Software developers’ capabilities and entrepreneurial intention in ICT industry a vietnamese case

A Thesis for the Degree of Master Software Developers’ Capabilities and Entrepreneurial Intention in ICT Industry: A Vietnamese Case By Doan Thi Thanh Hien Department of Management Information Systems Graduate School GYEONGSANG NATIONAL UNIVERSITY August, 2018 Software Developer’s Capabilities and Entrepreneurial Intention in ICT Industry: A Vietnamese Case A Thesis Submitted to the Faculty of the Graduate School of the Gyeongsang National University By DOAN THI THANH HIEN In partial fulfillment of the requirements for the degree of Master in Management Information Systems August, 2018 Prof Sung Eui Cho, Thesis Supervisor Approved by the Committees of the Graduate School of Gyeongsang National University in Partial Fulfillment of the requirements for the degree of Master of Business Administration Dissertation Committee: Chairperson Date: Division of Management Information Systems Graduate School GYEONGSANG NATIONAL UNIVERSITY ACKNOWLEDGMENTS I came to Korean to study Master in the department of Management Information systems from years ago For me in this time, studying in other country is interesting experience but also difficult for me To this time, if it were not for the unconditional love, generosity, support and guidance from many people, I most certainly would not be the happy, optimistic, and confident person I am today Undertaking this Master in the department of Management Information systems means a great deal to me While I cannot individually thank everyone in this small part, I want each of him or her to know that they have and continue to teach and inspire me on a daily basis Firstly, I would like to express my sincere gratitude to my advisor Prof Sung Eui Cho for the continuous support of my Master study and related research, for his patience, motivation, and immense knowledge His guidance helped me in all the time of research and writing of my thesis and papers I could not have imagined having a better advisor and mentor for my Master study Secondly, I must express my gratitude to all professors in my department: Prof Han-Seong Yoon, Prof DaeYul Jeong, Prof Dong Hee Yoo, Prof Jong Hwan Sub and Prof Buyng-Huyk Ahn Thank you for presenting a great lectures, all great suggestions and advices with tons of helpful and academic knowledge for me and other students Thirdly, I would like to thank all friends in Korean, my labmates and my classmates who together share time, knowledge with me Their friendliness makes me feeling as I stayed at home Especially, I am very grateful to Dr Motahareh Zarefard who strongly assists me in my study as well as in all of my difficulties when staying in Korea Her prompt inspirations, timely suggestions with kindness, enthusiasm and dynamism have enabled me to complete my papers and thesis Thank you for being my teacher, friend and my older sister Last but not least, I owe my special thanks to my parents and my family who always stay by my side all my life Thank you for being so patient to me, for never giving up on me no matter what happens Especially, I want to thanks two important people in my life, it is my mother- Prof Dinh Ngoc Lan and my husband I feel a deep sense of gratitude and admire to my mother who was spend all her life for me and formed part of my vision and taught me the good things that really matter in life The lectures of my mother still provide persistent inspiration for my journey in this life I love my mother and thank her so much Finally, I must express my gratitude to my husband Mr Nguyen Duc Quang who always support and encouragement me in my life and my work also Doan Thi Thanh Hien CONTENTS ABSTRACT I Introduction II Background Literature review 1.1 Software developer’s capabilities 1.2 Entrepreneurial intention (EI) Developing proportions Research model 28 III Empirical study 29 Data collection 29 Measurement model development 34 IV Result of Analysis 36 Reliability and validity 37 1.1 Exploratory factor analysis (EFA) 39 1.2 Confirmatory factor analysis (CFA) 41 Test of structure model 44 Hypotheses test 46 Comparison model test 50 V Summary of the Results 53 Discussions and conclusions 54 Limitations 56 Future research 57 REFERENCES 