Mô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu Long

Mô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu LongMô hình tạo lập giá trị khởi nghiệp Nghiên cứu thực nghiệm đối với sinh viên tốt nghiệp tại Đồng bằng Sông Cứu Long

INTRODUCTION

Research context

Entrepreneurship has emerged as a potential solution to address various social, environmental, and economic challenges worldwide in recent years Countries such as the USA, Japan, and Germany consider entrepreneurship a crucial element in the society and economic development (Prakash, Chain & Chauhan, 2015) In Asia, such as China, Indonesia, Malaysia, and Thailand possess a prosperous entrepreneurial ecosystem This ecosystem combines different factors that enable entrepreneurs to succeed, such as financial support, government policies and programs, as well as education and training Consequently, entrepreneurship has become an compelling subject worldwide that attracts and business practitioners

The business landscape in Vietnam has experienced remarkable advancements, as evidenced by substantial growth in entrepreneurial endeavors during the start-up phase According to GEM Vietnam (2017), the rate of business activity during this period has surged to 23.3%, surpassing the average of 16.4% observed in resource- based developing nations This noteworthy increase in entrepreneurial activity can be attributed to the country's escalating prosperity, which has motivated individuals to establish their own businesses The primary drivers behind this entrepreneurial surge are the desire to create job opportunities, augment sources of income, and mitigate the escalating rates of unemployment, particularly in the face of intensifying job market competition The significant progress in the business environment of Vietnam underscores the pivotal role played by entrepreneurship in addressing societal challenges and fostering economic growth

The Vietnamese government's approval of 2016 as the year of entrepreneurship has led to notable changes in economic and social development in Mekong River Delta (MRD) The development of several business incubators, such as Can Tho University's Business Incubators (2012), Soc Trang Business Incubators (2014), Vietnam-Korea Business Incubator (2015), and Tra Vinh Business Incubators (2018), signifies a rapidly growing entrepreneurial ecosystem in the region Additionally, a comprehensive entrepreneurial ecosystem, involving the Planning and Investment Departments of 13 provinces and cities, has been established in the MRD This

2 ecosystem aims to create a new generation of proactive, creative, and competitive entrepreneurs capable of developing the local economy

Despite efforts to address unemployment, MRD still faces the highest unemployment rate in Vietnam, at 2.53%, compared to the national rate of 2.16% (General Statistics Office of Vietnam, 2020) This not only negatively affects the quality of life but also hinders the development of the nation and MRD in particular With a large number of graduates from 16 universities in the area, the job market cannot provide sufficient positions for them, leading to many graduates working for themselves or their families In addition, MRD faced significant challenges in 2020, including drought, saline intrusion, and the COVID-19 crisis, which caused significant damage to agriculture and employment

This remarkable difficulty necessitates a comprehensive examination of the factors that have contributed to this trend and the strategies required to solve the problem Thus, further research is imperative to investigate the critical determinants that stimulate entrepreneurship within the region, encompassing areas such as government policies, access to finance, educational initiatives, and training programs Moreover, it is crucial to conduct studies that shed light on the establishment of a conducive ecosystem that fosters the success of entrepreneurs and facilitates their ability to make significant contributions to the sustainable economic development of MRD By addressing these research gaps, a deeper understanding of the dynamics of entrepreneurship in MRD can be attained, allowing for the formulation of effective policies and interventions that will support and nurture the entrepreneurial ecosystem in the region

Entrepreneurship research in the Middle East and North Africa (MRD) draws upon various theories to elucidate entrepreneurial intentions, opportunity recognition, and competencies The Theory of Planned Behavior and Social Learning Theory explore the influence of attitudes, societal norms, and perceived control on entrepreneurial aspirations among graduates Simultaneously, the Individual-Opportunity Nexus and Entrepreneurial Cognition theories analyze how individuals identify and capitalize on opportunities within the MRD's unique economic and social landscape While entrepreneurial competencies, encompassing the necessary skills and knowledge for successful entrepreneurship, remain an under-researched area in the MRD.

Nonetheless, scant attention has been given to the exploration of the mechanisms underlying value creation in the entrepreneurial process Given the predicament faced by senior university students when making occupational decisions and the heightened risk of unemployment in a fiercely competitive job market, post-graduation entrepreneurship has emerged as a viable alternative Consequently, it is imperative to undertake comprehensive research that explores the complexity of entrepreneurship in MRD and identifies the determinants contributing to the development of an entrepreneurial value creation (EVC) model Such research endeavors will empower students with the requisite knowledge to emphasize critical factors and leverage their strengths when starting their own businesses

In contrast to previous research that has predominantly examined isolated facets of entrepreneurship, such as intention or opportunity recognition, the current study takes a holistic approach by investigating the entire entrepreneurial process within the context of Mekong River Delta Drawing upon the theoretical framework of EVC (Mishra & Zachary, 2014), the study explores the EVC model among graduates in MRD, along with the factors influencing their entrepreneurial intention, opportunity recognition, and entrepreneurial competencies Furthermore, the study puts forth policy recommendations for the MRD government to stimulate entrepreneurship and effectively address the growing concern of escalating unemployment rates.

Sinificance and novelty of the research

The research investigates how graduates in the Mekong River Delta create value through entrepreneurship It creates potential scientific and practical contributions to the field of entrepreneurship, particularly in the unique context of MRD (Mekong River Delta) These contributions are instrumental in advancing the academic understanding of entrepreneurship and its implications

In term of scientific contribution, the research addresses a notable research gap by focusing on the exploration of EVC in the MRD While previous studies have predominantly examined specific aspects of entrepreneurship, such as entrepreneurial intention or opportunity recognition, this research provides a holistic investigation of the entire entrepreneurial process through two stages based on theory of EVC The fírst stage is formulation and the second stage is monetization grounded in the Theory of EVC This theory is relatively novel in the field, and has not been thoroughly tested before Consequently, the research offers a pioneering empirical examination of factors influencing entrepreneurial intention, the recognition of entrepreneurial opportunities, and their impact on the development of entrepreneurial competencies which continue to influence the creation of entrepreneurial value by graduates This new model could contribute to the field of entrepreneurship by providing a fresh perspective on value creation within a particular regional context

Moreover, a significant body of research has extended the understanding of competency in entrepreneurship While previous research has explored the determinants of entrepreneurial intention and opportunity recognition, limited attention has been given to understanding their influence on the establishment of entrepreneurial competencies Competency is a crucial aspect in vocational and business contexts, and this study offers a deeper understanding of the relationship between these two factors and entrepreneurial competencies Numerous authors have used the concept of competency to try to understand how people operate and perform in vocational and business contexts By highlighting the positive relations between entrepreneurial intention, opportunity recognition, and competencies, this research advances the theoretical comprehension of entrepreneurial value creation, providing insights with scientific implications for both scholars and practitioners

Especially, the research redefines concepts and measures for the EVC The core function of an EVC model involves generating values for its primary stakeholders, including customers, employees, owners, and community This study not only identifies relationships between critical factors in the entrepreneurial process but also redefines concepts and measures for examining four key components including efficiency, novelty, lock-in, and complementarities Although the EVC model has been considered as an important issue, there is little empirical studies have been done Therefore, the established factors contributing to entrepreneurial value creation have been identified, and the contribution of this research is beneficial in reinforcing the significance of EVC theory It further extends and supplements concepts from entrepreneurial capability theory, as well as broader theories related to entrepreneurial intention and entrepreneurial behavior in general

The research provides actionable insights for the Murray-Riverina District (MRD) and beyond It highlights opportunities for universities and local governments to tailor education programs to the specific needs of entrepreneurs By equipping graduates for the challenges of entrepreneurship, they contribute to fostering a conducive environment for startups and small businesses The study's findings serve as a guide for policymakers to formulate effective entrepreneurship policies, such as financial assistance, mentorship programs, and streamlined regulations By implementing these measures, the MRD can nurture a vibrant entrepreneurial culture, attract investments and talent, and stimulate economic growth in the region.

5 graduates in the Mekong River Delta by highlighting the key factors that contribute to successful entrepreneurial value creation

In summary, the research offers significant contributions by addressing a research gap, providing practical implications for policy and practice, focusing on the unique MRD context, and contributing to theoretical understanding The findings of this research have the potential to guide policymakers, practitioners, and researchers in fostering entrepreneurship, promoting economic growth, and addressing unemployment challenges in the MRD and beyond.

Research objectives

Based on the Environmental Vulnerability Context (EVC) theory proposed by Mishra and Zachary (2014), this study investigates the elements of the EVC model in the Mekong River Delta The research aims to fulfill three primary objectives: identifying and understanding the context-specific factors contributing to environmental vulnerability, assessing the relationships between these factors and their influence on vulnerability, and developing an EVC model tailored to the unique characteristics of the Mekong River Delta.

Objective 1: To analyze the practices of entepreneurship in the MRD From this point, the study can highlight the most significant attributes for further research and policy intervention

Objective 2: To build a research model and to empirically examine the relationship between the different factors and components of the EVC model of graduates in the MRD This is the most important objective of the research and will enable a deeper understanding of how these elements interact with each other to produce entrepreneurial outcomes

Objective 3: To provide policy recommendations for governmental and educational institutions in the MRD region to encourage and support entrepreneurship

By identifying the most significant obstacles to entrepreneurship and suggestive ways to overcome them, this study can contribute to the creation of a more supportive environment for entrepreneurial activities in the region

In conclusion, this study represents a significant contribution to the literature on entrepreneurship in the MRD region By focusing on the value creation model and its relationship to different factors and components, this study can provide valuable insights into how to promote successful entrepreneurship in the region and reduce the unemployment rate.

Research questions

The proposed research questions center on the creation of entrepreneurial values among graduates in MRD The research aims to provide a deeper understanding of the factors that contribute to the creation of entrepreneurial values and ultimately to propose recommendations to governmental agencies and educational institutions to stimulate entrepreneurship in MRD

Question 1: What is the status quo of entrepreneurship in the MRD?

The first research question seeks to uncover the reality of entrepreneurship by describing unit attributes of the entrepreneurship in the MRD and some outstanding figure compared to GEM report 2017/2018 This question helps to provide a more nuanced understanding of the factors that contribute to the creation of entrepreneurial values in the MRD

Question 2: How do the factors in graduates' EVC model relate to each other? The second research question explores the relationship between the various factors that contribute to graduates' EVC model To answer this question, a thorough analysis of the factors that influence entrepreneurial intention, entrepreneurial opportunity recognition, entrepreneurial competencies, and ultimately, EVC was undertaken By analyzing these factors, the critical determinants of entrepreneurial success among graduates in the MRD were identified This approach provides a more in-depth and comprehensive understanding of the entrepreneurial process and helps to identify the specific factors that are necessary to promote entrepreneurship in the MRD

Question 3: What recommendations will be proposed to governmental agencies and educational institutions in stimulating entrepreneurship in the MRD?

Finally, the third research question aims to propose recommendations to government agencies and educational institutions for stimulating entrepreneurship in MRD To achieve this objective, the implications base on the findings of the first two research questions to develop a set of evidence-based recommendations for policymakers and educators These recommendations provide a clear roadmap for supporting entrepreneurship in MRD Such recommendations are vital for creating an ecosystem that fosters entrepreneurship, which is essential for promoting economic growth, innovation, and societal well-being.

Research scope

The scope of this research centers on examining the interrelations among factors within the entrepreneurial value creation model among graduates in the MRD Utilizing secondary data from the academic year 2017/2018 and primary data collected in 2021, the study targets graduates who currently own startup ventures in this region The MRD, distinguished by its agricultural and entrepreneurial characteristics, constitutes the focal point of investigation However, due to the significant impact of the COVID-19 pandemic, direct engagement with research subjects through surveys and interviews is unfeasible Consequently, the research will rely on available data and non-invasive research methodologies The research objectives are multifaceted: to describe the entrepreneurial landscape in the MRD; to construct a research model for assessing the relationships among factors within the entrepreneurial value creation model; and to propose managerial implications based on research findings, aiming to provide recommendations and support policies for graduates and startup ventures in the MRD This endeavor aims to enhance understanding and foster effective support

7 measures, thereby promoting sustainable development of the entrepreneurial community in the region.

Summary of research methods

The researcher employs a mixed method approach, integrating both quantitative and qualitative methodologies, in order to obtain comprehensive and insightful answers to pivotal inquiries within the domain of entrepreneurial research This decision was guided by the scholarly work of Johnson and Onwuegbuzie (2004), who emphasized the value of combining multiple methods to enhance the validity and richness of research outcomes The research aimed to achieve a more nuanced and holistic understanding of the EVC model Recognizing the limitations of relying solely on one research approach, the researcher believed that a combination of quantitative and qualitative methods would offer a more complete and innovative perspective

The foundation of this study lies in the Entrepreneurial Value Creation Theory proposed by Mishra and Zachary (2014) To explore value creation among graduate entrepreneurs, the research will utilize a quantitative survey administered to a sample of 627 graduates who own startups in the MRD In addition to the quantitative survey, the research will also incorporate qualitative interviews with five experts in entrepreneurship These semi-structured interviews aim to gain deeper insights into the specific challenges and opportunities faced by graduates within the MRD's entrepreneurial ecosystem.

Dissertation structure

The present study consists of five well-organized chapters that aim to offer an insight of the EVC model Chapter two provides a brief review of current literature in the relevant areas, thereby laying the foundations for subsequent chapters The chapter starts by examining different definitions of entrepreneurship and proceeds to discuss the existing EVC model, with particular emphasis on the EVC Theory (Mishra and Zachary, 2014) In this context, evidence of applying this theory was presented and a research model for the EVC model was proposed In this part, the particular elements of EVC model are established, followed by a review of recent theoretical and empirical contributions to EVC research

In the third chapter, the study presents the research methods which specifically serves as the principal framework for conducting the research In addition, the chapter examines the processes of data collection and obtains feedback from the interviewees Furthermore, the process of gathering questionnaires are clarified and a concise overview of the questionnaires is described

Chapter four provides a detailed account of the empirical study's results and discussions The chapter begins by providing a description of the sample and proceeds to present the results of different statistical analyses, including Cronbach’s alpha test,

Explored Factor Analysis, Confirmatory Factor Analysis, and Structural Equation Modeling

The final chapter offers an insightful discussion of the major theoretical and practical insights of the study, along with recommendations for developing entrepreneurship in MRD The study also presents the limitations of the present work and suggests areas for future research Overall, the present study makes a valuable contribution to the field of entrepreneurship by providing a comprehensive understanding of the EVC model and its key influence factors The findings of the study have significant implications for policymakers, entrepreneurs, and stakeholders in MRD and can serve as a basis for developing effective strategies to promote entrepreneurship in the region

LITERATURE REVIEW

Definitions of entrepreneurship

This section presents a range of definitions of entrepreneurship offered by leading scholars in the field, with the aim of enhancing understanding of this phenomenon and its various attributes It is widely acknowledged that the study of entrepreneurship is an ongoing process, and thus far, no single definition has emerged that is universally applicable across all academic disciplines Accordingly, this section will focus on the concepts of entrepreneurship at the individual level

The definition of entrepreneurship has its origins in the work of Schumpeter

In 1934, renowned scholar Joseph Schumpeter defined entrepreneurship as the innovative process of combining existing elements in unique ways This process includes developing new products, implementing novel production methods, exploring untapped markets, exploiting new supply sources, and establishing innovative organizations Schumpeter's definition highlights the crucial role of innovation and creativity in fostering economic growth and advancement.

