The entrepreneurial institutional environment is the external factor that entrepreneurial enterprises rely on for survival. Our interest is in how entrepreneurs cultivate entrepreneurial orientation in response to the highly uncertain entrepreneurial situation. Based on the cognitive appraisal theory of emotion, we analyzed the impact of the entrepreneurial institutional environment on entrepreneurial orientation through entrepreneurial passion. This study applied stepwise regression analyses to test the hypotheses on a sample of 197 entrepreneurs from the co-creation space in China. The output of the study showed that the entrepreneurial institutional environment had a positive effect on entrepreneurial orientation and that entrepreneurial passion played a mediating role between the entrepreneurial institutional environment and entrepreneurial orientation.

Family financing has become a powerful channel for entrepreneurs to obtain entrepreneurial funding. How do family members use intent and quality signals to select new ventures to provide lending support? Building on the signaling theory, this study provides the first quantitative evidence using a sample of 166 samples of family lenders in China. Our findings reveal that psychological capital can support entrepreneurs to obtain family lending. As an intent signal, psychological capital becomes more influential when quality signals, corporate competitive advantage, and firm performance perform more positively. This study emphasizes that family financing support is not only out of love or altruism and extends the literature concerning the influence of positive psychological capital in financial investment decisions.