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Journal of Resources and Ecology >

2024 , Vol. 15 >Issue 3: 639 - 649

DOI: https://doi.org/10.5814/j.issn.1674-764x.2024.03.011

Rural Tourism Destination and Homestay Development

How to Achieve High-performance Rural Guesthouse Entrepreneurship—Mechanism Study of Place Identity and Entrepreneurial Self-efficacy

  • ZHOU Linjie , 1 ,
  • YIN Ping , 1, * ,
  • ZHOU Wenjing 1 ,
  • MAN Dantong 2
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  • 1. School of Economics and Management, Beijing Jiaotong University, Beijing 100091, China
  • 2. People’s Government of Nandulehe Town in Pinggu District of Beijing, Beijing 101212, China
*YIN Ping, E-mail:

ZHOU Linjie, E-mail:

Received date: 2023-07-15

  Accepted date: 2023-11-30

  Online published: 2024-05-24

Supported by

The Beijing Social Science Fund(22GLA004)

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Abstract

Under the strategy of rural revitalization, it is urgent to analyze the performance mechanism of rural guesthouse entrepreneurship. This paper has constructed a theoretical model of the relationship among place identity, entrepreneurial self-efficacy and entrepreneurial performance of rural guesthouses, collected 355 sample data of guesthouse entrepreneurship in Beijing, and used Mplus software to empirically verify the theoretical model through path analysis and mediation effect test. The results show that place identity has a positive effect on guesthouse entrepreneurial performance, which is significantly and positively influenced by entrepreneurial self-efficacy. Entrepreneurial self-efficacy plays a partial mediating role in the relationship between place identity and entrepreneurial performance. This study has provided a theoretical basis for improving the entrepreneurial performance of guesthouses against the backdrop of rural revitalization, with certain practical significance for management.

Key words： rural revitalization; rural guesthouse; place identity; entrepreneurial self-efficacy; entrepreneurial performance

Cite this article

ZHOU Linjie , YIN Ping , ZHOU Wenjing , MAN Dantong . How to Achieve High-performance Rural Guesthouse Entrepreneurship—Mechanism Study of Place Identity and Entrepreneurial Self-efficacy[J]. Journal of Resources and Ecology, 2024 , 15(3) : 639 -649 . DOI: 10.5814/j.issn.1674-764x.2024.03.011