Previous research on entrepreneurship has predominantly examined how individuals translate their vision into a successful business venture For instance, Drucker (1985) conceptualized entrepreneurship as an innovative activity that involves leveraging existing resources to generate new wealth In other words, Drucker includes "innovative activity" but expands the concept to encompass the empowerment of existing resources to create new wealth-producing capacities, indicating a shift towards leveraging existing assets in new ways to generate economic growth

Similarly, Timmons (1989) defined entrepreneurship as the creation and development of a useful product or service, and highlighted the crucial role of risk- taking and the ability to confront the fear of failure in the entrepreneurial process This perspective places a strong emphasis on the potential benefits of entrepreneurship, while also acknowledging the inherent risks and challenges that entrepreneurs may encounter

The 1999 and 2000 entries by Morris and Jones, and Shane and Venkataraman, respectively, highlight the value creation for entrepreneurs and the recognition and exploitation of opportunities to create new things, suggesting an evolving

10 understanding of entrepreneurship as a process of value creation and opportunity recognition

In the 2000s, entrepreneurial definitions evolved to include opportunity exploitation, resource combination, and scaling Baron (2007) highlighted the significance of creativity in entrepreneurship, emphasizing that it involves identifying opportunities and fostering venture growth This definition recognizes the combination of unique resources and external opportunities, and underscores creativity as a foundational element in the entrepreneurial process Baron's definition has influenced subsequent studies on entrepreneurial intention, providing a framework for understanding the factors that drive individuals to pursue entrepreneurial endeavors.

The recent definitions by Ahmad and Seymour (2008), Korsgaard and Anderson

(2011), and Mishra and Zachary (2014), focus heavily on creating values, with a specific mention of exploiting market opportunities, creating economic values, and the idea of not just creating but also appropriating values These suggest a more nuanced understanding of entrepreneurship involving a strategic approach to market dynamics and the economic impact of entrepreneurial activities

Hessels and Naudé (2019) portrays entrepreneurship as a pivotal element in the field of development economics He asserts that entrepreneurship is intricately connected to the identification of opportunities and underscores the significance of possessing knowledge and skills as fundamental entrepreneurial competencies Furthermore, Hessels emphasizes that these entrepreneurial skills are crucial for introducing innovations into the market, achieved through the process of entrepreneurship and continuous learning In 2020, the definition by Jones et al expanded to incorporate societal impact, reflecting the rise of social entrepreneurship and the broader implications of entrepreneurial activities

The COVID-19 pandemic has illuminated the adaptability and resilience of entrepreneurship Ratten's 2023 definition of entrepreneurship captures this essence, emphasizing the emergence of novel business endeavors and innovations as a direct response to global crises This highlights the transformative power of entrepreneurship, which can drive progress and innovation even in the face of adversity.

In summary, over time, the definitions have evolved from a basic idea of doing new things to a complex understanding that includes innovation, opportunity recognition and exploitation, value creation and appropriation, and venture growth

This evolution reflects the increasing complexity of the business environment and the entrepreneurial response to it

Table 2.1 provides a summary of the key characteristics that have been identified as central to the concept of entrepreneurship It is important to note that these characteristics are interrelated and dynamic, reflecting the complexity and dynamism inherent in entrepreneurship Entrepreneurs embody these characteristics to varying degrees, and their application may vary depending on the specific entrepreneurial context and individual entrepreneurs' traits and capabilities

Table 2 1 Core characteristics of entrepreneurship definitions

Number Author Year Core characteristics

• empowering existing resources with new wealth- producing capacity

3 Timmons 1989 • creating and building something useful

• taking risks and facing the fear of failure

1999 • creating and identifying values for entrepreneurs

• exploiting opportunities to create new things

• exploiting opportunities to create value

Hessels and Naudé Jones et al

• bring innovation to the market

• creating value thereby having a positive effect in society

• new business activity and innovation that occurred during or because of the COVID- 19 pandemic

However, it is necessary to distinguish between the concepts of entrepreneurship and startups Entrepreneurship and startups are related concepts, but they represent

12 different aspects of the business world Kuratko (2011) emphasized that entrepreneurship involves much more than just launching a startup In general, entrepreneurship is a broader and more encompassing concept, startups, on the other hand, are a specific type of entrepreneurial venture characterized by their novelty, resource limitations, and growth-oriented approach They are characterized by their pursuit of unique business models, products, or services that often aim to address market gaps or disrupt traditional industries In Ries' (2011) perspective, startups are described as human organizations intentionally established to develop novel products or services in situations marked by significant uncertainty In other words, startups are a common expression of entrepreneurial endeavors, not all entrepreneurship is limited to startups, as entrepreneurship can manifest in various forms beyond just creating new businesses

Overall, entrepreneurship is a multidimensional phenomenon that has attracted attention from scholars in various academic disciplines At its core, entrepreneurship involves the creation of new ventures, the development of innovative products and services, and the pursuit of opportunities in markets that are not currently being served

In the academic literature, entrepreneurship is often defined as the process of creating or starting a new venture in order to pursue an opportunity This process represents identifying a market need or opportunity, developing a product or service to address that need, and then launching and growing the venture Entrepreneurship is also used by a willingness to take risks, innovation, and be proactive in pursuing opportunities Successful entrepreneurs are often described as individuals who are highly motivated, persistent, and able to overcome obstacles in pursuit of their goals In general, entrepreneurship is a complex and multifaceted concept that has been studied widely by scholars in various fields, including economics, management, and sociology It is generally used by the creation of new ventures, the pursuit of opportunities, and a willingness to take risks and innovation The present study aligns with this current of thought and contributes to the ongoing discourse on entrepreneurship.

The role of entrepreneurship

Entrepreneurs are seen as key agents who drive innovation, create new industries, and introduce disruptive technologies that propel progress across various sectors Their ability to identify opportunities, take risks, and transform ideas into viable businesses contributes significantly to the overall growth and dynamism of a country's economy and society The seminal work by Gree and Thurnik (2003) underscores the profound significance of entrepreneurship in driving economic expansion, particularly through its role in creating jobs and reducing poverty levels Their research emphasizes the indispensable nature of entrepreneurial endeavors in shaping sustainable development pathways by addressing societal challenges related to unemployment and poverty Duru (2011) emphasizes that the process of industrialization driven by

13 entrepreneurship not only generates employment but also plays a pivotal role in diminishing poverty levels By catalyzing entrepreneurial activities, industrialization creates a ripple effect, fostering economic growth and improving living standards within society

An entrepreneurial spirit is vital for societies to foster entrepreneurship, driving economic growth and job creation This spirit stimulates entrepreneurial ventures that contribute to economic activity, job opportunities, and poverty alleviation, as research highlights (Ihugba et al., 2013) Entrepreneurial endeavors play a pivotal role in enhancing societal well-being and economic prosperity.

Policy makers are increasingly recognizing the pivotal role entrepreneurs play in driving socio-economic development within a region This growing awareness is influenced by studies emphasizing the necessity of addressing entrepreneurial development through a systemic lens Acs, Autiob, and Szerbd (2014) offer a comprehensive perspective on entrepreneurship, viewing it as a systemic phenomenon crucial for economic development Their advocacy for the establishment of "National Systems of Entrepreneurship" underscores the need for a coordinated approach to entrepreneurial development This entails integrated planning across various domains such as infrastructure, policies, and institutions at a national level By recognizing entrepreneurship as a multifaceted process influenced by diverse factors, including regulatory frameworks, access to finance, and cultural attitudes towards risk-taking, they advocate for a holistic strategy to fully harness its potential The concept of

"National Systems of Entrepreneurship" extends beyond mere policy formulation to encompass the creation of an ecosystem conducive to entrepreneurial activity This ecosystem involves fostering a culture of innovation, providing adequate support mechanisms for startups, and ensuring access to resources and markets By aligning these elements, policymakers can create an environment where entrepreneurship flourishes, driving sustainable economic growth In essence, Acs, Autiob, and Szerbd

(2014) emphasize the need for a systemic approach to entrepreneurial development, wherein national-level strategies aim to optimize conditions for entrepreneurial success Their insights highlight the intricate interplay between entrepreneurship, policy frameworks, and institutional support in shaping a country's economic trajectory.

Sources of entrepreneurial value creation

Entrepreneurial value creation refers to the process of identifying and creating new business opportunities that generate value for customers, stakeholders, and society at large Although economic profit is a central motive of entrepreneurship, from the other perspectives, value creation comes from offering different values to customers, to the local community In other words, entrepreneurs create a number of positive values which benefits not only to customers but also to economy and society

Schumpeter's theory of economic development posits that innovation drives progress Key sources of value creation include introducing new products, production methods, markets, supply sources, and restructuring industries Entrepreneurs play a pivotal role by introducing new technologies, disrupting established industries, and creating new ones Despite its continued relevance, debate persists regarding optimal policies for fostering innovation and supporting entrepreneurship, with considerations balancing its benefits and potential drawbacks.

The Resource-Based View (RBV) is a theoretical framework suggesting that a firm's resources and capabilities are the key drivers of its performance and competitive advantage According to this view, firms can create value by acquiring, developing, and leveraging unique, valuable, and difficult-to-imitate resources and capabilities Penrose (1959) resources include that a firm's resources include not only tangible assets, such as plant and equipment, but also intangible assets, such as knowledge, skills, and expertise She also emphasizes that a firm's resources should be seen in terms of their complementarity and specificity Complementary resources are those that work together to create value for the firm For example, a firm may have a unique technology that is complemented by a team of skilled engineers and designers Specialized resources, on the other hand, are those that are unique to the firm and not easily transferable to other firms For example, a firm may have a patent on a unique product that is difficult for competitors to imitate When a firm possesses complementary and specialized resources, it can create value in a number of ways First, these resources may enable the firm to produce products or services that are differentiated from those of its competitors This differentiation may allow the firm to charge a premium price for its products or services, increasing its profitability Second, these resources may allow the firm to achieve operational efficiency, such as by reducing costs or increasing productivity Finally, these resources may enable the firm to enter new markets or develop new products or services, further expanding its opportunities for value creation Overall, the RBV suggests that a firm's resources and capabilities are the key drivers of its performance and competitive advantage By

15 acquiring and leveraging complementary and specialized resources, firms can create value and achieve sustained competitive advantage over time

The Transaction Cost Theory (TCT) is a framework that explains why firms exist and how they choose between alternative governance structures to conduct their economic activities Williamson (1975) that firms exist because of transaction costs, which are the costs of contracts of negotiating, monitoring, and enforcing between economic actors In other words, firms exist because it is more efficient to conduct some economic activities internally rather than in the market Williamson also involved that transaction costs are not only determined by the complexity of the transaction but also by the institutional environment and the characteristics of the transaction For example, if the institutional environment is required by legal uncertainty or high enforcement costs, it may be more efficient to conduct economic activities internally rather than in the market Similarly, if the parties involved in the transaction have asymmetric information or conflicting interests, it may be more efficient to conduct the activity internally, where the parties can better coordinate their actions From the perspective of value creation, Williamson that efficiency reduces transaction costs can increase value by improving transaction When transaction costs are high, it becomes more difficult and expensive to conduct economic activities, reducing the potential for value creation When transaction costs are low, firms can more easily conduct economic activities, enabling them to create more value For example, consider a firm that is sourcing raw materials from multiple suppliers If the transaction costs of negotiating and monitoring contracts with each supplier are high, the firm may decide to actively integrate by acquiring its own sources of raw materials

By doing so, the firm can reduce transaction costs and improve transaction efficiency, enabling it to create more value Overall, Williamson's Transaction Cost Theory suggests that transaction efficiency is a key source of value creation By reducing transaction costs through efficient governance structures and institutional arrangements, firms can increase transaction efficiency and create more value

Mishra and Zachary's (2014) argument regarding the creation of value through entrepreneurship is based on the idea that entrepreneurial models have the potential to create value for different stakeholders in multiple dimensions such as economy, society, environment, and politics However, they also argue that the most important value created by entrepreneurship is the economic value in terms of business rewards Entrepreneurial models can create economic value by developing innovative products, services, and business models that meet the needs of customers and markets These innovations can generate revenues and profits for the business, and also create value for other stakeholders such as investors, employees, management, customers, and strategic partners For example, when a business develops a new and innovative product, it can create value for its customers by providing them with a high-quality and efficient product that meets their needs This can lead to increased sales and

16 revenue for the business, which in turn creates value for its investors and employees through higher profits and wages Additionally, suppliers and strategic partners may also benefit from increased business and revenue opportunities Moreover, the relationship between business and customers is mutually beneficial, as businesses need customers to generate revenue and profits, and customers need businesses to fulfill their needs and desires Thus, businesses create value for customers by providing them with products and services that satisfy their needs and create value for the business by generating revenue and profits In general, entrepreneurial models can create value for different stakeholders through the development of innovative products, services, and business models that meet the needs of customers and markets However, the most important value created by entrepreneurship is economic value in terms of business rewards, which in turn creates value for other stakeholders such as investors, employees, management, customers, suppliers, and strategic partners

To sum up, entrepreneurial values are believed to be created for the benefits of customers, business venture, and the community Values may come from providing customers more profits added to the products, innovating products, enhancing efficiency, and creating lock-in relationship by sharing the values among customers, business, and community Entrepreneurs can create value is by providing customers with products or services that have additional features or benefits that exceed their expectations This could be done through adding more value to the products or services, offering additional features, or improving quality Moreover, entrepreneurs can also create value by introducing new products or services that meet the needs of customers in a better way than existing products or services This could be done through the development of new technologies or new business models Another way entrepreneurs can create value is by improving the efficiency of their operations This could be done through the use of new technologies, better management practices, or more efficient supply chain management By improving efficiency, entrepreneurs can reduce costs and increase profits In addition, entrepreneurs can also create value by developing lock-in relationships with their customers, business, and community Lock-in relationships occur when a customer becomes dependent on a particular product or service, and the customer is unable or unwilling to switch to an alternative product or service This could be done through the creation of loyalty programs or by developing strong brand recognition Overall, entrepreneurial values are created by providing customers with products and services that meet their needs, innovating to stay ahead of the competition, improving efficiency to reduce costs and increase profits, and creating lock-in relationships that benefit the business, customers, and community

Theory of entrepreneurial value creation

The theoretical context of entrepreneurship research in the MRD is multifaceted Theory of Planned Behavior (Ajzen, 1991) and Social Learning Theory (Bandura & Walters, 1977) are popularly used to understand entrepreneurial intention In addition, theories such as Individual-Opportunity Nexus theory (Eckhardt & Shane, 2010) and Entrepreneurial Cognition Theory (Baron, 2006) are popularly employed to analyze opportunity recognition Entrepreneurial competencies have not been studied extensively in the MRD In general, these theories focus on specific stages of the process Therefore, applying theory of EVC is suitable because of some reasons First, this theory offers a comprehensive framework encompassing the entire entrepreneurial journey It goes beyond just starting a business and delves into the processes of opportunity identification, venture formulation, value creation (economic and social), and reward appropriation This can provide a holistic understanding of entrepreneurship in the MRD Second, the theory emphasizes value creation, a crucial aspect for entrepreneurs in developing economies especially in the MRD It can help explore how entrepreneurs create value for themselves, stakeholders, and the broader community This lens can be particularly insightful in uncovering how businesses contribute to the MRD's development Finally, the theory proposes a two-stage value creation model (venture formulation and monetization) This structured approach can be useful for analyzing entrepreneurial activities which can explore how entrepreneurs identify opportunities, develop their ventures, and then translate them into successful businesses

