Psychological Outcomes and Commitment: A Cross-country and Gender Analysis of the Self-employed and Salary-employed Individuals

Abstract

The tangible benefits of entrepreneurial activities are realisable in the long rather than in the short term. Therefore, individuals entering self-employment should be willing to persist in their entrepreneurial activities. Based on the self-determination theory (SDT), the current study examines the role of psychological work outcomes, including satisfaction of the need for autonomy, meaning in life and intrinsic job satisfaction, on intention to stay in self-employment or salaried employment. Cross-cultural and gender differences in the effects of these work outcomes on intention to stay in one’s current form of employment are also examined. The sample comprised 240 self-employed and 338 salary-employed individuals from Uganda and Germany. The results showed that the self-employed had higher intentions than the salary-employed individuals to stay in their current form of employment. We found that the satisfaction of the need for autonomy, meaning in life and intrinsic job satisfaction were positively associated with the intention to stay in the current form of employment, but more strongly among the self-employed individuals in all three countries. Similarly, both men and women in self-employment reported higher intentions to stay in their current work (compared to the salary-employed) when intrinsic job satisfaction, satisfaction of the need for autonomy and meaning in life are high. The theoretical and practical implications are discussed.