This study explores how psychological capital (PsyC), social empowerment (SE), entrepreneurial opportunity recognition (EOR), and continued entrepreneurial pursuit (CEP) contribute to entrepreneurial performance satisfaction (EPS) among women entrepreneurs. It also examines how EOR and CEP mediate the influence of PsyC and SE on EPS across two contrasting institutional contexts: India, a developing economy with expanding entrepreneurial support structures, and Yemen, a least-developed economy characterised by institutional voids.
Drawing on Social Cognitive Theory and Social Capital Theory, the study adopts a quantitative cross-sectional design using standardised measurement scales. Data were collected from 179 women entrepreneurs from India (n = 97) and Yemen (n = 82) using purposive snowball sampling. Structural relationships were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM).
The findings reveal important contextual differences in how psychological and social resources influence entrepreneurial outcomes. Psychological capital (PsyC) positively influences entrepreneurial performance satisfaction (EPS) and continued entrepreneurial pursuit (CEP) in both countries, indicating its universal importance as an internal entrepreneurial resource. However, PsyC significantly enhances entrepreneurial opportunity recognition (EOR) only in India, suggesting that favourable institutional and market conditions are necessary for psychological resources to translate into opportunity identification. In contrast, social empowerment (SE) plays a stronger role in Yemen, where informal networks and community support compensate for weak institutional structures. While SE contributes to EPS in both contexts, its influence on opportunity recognition and entrepreneurial persistence is considerably stronger in Yemen. Furthermore, EOR acts as a context-dependent mediator: it mediates the effect of PsyC on EPS in India, whereas in Yemen it mediates the effect of SE on EPS. Continued entrepreneurial pursuit (CEP) does not mediate the relationship between PsyC/SE and EPS in either context.
This study provides a comparative analysis of women entrepreneurs operating in two contrasting institutional contexts. By identifying context-specific pathways linking psychological capital, social empowerment, and entrepreneurial outcomes, the study refines Social Cognitive Theory and Social Capital Theory and offers new insights into how institutional environments shape the drivers of entrepreneurial satisfaction.
