Competency, guanxi and growth aspirations: small tourism enterprises in dynamic environments

Abstract

Purpose This paper aims to explore how typical personal, interpersonal and environmental factors influence entrepreneurs' growth aspirations by investigating the impact mechanism of entrepreneurial competency and guanxi on the growth aspirations of small tourism entrepreneurs in a dynamic environment. Design/methodology/approach Applying social cognitive theory (SCT) and business growth theory (BGT), this research uses confirmatory factor analysis and structural equation modeling (SEM) based on the questionnaire survey data of 371 small tourism business owners/owner-managers to test the relationship between entrepreneurial competency, guanxi and growth aspirations, with self-efficacy as a mediator and environment dynamism as a moderator. Findings The findings indicate that entrepreneurial competency is a more direct and significant factor than guanxi in facilitating the entrepreneurial growth aspirations in small tourism enterprises (STEs). Entrepreneurial competency and guanxi can both enhance entrepreneurs' self-efficacy, which then affects their aspirations to grow their business. Self-efficacy is a critical predictor of entrepreneurs' growth aspirations in STEs, although its effect is weakened by environmental dynamism. Originality/value This study expands the integrated application of SCT and BGT in tourism context, providing a more comprehensive and nuanced interpretation of the growth aspirations of entrepreneurs in STEs. It sheds more light on the effect of different entrepreneurial capital on growth aspirations and provides managerial implications accordingly.