Does leadership potential bolster entrepreneurship intention a quantitative study of national economics university students

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS - - RESEARCH REPORT Does leadership potential bolster entrepreneurship intention? A quantitative study of National Economics University Students Students : Đỗ Thị Quỳnh - 11150083 Vũ Lan Anh – 11150417 Major Intake Vũ Như Bình - 11150548 : Business Administration : 57 Class Supervisor : Enterprise Administration 57 AEP : Vũ Hoàng Nam, PhD Ha Noi, 03/2019 i DECLARATION This research is written by ourselves and all information collected from questionnaire is permitted to use in the study by all respondents Ha Noi, … April 2019 This is a preview Do you want full access? Go Premium and unlock all 30 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in ii TABLE OF CONTENTS Declaration i Table of contents .ii List of abbreviations iii List of tables and figures iv Introduction Chapter Literature review and hypothesis development 1.1 Entrepreneurial intention 1.1.1 Definition of entrepreneurial intention 1.1.2 Antecedents of entrepreneurial intentions under the theory of planned behavior 1.2 Leadership potential 1.3 Proposed research model 10 Chapter Research method 12 2.1 Sample and data collection 12 2.2 Measures 13 2.3 Data analysis 14 Chapter Results 15 3.1 Descriptive statistics of the study variables 15 3.2 Results of hypothesis testing 17 Chapter Discussions 21 4.1 Summary of findings 21 4.2 Limitations 23 4.3 Future research 23 4.4 Suggestions and recommendations 23 4.4.1 Practical education 23 4.4.2 Improve business conditions 24 4.4.3 Raise awareness 24 Chapter Conclusion 25 References 26 Appendix 28 iii LIST OF ABBREVIATIONS EI Entrepreneurial intention PA Personal attitude PBC Perceived behavioral control SN Social norms TPB Theory of planned behavior iv LIST OF TABLES AND FIGURES Table 2.1 Description of the research sample 13 Table 3.1 Descriptive statistics of the study variables 16 Table 3.2 Results from hypothesis testing 19 Table 4.1 Results of hypothesis testing .22 Figure 1.1 The proposed research model 11 Figure 3.1 The result model 20 This is a preview Do you want full access? 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Log in INTRODUCTION Rationale The entrepreneurial intention of young people including undergraduate students is a matter that considered by many firms and society in general A significant number of famous organizations usually organizes promotional activities such as workshops, providing information of start-up contests as well as its awards at some universities across the country to attract potential students Many entrepreneurial contests previously organized in Vietnam such as K start-up challenge, Vietnamese start-up, Kawai and others which provided by companies and universities (Thu Thuy, 2019) It is possible to see the financial investment and effort of these firms in the search for talented youngsters It highlighted the importance of entrepreneurships in undergraduates It is a high chance that students who get inside these contests will become a future leader and leads their company to success (Minh Hai, 2014 ) When talented people who have high leadership skills manage firms, the chances of these businesses grow and succeed is large (Farrar, 2009) A country with many successful companies in many fields will become an attraction: attracts foreign investment, attracts talented workers (Groh, Liechtenstein, & Lieser, 2012) Not only that, if Vietnam becomes the place which full of people who are ambition and talent, these individuals can pass their experience, enthusiasm, and dreams onto the next generation As a result, the country can achieve sustainable economic development Furthermore, profitable companies make a significant contribution to the national budget of Vietnam, which would positively affect Vietnam's economy (Hoang Yen, 2018) According to the TOPICA Founder Institute (2017), Vietnam has a total of 92 investments in startups This figure is increasing by 50 compared to the year of 2016 Total investment capital is $291 million, increase from $250 million in 2016 However, the total investment capital for startups in Vietnam is still quite low compared to other Southeast Asia countries (TOPICA Founder Institute, 2017) For those reasons, we conducted this study to find an answer the question Does leadership potential bolster entrepreneurship intention? This study addressed the following research questions: (1) Are students' business intentions positively affected by entrepreneurial attitudes, subjective standards and cognitive behavioral control? (2) Do other factors such as gender, school year and work experience affect the entrepreneurial attitude? (3) Do family background and entrepreneurial background of students affect the entrepreneurial attitude? (4) Does leadership potential affect the entrepreneurial intention? Research method The research used primary data from online and offline survey questionnaires collected from 183 undergraduate students of National Economics University We used multiple regression analysis to test the relationship between entrepreneurial intention and a set of independent variables Structure of the report Next