Farmers' self-organized participation in collective actions is critical to optimize governance efficiency and ensure positive outcomes of rural tourism. To identify the underlying mechanisms, the Institutional Analysis and Development (IAD) intellectual decision extension model is selected. A mixed method approach is adopted with a questionnaire survey of 239 households and 20 semi-structured interviews in the suburban of Changsha City, Hunan Province of China. Household livelihood capital, characteristics of household head, tourism market environment, institutional rules as entry and exit rules, cognitive reform and level of land consolidation are found with significant effects. Theoretical and practical implications are discussed and future research directions are put forward.