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HOW DOES RELATIVE INCOME AFFECT ENTRY INTO PURE AND HYBRID ENTREPRENEURSHIP?
Book chapter

HOW DOES RELATIVE INCOME AFFECT ENTRY INTO PURE AND HYBRID ENTREPRENEURSHIP?

Di Tong, Daniel Tzabbar and Haemin Dennis Park
Advances in strategic management, pp 365-383
01 Jan 2020

Abstract

Business & Economics Management Social Sciences
We explore how absolute and relative incomes affect an individual's propensity to start a new business as a pure or hybrid entrepreneur. Using a sample of 12,686 individuals from the National Longitudinal Survey of Youth, 1979 cohort (NLSY79) in our empirical analyses, we find that individuals with high absolute income are generally less likely to engage in entrepreneurship. However, once absolute income is controlled, those with above-average relative income are more likely to become an entrepreneur, particularly in pure form as opposed to a hybrid one. Our findings provide more nuanced understanding on the differences between absolute and relative income levels influencing an individual's decision to become an entrepreneur, and if so, whether to engage in pure or hybrid form.

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Management
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