1 Introduction

According to the data released from the World Bank, rural residents accounted for 43 percent of the total world population in 2022, but were disproportionately burdened with poverty, malnutrition, and poor quality of life (The World Bank, 2023). With the deadlines for achieving the Sustainable Development Goals and climate goals coming closer, it is time to carry out a system-wide transformation to make rural areas more productive and sustainable (A global rural crisis: Rural revitalization is the solution, 2019) and the Rural revitalization strategy implemented in China has been proved to be one of the critical components of systematic economic and administrative reform (Erokhin, 2023), and can be an essential option for the transformation. Mechanism study and experimental analysis on the Chinese strategy are conducive to solving the problem of rural development in other countries. In the process of comprehensive rural revitalization, the development of rural guesthouses has received more and more attention and support from national policy makers. The “Opinions of the State Council on the Comprehensive Promotion of Rural Revitalization in 2023” calls for “upgrading the quality of rural guesthouses”, and the “Opinions of the Central Committee of the Communist Party of China and the State Council on the Key Tasks of Comprehensive Promotion of Rural Revitalization in 2022” explicitly states to “support the development of rural guesthouses and characteristic villages (sites) of rural tourism, which farmers are encouraged to directly operate or participate in”. The “Opinions of the Central Committee of the Communist Party of China and the State Council on the Key Tasks of Comprehensive Promotion of Rural Revitalization in 2022” and “Opinions of the Central Committee of the Communist Party of China and the State Council on the Key Tasks of Comprehensive Promotion of Rural Revitalization in 2022” consecutively issued in the past two years have also focused on the operation and development of rural guesthouses, and these documents have fully praised the important role of rural guesthouses in increasing farmers’ income, achieving their common prosperity, and promoting rural revitalization.
In academic research, guesthouses are referred to as a “Utopian imagination of a better life” (Cai et al., 2022), and their roles in promoting common prosperity has been studied (Wang et al., 2019; Qi, 2020; Wang and Zheng, 2021). With the clustering model and influencing factors (Hu et al., 2020), relevant environmental behaviors of tourists (Zhou et al., 2021) and other aspects have been extensively investigated. However, there are limited studies on the performance mechanism of guesthouse entrepreneurship. Actually, guesthouse entrepreneurs face the dilemma and confusion between their ideal visions and reality (Wu et al., 2020). Therefore, it is necessary to identify the key influencing factors of guesthouse entrepreneurial performance and understand the performance mechanism of rural guesthouse entrepreneurship. All these are crucial factors in improving the entrepreneurial performance of farmers, optimizing the policy environment for rural guesthouse operations, and deepening the implementation of the rural revitalization strategy. All these factors present significant academic value and contemporary significance. Investigation on the performance mechanism of rural guesthouses is rooted in the studies of rural entrepreneurial performance. However, in different research cases or scenarios, there were different or even contradictory conclusions drawn on the influencing factors and performance mechanism of rural guesthouse entrepreneurship. Furthermore, when studying the relationship between tourists and their destinations, Zhou et al. (2020) observed that that relationship is affected by psychological factors. Also, Jin and Xin (2020) has proposed that more analyses should be performed on psychological factors in studying entrepreneurial performance. Accordingly, this study focused on two psychological factors, which have not been sufficiently investigated in previous research, with no consensus reached on their impacts on performance mechanism of rural guesthouse entrepreneurship. The first factor is place identity (Proshansky et al., 1983; Pretty et al., 2003), which refers to an individual’s emotional recognition of the place where he or she resides. Previous literature has shown that tourism entrepreneurs with a sense of place identity attach great importance to the places they live in, and are more willing to invest their resources in those places, thus affecting their entrepreneurial performance (Hallak et al., 2012). However, whether farmers in China have a sense of attachment to the places they live in and whether this attachment affects their entrepreneurial performance have not been deeply studied. The second factor is entrepreneurial self-efficacy. Entrepreneurial self-efficacy refers to the perceptions of entrepreneurs on their own abilities. In the studies of entrepreneurial performance, entrepreneurial self-efficacy has been investigated in the following three different ways: as an antecedent variable of entrepreneurial motivation (Sun et al., 2013), as an antecedent variable of entrepreneurial performance (Wang and Cheng, 2022), and as a mediating variable (Zhao and Zhang, 2013).
Based on previous literature, this study has taken rural entrepreneurs operating guesthouses in the suburbs of Beijing as the research object and used the method of structural equation modeling to examine the performance mechanism of rural guesthouse entrepreneurs. the expected contributions are: Firstly, rural guesthouse entrepreneurship represents an important direction of rural entrepreneurship. Therefore, the conclusions drawn in this research can enrich those two categories of rural tourism and rural entrepreneurship in relevant literature. Secondly, through the investigation of the role of “place identity” as an influencing factor of rural guesthouse operation, this research can expand the research context of “place identity”. Thirdly, with the roles of place identity and entrepreneurial self-efficacy identified in the entrepreneurial performance of rural guesthouse operators, this study can enrich the relevant research of rural entrepreneurship. Finally, this study can provide a reference for the model selection and theoretical explanation in the comprehensive implementation of rural revitalization strategy.

2 Literature review

2.1 Place identity

In Western countries, place is described as the “center of human existence” that helps create a sense of meaning and stability in people’s lives (McAndrew, 1998; Gustafson, 2001). Early research on place attachment of Hayward (1975), Relph (1976) and other scholars suggested that some part of an individual’s self-consciousness comes from the place where that individual lives, providing him or her with opportunities for self-expression. Later, the concept of “place” was reinforced through the establishment of such notions as place attachment (Low and Altman, 1992), sense of place (Shamai, 1991), place dependency (Harvey and Erlbaums, 1981) and place identity (Proshansky et al., 1983). In recent years, with the further development of the place theory, place identity has gradually become an independent research topic and attracted the attention of many scholars (Dai and Liu, 2019). Place identity is an important part of self-identity, representing not only an individual's emotional attachment to a place but also a cognitive belief or idea generated through interaction with the physical environment. It refers to a “socialized self in the objective world” (Jorgensen and Stedman, 2001) and can influence the social identity, attitudes, and behaviors of an individual, as well as the behaviors of that individual towards local community (Pretty et al., 2003). This is consistent with the conclusion drawn by Eyles (1989) that in local practices, people give meaning to local culture, making local residents perceive consistent values. The evolution from space to place requires a “humanization process” in which people derive the cultural meaning. Once residents recognize a particular place, a sense of belonging or place attachment will be formed among them (Zhou et al., 2011).
The “From the Soil: The Foundation of Chinese Society” is the most representative of early studies on place attachment in China (Fei, 2017). In this book, not only the rural nostalgia reflects the nostalgia of migrant workers who have moved away from their hometowns for work, but it also reflects the reminiscences of traditional lifestyles and cultures for those who still reside in villages (Jiang, 2017). Rural nostalgia will have a significant impact on the decision-making and behaviors of farmers living in rural areas and returning rural migrant workers (Huang et al., 2023). Therefore, rural nostalgia can reflect the attachment of individuals to their hometowns. Through cultural construction and guidance of public opinions, individuals’ community identity will be further guided and strengthened, with their sense of belonging and place identity further enhanced (Xu, 2018).

