Testing mediating effects of individual entrepreneurial orientation on the relation between close environmental factors and entrepreneurial intention

Abstract

PurposeDrawing on the literature on entrepreneurial intention (EI), this paper develops and tests a model that aims to explain student EI by considering the valuation of entrepreneurship and the venture failure stigmatization in the closer environment of the respondent and the role of individual entrepreneurial orientation (IEO) through direct and indirect effects.Design/methodology/approachThe paper uses a survey method for data collection. As such, this study was conducted by considering a sample of 1,155 undergraduate students from different majors. Structural equation modeling is used to validate the theoretical model.FindingsThe findings suggest that a positive closer valuation of entrepreneurship facilitates students' EI. In turn, a closer stigma of entrepreneurial failure hinders students' EI. More importantly, IEO has a significant mediating role in both of these relationships. The findings offer important theoretical and practical implications for the field of entrepreneurship education and entrepreneurial behavior.Originality/valueThe paper offers a new insight relating environmental cognitive elements and their impact on EI, besides how IEO represents a determinant role shaping these relations. The proposed model is original and makes a connection between two widely validated constructs and evidences the relationship that may exist between the orientation and the real intention of setting up a business. Moreover, IEO has rarely been addressed for verifying interaction effects. This paper is one of the very first studies that applies the IEO (individual-level of entrepreneurial orientation) as a mediating variable.

Individual entrepreneurial orientation, entrepreneurship education and entrepreneurial intention: The mediating role of entrepreneurial motivations

“…IEO is considered an entrepreneurial competency that can be developed through experiential learning (Sahoo and Panda, 2019). Recent studies show a positive relationship between IEO and EI (Ekpe and Mat, 2012; Martins and Perez, 2020; Robinson and Stubberud, 2014; Zhang and Bruning, 2011). Ibrahim and Lucky (2014), for example, studying Nigerian students at the University of Malaysia, found a positive and significant relationship between IEO and EI.…”

“…Ibrahim and Lucky (2014), for example, studying Nigerian students at the University of Malaysia, found a positive and significant relationship between IEO and EI. Literature is available on EO as a firm-level construct, with many studies having been conducted on its relationship to business performance, but because IEO is a more recent conceptualization, there is comparatively little literature on the construct (Martins and Perez, 2020). This study therefore adds to the existing limited literature on the relationship between IEO and EI by examining the following hypothesis: H1: Individual entrepreneurial orientation positively influences entrepreneurial intention. …”

The university students enterprises development: Lesson from Indonesia

“…Entrepreneurial intention is defined as the self-belief of individual to provide new venture creation or enhances the value-added of the current business (Vuorio et al, 2018). Therefore, the questions on what or how to enhance entrepreneurial intention as well as preparing for business have raised attention among scholar and policymakers in various countries (Jena, 2020;Kusumojanto et al, 2021;Martins & Perez, 2020). Based on the viewpoints of social cognitive theory, individuals tend to pursue their own targets only when they believe their abilities and actions can achieve the expected results (Bandura, 2018).…”

The Influence of Computer and Internet Self-Efficacy on Individual Entrepreneurial Orientation: An Empirical Study among Bumiputra University Students in Malaysia

“…Research has found that entrepreneurial training, which provides specific skills and abilities, as such, innovative, proactiveness, and risk-taking behaviour to students has proven to promote student's entrepreneurial intention (Martins & Perez, 2020). However, it is still a lack of studies concentrated on computers and internet capabilities and entrepreneurial behaviour (Arshad, Rasli, Arshad, & Zain, 2014;Ratten, 2013).…”

“…Thus, forming an individual's entrepreneurial behaviours not only being innovative thinking but also have the ability to analyzed internally and externally and generate opportunities continuously. Therefore, various skills needed forIEO can be developed (Martins, Monsalve, & Martinez, 2018;Martins & Perez, 2020).…”