Exploring the Moderating Effect of Generational Status on the Link Between External Environment and Entrepreneurial Motivation of Indian Women Entrepreneurs

Abstract

This study examines how external environmental factors affect the motivation of first- and second-generation women entrepreneurs in India, and how their generational status moderates this relationship. We used a survey design method to collect data from 459 women business owners in India, who were classified as first- or second-generation based on whether they were the first or second generation in their family to start a business. We employed the partial least-squares structural equation modelling method to test our hypotheses and evaluate our model. We found that external environmental factors, such as education and training, financial support, government policies and non-financial support, had positive effects on entrepreneurial motivation for both groups of women entrepreneurs. However, we also found that generational status had a significant moderating effect on the link between education and training and entrepreneurial motivation, but not on the other three external environmental factors. Specifically, we found that education and training influenced second-generation women entrepreneurs more strongly than first-generation women entrepreneurs. Our findings have important implications for management practice and policymaking, as well as for the literature on women entrepreneurship. We suggest that concerned authorities should develop differential strategies for first- and second-generation women entrepreneurs, taking into account their different responses to external environmental factors. We also suggest that future research should explore other internal and external environmental factors that might interact with generational status or other variables to shape women entrepreneurs’ motivation.