58 APPENDIX I 73 APPENDIX II 78 LIST OF TABLES Table 1: Summary of definition Table 2: Profile of respondents 30 Table 3: KMO and Bartlett's Test 39 Table 4: Exploratory Factor Analysis for independent variables 40 Table 5: Obtained of Confirmatory Factor Analysis( CFA) 42 Table 6: Confirmatory Factor Analysis (CFA) 43 Table 7: Correlations 45 Table 8: Overall model fit 46 Table 9: Hypothesis test results 48 Table 10: Analysis result of comparison model 51 LIST OF FIGURES Figure 1: Research model 29 Figure 2: Result of analysis 48 Figure 3: Result of comparison model without mediating factor 51 Figure 4: Result of comparison model with entrepreneurial self-efficacy 52 Figure 5: Result of comparison model with entrepreneurial motivation 52 ABSTRACT This study investigates the relationship between entrepreneurs’ capabilities and start-up intentions in software industries particularly focusing on software developers’ capabilities For this study, five factors of technical skills, industry knowledge, creativity, cooperation and communication, benchmarking reflecting software developer's capabilities were adopted as independent variables In addition, two factors of entrepreneurial self- efficacy and entrepreneurial motivation were adopted as mediating factors in the relationship between independent factors and start-up intention Data were collected from entrepreneurs and employees in software developing companies in northern Vietnam and analyzed through structural equation modeling (SEM) to examine the relationship Results showed the significance of software developers’ capabilities for the development of entrepreneurial intentions through the mediating factors The results also revealed that benchmarking does not necessarily lead to entrepreneurial intention due to the important role of entrepreneurial self-efficacy Key words: software developer's capabilities; entrepreneurial intention; entrepreneurial motivation; entrepreneurial self-efficacy; technical skills; industry knowledge; creativity; cooperation and communication; benchmarking I Introduction Entrepreneurship is a process by which individuals pursue opportunities to run their own business or to have creative ideas inside the organization where they work It plays a vital role in new business creation, expansion of existing business as well as social and economic development Entrepreneurial activities create job opportunities, increase competitiveness and boost economic growth (Linan et al.2008) For example in 2010, there were 248,824 active enterprises in Vietnam Thousands of new firms were established and millions of entrepreneurs attempted to start their own business venture to catch the new wave of economic growth With this rocket development of private business, entrepreneurship has contributed approximately 40% of GDP to the economy And one of the most central problems of entrepreneurship research is the definition of entrepreneurial behavior and Delmar (1996) said this is because it is inter-related to so many social science fields (economics, history, psychology, sociology, geography) and with each coming with a definition that suits it The word “ENTREPRENEUR” has its origin during the 17 th and 18th century in the French economics (Dees, 1998) And Watson had scientifically explained entrepreneurship by evaluating the nature of economics and commerce and posited a question “if entrepreneurs are born or made?” He expressed his opinion that an enterprise is an economic building block that enables an individual to undertake an economic activity Thus, an entrepreneur can be described as that individual that manages, takes and seeks opportunity and assumes risk in the enterprise (Watson) Having mentioned that entrepreneurial opportunities are said to be enormous and individuals just need to recognize them only, if they are willing to exploit them Obviously, entrepreneurship research has gotten to a level where the intention of individuals or as a team should become an important thing and in addition, the study of entrepreneurial intention is important to entrepreneurship and firm creation Entrepreneurship is very important, but finding a goal and opportunities are the first things must be done for entrepreneurship In fact that, this time is