The EVC theory is a framework that explains the process of how entrepreneurs create value through their ventures It describes a framework including two stages: Stage 1-Venture formulation and Stage 2- Venture monetization Stage 1 begins with the entrepreneurial intention, which refers to the individual's desire for reward, recognition, and satisfaction that motivates them to explore and discover opportunities The entrepreneur identifies and evaluates the opportunity, which becomes the foundation for venture formulation During this stage, the entrepreneur develops a business plan, defines the venture's value proposition, and requires the resources required to launch and grow the venture Stage 2 involves the process of capturing and realizing the value created during the venture formulation stage The entrepreneur executes the business plan and builds the venture to create value for customers and stakeholders The entrepreneur also focuses on building the venture's competitive advantage, managing risks, and developing strategies to capture value

According to Mishra and Zachary (2014), a majority of the venture is unsuccessful in the first stage, and it may take a long time for others to invest sufficient entrepreneurial competencies to move to Stage 2-Monetization The primary goal of Stage 2 is an entrepreneurial reward, which refers to the value created by the business

18 model In this stage, the entrepreneur has to carry out a series of activities such as raising capital, conflicting choice, risk and profit, moral hazard, encouragement, and risk minimization Importantly, dynamic capabilities are considered to be a tool for sustaining competitive advantages and facilitate the values of the venture In fact, entrepreneurs face a number of challenges that require them to make strategic decisions and take calculated risks to achieve entrepreneurial rewards This includes raising capital to finance growth, managing conflicting choices between short-term gains and long-term viability, balancing risk and profit, and minimizing moral hazard and other sources of risk Dynamic capabilities are a set of skills, routines, and processes that enable a firm to adapt to changing market conditions, technological advances, and customer needs In the context of Stage 2-Monetization of a venture, dynamic capabilities play a crucial role in sustaining competitive advantages and facilitating the creation of value for the business

The following sections will present in details four theoretical backgrounds that form EVC Theory, including Entrepreneurial Intention (EI), Entrepreneurial Opportunity Recognition (EO), Entrepreneurial Competencies (EC) and Entrepreneurial value creation model (EVC)

2.6.1 Stage 1: Individual generates entrepreneurial intention

Entrepreneurial intention (EI) has emerged as a central topic within the fields of entrepreneurship and education Over the years, numerous scholars have explored the concept of EI, offering a range of definitions and perspectives According to Bird's cognitive theory approach, EI encompasses the cognitive processes and perceptions individuals hold regarding the feasibility and desirability of starting a business venture.

(1988) defined intentionality as a state of mind driving attention, experience, and action towards a particular target to accomplish something Entrepreneurial intention is also considered to be the first step of discovering, creating, and exploiting opportunity processes (Gartner et al., 1994) In EVC theory (Mishra & Zachary, 2014), entrepreneurial intention represents one of the two significant inputs of the two-stage model In other words, the intention is a necessary condition for exploiting an opportunity to establish entrepreneurial competency

Although entrepreneurial intention has been studied profoundly by many scholars, few studies on the relationship between intention and other critical aspects of the entrepreneurial process have been found According to Mishra & Zachary

(2014), the intention is accumulated from thinking and acting depending on adaptability, and then it will be developed to form a business venture

There are several models of entrepreneurial intention, which attempt to explain the cognitive processes and factors that influence an individual's decision to become an entrepreneur and theory of planned behavior (Ajzen, 1991) is the representative one which have been applied popularly in the world including Vietnam and the results have generally supported the applicability of this model in this context

Planned behavior theory postulates that behavioral intentions are shaped by three primary factors: attitude towards the behavior, subjective norm, and perceived behavioral control Based on empirical studies, Ajzen (1991) demonstrated that these factors significantly influence intention formation.

He additionally concluded that entrepreneurial intention was linked to venture creation or formulation Ajzen's research suggests that these factors are significant predictors of behavioral intentions across a range of domains, including entrepreneurship Specifically, Ajzen concluded that an individual's entrepreneurial intention was closely linked to venture creation or formulation, meaning that individuals who have a strong intention to start a business are more likely to actually start and run a business Therefore, by understanding the antecedents of intention and their influence on entrepreneurial intention, researchers and policymakers can better understand the factors that motivate individuals to become entrepreneurs and ultimately contribute to the development of businesses

Attitude toward a behavior, as defined by Ajzen, is influenced by the perceived outcome of that behavior and the individual's positive or negative evaluation of being an entrepreneur This attitude shapes the individual's favorability or unfavorability towards the behavior in question.

2002) Accordingly, if an individual owns a higher rate of attitude toward the behavior will be more likely to attempt to become an entrepreneur Conversely, if someone has a negative attitude towards entrepreneurship, they may see it as risky, difficult, or unattractive, and be less likely to consider it as a career option This aspect is in line with Kolvereid (1996), who assumed that students who have a higher attitude toward the behavior, subjective norm, and perceived behavioral control would be more likely to form entrepreneurial intentions This means that if perceive entrepreneurship as an attractive and feasible career option, and feel that their social environment supports and encourages it, they are more likely to intend to become entrepreneurs Therefore, universities and other educational institutions can play a crucial role in promoting entrepreneurship by fostering a positive attitude towards it, creating a supportive social environment, and providing resources and training to enhance students' attitude toward the entrepreneurial behavior

Secondly, subjective norms refer to an individual's perception of the social pressure to or not engage in a particular behavior, based on the attitudes and beliefs of their significant others In the context of entrepreneurship, subjective norms can influence the intention of an individual to start a business In Vietnam, where social norms and cultural values play a significant role in shaping individual behavior, subjective norms can be a crucial determinant of entrepreneurial intention For example, if parents, relatives, mentors, and friends hold positive attitudes and beliefs about entrepreneurship, it can increase the perceived social pressure to start a business and enhance the individual's intention to become an entrepreneur Conversely, if the

20 significant others hold negative attitudes and beliefs about entrepreneurship, it can create a perceived social barrier, reduce the individual's intention to start a business, and even lead to the abandonment of entrepreneurial aspirations Therefore, it is crucial to investigate subjective norms in the Vietnamese context to understand the role of social pressure and cultural norms in shaping the intentions and behaviors of young entrepreneurs This can provide insights into designing effective interventions and policies to promote entrepreneurship among Vietnamese youth

Prior empirical researches which applied entrepreneurial value creation theory

Firstly introduced in 2014 by Mishra and Zachary, the Entrepreneurship Value Creation (EVC) Theory has yet to gain widespread adoption Despite its propositions, only a limited number of studies have empirically examined its relevance to entrepreneurship Research shows that merely eight studies have specifically addressed entrepreneurship using this theory.

The following table summarizes the seven studies that specifically explored entrepreneurship based on the EVC theory

Table 2 5 The studies applying EVC as theoretical background

No Authors Theoretical background Context Sample size Research methodology

- Egypt 378 Egyptian entrepreneurs Quantitative research (self- administered questionnaires and primary data)

• Age has a moderating effect on the relationship between EI and NVC, whereas gender does not play a role in this relationship

• There are differences in the relationship between emotional intelligence and new venture creation based on the motivation to engage in entrepreneurship

Sweden 1 case company Qualitative research data (interviews, literature and case study)

• Theoretical frameworks prove too general for predicting specific outcomes, particularly in the variable and subjective context of startups

• There are concerns about how investors might perceive the complexity and cost of Blockchain projects, potentially impacting funding

Factors for Entrepreneur ial Success

• 18 competencies critical for long-term entrepreneurial success were identified, categorized

• Entrepreneurs acquired these competencies through previous experiences, continuous learning, learning from others, previous failures, and prior entrepreneurial endeavors

No Authors Theoretical background Context Sample size Research methodology

• External factors impacting long-term sustainability included access to financial capital, leveraging external factors for advantage, changes in government regulations, and shifts in the industry landscape

EVC and Entrepreneur ial development theory

Secondary data from World Bank and

Entrepreneurship Snapshot and Global Entrepreneurship Monitoring (GEM)

• There is willingness on the part of individuals to venture into entrepreneurial activities and an insignificant minority of entrepreneurs is motivated by necessity

• Government policy is the most important issue facing entrepreneurship

3 businesses Qualitative method (face-to- face, semi- structured interviews and a review of company websites and organizational documents)

• Strategies used to maintain financial capital to ensure survivability for longer than 5 years included personal preparation, customer services, and sustaining strategies

Quantitative research (questionnaires and interview)

• Rural SMEs have a role to play in social economic development

• There is more of creativity among rural craft entrepreneurs

• Most businesses use appropriate technology but lack entrepreneurial competency

EVC, Social role valorization theory, Social network theory

Canada 45 urban adults Semi-structured qualitative interviews

• Participants used survival entrepreneurship strategies and processes to navigate daily life while experiencing homelessness

• Recognition and validation of the propensity for enterprise and self‐sufficiency are central for both individual recovery and ending homelessness within similar populations

EVC Italy 1 case study Qualitative research data (interviews, literature and case study)

• crowdfunding can yield non- monetary benefits

• crowdfunding can be valuable for entrepreneurial ventures, even when they are not in immediate need of capital for survival but require resources to navigate challenging periods or crises

Scholars have recognized the value of integrating multiple theoretical perspectives to understand the complex process of creating a business venture and generating entrepreneurial value In addition to the EVC theory, researchers have drawn upon other theories such as Social Network Theory, Systems Theory, and Entrepreneurial Development Theory to enrich their understanding of the factors influencing entrepreneurship

Social Network Theory focuses on the relationships and social interactions among individuals and organizations Researchers applying this theory in the context of entrepreneurship examine how social networks, including personal contacts, professional relationships, and support systems, influence the entrepreneurial process Systems Theory provides a holistic perspective on entrepreneurship by examining how different elements, such as entrepreneurs, markets, institutions, and external factors, interact and influence entrepreneurial outcomes Entrepreneurial Development Theory focuses on exploring the personal characteristics, skills, knowledge, and experiences of entrepreneurs, as well as the support mechanisms and resources available to them

Qualitative research methods, notably interviews, enable researchers to obtain in-depth insights into the entrepreneurial process Interviews facilitate access to the perspectives and experiences of entrepreneurs, offering a comprehensive understanding of the factors influencing Entrepreneurial Value Creation (EVC) By analyzing qualitative data, researchers identify patterns, themes, and relationships, illuminating key factors that shape EVC.

A critique of researching entrepreneurship based on theory of EVC

Accordingly, some gaps from the previous empirical studies are identified These gaps suggest areas where further research is needed to enhance the understanding and applicability of the theory The identified gaps are as follows:

Firstly, theory of EVC is relatively new and has not been tested empirically in a large number of researches There are only seven studies found from journals around the world and no studies done in Asia This limited empirical testing calls for further research to validate and explore the applicability of the theory in different contexts and regions

Secondly, the EVC theory is also created by combination of many previous theories such as Planned Behavior by Ajzen (1991), The Entrepreneurial Event Model by Shapero and Sokol (1982), Theory of entrepreneurial opportunity recognition and development by Ardichvili, Cardozo & Ray (2003), Theory of the individual- opportunity nexus by Shane (2003) This combination helps to explain the entrepreneurial process more clearly in one side but it makes the theoretical model complicated in another side because the authors tried to explain all aspects of the entrepreneurial process Further research could focus on untangling and clarifying the

48 relationships between different components of the EVC theory to enhance its practical usefulness

Thirdly, most of the studies which applied the EVC model focus on business venture creation; no researchers attempted to see the impact of psychological factors, family factors and environmental factors on each stage of the model Studying the factors in the model helps identify the relations and the entrepreneurial values which decide the success or failure of the whole business model

Despite the widespread application of the MRD theory, it lacks empirical research to substantiate its validity The EVC model, consequently, needs further investigation to determine its suitability and applicability across diverse domains Until such research is conducted, the efficacy of the EVC model remains uncertain, warranting caution in its universal adoption.

In summary, the identified gaps suggest the need for more empirical studies to validate and expand the application of the EVC theory Conducting research in diverse geographical areas, untangling the complexities of the model, exploring additional factors, and investigating its suitability in different contexts will contribute to a better understanding of EVC and its practical implications.

Hypothesis development

There has not been one universally accepted theory that explains entrepreneurship in details Instead, researchers approach the topic from various disciplines like psychology, sociology, anthropology, regional science, and economics Existing attempts to create a multi-dimensional approach to studying entrepreneurship often rely heavily on these established disciplines (c f Johnson,

1990) The theory of entrepreneurial value creation (Mishra & Zachary, 2014), provides a comprehensive framework for understanding the process by which entrepreneurs generate value This model traces the journey from initial entrepreneurial intention and opportunity recognition to the development of essential entrepreneurial competences and the ultimate creation of value Despite its theoretical robustness, empirical application of the EVC theory remains limited Existing studies primarily utilize case study methodologies within the EVC framework to explore how value is exchanged throughout the entrepreneurial process These studies highlight the co-creation of value through a system of reciprocal value promises made by both entrepreneurs and stakeholders

In contrast to this existing body of research, the present study aims to empirically validate the relationships proposed within the EVC model developed by Mishra and Zachary (2014) To achieve this objective, a two-pronged approach will be employed First, a comprehensive literature review will be conducted to thoroughly examine existing research on entrepreneurial value creation Second, a survey will be administered to recent graduates who own startups within the MRD region in 2021

The findings from this survey will provide valuable empirical data for examining the proposed relationships within the EVC model

The following sections will present relevant arguments and develop hypotheses that will lay the groundwork for the construction of a research model This model will serve as the foundation for the empirical investigation, allowing for an evaluation of the proposed relationships within the EVC framework

2.9.1 The factors influencing on entrepreneurial intention

Researchers have put forward different methods to measure the factors influencing on individual’s entrepreneurial intentions Among these methods, two widely used models are the Entrepreneurial Event Model by Shapero & Sokol (1982) and The Theory of Planned Behavior by Ajzen (1991) These models have gained popularity not only in Vietnam but also globally They provide frameworks for understanding the psychological, family, and contextual factors that shape entrepreneurial intentions They can be divided into psychological factors (Attitude toward the behavior, subjective norms, Perceived behavior control), family background, and contextual factors (education support, structural support, and formal network)

In addition to psychological factors, researchers have also examined the influence of family background on entrepreneurial intentions Family support, encouragement, role models, and the presence of entrepreneurial activities within the family can significantly impact an individual's inclination towards entrepreneurship Furthermore, contextual factors play a significant role in shaping entrepreneurial intentions These factors include education support, such as entrepreneurship education programs and training, which can enhance individuals' knowledge and skills related to starting and managing a business Structural support refers to the availability of resources, such as financing options and business development services, which can facilitate the realization of entrepreneurial intentions Formal networks, such as business associations and industry networks, provide entrepreneurs with access to information, resources, and social capital

By considering these psychological, family, and contextual factors, researchers aim to develop comprehensive models that capture the multidimensional nature of entrepreneurial intentions These models facilitate a deeper understanding of the factors that influence individuals' decision to pursue entrepreneurship and help policymakers and educators design effective interventions to foster entrepreneurial ecosystems and promote entrepreneurship

The construct of attitude toward behavior, as derived from the Theory of Reasoned Action (TRA), encompasses the perceived desirability of the behavior and

50 considers the anticipated outcomes associated with its enactment (Krueger et al.,