2.2 Entrepreneurial self-efficacy

Self-efficacy was first introduced by American psychologist Bandura (1977) in his social cognitive theory. It refers to individuals’ confidence in their own abilities to perform a specific task and is an important concept in explaining human behaviors and behavioral changes. Self-efficacy can influence individuals’ efforts and final outcomes in completing their tasks through the negative feedback loops during their task completion processes. Individuals with high self-efficacy tend to view their progresses optimistically, try to reduce the perceived gaps between their progresses and their goals, and believe that they are capable of completing their tasks and achieving their goals (Vancouver and Purl, 2017). With a combination of self-efficacy with the entrepreneurial theory, entrepreneurial self-efficacy has been applied in the field of entrepreneurship. Boyd and Vozikis (1994) were the first two scholars who focused on this concept, and in 1998, Chen et al. (1998) defined entrepreneurial self-efficacy as an individual’s belief in his or her ability to perform entrepreneurial activity successfully. Entrepreneurial self-efficacy retains the connotations and characteristics of self-efficacy and further presents the uncertain, diverse, and dynamic behavioral characteristics of entrepreneurs exhibited in their entrepreneurial processes. Also, it is one of the hot topics of current studies.

2.3 Entrepreneurial performance

As a key factor in entrepreneurial research, entrepreneurial performance is an important indicator for measuring entrepreneurial outcomes and evaluating the degrees of enterprises in achieving their goals. Previous research at home and abroad has primarily focused on the perspectives of financial performance and non-financial performance, as well as the perspectives of objective performance and subjective performance. Because it is difficult for researchers to obtain sufficient financial data, subjective performance measurement is generally conducted on micro-enterprises operated by rural entrepreneurs. Unlike large companies, small businesses usually keep their financial records as private information that is not publicly available, making it difficult for researchers to obtain these records. Therefore, the method of subjective self-assessment has been widely used and accepted in the measurement of entrepreneurial performance of small businesses (Hallak et al., 2012).
The entrepreneurial performance of rural entrepreneurs operating small and micro-enterprises is an important indicator of their entrepreneurial outcomes and is influenced by various factors. On the basis of existing literature, influencing factors of the entrepreneurial performance of rural entrepreneurs can be primarily divided into the following three categories: 1) Individual factors such as human capital (Bae et al., 2014), social capital (Liu et al., 2016), entrepreneurial motivation (Su et al., 2018; Wang and Cheng, 2022) and entrepreneurial passion (Wang et al., 2020); 2) Environmental factors such as entrepreneurial environment (Wang and Sun, 2018; Wu et al., 2021); and 3) Process factors such as entrepreneurial process (Jiang et al., 2013; Zhao et al., 2020).

3 Research area

Pinggu District and Huairou District are located in the northeast of Beijing. Although both districts are located in suburban areas, transportation is relatively convenient in the two districts. The construction of the Pinggu Line (Beijing Subway Line 22) in the Pinggu District was started in early 2012, and the completion of the Huairou section of the Jingcheng Expressway has brought Huairou District into Beijing’s half-hour economic circle, making its location advantages more prominent. There are abundant natural and cultural resources in both districts. Pinggu District is home to tourist attractions such as Jinhai Lake, Jingdong Stone Forest Gorge, and Jingdong Dacien Cave, and is famous for fresh fruits like Pinggu peach and Beizhai red apricot. Huairou District features natural landscapes such as Qinglong Gorge and Yanqi Lake, as well as such historical and cultural attractions as Hongluo Temple, Mutianyu Great Wall, and Huanghuacheng. In addition, in the Huairou District there are seventeen rivers with fourth grade or above and sixteen reservoirs with various sizes. Therefore, both districts present a solid foundation for developing rural guesthouses and farmhouses there.

