Abstract:This paper aims to examine and to discuss how entrepreneurial culture is formed from perceived values, cultural dimension, kinship system and informal cultural based entrepreneurial learning of a society. As the context of the research, it uses the Minangkabau tribe, which enjoys supportive social supports and where the culture of entrepreneurship is naturally accepted by the most of the tribe members as a part of their way of life. This paper considers and argues that perceived value, cultural dimension, kins… Show more
“…As our study was undertaken with student entrepreneurs in one city in Indonesia where the Minangkabau ethnic is the major ethnicity, there will be the presence of different psycho-cultural background between one ethnic to other enthnicities. As Rahman, et al, (2019) cited, the different psycho-cultural beckground between ethnicities in regions will consequence the creation and the level of entrepreneurial climate among them. This will further derive to the psychological situation of individuals in one ethnic in viewing entrepreneurship, in which one ethnic can have more fear of failure to start a business compared with other ethnicities.…”
This paper examines factors that influence the depth-usage of social media as a business platform among student entrepreneurs by focusing analysis on the mediating effect of social media adoption. The study uses The Unified Theory of Acceptance and Use of Technology (UTAUT) Model which identifies factors that can influence individuals’ behavioral patterns to accept and to use technology as the main theoretical/conceptual foundation.The study is a quantitative study which operates relational analysis between variables. A survey through the questionnaire with 142 student entrepreneurs in three state owned universities in Padang, Indonesia was undertaken to collect primary data and information. The result was further analyzed by using Structural Equation Modelling (SEM) Partial Least Square (PLS) and causal step analysis in order to investigate the relationship between each variable and the mediating effect of social media adoption on factors that influence the depth-usage of social media as the business platform used by students entrepreneurs. The study found that performance expectation, perceived trust and social influence as the major factors that influence the adoption of social media usage as the business platform by student entrepreneurs. Meanwhile, perceived risks does not bring positive and significant influence. However, the mediating effect of the adoption of social media usage is only found in the performance expectancy when it influences the depth-usage of social media as the business platform by the student entrepreneurs.
“…As our study was undertaken with student entrepreneurs in one city in Indonesia where the Minangkabau ethnic is the major ethnicity, there will be the presence of different psycho-cultural background between one ethnic to other enthnicities. As Rahman, et al, (2019) cited, the different psycho-cultural beckground between ethnicities in regions will consequence the creation and the level of entrepreneurial climate among them. This will further derive to the psychological situation of individuals in one ethnic in viewing entrepreneurship, in which one ethnic can have more fear of failure to start a business compared with other ethnicities.…”
This paper examines factors that influence the depth-usage of social media as a business platform among student entrepreneurs by focusing analysis on the mediating effect of social media adoption. The study uses The Unified Theory of Acceptance and Use of Technology (UTAUT) Model which identifies factors that can influence individuals’ behavioral patterns to accept and to use technology as the main theoretical/conceptual foundation.The study is a quantitative study which operates relational analysis between variables. A survey through the questionnaire with 142 student entrepreneurs in three state owned universities in Padang, Indonesia was undertaken to collect primary data and information. The result was further analyzed by using Structural Equation Modelling (SEM) Partial Least Square (PLS) and causal step analysis in order to investigate the relationship between each variable and the mediating effect of social media adoption on factors that influence the depth-usage of social media as the business platform used by students entrepreneurs. The study found that performance expectation, perceived trust and social influence as the major factors that influence the adoption of social media usage as the business platform by student entrepreneurs. Meanwhile, perceived risks does not bring positive and significant influence. However, the mediating effect of the adoption of social media usage is only found in the performance expectancy when it influences the depth-usage of social media as the business platform by the student entrepreneurs.
