Necessity-based Female Entrepreneurship and Job Creation: The Moderating Effect of Legitimacy

Abstract

By revealing the joint moderating effect of legitimacy in the private and business spheres on the relationship between necessity-based female entrepreneurship (NBFE) and new job creation, this study identifies the boundary conditions that NBFE can produce a positive outcome. Based on the institutional logic perspective, the legitimacy of female entrepreneurs is subdivided into legitimacy in the private sphere under family logic and legitimacy in the business sphere under market logic. The findings show that NBFE positively affects new job creation under high legitimacy in the private sphere, and this positive impact will be the strongest if further combined with high legitimacy in the business sphere. This paper deepens the understanding of legitimacy as a multidimensional construct and breaks through the previous understanding that necessity-based entrepreneurship produces “inferior performance.” This study provides practical implications for female entrepreneurs to effectively coordinate “caregiver” and “entrepreneur” roles and create more jobs.