4 Model construction and research design

4.1 Research hypotheses and model construction

4.1.1 Place identity and tourism entrepreneurship

In the tourism industry, place identity reflecting an individual’s emotional attachment to a place can influence the environmental behaviors of that individual, as well as the sustainable development of tourism industry (Dai and Liu, 2019). It was proposed that place identity represents one dimension of place attachment, and it was used in studying the tourist loyalty in red tourism (Zhou and Tang, 2022) and ethnic tourism communities in border areas (Li, 2013). In the context of rural entrepreneurship in China, place identity, namely, the deep dependence of rural entrepreneurs on the “local cultural” (Hu and Zhao, 2022), can also be viewed as rural nostalgia. It can influence the entrepreneurial intentions of rural entrepreneurs (Wang and Zhu, 2016; Huang et al., 2023). Research has shown that if residents perceive that the development of the tourism industry is consistent with their sense of place identity, they are more likely to favor the tourism industry (Gu and Ryan, 2008). The connections between individuals and a place allow them to distinguish themselves from people in other places. The resulted sense of identity can help entrepreneurs overcome their negative emotions such as anxiety and insecurity during their entrepreneurial processes, increase their confidence to better cope with the changing internal and external environments, and enhance their sense of place attachment. As a result, rural entrepreneurs are more willing to invest their resources in the places they live in (Chen et al., 2017). For example, rural guesthouse entrepreneurs often use homesteads in their hometowns to conduct guesthouse operations. Based on the development advantages of traditional villages and in accordance with the concept of green development, rural entrepreneurs can improve their sense of gain and identity and strengthen the collective economy (Liu et al., 2023), which in turn influences their entrepreneurial performance. Hallak et al. (2012) proposed that place identity can indirectly affect entrepreneurial performance. When studying the performance of small and medium-sized tourism start-ups in Bangladesh, Akter et al. (2020) found that place identity can directly and significantly influence entrepreneurial performance. Based on the research mentioned above, this study has put forward the following hypothesis.
H1: Place identity has a positive impact on entrepreneurial performance of rural guesthouse entrepreneurs.

4.1.2 Entrepreneurial self-efficacy and tourism entrepreneurship

As mentioned earlier, not only does place identity reflect an individual’s attachment to a place but it also reflects the formation of that individual’s self-identification through his or her interaction with the physical environment. Through empirical analysis, Twigger-Ross and Uzzell (1996) demonstrated that the formation of self-efficacy is influenced by the interactions of individuals with their socio-physical environments, as well as their sense of place identity. Hallak et al. (2012) found that because entrepreneurs have a sense of identity with the places where they start a business or live, they have a strong sense of belonging to their local environments. Sense of place identity can help entrepreneurs dispel their self-doubts about whether they can complete certain entrepreneurial tasks and enhance their confidence and abilities to accomplish their tasks. In other words, with the sense of place identity, their entrepreneurial self-efficacy has been increased. When exploring the relationship between entrepreneurial self-efficacy and entrepreneurial performance, some researchers suggested that entrepreneurial self-efficacy can indirectly influence entrepreneurial performance through factors like decision logic (Su et al., 2018). When studying entrepreneurial performance, some researchers have put forward that entrepreneurial self-efficacy has no significant positive impact on entrepreneurial performance. However, some other researchers have found that when facing difficulties, entrepreneurs with high entrepreneurial self-efficacy will experience positive emotions during their entrepreneurial processes and have a strong belief in their abilities to overcome these difficulties (Lindsley et al., 1995; Ardichvili et al., 2003), thus significantly influencing their entrepreneurial performance (Miao et al., 2017). Particularly, for rural entrepreneurs with unique characteristics, their entrepreneurial self-efficacy can significantly enhance their entrepreneurial performance (Wang et al., 2022).
Based on the above analysis, this study has proposed the following hypotheses.
H2: Place identity has a positive impact on the entrepreneurial self-efficacy of rural guesthouse entrepreneurs.
H3: Entrepreneurial self-efficacy has a positive impact on the entrepreneurial performance of rural guesthouse entrepreneurs.

4.1.3 Mediating role of entrepreneurial self-efficacy

Previous studies have found that tourists’ sense of place can affect their sense of social responsibility through their self-efficacy (Zhang et al., 2015), indicating that tourists’ self-efficacy has an indirect effect on their behaviors. For entrepreneurs, entrepreneurial self-efficacy also has a significant mediating effect (Zhou and Xu, 2019) on the performance of their start-ups. In addition, research has shown that place identity of tourism entrepreneurs has an indirect influence on their entrepreneurial performance through entrepreneurial self-efficacy and social support (Hallak et al., 2012). Therefore, for rural entrepreneurs engaging in tourism entrepreneurship, their sense of place identity could help them dispel their self-doubts, strengthen their entrepreneurial belief and enhance their problem-solving abilities, and encourage them to establish deeper communication and cooperation with local residents or governments to obtain more entrepreneurial information and resources. These accumulated entrepreneurial resources and information can not only further strengthen the sense of place identity of these rural entrepreneurs but also improve their entrepreneurial performance.
Based on the above analysis, this study has put forward the following hypothesis.
H4: Entrepreneurial self-efficacy has a mediating effect on the relationship between place identity of rural guesthouse entrepreneurs and their entrepreneurial performance.