chapters in the following would explain the details of research: • Chapter describes the literature review and hypothesis development of entrepreneurial intention, leadership potential and research model; • Chapter introduces research method including sample and data collection, the measures and data analysis used in this research; • Chapter provides results of the descriptive statistics and result of hypothesis testing; • Chapter provides a summary and the discussions about the results; and • Chapter concludes the report CHAPTER LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 1.1 Entrepreneurial intention 1.1.1 Definition of entrepreneurial intention According to Krueger, “Entrepreneurial intentions refer to the intent to start a business, to launch a new venture” (Krueger, 2017) It is the state of mind guiding the actions of individuals toward implementation new business (Bird, 1988) Entrepreneurial intention (EI) provides the understanding of entrepreneurship as the first step in the process of discovering, creating and exploiting opportunities (Garner, Jones, & Miner, 1994) It is also considered as a mental process directing people to plan and implement the business plan (Boyd & Vozikis, 1994) EI is an important part of startup process and is worthy of attention (Nabi et al., 2017) Entrepreneurial intention can be researched in two aspects The first is from social psychology and the second is from the field of entrepreneurship (Nabi et al., 2017) This paper explained EI of university students in both aspects by utilizing three factors in the theory of planned behavior which are social norm, attitude toward the behavior and perceived behavioral control Many previous types of research had explained EI in a different context Segal, Borgia, and Schoenfeld (2005) researched EI of 112 business students of Florida Gulf Coast University by using three factors such as Perceived net desirability of self employment, Tolerance for risk and Perceived feasibility of self – employment Autio et al (2001) studied the EI of 3,445 university students in Finland, Sweden and USA by utilizing TPB model This paper is going to argue Entrepreneurial Intention of university students by using a model combining the theory of planned behavior and leadership potential factor 1.1.2 Antecedents of entrepreneurial intentions under the theory of planned behavior In this study, we refer to the theory of planned behavior of Ajzen (1991) Theory of planned behavior is researched and developed based on the original version named the theory of reasoned action (Fishbein, 1980) Theory of planned behavior overcomes the limitation of the original version by adding element perceived 22 might affects EI through Leading others factor Additionally, our study also found out a new result We explained EI of students by using leadership potential which including leading others factor It was different from the study of Colombian business students’ EI of Henley et al (2017) They researched this topic by utilizing leadership skills which including interpersonal skills, task-specific skills, cognitive skills and communication skills Furthermore, Family business and In business have a direct effect on EI, which means that student who has family running business and students who already open business by themselves would think more about start - up It was as same as the study of Drennan, Kennedy, and Renfrow (2005) which cited that students who have experiences in family business will have higher entrepreneurial intention However, they did not research about students who already run business and their entrepreneurial intention In conclusion, our study found a significant relationship among three factors in TPB (PA, PBC and SN), leadership potential and entrepreneurial intention of university students (see Table 4.1) Besides PA, PBC, SN, Leadership potential, Family business and In business also have positive impacts on the entrepreneurial intention of students Table 4.1 Results of hypothesis testing Hypothesis Results H1a: PA  EI Supported H1b: PBC  EI Supported H1c: SN  EI Supported H2: Leading others  EI Supported This is a preview Do you want full access? 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Log in 23 4.2 Limitations We adapted the scale for leadership potential from the study of Lee et al (2015), but limited to only Leading others This Leading others scale can help to tap an essential of leadership potential However, we believe that other dimensions of leadership potential identified by Lee et al (2015) such as citizenship, dominance, global mind might also affect EI 4.3 Future research Despite the mentioned limitations in the current study, there are a number of directions that would benefit future researches Further research, would be necessary in order to help formulate strategies and programs to strentgthen the relationship between Emotional intelligence and TPB factors Additionally, replications of this research canbe done in other countries, to gain an understanding of how different cultures may place a strong or weak emphasis on the impact of emotional intelligence on leadership potential Finally, this research can also considered as a measure of actual business start-up research 4.4 Suggestions