2000) This factor holds great significance as it serves as a foundation for individuals' motivation to achieve desired outcomes Notably, the Theory of Planned Behavior reinforces the notion that more favorable attitudes toward a behavior correspond to stronger intentions to perform that behavior (Ajzen, 1991) Hence, enhanced positive attitudes would amplify the viability of translating intentions into actions, and conversely, the inverse relationship holds true From this perspective, the utilization of the "attitude approach" emerges as a more desirable alternative to conventional methodologies commonly employed in entrepreneur analysis, such as trait-based or demographic approaches (Robinson et al 1991) In other words, individuals who hold more positive attitudes toward the behavior under consideration are expected to exhibit a stronger intention to perform that behavior This following hypothesis is underpinned by the assumption that attitudes shape individuals' perceptions of the desirability and consequences of the behavior, ultimately influencing their motivation to act

Hypothesis H 1 Attitude toward the behavior is positively related to entrepreneurial intention

Subjective norms encompass individuals' perceptions of other people's opinions regarding a proposed behavior It entails the social and cultural pressures that influence the likelihood of performing a specific behavior According to Ajzen (1991), Subjective norms often emerge as the least robust component and has exhibited statistical insignificance across several distinct studies that have employed the

"planned behavior" theory to examine diverse behavioral actions However, it is imperative to explore their significance within the context of MRD, where social norms play a pivotal role in shaping entrepreneurial aspirations among youth Subjective norms also encompass the social obligations individuals face when considering the establishment of their own businesses, including the opinions and support of parents, relatives, mentors, and friends in relation to their entrepreneurial intentions Ajzen (2002) and Zhao et al (2005) operationalized this notion by examining the degree of ease or complexity associated with entering entrepreneurship

In the MRD context, where social dynamics and cultural values hold considerable sway, understanding the influence of subjective norms on entrepreneurial intention is crucial Although previous studies have yielded inconsistent findings regarding the predictive power of subjective norms, the unique socio-cultural landscape of MRD warrants further investigation It is hypothesized that subjective norms exert a significant influence on individuals' entrepreneurial intentions within the MRD

Hypothesis H 2 The subjective norm is positively related to entrepreneurial intention

The notion of perceived behavior control has been well-established in existing literature According to Ajzen (1991), perceived behavior control is a component of attitudinal antecedents of intention within the theory of planned behavior It pertains to individuals' perception of the feasibility of performing a specific behavior In other words, it reflects an individual's belief in how easy or challenging it is to engage in a particular behavior Similarly, Bandura (1991) conceptualized perceived behavioral control as individuals' belief in their capacity to exert control over their functioning and the events that shape their lives Perceived behavioral control plays a crucial role in explaining entrepreneurial intentions It encompasses individuals' self-assessment of their ability to overcome obstacles and successfully engage in entrepreneurial activities This belief in one's own capabilities to exercise control over their entrepreneurial endeavors influences their intention to pursue entrepreneurship According to Liủỏn (2004) and Zhao (2012), the construct of perceived behavioral control stands out as a significant determinant exerting substantial influence over individuals' entrepreneurial intentions Individuals with a stronger sense of perceived behavioral control believe they possess the necessary skills, resources, and control to overcome challenges and successfully engage in entrepreneurial activities This heightened sense of control instills confidence and self-efficacy, contributing to a more determined inclination towards entrepreneurial pursuits Based on the established theoretical framework and the significance of perceived behavioral control in explaining entrepreneurial intentions, the research proposes the third hypothesis This hypothesis posits that individuals' perception of their control over their entrepreneurial behaviors will have a positive influence on their intentions to engage in entrepreneurship

Hypothesis H 3 Perceived behavior control is positively related to entrepreneurial intention

The family and its associated factors, including individuals, environment, traditions, and habits, exert a direct influence on the individuals within it When a family owns a business, it creates an environment conducive to learning valuable business lessons, honing business skills, and cultivating entrepreneurial characteristics and interests over an extended period of time Hutasuhut (2018) concluded that the family factor significantly and positively impacts students' entrepreneurial intentions, albeit with a modest contribution Similarly, Farrukh et al (2017) found that family background has a positive influence on students' entrepreneurial intentions One reason for this is that an individual's decision-making process is influenced by close family members If an individual perceives that their family will support their entrepreneurial pursuits, they are more likely to be encouraged to choose an

52 entrepreneurial career path Moreover, Krueger (1993) discovered that individuals who have self-employed fathers tend to exhibit a greater inclination towards entrepreneurship Similarly, Sarwoko (2011) concurs with this notion, reporting that students with familial backgrounds or relatives engaged in entrepreneurial ventures exhibit a heightened inclination towards entrepreneurial pursuits when contrasted with their counterparts originating from families or relatives lacking such business involvements This pattern underscores the intricate interplay between family context and entrepreneurial intentions Offspring of parents with entrepreneurial vocations tend to be exposed to entrepreneurial experiences, norms, and values from an early age Consequently, they may develop a greater familiarity and comfort with the entrepreneurial realm, thereby fostering a predisposition towards engaging in entrepreneurial activities themselves Thus, within the entrepreneurship intention model, the family, particularly the entrepreneurial background of parents, can be considered external factors that shape an individual's desire to become an entrepreneur in the future Based on the literature discussed above, the following hypothesis can be formulated, highlighting the role of family influence on entrepreneurial intentions

Hypothesis H 4 Family background is positively related to entrepreneurial intention

It is evident that the provision of educational support plays a crucial role in acquiring the necessary knowledge and developing entrepreneurial skills that assist students in making informed career choices Consequently, many university curricula place emphasis on enhancing entrepreneurial awareness, fostering an entrepreneurial mindset, and providing students with practical experiences in entrepreneurship Essentially, the educational system establishes favorable conditions by equipping students with the requisite knowledge and skills for initiating and managing a business in the future According to Liủỏn (2008), entrepreneurship education has the capacity to shape attitudes and foster intentions to venture into business creation It serves as a catalyst for individuals to embark on their entrepreneurial journeys Similarly, the viewpoint presented by Wilson et al (2007) posits that the introduction of entrepreneurship education holds the potential to amplify students' attraction towards adopting entrepreneurship as a viable career path This is postulated to occur through the process of igniting inspiration within students, ultimately influencing their decision to embrace entrepreneurial vocations Importantly, it is evident that receiving specialized education within university settings presents an effective avenue for acquiring essential knowledge pertaining to entrepreneurship While Wang and Wong

Research model

Integrating factors in the EVC theory, this model proposes two stages In Stage 1, seven factors influence entrepreneurial intention, while five impact opportunity recognition The interplay of these factors fosters entrepreneurial competencies Stage 2 involves activities that enhance and sustain business values, incorporating four key components as indicators This comprehensive model clarifies the interconnectedness of intentions, competencies, and opportunity recognition in entrepreneurship.

RESEARCH METHODOLOGY

Quantitative research

The quantitative strand of the study was instrumental in empirically testing and validating the formulated hypotheses By collecting numerical data, the researcher aimed to provide concrete evidence to support or refute the proposed hypotheses This quantitative approach also facilitated the description and analysis of data through the use of statistical figures, enabling a more precise and objective representation of the collected information

The primary objective of this research endeavor is to conduct an empirical investigation into the factors encompassing the EVC model To accomplish this, data was gathered from two distinct sources, namely semi-structured interviews and surveys through questionnaires

The selection of appropriate samples for the survey holds utmost importance as it serves as a representative subset of the target population In line with the guidance provided by Welman and Kruger (2001), two primary sampling methods are commonly employed: probability sampling, which involves the random selection of samples to enable statistical inferences for the entire population, and non-probability sampling, which entails the selection of samples based on specific criteria without adhering to randomization principles In the context of this quantitative research, a non-probability sampling method was employed

Non-probability sampling can be more resource and time-efficient compared to probability sampling methods (Trochim, 2006) In the research, resource constraints and the need for efficient data collection influenced the selection of non-probability sampling Moreover, researchers often apply non-probability sampling when they possess expertise in the subject matter or have prior knowledge of the population (Bryman, 2016) By employing non-probability sampling, the research can tailor the sample to the population of interest, efficiently collect data, and explore the intricate dynamics of entrepreneurship within the MRD region

The decision to opt for a non-probability sampling technique allowed the researcher to focus on a specific group of individuals that met the predetermined

- The study uses 63 criteria to analyze graduates involved in start-ups within designated provinces.- While this limits the study's generalizability, it allows for valuable insights from a specific sample.- The findings contribute to a deeper understanding of the research topic within the defined context.

To align with research objectives and resource limitations, a non-probability sampling approach was used to select graduates actively involved in start-ups in six provinces (An Giang, Dong Thap, Can Tho, Soc Trang, Ben Tre, and Tra Vinh) within the Mekong River Delta (MRD) region These provinces were chosen for their diverse geographical, economic, and demographic characteristics, providing a balanced representation of the region The inclusion of these provinces accounts for the economic heterogeneity and population density variations within the MRD, ensuring a comprehensive understanding of entrepreneurship in the region Practical considerations, such as logistics and data collection efficiency, were also considered in the province selection.

The determination of the sample size for this study was based on two key criteria

Firstly, following the recommendation of Hair et al (2010), the sample size (n) should be equal to or greater than 5 times the number of observation items (x) In this research, there were a total of 83 observation items, thus necessitating a sample size of 415 respondents or larger Secondly, the sample size also takes into account the size of the population, as indicated by Research Advisors (2007) According to the Vietnam Chamber of Commerce and Industry, in 2019, there were approximately 9,500 new businesses in the MRD Taking a confidence level of 95% and a margin of error of 5% into consideration, the calculated sample size amounts to 370 respondents

Considering two above criterium, the researcher determined that the number of samples required for this study would be n = 627

The participants of this study comprise individuals who have completed their education from various colleges or universities approximately for around ten years, irrespective of their specific academic disciplines These individuals possess entrepreneurial experience, having either owned or previously owned a start-up venture Their business ventures were established within the MRD, irrespective of their birthplace or current residence Especially, due to the accessibility of business ventures, this research study exclusively focused on conducting surveys among small and micro enterprises

The research did not compare a group of people who have started a business with a group of people who have not started a business because of some key points First, the primary objective of the research emphasizes around examining and understanding specific aspects or characteristics of individuals who already own businesses and the research questions do not involve comparisons between business owners and non- business owners Moreover, the questions and items in the questionnaires are tailored to gather information about entrepreneurship, business operations, challenges, strategies, related to owning a business However, this is also a new idea for future research

Hypothesis development and research model

The research commences with identifying a specific research problem by create three research questions including Question 1: What is the current status of entrepreneurship in the MRD?; Question 2: What is the relationship of factors in graduates’ EVC model? and Question 3: What recommendations will be proposed to governmental agencies and educational institutions in stimulating entrepreneurship in the MRD?

To effectively investigate research problems, a thorough review of pertinent literature is imperative This process necessitates rigorous analysis of existing scholarly contributions, encompassing academic journals, books, and reports This intensive examination aids in developing a comprehensive understanding of the concepts and theories surrounding entrepreneurship and explained variance analysis (EVC), equipping researchers with the necessary foundation for subsequent research endeavors.

Step 3: Hypothesis Development and Research Model

Building upon the foundation established in the literature review, the research progresses to developing hypothesis and creating a research model The research proposes 15 hypothesises relating to specific prediction and relationship between variables of the research model

Step 4: Data Collection and Analysis

The research comprises two intertwined phases of data collection and analysis In the quantitative phase, numerical data is collected through a survey from a sample of 627 graduates with Mekong Delta startups This data is subjected to statistical analysis to reveal patterns, correlations, and potential moderators affecting entrepreneurial value creation.

Qualitative Data Collection: This phase involves collecting non-numerical data through interviews The semi-structured interviews will be conducted with five experts in entrepreneurship These qualitative interviews provide deeper insights and nuanced perspectives that enrich the understanding of the research problem and context

Data Analysis and Integration: the research process diverges for analysis based on data type:

Quantitative Data Analysis: Statistical software is employed to analyze the survey data This analysis aims to identify patterns, relationships, and potential moderators of value creation among graduate entrepreneurs

Qualitative Data Analysis: The qualitative interview data is transcribed and then undergoes thematic analysis This process involves identifying recurring themes and patterns within the transcripts, providing a richer understanding of the challenges and

66 opportunities faced by graduate entrepreneurs in the Mekong Delta's entrepreneurial ecosystem

Step 6: Finding Discussion and Recommendations

Qualitative research

The qualitative component of the study played a pivotal role in generalizing and formulating hypotheses Through qualitative exploration, the researcher aimed to identify patterns, emerging themes, and novel insights related to entrepreneurial research This involved designing and refining questionnaires to ensure they effectively captured the essential dimensions of the research topic

A semi-structured interview was conducted with five experts selected through a combination of convenience and purposive sampling methods These experts were chosen based on their professional affiliations and roles within the MRD region's entrepreneurial support network Their expertise and extensive experience in various fields were key factors in their selection.

68 aspects of entrepreneurship, including entrepreneurship training, entrepreneurship center staff, and management of the entrepreneurial support network

The convenience sampling method was employed to select experts who were readily available and accessible for participation in the study Additionally, purposive sampling was applied to ensure that the chosen experts possessed the relevant knowledge and insights pertaining to the research topic This deliberate selection aimed to maximize the information and perspectives obtained from individuals who play pivotal roles in supporting and nurturing entrepreneurship within the MRD By including experts from different areas such as entrepreneurship training, entrepreneurship center staff, and the management of the entrepreneurial support network, the researcher aimed to capture a diverse range of viewpoints and experiences This approach contributes to the richness and depth of the data collected during the semi-structured interviews, enabling a comprehensive exploration of the entrepreneurial support landscape in the MRD region

The utilization of a semi-structured interview serves as a fundamental means of collecting primary data in research, providing an opportunity to tap into the wealth of information possessed by the participants in a naturalistic manner In this particular study, the participants selected are recognized as entrepreneurial experts affiliated with universities, institutions, and local entrepreneurial centers The structured nature of the interview methodology allows for a flexible approach, facilitating participants to freely express their thoughts and emotions without the constraint of right or wrong answers

The interview initiation involves a predetermined and structured set of inquiries aimed at delving into various dimensions of the research subject Specifically, these questions encompass an exploration of factors influencing the entrepreneurial intentions of graduates within the MRD, factors influencing entrepreneurial opportunity recognition among MRD graduates, the assessment of entrepreneurial competencies among MRD graduates, and an investigation into other pertinent aspects of entrepreneurship in the MRD The interview commences with open-ended questions to encourage participants to provide comprehensive and qualitative responses Subsequently, multiple-choice questions are employed to gather more specific and quantifiable data In the final section of the interview, the experts are afforded the opportunity to express their personal reflections and viewpoints concerning noteworthy issues surrounding entrepreneurship in the MRD This qualitative aspect of the interview aims to capture nuanced perspectives and enrich the overall understanding of the subject matter

By employing a semi-structured interview methodology, the researcher seeks to uncover a comprehensive understanding of the participants' experiences, expertise,

69 and perceptions related to entrepreneurship in various academic and institutional settings The flexible nature of the interview methodology empowers participants to contribute their diverse viewpoints and engage in meaningful dialogue, ultimately enriching the data collected and shedding light on the multifaceted dimensions of the research topic

As a consequence of the Covid-19 pandemic and the associated safety concerns, conducting face-to-face interviews became unfeasible for this study To overcome this challenge, the author resorted to an alternative approach by sending a set of interview questions to each individual interviewee via email This method allowed for remote participation and ensured compliance with the necessary health protocols

The interview process was halted upon reaching the fifth interviewee, as their responses closely aligned with those provided by the preceding five interviewees This decision was made in recognition of the principle of data saturation, wherein further interviews would likely yield redundant or repetitive information, thus diminishing the incremental value of additional data collection

While the shift to remote email interviews introduced certain limitations, such as reduced opportunities for real-time interaction and potential constraints in the depth of responses, it nevertheless provided an avenue for gathering valuable insights from a diverse set of participants The utilization of email interviews in this unique circumstance enabled the research to progress and contribute to the body of knowledge, albeit with the necessary adjustments prompted by the pandemic-induced restrictions.

