What is it about?
In the study the authors applied Social Cognitive Theory (Bandura 1986) and the Theory of Planned Behavior (Ajzen 1991) to develop the “Model of Network Marketing Business Participation by Chinese Immigrants in Australia”. This model suggests if individuals work together in a group and form a social environment characterized with cohesion, peer influence and training, then they will be more motivated and their self-efficacy and desire for opportunity to be successful will be at a higher level. As a result, individuals will develop the competence to take the necessary actions in conducting their business activities.
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Why is it important?
The present study provides new theoretical insights. First, contributing to the literature was made by showing the influence of social environment on desire for opportunity. This finding shows that there is support for Social Cognitive Theory (Bandura 1986). Social Cognitive Theory suggests that environmental events, behavior and personal factors all operate as interacting determinants of each other. Second, this study integrates Social Cognitive Theory (Bandura 1986) with Theory of Planned Behaivor (Ajzen 1991) to explain the relationships between the influence of social environment and self-efficacy, desire for opportunity, and action undertaken in the context of network marketing organization that has so far been elusive. Third, the model developed in this study suggests if individuals work together in a group and form a social environment characterized with cohesion, peer influence and training, then they will be more motivated and their self-efficacy and desire for opportunity to be successful will be at a higher level. As a result, individuals will develop the competence to take the necessary actions in conducting their business activities.
Perspectives
This study investigates how Chinese immigrants pursue entrepreneurship through network marketing business. Network marketing business (also known as direct selling or multilevel marketing) has made substantial contributions in economic. For example, the total sales generated by the network marketing business in Australia was $ 1.57 billion, and about 5 percent of Australian labor forces involved in network marketing business in 2014 (Australian Bureau of Statistics 2014, World Federation Direct Selling Association 2016). The impression given of of those individuals pursuing entrepreneurship through network marketing business is of a group of "socially disadvantaged people (e.g. women and immigrants)“ （Biggart 1989, Kuntze 2001）. This study effectively explained how this group of "socially disadvantaged" people build their entrepreneurial businesses. The substantial theoretical and practical implications of this study are obvious.
Dr Fu Dai
Read the Original
This page is a summary of: Network Marketing Businesses and Chinese Ethnicity Immigrants in Australia, May 2016, Taylor & Francis,
DOI: 10.1111/jsbm.12244.
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