and recommendations We also noted the impact of the positive attitude towards entrepreneurship of students on their intention to start a business It directly affects their intention to start a business Student attitude towards entrepreneurship can be enhanced through: (i) Providing courses and courses related to corporate governance, starting a business for students (ii) Building an alumni network and start-up funds to support start-ups (iii) Setting up information centers to support start-up 4.4.1 Practical education From our research, social norms has positive effects on the entrepreneurial intention of students Every individuals in universities can create start up the motivation for students Universities can increase their undergraduates start up intention by opening courses which teach students more about entrepreneurial This is a preview Do you want full access? 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Log in 24 knowledge To implement that, universities need to design specific educational programs, educational structures, teaching methods as well as organizing some workshops for entrepreneurship This might increase the awareness relating to selfemployment of undergraduates It is also necessary for them to focus on choosing good lecturers, guests and speakers who already have entrepreneurship experiences to pass knowledge onto students Since our study shows that perceived behavioral control positively affects entrepreneurship, universities can open entrepreneurship contests to make students to become familiar with the way of building new company 4.4.2 Improve business conditions Minimize the complicated administrative procedures facilitating policies helps people who have entrepreneurial intention to access the information and assistance, increased financial support by the sponsors, investment funds for startups 4.4.3 Raise awareness It is necessary to raise awareness of entrepreneurship of students, create motivation, and motivate students to make creative ideas and actions with confidence This can be done by training and equipping business skills at the university, widely disseminated business awareness programs so that individuals can self-assess their capacity or business knowledge At the same time, develop training courses on techniques about start-up business for students In particular, it should be organized regularly seminars, business talks, create the playground for developing entrepreneurship ideas, educating interactive training, interactive business activities while adding further training modules on getting started in business This is a preview Do you want full access? 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Log in 25 CHAPTER CONCLUSION This study used data collected from 183 students who are from the first to fourth year of National Economics University, Vietnam The survey created by reference to the questionnaires of Liñán and Chen (2009) and Lee et al (2015) The purpose of this research is finding out the impacts leadership potential on the entrepreneurial intention of students After implementing hypothesis testing, we found that all of three-factor of Theory of planned behavior, to be specific, PA, SN and PBC that positively influent EI of National Economics University students Moreover, the empirical results also show that student who grows up in the business family tend to have higher star-up intention than their friends, due to the fact that Family business directly affects the EI of students Undergraduates who open a business on their own also have higher EI since there is a significant relationship among in business factor and EI Furthermore, the study suggests that further research on entrepreneurial intention should put a family background, entrepreneurial status and leadership potential as critical elements The findings of our research can be used to help organizations to select potential candidates when they consider about who they should invest in This would make the organization becoming more profitable in the future since there is a chance that these young entrepreneurs will be successful This is a preview Do you want full access? 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Log in 26 REFERENCES Ajzen, I (1991) The theory of planned behavior Organizational behavior and human decision processes, 50(2), 179-211 Autio, E., H Keeley, R., Klofsten, M., GC Parker, G., & Hay, M (2001) Entrepreneurial intent among students in scandinavia and in the USA Enterprise and Innovation Management Studies, 2(2), 145-160 Bird, B (1988) Implementing entrepreneurial ideas: The case for intention Academy of management Review, 13(3), 442-453 Boyd, N G., & Vozikis, G S (1994) The influence of self-efficacy on the development of entrepreneurial intentions and actions Entrepreneurship theory and practice, 18(4), 63-77 Cambridge University Press (2019) Cambridge dictionary Church, A H (2014) What we know about developing leadership potential OD Practitioner, 46(3), 52-61 Drennan, J., Kennedy, J., & Renfrow, P (2005) Impact of childhood experiences on the development of entrepreneurial intentions The International Journal of Entrepreneurship and Innovation, 6(4), 231-238 Farrar, A D (2009) The role of emotional intelligence in