Entrepreneurial continuance among small businesses during COVID-19: The role of relational embeddedness and institutional support

This study investigates how relational embeddedness and perceived institutional support influence entrepreneurs’ intention to keep ventures going during the COVID-19 pandemic (i.e., intention for entrepreneurial continuance, IEC). We surveyed 295 small business owners in China in late 2020, and analyzed the data using structural equation modeling. Relational embeddedness and perceived institutional support both significantly influenced IEC through the mediating effects of the three Theory of Planned Behavior (TPB) determinants (attitude, subjective norms and perceived behavioral control). The study contributes to organizational resilience theory by corroborating the explanatory power of TPB in predicting entrepreneurial continuance intentions in the context of disruptions. It also reinforces the roles of relational embeddedness and institutional support in facilitating small business survival