Questionnaires

In data collection, questionnaires play a crucial role For this study, the questionnaire's development drew upon both the theoretical foundations and insights from semi-structured interviews This approach ensured alignment between the questionnaire's contents and the theoretical constructs, while also incorporating the perspectives of entrepreneurial experts.

To mitigate the potential impact of common-method bias, a rigorous translation procedure was employed The questionnaires were initially translated from the original language (presumably English) to Vietnamese, and then back-translated to English This iterative process aimed to ascertain that the two versions maintained a high degree of semantic equivalence, minimizing the potential for bias that may arise from language variations

Moreover, to enhance the clarity and comprehensibility of the questionnaire items, a pre-testing survey was conducted This pre-test involved administering the questionnaire to a sample of ten graduates in the An Giang province The objective of

70 this pre-testing phase was twofold: to identify any ambiguities or difficulties in understanding the Vietnamese version of the questions and to solicit feedback on potential improvements or modifications to enhance the questionnaire's overall quality The feedback received during the pre-testing survey played a crucial role in enhancing the overall validity and reliability of the questionnaire, setting the stage for subsequent data collection and analysis

Self-administered questionnaires are ideal for this study due to their flexibility, convenience, and non-intrusive nature Respondents can complete the questionnaire at their convenience, promoting comprehensive and accurate data Eliminating the need for appointments streamlines data collection and accommodates respondents' schedules The questionnaire's non-sensitive questions build trust and encourage candid responses, mitigating potential discomfort or apprehension among participants.

The questionnaire utilized in this study consists of two distinct sections, each serving a specific purpose The first section encompasses a series of questions designed to assess and quantify the independent and dependent variables associated with the EVC model under investigation The second section of the questionnaire is dedicated to capturing individual-level information pertaining to the participants' specific business ventures

The study was undertaken within the timeframe spanning from July 2021 to April

2022 Throughout this duration, a significant number of provinces within the MRD region experienced substantial disruptions caused by the widespread impact of the Covid-19 pandemic Consequently, the movement of individuals and goods between these areas was severely restricted, adhering to the guidelines outlined in Directive 15 and 16/CT-TTg As a consequence of this unprecedented circumstance, online survey was adopted as a viable alternative The questionnaires were designed on Google form and distributed by the author and coordinators to survey participants

Measurement

To obtain the requisite information, the study employed survey questions sourced from existing studies, which were subsequently adapted and tailored to align with the specific objectives of this investigation The process of questionnaire development involved a careful selection and modification of items to ensure their relevance and appropriateness for the present study The items used to measure the factors within the research model are delineated in the following tables These tables provide a comprehensive overview of the individual items comprising each scale and their associated constructs Employing a thoughtful approach to scale selection and modification, the study ensures the suitability and relevance of the measurement tools within the unique MRD context, thereby enhancing the trustworthiness of the research findings

Participants will be required to indicate their level of agreement or disagreement with a series of statements by employing a 5-point Likert response scale In empirical research, a 5-point Likert response scale is a commonly used method for measuring individuals' attitudes, opinions, perceptions, or beliefs on a specific construct or variable because it is easy to implement (Kumar, 2005) The Likert scale provides respondents with a set of ordered response options that represent a range of possible levels of agreement, disagreement, or intensity while ratio scales require a true zero point, which may not be applicable to many psychological or social constructs In the other hand, ratio scales, designed for objective and measurable quantities, might not capture the nuances of such subjective data Moreover, likert scales offer clear and concise response options so that respondents can easily understand and choose the option that best reflects their opinion This reduces confusion and potential misinterpretations arising with more complex scales

The 5-point Likert response scale typically consists of five response options, which are assigned numerical values to facilitate analysis and interpretation Therefore, it can reduce respondent burden and survey completion time The response options are usually labeled as follows: 1 Strongly Disagree; 2 Disagree; 3 Neutral;

Respondents are asked to select the response option that best represents their viewpoint or attitude towards the statement or item being assessed Researcher will calculate various descriptive statistics, such as mean and standard deviation, to analyze the data obtained from a Likert scale

3.4.1 The Scale for Entrepreneurial Intention

As presented in Chapter 2, theoretical background for this scale includesPlanned Behavior Theory (Ajzen, 1991), Social Learning Theory (Bandura & Walters, 1977) The choice of a scale for entrepreneurial intention was justified for the following

Scales measuring entrepreneurial intention often align with constructs from the Theory of Planned Behavior (TPB) and Social Learning Theory for validity and reliability TPB-based measures have shown to accurately predict actual entrepreneurial behavior, supporting their credibility in research Additionally, these scales have undergone rigorous testing, making them suitable for empirical studies.

Table 3 1 The Scale for Entrepreneurial Intention

Variables Code Items/indicators Sources

EI1 I am ready to do anything to be an entrepreneur

EI2 My professional goal is to become an entrepreneur EI3 I will make every effort to start and run my own firm EI4 I am determined to create a firm in the future

EI5 I have very seriously thought of starting a firm EI6 I have the firm intention to start a firm some day

PC1 I am confident that I would succeed if I started my own firm

PC2 It would be easy for me to start my own firm

PC3 To start my own firm would probably be the best way for me to take advantage of my education

PC4 I have the skills and capabilities required to succeed as an entrepreneur

SN1 I know many people in my university who have successfully started up their own firm

SN2 In my university, people are actively encouraged to pursue their own ideas

SN3 In my university, you get to meet lots of people with good ideas for a new firm

SN4 There is a well functioned support infrastructure in place to support the the start-up of new firm

AT1 Being an entrepreneur implies more advantages than disadvantages to me

AT2 A career as entrepreneur is attractive for me

AT3 If I had the opportunity and resources, I’d like to start a firm

Variables Code Items/indicators Sources

AT4 Being an entrepreneur would entail great satisfactions for me

AT5 Among various options, I would rather be an entrepreneur

FA1 My parents influence me in pursuing a career in entrepreneurship

FA2 Assisting my parents in business has increased my desire to be an entrepreneur

FA3 My parents are willing to provide me with funds for entrepreneurship activities

FA4 My parents are role models for me in cultivating entrepreneurship

ES1 The education in university encourages me to develop creative ideas for being an entrepreneur

ES2 My university provides the necessary knowledge about entrepreneurship

ES3 My university develops my entrepreneurial skills and abilities

SS1 In Vietnam, the government encourages entrepreneurs to establish a firm

SS2 State laws (rules and regulations) are favourable to running a business

SS3 Tax regulation gives facilities to entrepreneurs

SS4 Vietnamese economy provides many opportunities for entrepreneurs

FN1 To start entrepreneurship activities, I will get benefit from experience consultant

FN2 To start entrepreneurship activities, I will get benefit from country entrepreneurship network

FN3 To establish business plan, I will get benefit from agencies related to entrepreneurship activities

FN4 To start entrepreneurship activities, I will get benefit from customer and supplier network

3.4.2 The Scale for Entrepreneurial opportunity recognition

The "Individual-Opportunity Nexus" theory by Eckhardt and Shane (2010) and the "Entrepreneurial Cognition" theory by Baron (2006) were selected as the appropriate theories to underpin the scale for entrepreneurial opportunity recognition in the research First, the theories of individual-opportunity nexus and entrepreneurial

74 cognition are based on cognitive processes and individual characteristics that are not bound by specific cultural contexts Cognitive processes like perception, creativity, and decision-making are universal, making these theories relevant for surveying people in the MRD Furthermore, both theories provide a flexible framework for developing scales that can be adapted to diverse cultural and regional contexts This allows researchers to tailor the measurement instrument to specific cultural nuances in the MRD Finally, both theories emphasize cognitive aspects of opportunity recognition, which can be especially relevant when surveying individuals in the MRD Understanding how individuals in this region perceive, process, and act upon opportunities can provide valuable insights into their entrepreneurial behavior

Table 3 2 The Scale for Entrepreneurial Opportunity Recognition

Variables Code Items/indicators Sources

OP1 While going about routine day-to-day activities, I see potential new venture ideas all around me Ozgen and Baron

OP2 I have a special “alertness” or sensitivity toward new venture opportunities

OP3 “Seeing” potential new venture opportunities does not come very naturally to me

EA1 I have a gut feeling for potential opportunities

EA2 I can distinguish between profitable opportunities and not-so-profitable opportunities

EA3 I have a knack for telling high-value opportunities apart from low-value opportunities

EA4 When facing multiple opportunities, I am able to select the good ones

PN1 I know how to serve markets

PN2 I am familiar with customer problems

PN3 I have rich knowledge about markets such as supplier relationships, sales techniques, capital equipment retirement, etc

PN4 I have a broad understanding of my business

AS1 I search actively for business ideas

(2002) AS2 I have engaged in a deliberate and systematic search for an idea for a new business

Variables Code Items/indicators Sources

AS3 I have gone through several learning steps overtime to identify business opportunities

SO1 My contacts or discussions with potential or existing customers help me to recognize opportunities

SO2 My contacts or discussions with existing suppliers, distributors, or manufacturers help me to recognize opportunities

SO3 My social and professional contacts help me to recognize opportunities

CR1 I tried to find a really new business idea

CR2 I purposefully emphasized creativity when generating the business idea

CR3 I tried to find original and really novel ideas for a business

CR4 I proposed and tried a lot of different ideas

3.4.3 The Scale for Entrepreneurial competencies

EVC theory proposed by Misha and Zachary (2014) explore how entrepreneurial competencies contribute to value creation within the context of Stage 1—Formulation of entrepreneurship The EVC theory explicitly emphasizes the role of entrepreneurial competencies in value creation This alignment is particularly relevant if the research seeks to understand how entrepreneurial competencies contribute to creating value in the early stages of entrepreneurship, which is often critical for a venture's success Moreover, the EVC theory links opportunity recognition and entrepreneurial intention with the development of entrepreneurial competencies This integration allows for a comprehensive examination of the entire process, from recognizing opportunities to developing the competencies needed to capitalize on them In addition, the research aims to investigate the specific competencies that entrepreneurs in the MRD region possess and how these competencies contribute to value creation, the EVC theory provides a relevant framework for this exploration

Table 3 3 The Scale for Entrepreneurial Competencies

Variables Code Items/indicators Sources

EC1 (Strategy Competency): I can develop a vision in mind for their business, develop vision and strategy, plan ahead, set goals and standards, sell ideas

(2002) and discussing result from experts

EC2 (Commitment Competency): I have strong motivation to compete, drive to see venture through to fruition, I can make an impact and dedication

EC3 (Conceptual Competency) : I have cognitive ability and decision-making skill, I can weigh risks, think analytically, be innovative, be creative, show reasoning, capacity to reduce risks

EC4 (Opportunity Competency): I can recognize opportunity, capture opportunity, and identify customers need

EC5 (Relationship Competency): I have good interpersonal and communication skills, I can influence others and gain support

EC6 (Organizing Competency): I can direct, lead, delegate, motivate, plan and schedule work, develop program, prepare budget

3.4.4 The Scale for Entrepreneurial value creation

To measure Efficiency and Novelty, the research based on the business model theory of Amit and Zott (2001) and the expert interview results.To measure Lock-in and Complementarities the research applied the scales developed by Hyrynsalmi et al.

(2014) This makes it suitable for research in the MRD region, as it can be applied to a wide range of businesses and contexts Given the dynamic nature of the Mekong Delta region's economy and the need for innovative approaches, this theory can provide valuable insights into how businesses in the region create and deliver value

Table 3 4 The scale for entrepreneurial value creation model

EF1 Transactions are simple from the user's point of view

Zott and Amit (2007) and discussing result from experts

EF2 The business model enables a low number of errors in the execution of transactions

EF3 The business model is scalable (i.e., can handle small as well as large number of transac12tions)

EF4 The business model enables participants to make informed decisions

EF5 Access to large range of products, services and information, and other participants is provided

EF6 The business model enables fast transactions

NV1 The business model offers new combinations of products, services and information

Zott and Amit (2007) and discussing result from experts

NV2 The business model brings together new participants

NV3 Incentives offered to participants in transactions are novel

NV4 The business model gives access to an unprecedented variety and number of participants and/or goods

NV5 The business model links participants to transactions in novel ways

NV6 The richness (i.e., quality and depth) of some of the links between participants is novel

LO1 Vendor rewards the repeat use or purchase from the ecosystem

LO2 Vendor creates value to the consumer by establishing added safety and security guidelines

LO3 Products can be customized by the consumer

LO4 Vendor offers a contact point for the user to communicate with the developer

LO5 Vendor has created a virtual community to add value for the end user

LO6 Vendor creates value to the user by actively increasing the number of users

CO1 A variety of features, products and services are bundled to create value

CO2 The consumer is provided a complete service solution

CO3 Value is created through a combination of online and offline capabilities

CO4 Value is created by combining capabilities of multiple technologies

CO5 Consumer is provided an access to products and services that are complementary to the primary product or service of interest sold 0 in the ecosystem.

Data analysis

Structural equation modeling (SEM), extensively used in scientific research, comprises two approaches: covariance-based structural equation modeling (CB-SEM) and partial least squares structural equation modeling (PLS-SEM) These methods, instead of being rivals, complement each other due to their unique strengths.

PLS-SEM integrates both reflective and formative techniques within its framework It represents a comprehensive approach that acknowledges the interdependencies among variables and leverages their reciprocal relationships On the other hand, CB-SEM also known as analysis of covariance structures or causal modeling, involves the specification of a theoretical model and the subsequent estimation of the covariance matrix using sample data

CB-SEM and PLS-SEM provide valuable analytical methods within structural equation modeling Researchers must choose the most appropriate method based on their research context, objectives, and data characteristics.