a gold time to have business opportunities in IT industry when more aspects of our lives become reliant on computer software, researchers and businessman also regard information technology (IT) as a competitive tool in a business environment In IT industry, there are many areas that can be mentioned and researched, however, focusing research on human especially developers will bring the more positive effects Nowadays, there is an ever-growing demand for software developers In some parts of the world, the actual numbers of software developer vacancies are expected to rise by up to 30% by the year 2020, according to Computerworld In fact, in IT and software industry, Software developers are responsible for designing the computer programmes and operating systems that we use in everyday life From word processors, games and websites, software developers are the people that design these systems so we can use them easily and more efficiently As a software developer in the early stages of a career, much of role will be focussed on the design, maintenance, and implementation of technology As the career develops, developers will move away from many of the day to day aspects towards project management and strategic roles as employees of the company Software developers will then support the company when integrating the software into a business After that, they will provide ongoing management support and recommend system updates We know that IT is a core ingredient of nearly any part of our everyday life Many studies in the past have tried to tell about the entrepreneurial intention factors and processes that become entrepreneurs, also they have attempted to understand the role of IT in business, and more researchers are paying attention to the notion of IT capabilities, including developer's capabilities, entrepreneurial capability, and administration capability in business However, there are few works that have investigated how software employees especially software developer can become entrepreneurs in their business Moreover, software developer of research has considered a vast Liñán, F 2008 Skill and value perceptions: how they affect entrepreneurial intentions? 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competencies and innovative startup intentions in university students: Focus on mediating factors International Journal of Entrepreneurship, 72 Zhao, H., Seibert, S E., & Hills, G E (2005) The mediating role of self-efficacy in the development of entrepreneurial intentions Journal of Applied Psychology, 90, 1265–1272 APPENDIX I Questionnaires – English Version “Software developer’s capabilities and entrepreneurial intention in ICT industry: A Vietnamese case” 73 This questionnaire has been developed to identify the effect of Software developer’s capabilities and entrepreneurial motivation in ICT industry It would be grateful if you read all questions carefully and answer completely The data collected through this questionnaire will be kept confidential and used exclusively only for the purpose of academic research in Gyeongsang National University of South Korea Thank you very much for your cooperation Researchers: Doan Thi Thanh Hien (Master student, Gyeongsang National University), email: doanthanhhien.tueba@gmail.com Phone: +82 -10 -3234 -1405 SungEui Cho (Professor, Gyeongsang National University, S Korea), email: dcrsmk10@gnu.ac.kr The following elements describe the software developer’s capabilities and the characteristics of entrepreneurial in your IT Company Please read carefully and check yourselves’ perception on the point scale 1=strongly disagree 2=disagree 5=tend to agree 3=tend to disagree 4=neither agree or disagree 6=agree 7=strongly agree Technical skills (TS) 1.1 I have capabilities to design entire application architectures 1.2 I can design software and network 1.3 I have a capability to solve complex software problems 1.4 I have a capability to understands the lifecycle of IT/software development 74 1.5 I have capability to use software development tools Industry Knowledge (IK) 1.6 I have knowledge about IT and software industry 1.7 I have knowledge about target market and target customer with my software project 1.8 I have knowledge about customer trends about software application 