Entrepreneurship in the shadow of clan culture: Informal institutions and entrepreneurs’ subjective well-being

Chenjian Zhang; Yuanyuan Lan; Bin Li; Xiaotong Liu; Jennifer Jennings; W. G. Will Zhao; Yuhuan Xia

doi:10.1080/00472778.2025.2594739

Entrepreneurship in the shadow of clan culture: Informal institutions and entrepreneurs’ subjective well-being

Chenjian Zhang, Yuanyuan Lan, Bin Li, Xiaotong Liu, Jennifer Jennings, W. G. Will Zhao, Yuhuan Xia

Management

Research output: Contribution to journal › Article › peer-review

Abstract

Informal institutions play a crucial role in supporting entrepreneurship when formal institutional support is scarce. Subjective well-being (SWB) provides entrepreneurs with resilience in such contexts, but how informal institutions affect entrepreneurs’ SWB remains unclear. Our mixed-methods investigation set in China examines the relationship between clan culture—a pivotal informal institution in rural communities—and entrepreneurs’ SWB. The findings from our initial qualitative study point to three key mechanisms: 1) obligation-induced drainage, whereby entrepreneurs divert resources to fulfill clan obligations, leading to relationship strain; 2) status-based burden, whereby higher-status entrepreneurs face intensified expectations; and 3) institutional buffering, whereby village conventions (a new type of informal institution) attenuate clan pressures. The results of our subsequent quantitative study demonstrate that strong clan cultures are detrimental to entrepreneurs’ SWB, with the effects more pronounced for those with higher in-clan status yet reduced in communities with village conventions.

Original language	English
Journal	Journal of Small Business Management
Early online date	7 Jan 2026
DOIs	https://doi.org/10.1080/00472778.2025.2594739
Publication status	E-pub ahead of print - 7 Jan 2026

Funding

Xiaotong Liu acknowledges the funding support from the National Social Science Foundationof China [Grant No. 22AZD144, Grant No. 22CGL006], the Science and Technology SupportPlan for Youth Innovation of Colleges and Universities of Shandong Province of China [No.2023RW074], the Shandong Provincial Natural Science Foundation [ZR2023QG008].Chenjian Zhang acknowledges the funding support from the National Natural ScienceFoundation of China [No. 72372169], the National Social Science Foundation WesternProject [No. 24XGL013]. Jennifer Jennings contributed to the project while holding a Tier 1Canada Research Chair in Entrepreneurship, Gender and Family Business (CRC-9502-32867).

Keywords

clan culture
Entrepreneurship
informal institutions
social status
subjective well-being

ASJC Scopus subject areas

General Business,Management and Accounting
Strategy and Management
Management of Technology and Innovation

Access to Document

10.1080/00472778.2025.2594739Licence: CC BY-NC-ND

Cite this

@article{0684cea474564a179921c45d3460f618,

title = "Entrepreneurship in the shadow of clan culture: Informal institutions and entrepreneurs{\textquoteright} subjective well-being",

abstract = "Informal institutions play a crucial role in supporting entrepreneurship when formal institutional support is scarce. Subjective well-being (SWB) provides entrepreneurs with resilience in such contexts, but how informal institutions affect entrepreneurs{\textquoteright} SWB remains unclear. Our mixed-methods investigation set in China examines the relationship between clan culture—a pivotal informal institution in rural communities—and entrepreneurs{\textquoteright} SWB. The findings from our initial qualitative study point to three key mechanisms: 1) obligation-induced drainage, whereby entrepreneurs divert resources to fulfill clan obligations, leading to relationship strain; 2) status-based burden, whereby higher-status entrepreneurs face intensified expectations; and 3) institutional buffering, whereby village conventions (a new type of informal institution) attenuate clan pressures. The results of our subsequent quantitative study demonstrate that strong clan cultures are detrimental to entrepreneurs{\textquoteright} SWB, with the effects more pronounced for those with higher in-clan status yet reduced in communities with village conventions.",

keywords = "clan culture, Entrepreneurship, informal institutions, social status, subjective well-being",

author = "Chenjian Zhang and Yuanyuan Lan and Bin Li and Xiaotong Liu and Jennifer Jennings and Zhao, \{W. G. Will\} and Yuhuan Xia",

year = "2026",

month = jan,

day = "7",

doi = "10.1080/00472778.2025.2594739",

language = "English",

journal = "Journal of Small Business Management",

issn = "0047-2778",

publisher = "Taylor and Francis",

}

TY - JOUR

T1 - Entrepreneurship in the shadow of clan culture

T2 - Informal institutions and entrepreneurs’ subjective well-being

AU - Zhang, Chenjian

AU - Lan, Yuanyuan

AU - Li, Bin

AU - Liu, Xiaotong

AU - Jennings, Jennifer

AU - Zhao, W. G. Will

AU - Xia, Yuhuan

PY - 2026/1/7

Y1 - 2026/1/7

N2 - Informal institutions play a crucial role in supporting entrepreneurship when formal institutional support is scarce. Subjective well-being (SWB) provides entrepreneurs with resilience in such contexts, but how informal institutions affect entrepreneurs’ SWB remains unclear. Our mixed-methods investigation set in China examines the relationship between clan culture—a pivotal informal institution in rural communities—and entrepreneurs’ SWB. The findings from our initial qualitative study point to three key mechanisms: 1) obligation-induced drainage, whereby entrepreneurs divert resources to fulfill clan obligations, leading to relationship strain; 2) status-based burden, whereby higher-status entrepreneurs face intensified expectations; and 3) institutional buffering, whereby village conventions (a new type of informal institution) attenuate clan pressures. The results of our subsequent quantitative study demonstrate that strong clan cultures are detrimental to entrepreneurs’ SWB, with the effects more pronounced for those with higher in-clan status yet reduced in communities with village conventions.

AB - Informal institutions play a crucial role in supporting entrepreneurship when formal institutional support is scarce. Subjective well-being (SWB) provides entrepreneurs with resilience in such contexts, but how informal institutions affect entrepreneurs’ SWB remains unclear. Our mixed-methods investigation set in China examines the relationship between clan culture—a pivotal informal institution in rural communities—and entrepreneurs’ SWB. The findings from our initial qualitative study point to three key mechanisms: 1) obligation-induced drainage, whereby entrepreneurs divert resources to fulfill clan obligations, leading to relationship strain; 2) status-based burden, whereby higher-status entrepreneurs face intensified expectations; and 3) institutional buffering, whereby village conventions (a new type of informal institution) attenuate clan pressures. The results of our subsequent quantitative study demonstrate that strong clan cultures are detrimental to entrepreneurs’ SWB, with the effects more pronounced for those with higher in-clan status yet reduced in communities with village conventions.

KW - clan culture

KW - Entrepreneurship

KW - informal institutions

KW - social status

KW - subjective well-being

UR - https://www.scopus.com/pages/publications/105027198064

U2 - 10.1080/00472778.2025.2594739

DO - 10.1080/00472778.2025.2594739

M3 - Article

AN - SCOPUS:105027198064

SN - 0047-2778

JO - Journal of Small Business Management

JF - Journal of Small Business Management

ER -

Entrepreneurship in the shadow of clan culture: Informal institutions and entrepreneurs’ subjective well-being

Abstract

Funding

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this