This study mainly aims to confirm (or disprove) the hypotheses The data analysis and hypothesis testing for this study will employ CB-SEM method The analysis was conducted using CB-SEM with the AMOS software, which inherently differs from PLS-SEM Given the nature of CB-SEM, the model does not provide partial R 2 values as output, which is typical in PLS-SEM reporting Instead, CB-SEM focuses on theory testing and confirmation and provides fit indices such as CFI, TLI, RMSEA, and others to evaluate general model fit The R 2 values in CB-SEM are reported for the endogenous constructs within the model, indicating the variance explained by the exogenous constructs

The steps of CB-SEM statistical method is going to be presented as outlined below:

The initial step of the analysis involves the description of sample characteristics This phase aims to provide an initial assessment of the respondents' demographic information, offering insights into the composition of different respondent groups Additionally, it will simultaneously present information about their entrepreneurial activities, providing a comprehensive understanding of the sample under investigation

Step 2: Reliability Testing using Cronbach's Alpha

To ensure the reliability of the measurement scales, Cronbach's Alpha will be employed This statistical procedure assesses the internal consistency of the factors derived from the data A higher Cronbach's Alpha score indicates greater reliability, with a value close to 1.0 considered highly reliable Generally, a reliability score of 0.70 and above is deemed acceptable, while values exceeding 0.80 are indicative of good reliability, in accordance with the guidelines put forth by Nunnally (1978)

Step 3: Exploratory Factor Analysis (EFA)

Exploratory Factor Analysis will be conducted to identify the underlying relationships among a large number of items in the study This procedure aims to define the latent dimensions, known as factors, that explain the common variance among the items Additionally, EFA serves the purpose of determining whether the data can be summarized or reduced into a more concise set of factors, thus aiding in the simplification and interpretation of the dataset (Malhotra, 2010)

Step 4: Confirmatory Factor Analysis (CFA)

Confirmatory Factor Analysis will be employed to assess the quality of the measured variables in representing the constructs under investigation CFA is a multivariate statistical technique utilized to evaluate and improve theoretical models or to confirm or refute measurement theories By testing the alignment between the hypothesized model and the observed data, CFA aids in establishing the construct validity of the measurement scales employed in the study

Step 5: Structural Equation Modeling (SEM)

Finally, the data will be analyzed using Structural Equation Modeling (SEM) with the assistance of Amos statistical software SEM is a comprehensive statistical method that enables the examination of complex relationships among latent constructs By incorporating both measurement and structural models, SEM facilitates a holistic understanding of the interconnections and causal relationships between the variables within the proposed research model The utilization of SEM provides a robust

80 framework for analyzing and interpreting the data, allowing for a comprehensive assessment of the hypothesized relationships

Structural equation modeling (SEM) is a statistical modeling method popularly used in social and behavioral sciences to examine and evaluate multivariate causal relationships, which can be viewed as a combination of factor analysis and regression or path analysis (Hox & Bechger, 1999) SEM is different from other statistical modeling methods because it estimates the direct and indirect effects on hypothetical causal relationships While the regression model with a single equation, a single dependent variable, and multiple explanatory variates, SEM has a number of equations with several explanatory variables in each of them For example, the dependent variables in one equation of SEM might be an independent variable in another equation

RESEARCH RESULTS

The status quo of entrepreneurship in the MRD

Mekong River Delta holds significant importance as an agricultural powerhouse within Vietnam, making substantial contributions to the national economy Annually, the region accounts for 18% of the country's GDP, 56% of its rice output, and 40% of its aquatic product production The abundance of natural resources, including fertile land, rivers, seas, forests, and mountains, positions MRD as an area brimming with entrepreneurial potential

Recognizing this potential, MRD has actively pursued entrepreneurial development strategies since the early stages of 1999, initially with the support of Denmark's DANIDA project Subsequently, various provinces within MRD have implemented supportive policies and plans aimed at fostering entrepreneurial activities within their respective localities, leading to commendable achievements

Table 4.1 demonstrates that regarding the density of enterprises in relation to the population, the MRD's figures in 2020 stood at a mere 3.43 enterprises per thousand working-age individuals, which falls significantly short of the national mean of 8.32 enterprises In the subsequent year of 2021, despite the profound disruptions brought on by the Covid-19 crisis, there was a marginal uptick in the Mekong Delta's enterprise ratio to 3.53 enterprises per thousand people Nevertheless, this ratio remains substantially below the country's average and is only marginally greater than that of the Northern Midlands and Mountainous regions

Table 4.1 Average number of operating businesses per 1,000 people

Northern Midlands and Mountains 2,31 2,45 2,53 2,69 3,00 North Central and Central Coast 4,42 4,76 4,98 5,27 5,75

These achievements underscore the vibrant entrepreneurial landscape within the MRD, propelled by proactive government initiatives, favorable natural resources, and the region's significant contributions to the national economy The burgeoning number of businesses in the MRD reflects the positive outcomes of the entrepreneurial development strategies that have been implemented, setting the stage for further growth and economic advancement in the region

To foster business growth and innovation, An Giang province has established a robust network connecting investors and entrepreneurs The province's multifaceted entrepreneurial support initiatives include organizing idea competitions, establishing dedicated centers, and providing comprehensive assistance with capital, training, and legal guidance With over 150 beneficiaries annually, the province conducts training courses, contributing to the establishment of ten business incubators These initiatives empower aspiring entrepreneurs, fostering confidence and enabling them to transform their aspirations into thriving businesses.

In 2017, Dong Thap province undertook a range of initiatives aimed at fostering entrepreneurship These efforts included the provision of financial resources, the establishment of centers dedicated to supporting small and medium-sized enterprise (SME) development, the maintenance of entrepreneur clubs and networks, the provision of skills and knowledge training programs for starting a business, and the facilitation of connections between entrepreneurs and domestic and international investors Notably, in May 2017, Dong Thap collaborated with the Startup Vietnam Foundation (SVF) to organize additional training courses and address challenges related to the input and output of entrepreneurial products (Nguyen Hong Gam & Nguyen Thi Ngoc Anh, 2019) According to Huy Tu (2020), Dong Thap province holds the distinction of being the first province to undertake agricultural economic restructuring, yielding noteworthy achievements Firstly, the province has witnessed a gradual reduction in the proportion of agricultural production by quantity, shifting towards an efficient agricultural economy, while simultaneously increasing the proportion of industry, trade, and services Secondly, the registration of intellectual property protection certificates has been granted to 18 distinct agricultural brands specific to the province Furthermore, 150 startup products have gained acceptance within the market, thereby enhancing market competitiveness Thirdly, models of handicraft production and traditional craft villages have flourished, characterized by increased technological integration, the promotion of networks, and enhanced collaboration in production and consumption In line with these endeavors, Plan 275/KH-UBND outlines the comprehensive support measures for creative enterprises

83 in Dong Thap province for the period 2021-2025, highlighting the province's commitment to fostering innovation and entrepreneurship (Huy Tu, 2020)

Vinh Long province has implemented a range of inclusive policies and strategic action plans to foster and support entrepreneurship within the region Notably, on 29th May 2020, the People's Committee of Vinh Long issued Plan 28 as part of their comprehensive Entrepreneurship Program for the year 2020 This plan emphasizes six key actions aimed at creating a conducive environment for entrepreneurial activities These actions encompass the dissemination of information and awareness regarding entrepreneurship, the provision of skill development and knowledge training programs, the organization of entrepreneurial idea competitions, the adjustment of policies to facilitate entrepreneurial endeavors, the implementation of successful entrepreneurial models, and the enhancement of the role played by business associations within the province (Le Hiep, 2020) Through the diligent execution of these actions, Vinh Long province is actively promoting and nurturing an entrepreneurial ecosystem conducive to the growth and success of businesses within the region

Can Tho city was recognized as the entrepreneurial hub of the MRD, and has garnered remarkable achievements over the years Since 2016, the province has taken significant measures to streamline administrative procedures, tax regulations, land accessibility, and funding opportunities, while also focusing on market development initiatives Presently, the Can Tho Startup Ecosystem consists of nine members, while MRD incubator network encompasses seven members Annually, approximately 10,000 new businesses are established in Can Tho city, showcasing the vibrant entrepreneurial landscape within the province Notably, Plan 175, formulated by the People's Committee, places particular emphasis on nurturing an entrepreneurial ecosystem that fosters strong connections among investors, entrepreneurs, government bodies, mentors, universities, and other stakeholders both within and outside the province This strategic initiative aims to drive the development of entrepreneurship within Can Tho city As a testament to their commitment, by 2018, Can Tho city had organized over 30 events encompassing diverse activities such as experience-sharing workshops on creative and innovative startups, business incubators to stimulate novel entrepreneurial ideas, technology community initiatives, and skills and knowledge training programs (Nguyen Hong Gam & Nguyen Thi Ngoc Anh, 2019) Through these endeavors, Can Tho city continues to establish itself as a thriving center for entrepreneurship and innovation

Kien Giang province has established an entrepreneurship support gateway that employs a multi-channel support model, encompassing direct, indirect, and cross-link channels The direct channel enables individuals to directly seek entrepreneurial assistance either at the office or from the comfort of their homes Conversely, the

84 indirect channel provides online support through platforms such as email, websites, and social networks The cross-link model facilitates the involvement of third parties, including government agencies, investors, suppliers, and headhunters, who contribute to supporting entrepreneurs in their business development endeavors One of the key functions of this gateway is to organize workshops and exhibitions showcasing entrepreneurial products, with the active participation of government officials and mentors from both within and outside the province Concurrently, Kien Giang has established a center for creative and innovative entrepreneurship, aligning with the recommended direction of the Prime Minister, to foster an ecosystem that stimulates entrepreneurial activities within the province (Kien Giang Entrepreneurship, 2018) These initiatives underline Kien Giang's commitment to nurturing entrepreneurship and driving economic growth through comprehensive support systems and collaboration with various stakeholders

Soc Trang province has dedicated its efforts to the development of small and medium-sized enterprises (SMEs) and the cultivation of creative and innovative ideas since 2014, with generous support from the Canadian government To foster a conducive entrepreneurial environment, Soc Trang has introduced numerous supportive policies for businesses Furthermore, the establishment of the Center for Investment Promotion and Business Support at the end of 2013 has played a pivotal role in facilitating business growth and development within the province Additionally, in 2014, the Credit Guarantee Fund was established, providing valuable support to enterprises in accessing the necessary capital resources available in the region As part of their commitment to promoting entrepreneurship, Soc Trang introduced incubator programs in 2019, aiming to identify, support, and incubate promising startups and entrepreneurial groups These programs provide a range of non-financial and financial incubation services to facilitate the establishment and growth of startups, fostering an environment conducive to innovation and entrepreneurial pursuits (Mai Phuoc Hung,

2018) Soc Trang's comprehensive approach to supporting SMEs and fostering innovation underscores the province's dedication to nurturing a thriving entrepreneurial ecosystem

In the MRD region, the integration of product exploitation and conservation has spurred the development of innovative local products Startups in the region, the nation's largest agricultural producer, are leveraging raw agricultural materials to enhance product quality and generate higher economic value Notable examples include "soft dried sprouted coconut" from Ben Tre and "brown rice milk" from Can Tho.

85 province involves the art of "calligraphy painting on a dried lotus leaf." These examples exemplify the ingenuity and creativity demonstrated by startups in the MRD, as they leverage the region's agricultural resources to develop innovative products with enhanced market appeal and economic potential (Anh Tuyet, 2019)

In conclusion, entrepreneurship in the MRD region has witnessed noteworthy accomplishments Firstly, the escalating number of start-ups in the region demonstrates MRD population's ability to embrace the global entrepreneurship trend This surge signifies a growing entrepreneurial mindset and a willingness to explore new business opportunities Secondly, the entrepreneurial landscape in MRD exhibits a diverse and captivating range of activities, encompassing start-up idea competitions, business incubators, workshops, and skill and knowledge training initiatives These endeavors not only foster creativity and innovation but also equip aspiring entrepreneurs with the necessary tools and resources for success Thirdly, the establishment of a robust entrepreneurial ecosystem serves as a solid foundation for the region's entrepreneurship development The presence of entrepreneurship development centers, entrepreneur associations, and other supportive institutions creates an environment conducive to collaboration and knowledge exchange among entrepreneurs, investors, government entities, suppliers, and customers within and beyond the province This interconnected network facilitates the sharing of experiences, resources, and expertise, thereby nurturing a thriving entrepreneurial community in MRD Lastly, the government's active involvement in the entrepreneurship ecosystem is instrumental in promoting a conducive business environment MRD provinces have formulated and implemented a multitude of policies and plans aimed at fostering entrepreneurship and creating an attractive legal framework for entrepreneurial endeavors These governmental initiatives reflect a commitment to supporting and encouraging entrepreneurial activities, which, in turn, stimulate economic growth, job creation, and overall development in MRD region

These accomplishments are indeed sources of pride Nevertheless, they provide an incomplete depiction of the entrepreneurial landscape within MRD Subsequently, the subsequent section endeavors to present a comprehensive assessment of the entrepreneurial ecosystem in MRD based on evaluations provided by entrepreneurs themselves.

Results of expert interview

The qualitative phase of the research, grounded in expert interviews, serves as a critical element in advancing understanding of entrepreneurship within the MRD region Through a purposive and convenience sampling strategy, five distinguished experts were engaged to share their perspectives and insights These experts, carefully selected based on their affiliations and roles within the entrepreneurial support network, possess extensive experience in entrepreneurship training, management, and

86 the operation of entrepreneurial centers The purpose of expert interviews includes adjusting measurement scales, confirming the present of factors in the research model and providing viewpoints on entrepreneurship in the MRD In the subsequent sections, the results derived from these semi-structured interviews were presented

The collaborative engagement with five distinguished experts refines and optimizes the measurement scales employed in the study, specifically focusing on the

"Scale for Entrepreneurial Competencies" and the scale evaluating the "Efficiency and Novelty of Business Model." Through an iterative process of expert interviews, insights were gathered, leading to a significant reduction in the number of observation items while enhancing the precision and relevance of the scales

The initial version of the "Scale for Entrepreneurial Competencies" comprised 12 observation items designed to assess various competencies essential for entrepreneurial success Upon consultation with the experts, their collective insights and expertise allowed for a thorough evaluation of the competency scale Through a consensus-driven process, the scale was judiciously refined, resulting in a streamlined version with six carefully selected observation items These six items were deemed to encapsulate the core entrepreneurial competencies critical for the study's objectives The reduction aimed to enhance the efficiency of the scale by eliminating redundancy and ensuring a more focused and targeted assessment of entrepreneurial competencies The final set of six observation items reflects the distilled essence of competencies relevant to the MRD context, as validated by the expertise of the participating individuals

The initial version of the scale evaluating the "Efficiency and Novelty of entrepreneurial value creation" included 13 observation items, designed to capture the effectiveness and innovativeness of entrepreneurial business models Through a meticulous process, the scale was revised, resulting in a refined version containing six carefully selected observation items These items were chosen to holistically assess the efficiency and novelty of business models within the MRD entrepreneurial landscape

4.2.2 Confirming the present of factors in the research model

Through their rich expertise, these experts helped affirm the relevance and significance of the identified factors influencing entrepreneurial intentions, opportunity recognition, and competencies among MRD graduates The expert interviews functioned as a crucial validation mechanism, ensuring the alignment of the research model with the nuanced realities of the entrepreneurial landscape in the region

4.2.3 Providing viewpoints on entrepreneurship in the MRD

Beyond the specificities of measurement scales and research model factors, the expert interviews aimed to capture a comprehensive range of viewpoints on various aspects of entrepreneurship in the MRD By engaging experts from diverse backgrounds such as entrepreneurship training, center staffing, and network management, we sought to gather nuanced insights into the challenges, opportunities, and dynamics shaping entrepreneurship within academic and institutional settings The experts' perspectives contribute valuable qualitative data to complement quantitative findings

Question 1 In your opinion, what makes a person have entrepreneurial intention?

The experts' responses to the question revealed multifaceted insights into the factors shaping the desire to embark on entrepreneurial ventures

To spark innovative ideas, engage in brainstorming sessions that address unmet social needs These needs can arise from daily experiences where you or your acquaintances encounter challenges or lack local solutions Consider difficulties encountered at work or in personal endeavors By identifying these pain points, you can develop ideas that alleviate them and fulfill unmet demands within the community.

“Originating from the desire and passion in each person In addition, when a person has accumulated enough knowledge and experience, they will also intend to start a business and do their own business At the same time, in some cases, when there is enough finance, they also want to do their own business.”