1.9 My knowledge can filtering information overload in project 1.10 I can use my knowledge to analyze, synthesize ideas and information Creativity (CR) 1.11 I have creativity to improve existing products in my project 1.12 I think myself to be creative person 1.13 I have a capability to creative ideas for new software 1.14 I have a capability to use new development tools to my project 1.15 I have a capability to build new software idea from other people Cooperation and communication (CAC) 1.16 I have a capability to cooperate with different technical parts in same time 1.17 I have a capability to participate in discussions with team members 1.18 I have a capability to cooperate with non technical people 1.19 I have a capability to communicate with customers/users Benchmarking (BM) 1.20 I have a capability to evaluate my current software and performance 1.21 I have a capability to collect information from the best competitors 1.22 I have a capability to compare my software with the best similar kinds of software 1.23 I have a capability to analyze strong and weakness of the best competitor in project 1.24 I have a capability to innovate based on the achievements of others software Entrepreneurial Self-efficacy (ESE) 1.25 Starting a business in IT industry would not be difficult for me 1.26 I never avoid facing difficulties 75 1.27 I am a self-reliant person 1.28 I have skills and abilities required for my business in IT and software industry 1.29 I know how to use IT capabilities to develop an entrepreneurial project 1.30 I know basic requirements for a software business Entrepreneurial motivation (EM) 1.31 Developer’s capabilities positively effect to my motivation to be an entrepreneur 1.32 positively effect to my motivation to begin my own business 1.33 positively effect to my motivation to begin a new project or work 1.34 positively effect to my motivation to challenge for new services 1.35 positively effect to my motivation to innovate present business 1.36 positively effect to increasing possibility of success in work and business 1.37 positively effect to finding new business opportunities Entrepreneurial Intention (EI) 1.38 I have strong intention to become my own boss 1.39 I have a start-up intention with new and innovative ideas 1.40 I am interested in a start-up in new or emerging industries 1.41 I have intention to start and run a business sometimes 1.42 I always try to find new business opportunities 1.43 I am interested to business in innovation industry The followings are questions about you 2.1 Gender? Male Female 76 2.2 How old are you? (………… years old.) 2.3 What is your highest level of education? High school Master Undergraduate Ph.D Others 2.4 What is your major before? Computer or software related Engineering related Business Natural science Human and social science 2.5 What type of business or organization are/were you employed? Software industry Other service industries Manufacturing IT services Others, (please specify)… 2.6 Where you belong to? Entrepreneur or cofounder Director or high level manager Middle Manager and employee 2.7 Which of the following best describes your position while engaged in this project? Programmer / Developer Software Engineer Analyst Consultant Software Architect Executive Other (please specify) 2.8 How many employees you have in your company? (… persons) 2.9 How many years have run business? (……………years) 2.10 Where are you working now? ( … ) 77 APPENDIX II Questionnaires – Vietnamese Version “Khả nhà phát triển phần mềm ý định kinh doanh ngành công nghiệp thong tin truyền thông: Trường hợp nghiên cứu Việt Nam” Bản câu hỏi phát triển để xác định ảnh hưởng khả nhà phát triển phần mềm đến ý định kinh doanh ngành công nghệ thông tin Chúng biết ơn bạn đọc hoàn thành bảng câu hỏi cẩn thận Các liệu thu thập thông qua bảng câu hỏi giữ bí mật sử dụng riêng cho mục đích nghiên cứu học thuật Đại học Quốc gia Gyeongsang Hàn Quốc Cảm ơn hợp tác người Người nghiên cứu: Doan Thi Thanh Hien (Thạc sĩ trường đại học quốc gia Gyeongsang, Hàn Quốc) Email: doanthanhhien.tueba@gmail.com Điện thoại: +82 -10 -3234 -1405 SungEui Cho (Giáo sư trường đại học quốc gia Gyeongsang, Hàn Quốc) Email: dcrsmk10@gnu.ac.kr Các yếu tố sau mô tả khả nhà phát triển phần mềm đặc điểm