Examining Perceived Entrepreneurial Stress: A Causal Interpretation through Cross-Lagged Panel Study

Abstract

The entrepreneurial stress construct’s nomological validity is not well established as past studies have not delineated between entrepreneurial and employee stress. This study investigated several entrepreneurship-specific stressors positing their causal effect on perceived entrepreneurial stress (PES). It examined four directional hypotheses testing the causal, reverse, reciprocal relationships and moderation effects between stressors and PES. Further, it looked at the moderating impact of psychological capital. More than 300 entrepreneurs in emerging markets, namely India, Pakistan, and the United Arab Emirates, participated in this longitudinal study (Time 1 n = 325, Time 2 n = 310). The study adopted a cross-lagged competing model research design and analyzed the data using structural equation modeling (SEM). The results show that entrepreneurship-specific personal, social, and occupational stressors cause PES. Further, the results also support the reverse causal effect of PES on stressors and a reciprocal relationship. The study advances resource-based theory to an entrepreneurial background, highlighting the role of intangible resource gaps in perceived entrepreneurial stress. The study concludes that entrepreneurship-specific intangible resources are useful to entrepreneurs at personal, social, and occupational levels. An actual or perceived loss of these resources may lead to perceived entrepreneurial stress. Furthermore, PES can interfere with the entrepreneurial capacity for innovation over time. Psychological capital can be an effective coping response as a moderator of perceived entrepreneurial stress’ adverse effects. This is one of the first studies that examines PES in an emerging market context, specific to entrepreneurial employment.

Proactive Vitality Management, Work–Home Enrichment, and Performance: A Two-Wave Cross-Lagged Study on Entrepreneurs

“…This study addresses this issue. By identifying positive dynamic relationships between proactive vitality management, work–home enrichment, and entrepreneurial performance, we demonstrate that the two roles entrepreneurs assume ought not always be in conflict ( Arshi et al, 2020 , 2021 ). They can also act as potential allies, results that align with the propositions of the positive psychology framework.…”

“…Furthermore, to fully capture the essence of the JD-R theory in the entrepreneurship literature, scholars should also seek to integrate personal resources into research models. As research demonstrates, beliefs about being able to control their environment (i.e., personal resources; Bakker and Demerouti, 2017 ) can mitigate the impact of stressors on strain ( Arshi et al, 2020 ), as well as potentiate the positive effect of individual strategies ( Demerouti et al, 2019 ).…”

“…To date, there is consistent proof of a negative effect between the two roles entrepreneurs assume, which detracts from their wellbeing and performance (for synthesis, see Stephan, 2018 ; Kleine and Schmitt, 2021 ). Being an entrepreneur and having an active social life beyond this role appears to lead to higher entrepreneurial strain ( Arshi et al, 2020 , 2021 ). This is probably why some entrepreneurs tend to sacrifice their personal life to fully commit to establishing and managing their business ( Ezzedeen and Zikic, 2017 ; Godin et al, 2017 ; Adisa et al, 2019 ).…”

Investigating the impact of artificial intelligence on human resource functions in the health sector of China: A mediated moderation model

“…However, with the advent of AI-powered recruitment tools, recruiters can automate many tasks, including resume screening, candidate sourcing, and even initial interviews. AI-powered recruitment tools can also use machine learning algorithms to analyze data from job postings and candidate profiles, allowing recruiters to identify the most relevant candidates quickly [ 33 ]. These techniques can also evaluate candidates' communication abilities and personality qualities using natural language processing (NLP) algorithms and help reduce recruitment bias by eliminating the need for human decision-making [ 34 ].…”

Investigating the Nexus of Psychological Capital With Entrepreneurial Success: The Mediating Role of Burnout

“…Further, to examine the moderation effect of the variables entrepreneurial culture and government support on the relationship between Entrepreneurial Orientation and firm performance Baron and Kenny's (1983), on "attitude", "perceived behaviour control" "entrepreneurial intentions", and "entrepreneurial motivation" (Alam, Kousar, & Rehman, 2019) which is considered by academic researchers as under-researched area. It further examines the moderating role of entrepreneurial motivation between intention and behaviour (action, entrepreneurial Leadership (Soomro, Shah, & Mangi, 2019), "entrepreneur's quest" (Naveed & Ahmad, 2020), psychological capital resources (Sarwar, Ahsan, & Rafiq, 2021), psychological factors (such as, locus of control, need for independence, risk-taking, and emotional intelligence) by authors (Qudus, Mazhar, Tabassum, & Farhan, 2022), locus of control (PsyCap), entrepreneurial adversity, resiliency, and well-being of entrepreneurs (Soomro, Shah, & Anwar, 2018), and entrepreneurship and stress (Arshi, Kamal, Burns, Tewari, & Rao, 2021) reverse, reciprocal relationships and moderation effects between stressors and PES. Further, it looked at the moderating impact of psychological capital.…”