“What makes an individual intend to start a business is passion If you have passion, love and pursue the idea, then start a business; The second problem is specialized understanding When starting a business, it is necessary to have understanding related to the field of entrepreneurship; Third is finance, having money can do what needs to be done.”

“Have passion in a certain field and want to develop the field you are passionate about.”

“There are many influencing factors such as passion for business, proving one's abilities or earning for living.”

According to the experts, entrepreneurial intention often germinates from an individual's innate desire and passion They highlighted the significance of this internal drive, emphasizing that individuals who harbor a genuine passion for a specific field are more likely to cultivate entrepreneurial intentions Furthermore, the accumulation of knowledge and experience emerged as a pivotal catalyst, suggesting that a threshold of expertise contributes to the inclination to initiate a business venture Additionally, the experts highlighted the importance of specialized understanding in the field of entrepreneurship, suggesting that individuals with in-depth knowledge in relevant areas are more likely to entertain entrepreneurial intentions Financial readiness was

Financial resources are a vital component in entrepreneurial initiatives, as they provide the means for individuals to act on their entrepreneurial intent Experts have observed that individuals are more likely to express entrepreneurial aspirations when they feel financially secure The availability of financial resources empowers these individuals, enabling them to transform their entrepreneurial intentions into tangible business ventures.

The process of idea generation played a central role in the experts' responses, indicating that entrepreneurial intentions are closely tied to the ability to brainstorm and formulate ideas They stressed that successful entrepreneurship often hinges on identifying and addressing societal needs, including challenges experienced in daily life, work, or local contexts This perspective underscores the importance of entrepreneurship as a solution-oriented endeavor

Question 2 According to you, do the following factors affect the entrepreneurial intention?

All five experts concurred on the significance of perceived behavior control, educational support, and formal network in influencing entrepreneurial intention This alignment underscores the collective belief in the importance of an individual's perceived ability to control their entrepreneurial actions, the role of education in fostering entrepreneurial intent, and the impact of formal networks on shaping entrepreneurial aspirations Moreover, a substantial agreement was observed among four experts regarding the pivotal influence of subjective norms, attitude toward behaviors, structural support, and family background on entrepreneurial intention These shared viewpoints emphasize the importance of social and familial factors, as well as individual attitudes, in shaping the decision-making process and intention to engage in entrepreneurial endeavors

While familial financial support may aid graduates, the success of their businesses should not rely solely on family connections Recognizing the broader factors involved, graduates' business ventures should be evaluated based on individual effort, strategic choices, and market influences This nuanced perspective underscores the importance of meritocracy and the complex interplay of internal and external forces in determining entrepreneurial outcomes.

Question 3 In your opinion, what makes a person recognize the opportunity to start a business?

The answers of five experts emphasize on the importance of environmental awareness, knowledge and understanding, proactive research, and creative thinking in the entrepreneurial process

“Surroundings, ideas arise in subjects in conversations”

“Self-research mindset about your own products and services”

“When they have knowledge and understanding of a certain field.”

“Wherever people with entrepreneurial spirit go, they see business opportunities”

Descriptive statistics of survey respondents

The majority of the overall respondents were female contributing 51.2 percent of all the responses On the other hand, male respondents made up 48.8 percent of the total respondents as seen in the following table This percentage shows that the gap between the rate of male and female gender is not so large In other words, the result implies that both genders have an equal opportunity to start their own businesses and to pursue their entrepreneurial aspirations and establish their own businesses in the context of MRD Table 4 2 Gender

Frequency Percent Valid Percent Cumulative Percent

(Source: Own survey on 627 observations, 2022)

The table shows that the majority of participants in the study were between the ages of 25 and 34 This age group made up 34.1% of the total sample The next largest age group was over 34, which made up 49.2% of the sample The smallest age group was 22-24, which made up 16.7% of the sample This result is consistent with GEM report which concluded that the proportion of people in the 25-34 and 35-44 age groups were most involved in entrepreneurship The main reason may be they had accumulated

92 experience, financial stability, networks and connections, and market gaps and opportunities recognition However, entrepreneurship can be pursued successfully at any age, and individual circumstances and motivations vary widely

Years old Frequency Percent Valid Percent Cumulative

(Source: Own survey on 627 observations, 2022)

Of the 627 respondents, there are 354 businesses in retail sector, equivalent to 56.5% Next, 82 respondents start up in manufacturing sector and 23 ventures specialize in service sector The rest are 168 businesses in other sectors, equivalent to 26.8% These numbers refer to the diversification in business sectors which offer entrepreneurs a larger number of opportunities According to the survey of entrepreneurs and MSMEs in Vietnam (2017), the data indicates that Micro, Small, and Medium Enterprises (MSMEs) are engaged in various industries A significant portion of MSMEs operates in professional or business services (25%) 15% of MSMEs participates in the retail or wholesale sector MSMEs are also actively involved in materials or manufacturing- related activities (12%) Likewise, according to GEM report (2017/2018), in Vietnam, the proportion of business start-up activities aimed at serving consumers is still as high as in 2017, reaching 74.8% The processing sector has increased from 14.4% to 17.7%, while the start-up rate in the business service sector has also increased from 3.3% to 6.6%

(Source: Own survey on 627 observations, 2022)

The findings incdicate that the MRD entrepreneurial landscape is characterized by both established sectors like retail and emerging areas like manufacturing and services This diversification, coupled with increasing consumer focus and shifting trends, points towards a vibrant and growing entrepreneurial ecosystem The findings are consistent with the report of GEM (2017/2018) and the survey of entrepreneurs and MSMEs in Vietnam (2017)

There are 212 respondents (33.8%) who own medium business Similarly, 210 respondents (33.5%) start up their micro businesses The percent of the rest who had small businesses is 205 (32.7%) Based on the responses, it is found that beside small and medium business, micro business is a popular choice of the graduates

(Source: Own survey on 627 observations, 2022)

This distribution signifies a diverse landscape of entrepreneurship among graduates in the MRD, with a notable presence in various business scales The popularity of micro-businesses may be attributed to the flexibility and relatively lower entry barriers associated with this scale, providing graduates with an accessible avenue to start their entrepreneurial journey.

Descriptive statistics of quantitative variables

4.4.1 Entrepreneurial intention of graduates in MRD

To evaluate the entrepreneurial aspirations of graduates in the MRD, the researcher utilized Liůỏn and Chen's (2009) scale, which employed a five-point Likert scale to assess participant perceptions The mean scores for entrepreneurial intention among MRD graduates ranged from 3.27 to 3.35, indicating a moderate level of intent This surpasses the 27% youth intention reported by the GEM in 2017, highlighting the relatively high entrepreneurial aspirations of MRD graduates The statement "I am determined to create a firm in the future" (EI4) received the highest mean score (3.35), suggesting graduates' strong determination to establish their businesses.

94 slightly higher level of determination to create a business in the future than other aspects measured While EI2 ("My professional goal is to become an entrepreneur") and EI3 ("I will make every effort to start and run my own firm") have the lowest mean scores (3.27), which might imply a slightly lesser degree of commitment to entrepreneurship as a professional goal or the efforts to start and run a firm compared with other aspects Especially, EI6 ("I have the firm intention to start a firm someday") has the highest standard deviation (.605), which indicates there is more variability in the responses for this statement compared to the others This variability suggests that while some graduates are very certain about their intentions to start a firm, others may be less certain

In conclusion, the overall data seem to indicate that, on average, the surveyed graduates possess a moderate to somewhat high level of entrepreneurial intention, with fairly consistent responses across the various statements relating to entrepreneurial goals and intentions The moderate level of variation in responses, as indicated by the standard deviations, reflects a relative homogeneity in the collective attitudes towards entrepreneurship within this group

Table 4 6 Entrepreneurial intention of graduates in MRD

EI1 I am ready to do anything to be an entrepreneur 627 1 5 3.34 572

EI2 My professional goal is to become an entrepreneur 627 1 5 3.27 544

EI3 I will make every effort to start and run my own firm 627 1 5 3.27 547

EI4 I am determined to create a firm in the future 627 1 5 3.35 551

EI5 I have very seriously thought of starting a firm 627 1 5 3.34 586

EI6 I have the firm intention to start a firm some day 627 1 5 3.32 605

(Source: Own survey on 627 observations, 2022)

4.4.2 Entrepreneurial opportunity recognition of graduates in MRD

In order to evaluate the entrepreneurial opportunity recognition of graduates in MRD, the researcher employed the scale developed by Ozgen and Baron (2007) The mean values obtained from the data analysis ranged from 3.06 to 3.4, indicating a relatively low level of entrepreneurial opportunity recognition among the graduates

This suggests that their capacity to identify and grasp entrepreneurial opportunities in their surroundings is not particularly strong OP1 gets the highest mean score (3.40), which suggests that graduates tend to agree, on average, that they see new venture ideas in their day-to-day routines OP2 shows the highest standard deviation of 1.249, implying the most variability in responses regarding individuals' alertness to new venture opportunities The average responses for all items are above the neutral midpoint of 2.5, indicating a general positive leaning towards recognizing entrepreneurial opportunities among the respondents

Table 4 7 Entrepreneurial opportunity recognition of graduates in MRD

OP1 While going about routine day-to-day activities, I see potential new venture ideas all around me

OP2 I have a special “alertness” or sensitivity toward new venture opportunities

OP3 “Seeing” potential new venture opportunities does not come very naturally to me

(Source: Own survey on 627 observations, 2022)

Moreover, the findings align with the GEM report, which indicates that the rate of recognizing entrepreneurial opportunities among young individuals was 46.4% in 2017 This percentage reflects an average performance in terms of recognizing entrepreneurial opportunities within the context of Vietnam These results highlight the need for further attention and efforts to enhance the entrepreneurial opportunity recognition abilities of graduates in MRD, potentially through targeted training programs and educational interventions aimed at fostering a greater awareness of entrepreneurial prospects and the skills necessary to identify and capitalize on them

4.4.3 Entrepreneurial competencies of graduates in MRD

An assessment of MRD graduates' entrepreneurial competencies revealed consistently high mean scores close to 3.3 and standard deviations near 0.5 across all categories Table 4.10 highlights that commitment competency received the highest consensus among graduates, with a mean value of 3.30 This finding underscores the importance of commitment in business success and its strong correlation with positive outcomes.

96 has been substantiated in previous studies conducted by various researchers However, it is noteworthy that none of the graduates strongly agreed on their organizing competency to effectively manage their businesses This suggests that there may be room for improvement in terms of their ability to organize and structure their entrepreneurial endeavors

Table 4.8 Entrepreneurial competencies of graduates in MRD

EC1 (Strategy Competency): I can develop a vision in mind for their business, develop vision and strategy, plan ahead, set goals and standards, sell ideas

EC2 (Commitment Competency): I have strong motivation to compete, drive to see venture through to fruition, I can make an impact and dedication

EC3 (Conceptual Competency) : I have cognitive ability and decision- making skill, I can weigh risks, think analytically, be innovative, be creative, show reasoning, capacity to reduce risks

EC4 (Opportunity Competency): I can recognize opportunity, capture opportunity, and identify customers need

EC5 (Relationship Competency): I have good interpersonal and communication skills, I can influence others and gain support

EC6 (Organizing Competency): I can direct, lead, delegate, motivate, plan and schedule work, develop program, prepare budget

(Source: Own survey on 627 observations, 2022)

In fact, a report by the Global Entrepreneurship Monitor (GEM) in 2017 revealed that only 53% of young individuals expressed confidence in their entrepreneurial competencies This percentage is relatively low compared to other countries within the same region These findings highlight the need to further develop and enhance the organizing competency of graduates in the MRD, as it plays a crucial role in the successful management and operation of entrepreneurial ventures Efforts should be

97 made to provide targeted training and support to improve their organizational skills, ultimately fostering their ability to effectively run their businesses and increase the likelihood of entrepreneurial success

4.4.4 Entrepreneurial value creation of graduates in MRD

The business model of graduates in the MRD is measured through four components: Efficiency, Novelty, Lock-in, and Complementarities

The respondents unanimously agree on the efficiency of their businesses However, the mean values obtained, ranging from 3.28 to 3.38, indicate that the level of perceived efficiency is not particularly high The result indicates that users find transactions to be neither very simple nor very complex The business models were evaluated to do a moderate job of preventing errors and to handle a variety of transaction sizes The results also suggest that the business model provides participants with the information they need to make good decisions On the other hand, users find that access to a wide range of products and services is not as strong as the other factors and transaction speed is neither very fast nor very slow

EF1 Transactions are simple from the user's point of view 627 2 5 3.37 582

EF2 The business model enables a low number of errors in the execution of transactions

EF3 The business model is scalable

(i.e., can handle small as well as large number of transactions) 627 1 5 3.37 564

EF4 The business model enables participants to make informed decisions

EF5 Access to large range of products, services and information, and other participants is provided 627 1 5 3.28 538

EF6 The business model enables fast transactions 627 2 5 3.34 604

(Source: Own survey on 627 observations, 2022)

Overall, the results in the table suggest that the business model is moderately efficient It is relatively simple for users, has a low error rate, is scalable, and provides participants with some information to make decisions However, it could be improved in terms of providing access to a wider range of products and services and making

Entrepreneurs must evaluate their business models' effectiveness in optimizing transaction efficiency High transaction counts and low profitability indicate a lack of value creation This suggests that graduates may need to improve their understanding and implementation of business models that enhance transaction efficiency Businesses must continually assess and refine their models to maximize value for customers while minimizing costs and ensuring optimal performance.

The second component of a business model is its novelty, which pertains to the level of creativity and innovation exhibited in business activities Examining the data presented in Table 4.12, it is evident that a majority of entrepreneurs acknowledge that the novelty of their business models only achieved mean values slightly above the average range, ranging from 3.36 to 3.44 This finding suggests that while entrepreneurs recognize the importance of incorporating novelty into their business models, there is room for improvement in terms of generating innovative and creative elements within their ventures It implies that the entrepreneurs may not be fully leveraging their potential to introduce unique and groundbreaking ideas or practices in their business activities

NV1 The business model offers new combinations of products, services and information

NV2 The business model brings together new participants 627 2 5 3.36 608

NV3 Incentives offered to participants in transactions are novel 627 2 5 3.41 579

NV4 The business model gives access to an unprecedented variety and number of participants and/or goods

NV5 The business model links participants to transactions in novel ways

NV6 The richness (i.e., quality and depth) of some of the links between participants is novel

(Source: Own survey on 627 observations, 2022)

Vietnam's innovation ecosystem ranks 48th out of 132 countries, according to the Global Innovation Index 2022 This indicates that Vietnam has areas where its innovation ecosystem can improve, as it falls behind several developed nations in the ranking.