4.2 Research design

4.2.1 Questionnaire design and variable measurement

The questionnaire used in this study consists of two parts. In the first part, demographic characteristics of samples were collected, and in the second part, a Likert 5-point scale was used to measure the following three latent variables: place identity, entrepreneurial self-efficacy, and entrepreneurial performance. All items were adjusted based on mature scales and adapted to fit the specific context of rural entrepreneurship in China. The specific measurement indicators are shown in Table 1.
Table 1 Variables and scale items
Variable Dimension Code Measurement item Reference
Place Identity
(PI)		 - PI1 The village where I live means a lot to me Wen et al., 2021
PI2 I am fond of the village where I live
PI3 I strongly share the same value with my village
PI4 I will never leave the village where I live
Entrepreneurial Self-Efficacy
(ESE)		 Eliciting Respect from Community
(ERC)		 ERC1 I am viewed as a person worthy of respect Pushkarskaya et al., 2021
ERC2 I am viewed as a person who is beneficial to the village
ERC3 I am viewed as an intelligent person
Creative Planning
(CP)		 CP1 I am capable of finding a solution to a problem with limited resources
CP2 I am capable of finding a new approach to achieve goals by integrating resources
CP3 I am capable of remaining decisive when facing uncertainty
Marshalling HR
(MHR)		 MHR1 I am able to handle relationships
MHR2 I am able to encourage my employees
MHR3 I am capable of delegating tasks and taking responsibility
Managing Uncertainty
(MU)		 MU1 I am capable of working efficiently under continuous pressure or conflict
MU2 I am capable of adapting flexibly to changes
MU3 I am capable of handling uncertainties in my work
Entrepreneurial Performance
(EPer)		 - EPer1 The guesthouse I operate has generated a large amount of revenues Hallak et al., 2011
EPer2 I am satisfied with the performance of my business
EPer3 My guesthouse operation is successful
EPer4 My guesthouse business meets my expectation

4.2.2 Sample selection and data collection

On the basis of the following reasons, this study has chosen Pinggu District and Huairou District as the target areas for investigation. Firstly, according to the data released by Tujia Homestay, Huairou District ranks 1st in Beijing in terms of number of guesthouses and 3rd in terms of tourist popularity. There are various types of guesthouses, including transformed farmhouse, designer homestay and youth hostel. Meanwhile, Pinggu District ranks 11th in Beijing in terms of number of guesthouses and 7th in terms of tourist popularity. Enough samples of various types of guesthouses are available in these two areas for us to carry out the research. Secondly, because researchers of this study have previous working experiences in these two areas, it is convenient for them to get support from the local government and residents for the research.
A combination of online and offline data collection was employed in this study step by step. At the first stage, a preliminary survey was conducted on guesthouse operators in a village in Pinggu District, with a total of 85 completed questionnaires collected. With some ambiguous statements adjusted, the reliability and validity of these questionnaires were analyzed, with final formal questionnaires obtained. At the second stage, surveys were carried out with the use of a guesthouse directory in Pinggu District, and questionnaire links were distributed among survey participants, with survey data collected. At the third stage, field research was conducted in some other towns in Huairou District and Pinggu District during the summer vacation of 2022. At the final stage, such keywords as “region”, “industry” and “occupation” were searched on the “Credamo” platform and data were collected from rural entrepreneurs operating guesthouses. Finally, a total of 410 completed questionnaires were collected in this study. Among them, a total of 355 questionnaires are valid, with a validity rate of 86.6%. The main demographic characteristics of questionnaire samples are listed in Table 2.
Table 2 Demographic profile (n = 355)
Category Number Percentage (%)
Gender
Male 156 43.9
Female 199 56.1
Age (yr)
<21 0 0
21-30 62 17.5
31-40 142 40.0
41-50 90 25.4
51-60 53 14.9
>60 8 2.2