kinh doanh công ty công nghệ thông tin bạn Xin vui lòng đọc cẩn thận đưa ý kiến nhận xét bạn theo thang điểm từ đến 7(từ không đồng ý đến đồng ý) 1= Rất không đồng ý 2=Khơng đồng ý 3=Có khuynh hướng khơng đồng ý 5=Có khuynh hướng đồng ý 6= Đồng ý 7= Rất đồng ý Các kỹ kỹ thuật (TS) 78 4=Trung bình 1.1 Tơi có khả thiết kế ứng dụng 1.2 Tơi thiết kế phần mềm mạng 1.3 Tơi có khả giải vấn đề phức tạp phần mềm 1.4 Tơi có khả hiểu vịng đời phát triển cơng nghệ thơng tin/phần mềm 1.5 Tơi có khả sử dụng công cụ để phát triển phần mềm Kiến thức ngành (IK) 1.6 Tơi có kiến thức CNTT ngành cơng nghiệp phần mềm 1.7 Tơi có kiến thức thị trường mục tiêu khách hàng mục tiêu dự án phần mềm 1.8 Tôi hiểu xu hướng khách hàng ứng dụng phần mềm 1.9 Kiến thức tơi dùng để lọc thông tin tải dự án 1.10 Tơi sử dụng kiến thức để phân tích, tổng hợp ý tưởng thông tin Sáng tạo (CR) 1.11 Sự sáng tạo giúp cải thiện sản phẩm 1.12 Tơi nghĩ tơi người sáng tạo 1.13 Tơi đưa ý tưởng sáng tạo cho phần mềm 1.14 Tơi sử dụng công cụ phát triển để hồn thành dự án 1.15 Tơi xây dựng nên ý tưởng phần mềm dựa ý tưởng người khác Hợp tác giao tiếp (CAC) 1.16 Tơi hợp tác với phận kỹ thuật khác thời gian 1.17 Tơi có khả tham gia bàn luận với thành viên nhóm 1.18 Tơi hợp tác làm việc với người không lĩnh vực kỹ thuật 1.19 Tơi giao tiếp trao đổi với khác hàng người dùng Điểm chuẩn (BM) 1.20 Tơi đánh giá tình trạng hiệu suất phần mềm làm 1.21 Tơi thu thập liệu từ đối thủ mạnh tơi 1.22 Tơi có khả so sánh phần mềm với phần meemg tương tự khác 1.23 Tơi có khả phân tích điểm mạnh điểm yếu đối thủ cạnh tranh với dự án 1.24 Tơi có khả đổi phần mềm dựa thành tựu trước Tự hiệu kinh doanh (ESE) 79 1.25 Bắt đầu kinh doanh ngành CNTT khơng khó tơi 1.26 Tôi không trốn tránh đối mặt với khó khăn 1.27 Tơi người ln tự lực việc 1.28 Tơi có kỹ cần thiết cho việc kinh doanh ngành CNTT 1.29 Tôi biết cách sử dụng khả CNTT cho dự án kinh doanh 1.30 Tôi biết yêu cầu cho kinh doanh phần mềm Động lực kinh doanh (EM) 1.31 Các khả nhà phát triển thúc đẩy động lực trở thành nhà kinh doanh 1.32 Các khả nhà phát triển thúc đẩy tơi bắt đầu kinh doanh cho riêng 1.33 Các khả nhà phát triển thúc đẩy làm dự án công việc 1.34 Các khả nhà phát triển thách thức làm dịch vụ 1.35 Các khả nhà phát triển thúc đẩy động lực đổi việc kinh doanh 1.36 Các khả nhà phát triển có hiệu lực tích cực để tăng khả thành công công việc kinh doanh 1.37 Các khả nhà phát triển tác động đến việc tìm kiếm hội kinh doanh Ý định kinh doanh (EI) 1.38 Tơi có ý định mạnh mẽ để trở thành doanh nhân 1.39 Tơi có ý định khởi nghiệp với ý tưởng sáng tạo 40 Tôi quan tâm đến việc khởi nghiệp ngành công nghiệp mới 1.41 Thỉnh thoảng tơi có ý định bắt đầu vận hành kinh doanh 1.42 Tơi ln ln tìm kiếm hội kinh doanh 1.43 Tơi cảm thấy thích thú với việc kinh doanh ngành cơng nghiệp hồn toàn đổi 80 Sau câu hỏi cá nhân bạn 2.1 Giới tính? Nam 2.2 Bạn tuổi? Nữ (………… tuổi) 2.3 Trình độ giáo dục cao bạn có gì? Cấp Thạc sĩ Đại học Tiến sĩ Trình độ khác 2.4 Trước bạn học chuyên ngành gì? Liên quan đến máy tính phần mềm Khoa học tự nhiên Khoa học xã hội người Kinh doanh Liên quan đến kỹ sư 2.5 Bạn làm việc loại hình cơng ty nào? Cơng nghiệp phần mềm Các ngành công nghiệp dịch vụ khác Sản xuất, chế tạo Khác (………………) Dịch vụ CNTT 2.6 Hiện bạn giữ chức vụ gì? Doanh nhân- người đồng sáng lập Giám đốc quản lý cấp cao Quản lý cấp trung nhân viên 2.7 Công việc cụ thể bạn làm gì? Lập trình viên/ Nhà phát triển phần mềm Kiến trúc sư phần mềm Hành Kỹ sư phần mềm Khác (…………….) Phân tích viên Cố vấn viên 2.8 Công ty bạn làm việc có nhân viên? (………………… người) 2.9 Cơng ty bạn làm việc hoạt động năm?(………………… năm) 2.10 Bạn làm việc thành phố nào? ( … ) 81 82 ... technically competent manner and to monitor it in an independent and critical manner (Mohd Fauzi, 2000) Technical skills can be acquired in a formal and nonformal way In a formal way, Medina (2010)... strength and reduce their weaknesses (Oakland, 2003; Van Schalkwyk, 1998) In ICT industry, in simpler terms, the benchmarking capability of a developer is capability comparing and evaluating the abilities.. .Software Developer’s Capabilities and Entrepreneurial Intention in ICT Industry: A Vietnamese Case A Thesis Submitted to the Faculty of the Graduate School of the Gyeongsang National University