Drawing from the findings presented in Table 4.12, it is evident that among the four components of the business model, Lock-in received the highest mean value This suggests that the aspect of lock-in within the business model has been particularly well- received by the respondents Specifically, three aspects repeat purchase from the ecosystem, contacting point, and virtual community exhibited the strongest representation of the business model's lock-in, with mean values ranging from 3.43 to 3.52 Lock-in, as a critical component of the business model, plays a crucial role in fostering customer loyalty, engagement, and long-term commitment It refers to the ability of a business to create barriers or incentives that encourage customers to remain engaged and connected to the ecosystem, making it challenging for them to switch to competing alternatives

LO1 Vendor rewards the repeat use or purchase from the ecosystem 627 1 5 3.52 574

LO2 Vendor creates value to the consumer by establishing added safety and security guidelines

LO3 Products can be customized by the consumer 627 2 5 3.37 561

LO4 Vendor offers a contact point for the user to communicate with the developer

LO5 Vendor has created a virtual community to add value for the end user 627 1 5 3.43 553

LO6 Vendor creates value to the user by actively increasing the number of users 627 1 5 3.40 620

(Source: Own survey on 627 observations, 2022)

Reliability test

In the study, the reliability of the measurement instrument was assessed using Cronbach's Alpha, which is a commonly used internal consistency measure This measure allows researchers to estimate the consistency or reliability of a set of test scores or items that are intended to measure a particular construct or concept

In this particular study, the measurement instrument consisted of 20 factors However, it is mentioned that one of these factors, the business model, is a second- order factor Second-order factors are higher-level constructs that are derived from multiple lower-level, or first-order, factors In the case of the business model, it is measured indirectly through four first-order factors: Efficiency, Novelty, Lock-in, and Complementarities These first-order factors are more specific aspects or dimensions of the overall second-order factor Each of these first-order factors likely has its own set of items or questions used to measure it

When conducting reliability analysis, it is common practice to assess the internal consistency of each first-order factor separately Therefore, in this study, only the 19 first-order factors (excluding the second-order factor) were subjected to reliability testing using Cronbach's Alpha This is because the second-order factor does not have

102 its own scale or set of items, but rather is indirectly measured through the four first- order factors

By assessing the reliability of the 19 factors using Cronbach's Alpha, the researchers could evaluate the consistency of responses within each factor Higher Cronbach's Alpha values indicate greater internal consistency and suggest that the items within each factor are measuring the same underlying construct reliably

It's important to note that reliability analysis provides insights into the internal consistency of the measurement instrument but does not address other aspects of validity or measurement error Other types of validity assessments, such as content validity or construct validity, should also be considered to ensure the robustness and accuracy of the measurement instrument

The results of the Cronbach’s Alpha analysis of the concept scales are summarized in the following table

Table 4.13 Summary of Cronbach’s Alpha analysis result

ES Education support 0.789 4 ES4 (Corrected Item-

EF Efficiency 0.829 6 EF4 (Corrected Item-

CO Complementarities 0.892 5 CO2 (Corrected Item-

(Source: Own survey on 627 observations, 2022)

Entrepreneurial intention (EI) got Cronbach’s Alpha 0.846 at the first analysis However, EI6 was removed from the scale because its Corrected Item-Total Correlation 0.276 less than 0.3 After this elimination, Cronbach’s Alpha of the scale increased to 0.888

Education support (ES) got Cronbach’s Alpha 0.726 at the first analysis However, ES4 was removed from the scale because its Corrected Item-Total Correlation 0.290 less than 0.3 After this elimination, Cronbach’s Alpha of the scale increased to 0.789

Entrepreneurial opportunity recognition (OP) got Cronbach’s Alpha 0.744 at the first analysis However, OP4 was removed from the scale because its Corrected Item- Total Correlation 0.281 less than 0.3 After this elimination, Cronbach’s Alpha of the scale increased to 0.809

Efficiency (EF) got Cronbach’s Alpha 0.801 at the first analysis However, EF4 was removed from the scale because its Corrected Item-Total Correlation 0.283 less than 0.3 After this elimination, Cronbach’s Alpha of the scale increased to 0.829

Complementarities (CO) got Cronbach’s Alpha 0.809 at the first analysis However, CO2 was removed from the scale because its Corrected Item-Total Correlation 0.243 less than 0.3 After this elimination, Cronbach’s Alpha of the scale increased to 0.892

The rest of factors got Cronbach’s Alpha from 0.742 to 0.887 greater than 0.60 and Corrected Item-Total Correlation are all greater than 0.30 hence there are no variables removed from these scales

Exploratory factor analysis (EFA)

Exploratory factor analysis (EFA) was employed to explore the underlying structure of the research concept and create homogeneous measures EFA is a statistical technique used to analyze the interrelationships among a set of variables and identify underlying factors or dimensions that explain the patterns of correlations

To ensure measurement accuracy, specific criteria were established to assess scales and variables Disqualified observations were excluded from analysis, eliminating data points with missing values or that failed to meet specified standards This step aimed to mitigate potential biases or result distortions arising from unreliable data.

Next, the EFA process was conducted to identify the factors within the data The factor extraction method used in this study was principal axis factoring This method estimates the factors based on the common variance shared among the variables, aiming to identify the most influential factors in the dataset To simplify the interpretation of the factors, Promax rotation was applied Rotation helps to maximize the interpretability of the factors by adjusting their orientation and minimizing the cross-loadings, which occur when variables load on multiple factors

The decision to retain or eliminate variables from the analysis was based on factor loadings In this study, variables with factor loadings below 0.50 were eliminated Factor loadings represent the strength and direction of the relationship between each variable and the underlying factor A factor loading of 0.50 or higher indicates a relatively strong association between the variable and the factor

The number of factors extracted was determined using the Eigenvalue criterion, with a cutoff point of Eigenvalue=1 Eigenvalues indicate the variance explained by each factor, and factors with Eigenvalues exceeding 1 account for more variance than a single variable.

To assess the adequacy of the scale, the researchers considered the total variance extracted It was required that the total variance extracted from the scale should be equal to or greater than 50% Total variance extracted indicates the proportion of variance in the observed variables that is accounted for by the underlying factors

Furthermore, the researchers set a threshold for the factor loadings, indicating that a weight of 0.5 or higher was considered acceptable for the inclusion of variables in the final scale This threshold ensures that variables strongly contribute to their respective factors and align with the underlying construct being measured

Effective measurement instruments rely on rigorous selection criteria to ensure their validity and reliability These criteria ensure the variables accurately represent the intended construct and contribute to the identified factors This adherence guarantees the instrument's ability to capture the desired information with precision and consistency.

105 these specific criteria and decisions are based on the approach and guidelines followed by the researchers and may vary in different studies or contexts

Due to the complexity of the model, all factors were not analyzed at the same time using Exploratory Factor Analysis (EFA) The research divided the model into 4 groups to analyze

4.6.1 Exploratory factor analysis on the entrepreneurial intention group (Group

Firstly, group of 7 independent factors which impact on entrepreneurial intention were analyzed The results of EFA the first time showed that seven factors were extracted (Appendix 11) The KMO value gained 0.850 which was greater than 0.5 (Garson, 2003) Furthermore, sig value was 0.000 50% These results met the requirements of EFA However, PC2 variable was removed from the model because its factor loading got 0.487 1)

Table 4.14 The factor weights of factors in Group 1

Embracing entrepreneurship offers significant advantages that outweigh its drawbacks Many individuals, like AT5, prefer this path, envisioning the establishment of their own firms, as expressed by AT3 AT1 further emphasizes the perceived benefits of entrepreneurship, indicating that the perceived advantages hold greater weight in their minds.

AT2: A career as entrepreneur is attractive for me .698

AT4: Being an entrepreneur would entail great satisfactions for me 678

FN4: To start entrepreneurship activities, I will get benefit from customer and supplier network .945

FN3: To establish business plan, I will get benefit from agencies related to entrepreneurship activities .903

FN1: To start entrepreneurship activities, I will get benefit from experience consultant .700

FN2: To start entrepreneurship activities, I will get benefit from country entrepreneurship network .650

SS3: Tax regulation gives facilities to entrepreneurs .810

SS1: In Vietnam, the government encourages entrepreneurs to establish a firm .787 SS2: State laws (rules and regulations) are favourable to running a business .771 SS4: Vietnamese economy provides many opportunities for entrepreneurs .710

FA1: My parents influence me in pursuing a career in entrepreneurship .869 FA3: My parents are willing to provide me with funds for entrepreneurship activities .721

FA4: My parents are role models for me in cultivating entrepreneurship .667

FA2: Assisting my parents in business has increased my desire to be an entrepreneur .601

SN1: I know many people in my university who have successfully started up their own firm .841

SN3: In my university, you get to meet lots of people with good ideas for a new firm .767

SN2: In my university, people are actively encouraged to pursue their own ideas .734

ES3: My university develops my entrepreneurial skills and abilities 954 ES1: The education in university encourages me to develop creative ideas for being an entrepreneur 668

ES2: My university provides the necessary knowledge about entrepreneurship 611

PC3: To start my own firm would probably be the best way for me to take advantage of my education .738

PC4: I have the skills and capabilities required to succeed as an entrepreneur .705 PC1: I am confident that I would succeed if I started my own firm .702

Extracted variance (%) 59.701 a Rotation converged in 6 iterations

(Source: Own survey on 627 observations, 2022)

Consequently, factor analysis according to Principal components with Varimax rotation was conducted The results showed that the factor loading coefficients are all greater than 0.5, and no variable uploads both factors at the same time with the loading factor close to each other Therefore, the factors can ensure convergent and discriminant values in the EFA In addition, no factor was misorder Therefore, after factor analysis, these independent factors were unchanged

4.6.2 Exploratory factor analysis on the entrepreneurial opportunity recognition group (Group 2)

Secondly, the five factors which influence on entrepreneurial opportunity recognition were analysed After the process of running EFA, five factors were extracted and this measure met the following requirements Eigenvalues is greater than

1 and the KMO value gained 0.748 which was greater than 0.5 (Appendix 13) Moreover, sig value was 0.000 50% All the factor loadings were greater than 0.5 Therefore, there was no change in the number of items of the construct The research concept achieved particular values, the measures qualified convergent validity, and EFA model was completely suitable Comparing to Individual-Opportunity Nexus theory and Entrepreneurial Cognition theory, the research might delve deeper into specific individual factors influencing opportunity recognition

Table 4.15 The factor weights of factors in Group 2

PN3: I have rich knowledge about markets such as supplier relationships, sales techniques, capital equipment retirement, etc.

PN4: I have a broad understanding of my business 759

PN1: I know how to serve markets 718

PN2: I am familiar with customer problems 710

CR1: I tried to find a really new business idea 811

CR2: I purposefully emphasized creativity when generating the business idea .782

CR4: I proposed and tried a lot of different ideas .638

CR3: I tried to find original and really novel ideas for a business .577

AS3: I have gone through several learning steps overtime to identify business opportunities .898

AS1: I search actively for business ideas .838

AS2: I have engaged in a deliberate and systematic search for an idea for a new business 699

SO2: My contacts or discussions with existing suppliers, distributors, or manufacturers help me to recognize opportunities 814

SO1: My contacts or discussions with potential or existing customers help me to recognize opportunities 718

SO3: My social and professional contacts help me to recognize opportunities 592

EA2: I can distinguish between profitable opportunities and not-so-profitable opportunities .771

EA3: I have a knack for telling high-value opportunities apart from low-value opportunities .721

EA1: I have a gut feeling for potential opportunities .652

(Source: Own survey on 627 observations, 2022)

4.6.3 Exploratory factor analysis on the group of entrepreneurial intention, entrepreneurial opportunity recognition, and entrepreneurial competencies (Group 3)

Confirmative Factor Analysis (CFA)

In order to measure how the model fits to the market data, Chi-square is a popular method; Chi-square is adjusted in the following order (CMIN/df); Comparative Fit Index (CFI); Tucker and Lewis Index (TLI); RMSEA (Root Mean Square Error Approximation) number The model is considered to fit to the market data when the Chi-square test has a P-value > 0.05 However, Chi-square values depend on the sample size If a model has the GFI, TLI, CFI roles ≥0.9 (Bentler & Bonett, 1980); CMIN/df can ≤ 3 (Carmines & McIver, 1981); RMSEA ≤ 0.08 (Steiger, 1990) then the model is considered to be compatible with the market data Tho and Trang (2008) stated that if the model had the values TLI, CFI ≥0.9, CMIN/df ≤ 2, RMSEA ≤ 0.08, then the model fits the market data However, in some cases, 0.80.9); (6) RMSEA = 0.035 ( 0.5) and statistical significance (p < 0.05)

According to Steenkamp & Van Trijp (1991), the model fit gives us necessary and sufficient conditions in order for the set of variables to acquire unidimensionality, unless the error of variables are correlated to each other The model fit had been tested in the above section, moreover the table in Appendix 5 showed that there is no correlation among variables’ error To evaluate the model fit, the research used confirmatory factor analysis (CFA) This technique assesses the extent to which the observed data fit the hypothesized model Good model fit suggests that the data align well with the assumed relationships between the variables

Additionally, Appendix 5 presented the results of the model fit analysis There was no correlation among the variables' errors The errors in this context refer to the

The variables within the scale exhibit unique variance not attributable to the underlying construct, indicating no correlation between variable errors This lack of correlation supports the scale's uni-dimensionality, suggesting that each variable exclusively measures unique aspects of the construct without the influence of shared measurement error or external factors.

Discriminant validity refers to the extent to which different constructs are distinct from each other, meaning that they are measuring separate and unique aspects of the phenomenon under study The study assessed the discriminant validity by comparing the latent variable correlations and the square root of the average variance of each construct The null hypothesis (H0) was that the correlation coefficient between the constructs is 1, indicating perfect correlation or lack of discriminant validity The alternative hypothesis (H1) was that the correlation coefficient is different from 1, indicating discriminant validity

The correlations shown in Appendix 6 suggest good discriminant validity because the P-values are all < 0.05 This suggests that the observed correlations between the constructs were statistically significant at the 5% level of significance In other words, the p-values being less than 0.05 indicate that the null hypothesis (H0) can be rejected The correlation coefficient of each pair of concepts is different from 1 at the reliability 95% This provides evidence in support of the alternative hypothesis (H1) that the constructs have discriminant validity The fact that the correlation coefficients are different from 1 suggests that the constructs are distinct and are measuring separate aspects of the phenomenon under study

4.7.5 Testing reliability of the scales

The reliability of the scales was examined through (1) Composite reliability and

(2) Variance extracted Composite reliability is a measure that evaluates the internal consistency of a scale It assesses the extent to which the items within a scale are measuring the same underlying construct consistently According to (Hair et al 2010) Variance extracted value of each concept should be greater than 0.5 The results show that the composite reliability scores for reflective measurement scales exceed the recommended threshold of 0.70 (Hair et al 2010), indicating good reliability among the retained items Additionally, the researchers examined the average variance extracted for each scale Variance extracted is a measure that quantifies the proportion of variance in the observed variables that is explained by the underlying construct It indicates the amount of variance shared among the items of the scale, reflecting the reliability of the measurement Regarding the average extracted variance, all of the scales have the required variance (ρvc >0.5) Therefore, the research model's concepts all gain reliability

Based on the results obtained, the researcher concluded that the measurement scales demonstrated good reliability The composite reliability scores for the reflective measurement scales were higher than the recommended threshold of 0.70, indicating strong internal consistency Moreover, the average variance extracted for each scale was above the threshold of 0.5, indicating that the constructs explained a significant portion of the variance in the observed variables Overall, these findings indicate that the measurement scales used in the research model exhibited good reliability The high composite reliability scores and the presence of the required variance extracted values support the consistency and stability of the measurements, suggesting that the scales reliably measure the intended constructs in the study

Table 4.18 Results of testing reliability of the scales

(Source: Own survey on 627 observations, 2022)

Code Factors Composite reliability (ρc) Average Variance

Testing theoretical models and hypotheses using SEM

The theoretical models include 2,840 degrees of freedom (df= 2,840) Moreover, the results of SEM confirm the fit of model based on the following criteria: λ2[2840] = 511.438 (P-value=.000); Chi-square/df=1.800 (