5 Empirical analysis

5.1 Analysis of survey reliability and validity

The Cronbach’s α coefficients of overall and sub-scales of place identity, entrepreneurial self-efficacy, and entrepreneurial performance obtained in this study are 0.947, 0.905, 0.939, and 0.930, respectively, and all these values exceed 0.7. It indicates that those formal questionnaires have high reliability and internal consistency. The obtained KMO values of these three variables range from 0.844 to 0.945, and the obtained P-values of the Bartlett’s test of sphericity are all less than 0.001, indicating that the measurement items of each survey dimension are valid and can effectively reflect the corresponding characteristics. With reference to the studies conducted by Fornell and Larcker in 1981 and Raykov in 1997, three indicators, namely, Squared Multiple Correlation (SMC), Composite Reliability (CR) and Average Variance Extracted (AVE), were used in this study along with factor loading to examine the convergence validity of the measurement model. The results show that the factor loading, SMC values and CR values of the first-order and second-order latent variables in three scales all meet the requirements, indicating good convergence validity of each factor (Table 3). The square root of AVE value of each latent variable is greater than its correlation coefficients with other latent variables (Table 4), indicating good discriminant validity of each latent variable. Overall, it can be seen that all scales exhibit good convergence and discriminant validity.
Table 3 Convergence validity
Variable Dimension Item Load SMC CR AVE
First level factor Second level factor First level factor Second level factor First level factor Second level factor
PI - PI1 0.805 - 0.648 0.908 - 0.711 -
PI2 0.881 0.776
PI3 0.883 0.780
PI4 0.800 0.640
ESE ERC ERC1 0.788


0.943


 0.621


0.848




0.951


0.582




0.830



ERC2 0.746 0.557
ERC3 0.739 0.546
ERC4 0.777 0.604
CP CP1 0.832

0.879

 0.692

0.845

0.646

CP2 0.838 0.702
CP3 0.737 0.543
MHR MHR1 0.784

0.950

 0.615

0.831

0.621

MHR2 0.815 0.664
MHR3 0.765 0.585
MU MU1 0.792

0.870

 0.627

0.885

0.719

MU2 0.853 0.728
MU3 0.896 0.803
EPer - EPer1 0.832


-


 0.692


0.930


-


0.770


-


EPer2 0.905 0.819
EPer3 0.867 0.752
EPer4 0.904 0.817
Table 4 Discriminant validity
Variable PI ESE EPer
PI 0.843
ESE 0.650 0.910
EPer 0.544 0.670 0.877

5.2 Analysis of structural equation model

5.2.1 Fit analysis of measurement model

Four analysis models of confirmatory factors were employed in this study to test the measurement model and five fit indices of χ2/df, CFI, TLI, RMSEA and SRMR were used to assess the fitting degree of the measurement model. The fitting results of place identity and entrepreneurial performance show that the obtained values of χ2/df are all less than 3, and the obtained values of CFI and TLI are all higher than 0.90, with the obtained values of RMSEA and SRMR less than 0.080 and 0.060, respectively. Fit analysis of the second-order latent variable, entrepreneurial self-efficacy, indicates that the obtained value of its χ2/df index is 2.592, which is less than 3. It shows that the obtained value of this index can meet the requirement. Similarly, the obtained values of the CFI, TLI, RMSEA and SRMR indices of this variable in the analysis can all meet the requirements. It shows that the measurement models of place identity, entrepreneurial self-efficacy and entrepreneurial performance all exhibit a good fitting degree. Furthermore, the ratio between the χ2 values of the second-order measurement model (Model IV) and the first-order measurement model (Model III) is close to 1, indicating that the second-order factor model can effectively explain the interrelationships among those first-order factors (Marsh and Hocevar, 1985). Thus, in the Model IV proposed in this study, first-order measurement factors can be eliminated, thus making the model more parsimonious.

5.2.2 Fit analysis of structural model

A structural equation model was established in this study to analyze variables and their measurement indicators, and the Mplus software was used to examine the fitting degree of the structural model and conduct the path analysis. The results show that the research model presents a good fitting degree (Table 5 and Fig. 1). Path analysis of the model reveals that all three hypothesized paths (place identity→ entrepreneurial self-efficacy, place identity→entrepreneurial performance and entrepreneurial self-efficacy→ entrepreneurial performance) are significant, with all research hypotheses supported (Table 6).
Table 5 Model fitting degree
Fit index χ2/df CFI TLI RMSEA SRMR
Acceptable range <3 >0.90 >0.90 <0.080 <0.060
Satisfaction and loyalty 1.876 0.974 0.969 0.050 0.036
Fig. 1 Model results

Note: ** and *** represent significance at the 5% and 1% level, respectively.

Table 6 Model path-analysis result
Path Standardized coefficient P-value Result
H1: PI→EPer 0.188 ** Support
H2: PI→ESE 0.650 *** Support
H3: ESE→EPer 0.548 *** Support

Note: ** and *** represent significance at 5% level and 1% level, respectively.

The structural equation model shows that place identity has a direct positive impact on the entrepreneurial performance of rural guesthouse entrepreneurs. It indicates that rural entrepreneurs with greater sense of place identity will achieve better performance on their guesthouse operations. In addition, it shows that place identity has a significant positive impact on entrepreneurial self-efficacy, indicating that rural entrepreneurs with great sense of place identity will present strong entrepreneurial self-efficacy. Furthermore, entrepreneurial self-efficacy has a positive influence on entrepreneurial performance, indicating that rural entrepreneurs with high level of entrepreneurial self-confidence will work hard and cope with setbacks and challenges positively, thus achieving better entrepreneurial performance.

