A Comparative Study Of East And West China Venture Influencing Factors Based On Embedding Theory

As we all know, there is a great gap of private-owned economy between eastern and western regions of China. It mainly manifests in the form of the difference of the level of entrepreneurship between these two regions. Thereafter, the dissertation puts forward the core proposition that what factors make the gap of the level of entrepreneurship between eastern and western regions of China. The dissertation takes Zhejiang Province and Yunnan Province as an example to study this proposition.To begin with embeddedness theory, the dissertation uses the argument of embeddedness action to entrepreneurship behavior based on reviewing the embeddedness theory in detail. Thereafter, on the basis of theories of Granovetter, Zukin & Dimaggio etc., the dissertation puts forward the research frame of triple-embeddedness self-employment from macro, meso and micro prospect.Under this research frame, the dissertation study cultural embeddedness, structural embeddedness and cognitive embeddedness respectively. Firstly, the dissertation reviews cultural values, social networks and human capital literature and studies the relations between them and self-employment. Secondly, the characters of eastern and western regions in these three aspects have been researched. Fanally, the dissertation puts forward research methods and research hypothesises.The factors effecting self-employment have been further divided into three types, namely regional, community and individual factors. Thereby, the dissertation sets up the Probit Model of self-employment. In this way, empirical research is mainly involved in two fields. One is the difference of cultural values, social networks and human capital between eastern and western regions. The other is what effects these factors make to self-employment. After getting the results of the empirical research, the dissertation simulates the relationship between continuous variables and entrepreneurship probability based on Zhejiang and Yunnan data.Three aspects conclusions have been derived from the results of empirical research.In the aspect of culture, cultural values in one region make a longtime and deep effect on the people living in this area. There are three conclusions about culture effecting self-employment. Firstly, intellectual autonomy value is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. Empirical research results show intellectual autonomy in western culture is weaker than that in eastern culture. However, this cultural value is important for self-employment. Secondly, egalitarianism value is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. Although egalitarianism in western culture is stronger than that in eastern culture, this cultural value has a negative influence on self-employment. Thirdly, mastery value is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. Mastery in eastern culture is stronger than that in western culture, on the other hand this cultural value has a positive influence on self-employment. Therefore, this cultural value has influence on the level of entrepreneurship between eastern and western regions.In the aspect of social networks, the community has a great influence on an individual. There are five conclusions about social networks effecting self-employment. Firstly, size of network is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. Size of network has a positive influence on self-employment, as well as size of network of the people in eastern region is bigger than that of the people in western region. Secondly, parents' entrepreneurial experience is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. It has been evidenced that parents' entrepreneurial experience has a positive influence on self-employment, as well as the number of people who have entrepreneurial parents in eastern region is more than those in western region. Thirdly, the strength of primary network is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. This is because that the more network strength, the more benefits are for self-employment, as well as network strength of the people in eastern region is bigger than that of the people in western region. Fourthly, primary network density is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. In the primary network, people in eastern region have more connections than people in western region. At the same time, higher network density is better for self-employment. Fifthly, primary network heterogeneity of occupations is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. Lower network heterogeneity of occupations is better for self-employment, as well as network heterogeneity of occupations of people in eastern region is lower than that of people in western region. In the aspect of human capital, people cognize and judge in usual life depending on previous knowledge and experience which is in the form of human capital. There are two conclusions about human capital effecting self-employment. Firstly, entrepreneurial experience is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. The difference of the number of entrepreneurs between eastern and western regions shows that there is a gap of entrepreneurial experience between people in eastern region and people in western region. Furthermore, entrepreneurial experience has strong positive effect on self-employment, which makes entrepreneurial experience heavily influence on self-employment. Secondly, entrepreneurial learning is one of factors that make the gap of the level of entrepreneurship between eastern and western regions of China. The difference of the number of entrepreneurs between eastern and western regions makes that people in eastern regions are more easily succeeded in entrepreneurship. At the same time, entrepreneurship success has a positive influence on self-employment, which makes the gap of self-employment bigger and bigger.Generally, different cultural values between eastern and western regions gradually influence the opinions of people in these two regions on self-employment. Different nature of social networks of people in eastern region and that of people in western region makes these people get different aid and support in the process of entrepreneurship. The gap of human capital between people in eastern region and in west region has a great influence on obtaining entrepreneurial experience and entrepreneurial success. It is these differences that make people in eastern region prefer self-employment. Thereafter, this result would strengthen these factors again, which makes the gap between eastern region and western region bigger and bigger. Self-employment gets the property of path dependence influenced by these embeddedness factors, which is the theory meaning of this dissertation. Path dependence of self-employment makes the level of entrepreneurship higher and higher in eastern region and lower and lower in western region. That is Matthew Effect of self-employment. This conclusion embodies the empirical meaning of this dissertation. Because it not only answers the original proposition, but also verify the facts that gap between eastern region and western region is still expanding after China Western Development.