leadership effectiveness: A meta-analysis Fishbein, M (1980) A theory of reasoned action: Some applications and implications Proceedings of the Nebraska Symposium on Motivation Nebraska Symposium on Motivation, 27, pp 65 Garner, P W., Jones, D C., & Miner, J L (1994) Social competence among low‐ income preschoolers: Emotion socialization practices and social cognitive correlates Child development, 65(2), 622-637 Groh, A., Liechtenstein, H., & Lieser, K (2012) The global venture capital and private equity country attractiveness annual index 2012 Retrieved from Harper Collins (2019) Collins english dictionary Henley, A., Contreras, F., Espinosa, J C., & Barbosa, D (2017) Entrepreneurial intentions of Colombian business students: Planned behaviour, leadership skills and social capital International Journal of Entrepreneurial Behavior & Research, 23(6), 1017-1032 Hoang Yen (2018) Iakovleva, T., & Kolvereid, L (2009) An integrated model of entrepreneurial intentions International Journal of Business and Globalisation, 3(1), 66 Krueger, N F (2017) Entrepreneurial intentions are dead: Long live entrepreneurial This is a preview Do you want full access? 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Log in 27 intentions Revisiting the entrepreneurial mind (pp 13-34): Springer Lee, S., Kim, H., Park, S., Lee, S., & Yu, J (2015) Preliminary development of a scale to measure leadership potential Psychological Reports, 117(1), 51–71 Liñán, F., & Chen, Y W (2009) Development and cross–cultural application of a specific instrument to measure entrepreneurial intentions Entrepreneurship theory and practice, 33(3), 593-617 Minh Hai (2014 ) Sai gon giai phong online: Going to unilever to become a future leader Nabi, G., Liñán, F., Fayolle, A., Krueger, N., & Walmsley, A (2017) The impact of entrepreneurship education in higher education: A systematic review and research agenda Academy of Management Learning & Education, 16(2), 277299 Oxford University Press (2019) Oxford learner's dictionary Segal, G., Borgia, D., & Schoenfeld, J (2005) The motivation to become an entrepreneur International journal of Entrepreneurial Behavior & research, 11(1), 42-57 Shapero, A., & Sokol, L (1982) The social dimensions of entrepreneurship Encyclopedia of entrepreneurship, 72-90 Silzer, R., & Church, A H (2009) The pearls and perils of identifying potential Industrial and Organizational Psychology, 2(4), 377–412 Solesvik, M Z., Westhead, P., Kolvereid, L., & Matlay, H (2012) Student intentions to become self-employed: The Ukrainian context Journal of Small Business and Enterprise Development, 19(3), 441-460 Souitaris, V., Zerbinati, S., & Al-Laham, A (2007) Do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? The effect of learning, inspiration and resources Journal of Business venturing, 22(4), 566-591 Thu Thuy (2019) Promoting entrepreneurship in students Tkachev, A., & Kolvereid, L (1999) Self-employment intentions among Russian students Entrepreneurship & Regional Development, 11(3), 269-280 TOPICA Founder Institute (2017) Vietnam startup investment insight: 2017 snap shoot This is a preview Do you want full access? Go Premium and unlock all 30 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in 28 APPENDIX Scales for study variables Scale and source Entrepreneurial intention Source: Liñán and Chen (2009) Items I am ready to anything to be an entrepreneur My goal is to be an entrepreneur I am willing to anything as long as I set up my business I will definitely create my own business I think very seriously about whether I will open a business or not I am certain that I will open a business Perceived Behavioral Control Source: Liñán and Chen (2009) I find it easy to create and maintain a business I believe that I am fully capable to business I have the ability to the things necessary to open a new business I know all the detailed things to to start a business I easily found an idea to business If I had done my own business before, I would have succeeded Personal Attitudes Being a business owner is extremely attractive to me Source: Liñán and Chen (2009) If I find a business opportunity and have favorable conditions, I will carry out a business activity to take advance of that opportunity I will feel extremely pleased if I own a business I determined that the top choice for my career would be to my own business and not work for others This is a preview Do you want full access? Go Premium and unlock all 30 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in 29 Social Norms My family will support me as a business owner Source: Liñán and Chen (2009) My friends would encourage me to start a business My classmates would encourage me to start a business Leadership Potential Source: Lee et al (2015) I try to provide constructive feedback for my colleagues' opinion I tend to suggest specific methods to colleagues for the smoothness of the work process I enjoy sharing new knowledge or offering information to my colleagues I willingly allocate private time for my colleagues when they are in trouble I think that I give proper compliments and advice to my colleagues I carefully listen to and comment on my colleagues’ ideas I motivate my colleagues to suggest ideas and opinions when I work with them