5.3 Analysis of mediating effect

Bootstrap analysis was used in this study to obtain the confidence intervals of the mediating effect (Cheung and Lau, 2008). The results (Table 7) show that the indirect mediating effect of place identity on entrepreneurial performance through entrepreneurial self-efficacy falls into a 95% confidence interval with no zero (lower limit = 0.288, upper limit = 0.658). In addition, it indicates that the direct effect of place identity on entrepreneurial performance falls into a 95% confidence interval without zero. Therefore, it has been verified that entrepreneurial self-efficacy has a partial mediating effect on the relationship between place identity and entrepreneurial performance, thus supporting Hypothesis 4.
Table 7 Analysis result of mediating effect
Effect path Direct effect value 95% confidence interval for direct effect
Indirect effect value
 95% confidence interval for indirect effect
Lower limit 2.5% Upper limit 2.5% Lower limit 2.5% Upper limit 2.5%
PI→ESE→EPer 0.232** 0.037 0.379 0.438*** 0.288 0.658

Note: ** and *** represent significance at 5% and 1% levels, respectively.

6 Discussion

6.1 Theoretical significance

This study has presented the following theoretical significance.
Firstly, the importance of investigating entrepreneurial performance of rural guesthouse entrepreneurs was highlighted in this study, with the influences of psychological factors on the entrepreneurial performance significantly emphasized. Two psychological factors, namely, place identity and entrepreneurial self-efficacy were identified and empirically tested in this study. These two factors have not been sufficiently investigated in previous research, with no consensus reached on the mechanisms of their effects on entrepreneurial performance. A theoretical model with place identity, entrepreneurial self-efficacy and entrepreneurial performance used as independent variables was established in this study. Therefore, this study has laid a foundation for future research on entrepreneurial performance in the context of rural guesthouse entrepreneurship.
Secondly, this study has revealed the mediating effect of place identity on the entrepreneurial performance of rural guesthouse entrepreneurs. The results show that rural guesthouse entrepreneurs with high entrepreneurial performance exhibit a high level of place identity. During the survey, more than 80% of all participants agreed or strongly agreed with those four items of place identity, indicating that rural guesthouse entrepreneurs present a strong love and identification with their hometowns. Therefore, it has been believed that during the entrepreneurial processes of rural guesthouse entrepreneurs in China, they are more willing to mobilize resources to participate in guesthouse entrepreneurial activities in their hometowns because of their sense of place identity and their love and identification with their hometowns. The more they are connected with their hometowns, the stronger sense of place identity they will have. Thus, their entrepreneurial confidence will be strengthened, with their entrepreneurial performance positively affected. In addition, rural guesthouse entrepreneurs, as “masters” living in their hometowns, have integrated the places they live in with the tourism industry. This integration includes the integration of various attributes such as social and cultural environments and life experience. During the processes of operating rural guesthouses, through communication with tourists and sharing local natural landscapes and local cultures with them, entrepreneurs will gradually strengthen their sense of place identity of their hometowns, thus being more willing to take their hometowns as the best places for their business operations. In turn, tourists will become more and more comfortable when communicating with their hosts, thus strengthening the relationships between them. Therefore, tourists are more likely to become repeat customers for these rural guesthouse entrepreneurs, thus promoting their entrepreneurial performance. These findings have extended the effect of place identity promoting the development of tourism industry from an urban scenario to a rural scenario, broadened the research scope of local identity theory, and promoted the application of place identity in the rural entrepreneurship field. With these findings, the conclusions of Hallak et al. (2012) on the indirect effect of place identity on entrepreneurial performance, as well as those conclusions of Akter et al. (2020) on the direct effect of place identity on entrepreneurial performance, are further validated. These results will encourage rural guesthouse entrepreneurs to foster their entrepreneurial self-efficacy, thus contributing to improving their entrepreneurial performance.
Thirdly, this study has examined the relationship between entrepreneurial self-efficacy and entrepreneurial performance of rural guesthouse entrepreneurs, thus providing a useful supplement to the existing theory of entrepreneurial performance. In their research, Su et al. (2018) found that entrepreneurial self-efficacy, as an implicit variable, often plays an implicit and indirect role. Therefore, it is not easy to perceive the implicit effect of entrepreneurial self-efficacy on entrepreneurial performance. This study shows that entrepreneurial self-efficacy can affect the entrepreneurial performance of rural guesthouse entrepreneurs with sense of place identity through certain cognition behaviors of these entrepreneurs. Therefore, it indicates that entrepreneurial self-efficacy plays a channel and connection role in the relationship between sense of place identity and entrepreneurial performance of rural entrepreneurs. However, existing studies have different interpretations of the role played by entrepreneurial self-efficacy in the mechanism of entrepreneurial performance (Sun et al., 2013; Zhao and Zhang, 2013; Wang et al., 2022). Nevertheless, this paper has proved that entrepreneurial self-efficacy is strongly correlated with entrepreneurial performance of rural guesthouse entrepreneurs, which is consistent with the conclusions drawn by Forbes (2010) and Zhou and Xu (2019) in their studies. Entrepreneurs with strong entrepreneurial self-efficacy are more enthusiastic in collecting relevant entrepreneurial information and participating in entrepreneurial learning. Such enthusiasm and confidence will stimulate entrepreneurs to develop their self-employed businesses. This study has identified the effect of entrepreneurial self-efficacy on the entrepreneurial performance of rural guesthouse entrepreneurs, thus providing a new perspective and conclusion for the investigation of entrepreneurial performance mechanism.

