Abstract

New venture emergence is dependent on entrepreneurs’ perceptions and judgment on the feasibility of opportunities (Kor et al., 2007; Shook et al., 2003). Prior research argued that opportunity feasibility belief can directly lead to the successful emergence of new ventures, based on the assumption that resources needed for start-up can be easily obtained from the market (Dimov, 2010). However, in transition economies, resources are largely controlled by the government (Child & Lu, 1996; Bruton et al., 2008), resource acquisition activities tend to take place under a corrupt environment (Bruton et al., 2008; De Jong et al., 2012; Zhang, 2015). So far we know little how feasibility belief interacts with the environment and influences resource acquisition and in turn the emergence of new ventures. Our paper aims to fill the gap by analyzing a PSED data set collected in China. By using PROCESS, our analysis found that interaction between opportunity feasibility belief and pervasive corruption is significantly related to resource acquisition activities. Furthermore, resource acquisition activities fully mediate relationship between belief-corruption interaction and new venture emergence.

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