecosystem.

Design/methodology/approach

Through analysing 617 questionnaires from 37 EMGs based on the partial least squares path modelling and variance-based structural equation modelling method, the study proves that environmental opportunity factors and personal capability factors have positive impacts on EMGs’ online-startup motivation and EMGs’ conservative thinking negatively moderates the relationship between their online-startup motivation and entrepreneurial development behaviour. In addition to testing the hypotheses, the paper also measures the importance-performance map analysis to explore additional findings of influencing factors and provide suitable suggestions for EMG entrepreneurs and related departments.

Findings

Regarding the environmental opportunity unit, both policy support and platform support significantly impact Chinese EMGs’ motivation to promote online-startups. For the personal capability unit, a platform using skills positively influences Chinese EMGs to develop online-startups. Meanwhile, EMG cultural knowledge is also necessary for EMG entrepreneurs because abundant cultural resources can be applied to live content and attract online consumers’ watching interests. Furthermore, influenced by the tight cultural control, Chinese EMGs tend to hold conservative thinking to new careers and it negatively moderates the relationship between Chinese EMGs’ online-startup motivation and their final entrepreneurial behaviours. Finally, Chinese EMGs’ online-startup motivation positively affects them to develop online-startups on live streaming platforms.

Originality/value

This study uses the tight and loose cultural theory to analyse the Chinese entrepreneurial environment and discover influencing factors based on the tight cultural ecosystem. Meanwhile, based on the COM-B behaviour changing theory, this paper divides influencing factors into three different units, including the environmental opportunity unit, the personal capability unit and the Tight cultural control unit. Considering the inter-relationships among these units, the research model is established based on the tight cultural ecosystem to discover Chinese EMGs’ online-startup motivation.

Citation

Li, L. and Kang, K. (2023), "Why ethnic minority groups’ online-startups are booming in China’s tight cultural ecosystem?", Journal of Entrepreneurship in Emerging Economies, Vol. 15 No. 2, pp. 278-300. https://doi.org/10.1108/JEEE-08-2021-0322