This brief is part of the Insights @ Center for Emerging Markets, a publication focused on cutting-edge ideas and advice for global leaders about emerging markets.
By Wei Wang (Xi'an Jiaotong University), Kimberly A. Eddleston (Northeastern University), Francesco Chirico (Macquarie University & Jönköping International Business School), Stephen X. Zhang (University of Adelaide), Qiaozhuan Liang (Xi'an Jiaotong University), and Wei Deng (Northwestern Polytechnical University, Xi'an, Shaanxi, China)
In short: China's remarkable economic transformation from one of the world's poorest nations to one of its largest economies is linked to its vibrant entrepreneurial landscape. Understanding the factors that nurtured this entrepreneurial spirit is crucial for both academics and business leaders, Wei Wang, Kimberly Eddleston, Francesco Chirico, Stephen Zhang, Qiaozhuan Liang and Wei Deng from China, Australia, the US and Europe delved into the dynamics of Chinese family businesses, exploring how diversity within families influenced entrepreneurial leanings and the important role that family meals play in fostering entrepreneurs.
Building upon the established importance of family in Chinese culture, particularly the Confucian emphasis on family honor and career success, Wang and their colleagues investigated the impact of various forms of family diversity. Their theoretical model, tested using data from 8,162 individuals in the China Family Panel Studies, examined the effects of age, gender, industry, and education diversity on entrepreneurship.
Central to their analysis was the role of family meals, which hold a celebrated position in Chinese culture, dating back millennia. The study looked at the frequency of family meals. In an era of rapid industrialization that often separated family members during the workday, the significance of family meals in fostering unity and socialization became even more pronounced. The frequency of family meals could either ignite or extinguish the entrepreneurial spark, depending on the nature of family diversity.
The study revealed a nuanced relationship between diversity and entrepreneurship. For instance, age and gender diversity negatively impacted entrepreneurial activity. Multigenerational households, which are prevalent in China, often involved older family members who were likely more risk-averse and discouraged younger generations from pursuing business ventures. Similarly, gender diversity, while gradually improving, could reinforce traditional roles, limiting entrepreneurial aspirations. This finding is likely influenced by Confucian values such as filial piety, which emphasizes respect and obedience to elders, and the expectation of harmony within the family unit.
Family Meals as Conduits for Sharing Knowledge
Conversely, industry diversity emerged as a positive driver of entrepreneurship. Exposure to different industries through family members fostered the exchange of innovative ideas and the identification of new business opportunities. The moderating role of family meals is particularly illuminating. The results demonstrated that frequent family meals amplified the positive effects of industry and education diversity, acting as a conduit for knowledge sharing and the development of entrepreneurial ventures. However, they did not find a similar moderating effect for age and gender diversity, suggesting that deeply ingrained family values and traditional gender roles may have overridden the influence of shared meals in these contexts.
This study contributes to the entrepreneurship literature by offering valuable insights into the unique interplay of family dynamics, cultural values, and entrepreneurial activity in China. By highlighting the crucial role of family meals in shaping entrepreneurial outcomes, the study underscored the importance of understanding the sociocultural context within which entrepreneurship flourishes.
Managerial and Policy Implications
These findings have implications for both policymakers and business practitioners, emphasizing the need to foster environments that support family businesses and leverage the power of shared mealtimes to nurture entrepreneurial talent. For managers, this research suggests that aspiring entrepreneurs from households with high age and gender diversity may need to look beyond their family for support and resources, as these factors can create constraining pressures. However, those from households with industry or educational diversity can leverage their family's knowledge, particularly if they frequently share meals, as these settings foster valuable information exchange and resource-sharing related to entrepreneurship. Supporting these family dynamics can play a key role in promoting growth in entrepreneurship.
Original Work
Wang, W., Eddleston, K. A., Chirico, F., Zhang, S. X., Liang, Q., & Deng, W. 2023. Family diversity and business start-up: Do family meals feed the fire of entrepreneurship?. Entrepreneurship Theory and Practice, 47(4), 1265-1297.
Contact
If you are interested in learning more about this work, contact Professor Kim Eddleston at k.eddleston@northeastern.edu.