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Theory and Hypotheses
Self-determination theory (SDT): Job Autonomy and Workplace wellbeing
The Self-Determination Theory (SDT; Deci and Ryan, 2000; Vansteenkiste, Niemiec, and
Soenens, 2010) specifies three fundamental psychological needs - relatedness, competence, and
autonomy - that sustain intrinsic motivation, facilitate internalization of extrinsic motivation, and
promote overall positive growth, development, and wellbeing (Deci and Ryan,2012). In the SDT
theory, needs for autonomy refers to experiences of volition and self-endorsement as opposed to
feelings of coercion and pressure (Deci and Ryan,2012). It means that autonomy represents an
inner endorsement of one’s actions – the sense that one’s actions emanate from oneself and are
one’s own (Deci and Ryan, 2000). Autonomy pertains to striving towards the development and
realisation of personal goals, values and interests (Assor, Kaplan and Roth, 2002). Positive
effects of autonomy of emotional demands on individual’s wellbeing have been found in
many types of research (Le Blanc et al.,2001) related to a variety of wellbeing outcomes (e.g.,
life wellbeing and workplace wellbeing), behavioural outcomes (e.g., persistence,
performance) and relational outcomes (e.g., secure attachment) across a variety of life
domains, including parenting, education, work, healthcare, and psychotherapy (Vansteenkiste,
et al., 2010). In the field of entrepreneurship, SDT theory has also underpinned many studies
on the relationship between job autonomy, entrepreneurial intention and workplace wellbeing.
Research on entrepreneurial motivation shows that it is not financial gain, but autonomy that
is most often mentioned or rated as the most important motive for starting a business (Shane,
Locke and Collins, 2003; Van Gelderen and Jansen, 2006), According to Gibb (2002:136),
‘we live in a society where we increasingly need the capacity to cope with, and enjoy, an
enterprising way of life. This way of life is characterised by uncertainty, change, and
complexity on the one hand, and freedom, individual responsibility, and the opportunity to
reap the fruits of one’s labour’. On the other hand, Gibb claims that more and more people are
taking part in this enterprising way of life as a result of several powerful trends in how
individuals relate to the state, organisations, and other individuals.Moreover, autonomy is not
only a dominant entrepreneurial motivation but also a dominant source of entrepreneurial
satisfaction. Among the many empirical results from different organization levels (Schjoedt
and Shaver, 2007), different culture (Benz and Frey, 2008) or different types of business
owned (both owners of businesses employing others and independent contractors have higher
satisfaction scores), it is noted that the level of autonomy can to a large extent explain
difference among individuals of workplace wellbeing experience (Benz and Frey, 2008;
Lange, 2012; Schjoedt and Shaver, 2007).
Thus, H1: job autonomy has a positive or negative relationship with workplace wellbeing
H1a: job autonomy has a negative relationship with job anxiety
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H1b: job autonomy has a negative relationship with job depression
H1c: job autonomy has a positive relationship with job satisfaction
As noted before, the universality of SDT is verified across different contexts, including the
different occupations. Many studies in entrepreneurship did comparison analysis between self-
employed individuals and employees, which showed that the self-employed are more satisfied
with work (Benz and Frey,2008). This is surprising since the self-employed were found to earn
lower wages (Hamilton 2000) or face a particular unequal income distribution often with low
income (Shane,2008). The explanation could be that self-employment offers non-monetary job
aspects such as work autonomy which individuals appreciate. Firstly, owning large extent of job
autonomy has almost been recognized as a significant aspect to define the self-employed from
employees. Consisting with the SDT theory, which suggests the greater the job autonomy ones
experience, the higher the workplace wellbeing they own. Research on entrepreneurial motivation
shows that it is not financial gain, but autonomy that is most often mentioned or rated as the most
important motive for starting a business (Shane, Locke and Collins, 2003; Van Gelderen and
Jansen, 2006), According to Gibb (2002:136), ‘we live in a society where we increasingly need
the capacity to cope with, and enjoy, an enterprising way of life. This way of life is characterised
by uncertainty, change, and complexity on the one hand, and freedom, individual responsibility,
and the opportunity to reap the fruits of one’s labour’. On the other hand, Gibb claims that more
and more people are taking part in this enterprising way of life as a result of several powerful
trends in how individuals relate to the state, organisations, and other individuals. Comparative
empirical evidence noted that, the self-employed have a larger extent of job autonomy than
employees (Lang,2012), which may contribute to a higher workplace wellbeing of the self-
employed. This view is supported by Blanchflower and Oswald (1998, 46), who contend that
‘individuals get a non-pecuniary benefit from being their boss.’ Moreover, Hamilton (2000) has
shown that,
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except for the highest 25% of entrepreneurial incomes, remaining in a wage-producing job (or
moving back to it) makes more economic sense for the individuals than starting a new business.
Thus, utility-maximizing individuals who switch from employment to self-employment may be
gaining something in exchange for the income they forgo: the usual explanation is ‘wellbeing.’
Therefore, it is logical to infer that even living in poverty, as long as the self-employed
experience higher job autonomy, they experience higher workplace wellbeing. This aims to
respond the first question, do the self-employed always feel happier (experiencing high
workplace wellbeing) than employees, when their incomes are below the poverty line? Hence, it
is posited that
H2: when individuals’ incomes are below the poverty line, the self-employed have higher job
autonomy and higher workplace wellbeing than employees (inter-group difference)
H2a: when individuals’ incomes are below the poverty line, the self-employed have higher job
autonomy than employees (inter-group difference)
H2b: when individuals’ incomes are below the poverty line, the self-employed have lower job
anxiety than employees (inter-group difference)
H2c: when individuals’ incomes are below the poverty line, the self-employed have lower job
depression than employees (inter-group difference)
H2d: when individuals’ incomes are below the poverty line, the self-employed have higher job
satisfaction than employees (inter-group difference)
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