Working for Whom? Understanding the effect of perceived overqualification on entrepreneurial outcomes

Purpose Drawing from the theory of planned behavior and self-efficacy literature, we develop a theoretical model to depict the potential effects of perceived overqualification on entrepreneurship. Design/methodology/approach We tested our model using a three-wave online survey of 397 employees and a three-wave, multi-source field study (118 employees and peer dyads). The results of both studies supported our proposed relationships among perceived overqualification, entrepreneurial self-efficacy, entrepreneurial intention and entrepreneurial goal-enacting behavior, as well as the boundary condition of peer entrepreneurial experience. Findings We find that perceived overqualification is positively related to an employee’s entrepreneurial self-efficacy, which further predicts their entrepreneurial intentions and entrepreneurial goal-enacting behavior. We also reveal that peers’ entrepreneurial experience may serve as a moderator strengthening the positive relationship between perceived overqualification and entrepreneurial self-efficacy. Originality/value Previous studies have overlooked the potential link between perceived overqualification and entrepreneurial choice. Therefore, attention paid to such relationships in which how perceived overqualification may shape focal employee’s entrepreneurial intention should be necessary and able to enrich the precision and effectiveness of talent management. This research clarifying the above relationships can thus contribute meaningfully to contemporary human resource and organizational management.