“…The kinship structure of the Minang people consists of six forms: semande (nuclear family/born of the same mother), seperut (extended family/born of the same grandmother), senenek (ancestral relatedness/born of the same great-grandmother), seninik ( penghulu adat /traditional leader relatedness), sekaum (family name relatedness) and sesuku (clan relatedness) (Damsar, 2016). Furthermore, the Minang ethnic entrepreneurs who are established in business usually become mentors to their kinsmen who have just migrated (Rahman et al , 2019). These mentors also involve the prospective entrepreneurs in ethnic community activities to exploit more resources (Rahman et al , 2019).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…Furthermore, the Minang ethnic entrepreneurs who are established in business usually become mentors to their kinsmen who have just migrated (Rahman et al , 2019). These mentors also involve the prospective entrepreneurs in ethnic community activities to exploit more resources (Rahman et al , 2019).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…These are two entrepreneurial tribes that actively migrate to other provinces in Indonesia. They have contrasting cultural values related to entrepreneurial behaviour, particularly their utilization of closed and open networks (Hastuti et al , 2015; Hermawan et al , 2018; Rahman et al , 2019). In summary, this research aims to examine and propose a new type of performance prediction model using causality among network characteristics (i.e.…”
Purpose
This study aims to examine the moderating effect of firm age and size on the relationship between network characteristics (network centrality, network density and tie strength) and firm performance. This study also aims to investigate the difference in the effect of network characteristics on the firm performance of Javanese and Minang ethnic enterprises.
Design/methodology/approach
An explanatory research design was adopted, which involved a survey in the form of a structured questionnaire of target owners and managers of 34 Javanese ethnic enterprises in North Sumatra, Indonesia and 100 Minang ethnic enterprises in Yogyakarta, Central Java, Jakarta and Bogor, Indonesia. The data is analysed using structural equation modelling.
Findings
The findings of this study confirm resource dependency and social capital theory. Network centrality, network density and tie strength have a significant effect on firm performance. The results also show support for the moderating role of firm age on the relationship between network characteristics and firm performance. The moderating role of firm size is not supported. The comparative test of the influence of the three network characteristics on ethnic enterprise performance confirms that Javanese ethnic enterprises have identity-based networks, while Minang ethnic enterprises use calculative-based networks.
Originality/value
The originality of this study lies in the investigation of the role of family and external partners in the running of ethnic enterprises at start-up and during the growth phase. The definition of “family” is based on a kinship perspective due to the specificity of Asian cultures, particularly in Indonesia. Of the hundreds of tribes in Indonesia, the Javanese and Minang were chosen because both are well-known as entrepreneurial tribes, have unique cultural values and have active migrants to other provinces.
“…Entrepreneurial failure is the termination of the entrepreneurial process and the result of failures that occurred during the preparation, implementation and management of the venture (Rahman, et al, 2019). It may involve firm closures, entrepreneurial exit, dissolution, discontinuance, insolvency, organizational mortality or bankruptcy (Arasti, 2011).…”
This paper examines and discusses the presence of individuals' passion as a psychological construct that may cause entrepreneurial failurewith particular context and analysis to the failed nascent entrepreneurs in one of the largest port city in Sumatera island, Padang, Indonesia. This paper uses quantitative study with relational approach, and was undertaken with 180 failed nascent entrepreneurs in Padang. Data and information were collected by using a questionnaire as a cross-sectional cohort data and were further analyzed with Structural Equation Modelling (SEM) and supported by PLS 3.0 as the statistical tool. Both the process and the content framework were used to show the logic of methodology according to the dualistic model of passion) and their relationship with entrepreneurial failure. The study found that individuals' harmonious passion in entrepreneurship should also be considered as a cause of entrepreneurial failure, meanwhile the obsessive passion is significantly found to influence entrepreneurial failure. This study implies that entrepreneurs should consider and make clear boundaries between psychological push and rationality when they start new ventures. This paper has value and originality in terms of the examination and analysis of individuals' passion as a psychological construct that causes entrepreneurial failure. In different with other researches and studies which have merely viewed the passion as a source of entrepreneurial success, this study views and argues that individuals' passion either is categorized as harmonious or obsessive passions (especially when it is uncontrollable) may also cause the entrepreneurial failure.
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