When Drive Meets Discrimination: Interactive Effect of Entrepreneurial Motivation and Institutional Voids on Behavior of Transgender Entrepreneurs

Abstract

Entrepreneurship represents a critical avenue for economic empowerment and social participation among marginalized populations. This study investigates the interactive effect of entrepreneurial motivation and institutional voids on entrepreneurial behavior among transgender entrepreneurs in Pakistan. Using lenses of Theory of Planned Behavior and institutional theory, we employed a survey design with a sample of 265 transgender entrepreneurs from three major cities. Confirmatory factor analysis confirmed construct validity, and the results revealed that entrepreneurial motivation significantly predicted entrepreneurial behavior, even after controlling for prior behavior. Findings further demonstrated that both formal institutional voids (i.e., regulatory barriers and financial exclusion) and informal institutional voids (i.e., stigma and social discrimination) significantly weakened the motivation and behavior relationship. General problems faced by entrepreneurs did not exert significant effects. These findings suggest that while motivation is a necessary antecedent of entrepreneurship, supportive institutional environments are essential for its translation into entrepreneurial action. The study contributes to theoretical debates on institutional constraints versus agency in marginalized contexts. It also provides practical insights for policymakers, educators, and advocacy organizations aiming to support transgender entrepreneurship in developing countries.