The Impact of Entrepreneurial Competence on Entrepreneurial Performance of Family Farms: A Comprehensive Research Framework of “Competence – Legitimacy – Performance”

Abstract

In China, the implementation of the rural revitalization strategy provides a broad stage for migrant workers to return home to start their own businesses. This study constructs a research framework of “competence – legitimacy – performance.” Through online and offline surveys, this study obtained 477 valid samples from new family farm entrepreneurs in Fujian province of China. By using structural equation model, this study explores the relationship between entrepreneurial competence and family farm entrepreneurial performance. The empirical analysis results show that all the five dimensions of family farm entrepreneurs’ entrepreneurial competence, namely, opportunity recognition competence, network competence, resource acquisition competence, entrepreneurial learning competence, and improvisational competence have positive impacts on family farm entrepreneurial performance. And organizational legitimacy also has a positive impact on family farm entrepreneurial performance. In addition, the mediating effect of organizational legitimacy in opportunity recognition competence, network competence, resource acquisition competence, entrepreneurial learning competence, and family farm entrepreneurial performance are supported by data. However, organizational legitimacy does not play a significant mediating role in the relationship between improvisational competence and family farm entrepreneurial performance. The research findings provide some enlightenment and reflections to family farm entrepreneurs and policy-makers.