6.2 Practical implications

This study has presented the following practical implications for individual rural guesthouse entrepreneurs and relevant management institutions. Firstly, rural organizations should improve their rural environment and cultural traditions to enhance the love and place identity of local residents. Government agencies at higher levels can establish a sense of pride among rural residents on their hometowns through the improvement of the rural natural and cultural environment. At the same time, the construction of local ecological civilization should be improved, natural resources and cultural resources in rural areas should be fully utilized, and rural ecological resources should be used to boost the development of rural guesthouse industry (Du et al., 2022). Thus, when operating their guesthouse businesses, rural guesthouse entrepreneurs can make full use of these ecological resources to attract more tourists. Therefore, in rural areas, scenery will be improved and cultures will be developed, which will greatly enhance the sense of identity and honor among rural residents. Secondly, government departments should provide more service platforms for rural entrepreneurs, improve their perception of entrepreneurial feasibility and safety, enhance their confidence in taking risks and overcoming difficulties, and alleviate their fears of entrepreneurial failure through such activities as learning trip, expert diagnosis and internal communication, etc. (Wang et al., 2022). Also, more measures and practices should be employed to improve entrepreneurial performance of rural entrepreneurs. In addition, local government departments can also introduce specific assistance policies suitable for local development step by step on the basis of existing entrepreneurial policies, enhance their communication with entrepreneurs to fully understand their needs, and help rural guesthouse entrepreneurs to enhance their entrepreneurial self-efficacy. Lastly, society as a whole should contribute to further optimizing the operating environment of rural guesthouse business. For example, financial institutions can facilitate their loan processes and simplify their qualification reviews, the media can publicize more successful entrepreneurial experiences, and research institutions can pay more attention to the issues faced by rural guesthouse entrepreneurs and provide them with helpful suggestions.

6.3 Research limitations and future directions

There are several limitations in this study, which can be considered in future research.
Firstly, this study has only focused on psychological factors and their influences on the entrepreneurial performance of rural guesthouse entrepreneurs. In future research, the effect of entrepreneurial environment on entrepreneurial performance should be investigated. Secondly, only empirical analysis has been primarily employed in this study. However, rural guesthouse operation is an inherently complex activity. In future research, qualitative methods such as face-to-face interviews could be used to collect more in-depth information from different types or representative rural guesthouse entrepreneurs. With qualitative and quantitative analyses combined together, the limitations of empirical analysis could be overcome. Lastly, this study has employed a limited sample size. It is difficult to conduct a questionnaire survey among rural entrepreneurs. However, with the continuous transformation and upgrading of rural guesthouse industry and the strengthened support from governments at all levels, future research can, in a more comprehensive manner, draw conclusions that can be validated with expanded research scope and more samples collected.

7 Conclusions

Based on survey data collected from 355 rural guesthouse entrepreneurs in Pinggu and Huairou districts in the suburban areas of Beijing, this study has systematically explored the relationships among place identity, entrepreneurial self-efficacy and entrepreneurial performance in the context of rural guesthouse entrepreneurship, with the following findings. Firstly, place identity has a significant positive impact on entrepreneurial performance of rural guesthouse entrepreneurs. It implies that rural guesthouse entrepreneurs with higher level of identification with their hometowns will present better entrepreneurial performance in operating their guesthouse businesses. Secondly, entrepreneurial self-efficacy has a partial mediating effect on the relationship between place identity and entrepreneurial performance. Place identity helps rural guesthouse entrepreneurs enhance their awareness of self and entrepreneurial ability, garner more respect from local communities, implement creative plans, and effectively allocate human resources and manage uncertainties, thus positively influencing their entrepreneurial performance.

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