Abstract
Although research on entrepreneurship and well-being is currently growing, limited clarity remains on how entrepreneurial readiness as an individual cognitive and psychological construct shapes subjective well-being (SWB) and employee innovative behaviour (EIB) across different institutional contexts. This study explores the relationship between entrepreneurial readiness and these two outcomes and investigates how formal and informal institutions moderate these relationships in a cross-country setting. This research aim is to analyse positive impact of entrepreneurial readiness to subjective well-being and employee innovative behaviour specify the analysis of contextual element of institutions moderating impact with diverse environments. The analysis draws on secondary data from multiple international sources, individual-level data mainly from the Global Entrepreneurship Monitor Adult Population Survey (GEM APS) and country-level data taken from various sources, formal institutional indicators from the Index of Economic Freedom (IEF) and informal institutional dimensions from the GLOBE Study for subjective well-being and Hofstede Insights for employee innovative behaviour and control variables for country level taken from World Development Index (WDI) and Happiness Index. Using a quantitative research design, the study applies multilevel mixed-effects linear regression to model subjective well-being with analysis result across 39 countries, and multilevel logistic regression to model employee innovative behaviour with the analysis across 69 countries, conducted using STATA 18.0.Grounded in institutional theory and social cognitive theory, the findings show that entrepreneurial readiness positively predicts both subjective well-being (β = 0.291) and employee innovative behaviour (β = 1.46). Individuals reporting higher entrepreneurial readiness tend to experience greater life satisfaction and are more likely to engage in innovative activities at work, consistent with SCT propositions regarding the role of self-efficacy and perceived control in shaping behavioural outcomes that includes social capital, perceived opportunity and fear of failure.
The results further reveal significant moderating effects of both formal and informal institutions. Initially, for subjective well-being, formal institutional factors property rights, labour freedom, and trade freedom strengthen the positive effects of entrepreneurial readiness by providing supportive structural conditions (β = 0.035, β = 0.065, and β =0.096). However, informal institutional dimensions that includes uncertainty avoidance, individualism, and performance orientation has negatively moderated and influence the magnitude of these relationships, which meant with cultures valuing autonomy, less focus on achievement, and risk tolerance amplifying the benefits of entrepreneurial readiness for well-being. Then, for employee innovative behaviour, formal institution, which is property right has positively moderated to strengthen the relationship of entrepreneurial readiness and employee innovative behaviours (β = 0.09) with trust that individual creativity will be safe and acknowledge with adequate regulations. Additionally, for informal institution, individualism and masculinity indexes have positively moderated relationship of entrepreneurial readiness and employee innovative behaviour (β = 0.06 and β = 0.04) which meant individualistic environment and more masculinity culture can strengthen entrepreneurial readiness to enhance innovation. However, power distance and uncertainty avoidance indexes have negatively moderated relationship within entrepreneurial readiness and employee innovative behaviour (β = -0.05 and β = -0.08) that explain autonomy and less risk avoidance can strengthen readiness and increase innovative behaviour.
This study contributes to entrepreneurship and well-being research by demonstrating that the outcomes of entrepreneurial readiness are shaped not only by individual readiness but also by broader institutional environments. The use of multi-source, cross-national data enhances the robustness and generalisability of the results. The findings offer practical implications for policymakers, educators, and organisational leaders seeking to design entrepreneurial ecosystems that foster both well-being and innovation.
In conclusion, entrepreneurial readiness emerges as a significant driver of subjective well-being and employee innovative behaviour, with its impact contingent on surrounding formal and informal institutions. Future research should incorporate longitudinal designs and sector-specific analyses and consider complementary qualitative or mixed-method approaches to deepen understanding of how entrepreneurial readiness influences individual and organisational outcomes based on national system both formal and informal.
| Date of Award | 29 Apr 2026 |
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| Original language | English |
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| Supervisor | Ali Raza (Supervisor) & Xiaoxian Zhu (Supervisor) |