More and more employees leave their current employment and create new business. Why some people find new jobs in other organizations, while others choose to start their own ventures. This study attempts to analyze employees’ entrepreneurship decision from a perspective of job embeddedness.
Job embeddedness model established by Mitchell and Lee (2001) suggests that people leave their job based on three aspects which are influenced by elements both on the job and in the community: 1. The extent to which they are linked to other people and activities; 2. The extent to which they feel they fit in their organizations and communities; 3. What they would have to sacrifice if they left. These three dimensions are called link, fit, and sacrifice.
Meanwhile, numerous studies indicate that the work history and experience of the entrepreneur are crucial for entrepreneurial success (Bruno and Tyebjee, 1985; Hisrich and Peters, 2002; Ardichvili et al., 2003; Kim et al., 2006). It is suggested that work experience, social network, community environment, and opportunity cost embedded in job factors help employees recognize entrepreneurial opportunities, accesses to initial capital, transfer knowledge and accumulate managerial skills for new business.
Mai, Yiyuan and Zhou, Songan
"HOW JOB EMBEDDEDNESS INFLUENCES NEW BUSINESS CREATION (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 29
, Article 20.
Available at: https://digitalknowledge.babson.edu/fer/vol29/iss5/20