Relationship between role models and entrepreneurial intentions

“VIETNAM NATIONAL UNIVERSITY, HANOI” “VIETNAM JAPAN UNIVERSITY” - “HOANG DUC TRUNG” RELATIONSHIP BETWEEN ROLE MODELS AND ENTREPRENEURIAL INTENTIONS “MASTER’S THESIS” “BUSINESS ADMINISTRATION” “Hanoi, 2020” “VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY” - “HOANG DUC TRUNG” RELATIONSHIP BETWEEN “ROLE MODELS AND” “ENTREPRENEURIAL INTENTIONS” “MAJOR: BUSINESS ADMINISTRATION” “CODE: 8340101.1” “RESEARCH SUPERVISORS:” “Assoc Prof Dr VU ANH DUNG” “Assoc Prof Dr KODO YOKOZAWA” “Hanoi, 2020” TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT ABBREVIATION LIST OF TABLES LIST OF FIGURES CHAPTER 1: INTRODUCTION 1.1 Research background 1.1.1 Practical motivation 1.1.2 Theoretical motivation 1.2 Subject and scope of research .3 1.2.1 Subject of research 1.2.2 Scope of research 1.3 Research objective CHAPTER 2: LITERATURE REVIEW 2.1 Theoretical background .4 2.1.1 Entrepreneurship 2.1.2 Entrepreneurial intention 2.1.3 Entrepreneurial Self-efficacy 2.1.4 Role model 2.2 Previous related research 2.2.1 Mediating role of ESE 2.2.2 Moderators of role models’ impact on ESE i 2.3 Research gap 11 2.4 Research questions 12 2.5 Hypotheses 12 2.6 Research model 14 CHAPTER 3: RESEARCH METHODOLOGY 16 3.1 Procedure 16 3.2 Data collection 17 3.3 Measurements 17 CHAPTER 4: DATA ANALYSIS 19 4.1 Descriptive statistics 19 4.2 Analysis .19 4.2.1 Reliability test 19 4.2.2 Exploratory factor analysis 20 4.2.3 Regression 23 CHAPTER 5: DISCUSSION 28 5.1 Discussion 28 5.2 Theoretical and practical implications 30 5.2.1 Theoretical implications .30 5.2.2 Practical implications 31 5.3 Limitations and directions for future researches .32 REFERENCES 33 ii ACKNOWLEDGEMENT I would like to express my sincere gratitude to my supervisors – Associate Prof Dr Vu Anh Dung and Associate Prof Dr Kodo Yokozawa for generous and careful guidance I would also like to thank Mr Nguyen Anh Hao and Ms Pham Thi Xuan Thoa for their enthusiastic support during my research A very special thanks go to MBA program’s teachers and staff, my friends, and my family for great companion and encouragement iii ABSTRACT A considerable amount of studies on the influence of role models on entrepreneurial intentions have been conducted However, the specific mechanism by which role models exercise such influence is not yet fully discovered This paper attempts to explore such mechanism, with the possible mediating effect from entrepreneurial self-efficacy, and expected moderating effect from perceived similarity and previous entrepreneurial experience The author used quantitative method with a sample of 205 undergraduate business-majored students of Foreign Trade University in Vietnam The results show that role models positively impact students’ entrepreneurial intentions, both directly and indirectly via the mediator which is entrepreneurial self-efficacy Contrary to the expectations, perceived similarity and previous entrepreneurial experience appear to have no significant moderating impact on how role models alter respondents’ self-evaluation of their business-related competency This research contributes to the literatures regarding antecedents of entrepreneurial intentions, backing up the idea that entrepreneurial self-efficacy could be an efficient mediating variable in models related to entrepreneurial intentions Keywords: entrepreneurial intentions, role models, entrepreneurial self-efficacy, perceived similarity, previous entrepreneurial experience iv ABBREVIATION EI Entrepreneurial Intention ESE Entrepreneurial Self-efficacy PEE Previous Entrepreneurial Experience PS Perceived Similarity RM Role Model v “LIST OF TABLES” Table 2.1: Previous researches related to mediating role of ESE Table 4.1: Cronbach’s Alpha Test results 20 Table 4.2: KMO and Barlett’s Test results 20 Table 4.3: Total Variance Explained 21 Table 4.4: Rotated Component Matrix .21 Table 4.5: Correlations 22 Table 4.6: Result of hypothesis testing .27 vi “LIST OF FIGURES” Figure 1.1: Entrepreneurial Intention Rates in 2017 Figure 2.1: Theory of Planned Behavior .5 Figure 2.2: Entrepreneurial Intention Model Figure 2.3: Determinants of ESE Figure 2.4: Proposed research framework 14 Figure 3.1: Mediation analysis by PROCESS Macro .16 Figure 4.1: Gender ratio 19 Figure 4.2: Model of mediating effect 23 Figure 4.3: RM’s impact over ESE 24 Figure 4.4: RM and ESE’s impacts over EI 24 Figure 4.5: RM’s total, direct, and indirect impact over EI 25 Figure 4.6: Result for model of mediating effect 25 Figure 4.7: Moderate effect of PS .26 Figure 4.8: Moderating effect of PEE .26 Figure 4.9: Result for both mediating and moderating effect 27 Figure 5.1: Role Models’ impact on individual’s ESE in relation with amount of time working together .30 Figure 5.2: Role Models’ impact on individual’s EDE in relation with Role Models’ successfulness 30 vii CHAPTER 1: INTRODUCTION 1.1 Research background 1.1.1 Practical motivation Entrepreneurship is important to the growth of society in the sense that it helps to create jobs and promote innovation (Shane & Venkataraman, 2000) Sobel and King (2008) have also shown that entrepreneurship rate is directly proportional to economic growth rate Since the turning of the century, entrepreneurship has proved to be one of the stabilizer of economies’ financial states (Bohlmann, Rauch, & Zacher, 2017) Not only influential in terms of finance or economics, entrepreneurship in general, and one of its branches called social entrepreneurship in particular, contribute greatly to social wellbeing by mobilizing social resources to resolve social issues (Beckmann, 2012) Acknowledging that entrepreneurship would be a crucial engine driving the country forwards, Vietnam has applied various policies and initiatives to promote entrepreneurial spirit, especially among younger generations (Nguyen & Gillian, 2016) However, despite the efforts, it appears that entrepreneurship movement in Vietnam is not yet as strong as it is expected to be As can be observed from the above Figure 1.1 below, Vietnam’s Entrepreneurial Intention Rate is lower than the average rate of Asia Pacific Region and rates of several neighbor countries Considering that entrepreneurship is one of the top development priorities of Vietnam, as reflected in the Government’s Initiative for Startup Ecosystem called National Program 844, the current rate of Entrepreneurial Intention is not up to the ambition of a so-called startup nation To be specific, in 2017, Global Entrepreneurship Monitor evaluated Entrepreneurial Intention Rates, calculated as “percentage of population aged 18-64 who intend to Role models’ impact of individual’s ESE Amount of time working with Role Models Figure 5.1: Role Models’ impact on individual’s ESE in relation with amount of time working together Source: Author Role models’ impact of individual’s ESE Role Models’ successfulness Figure 5.2: Role Models’ impact on individual’s EDE in relation with Role Models’ successfulness Source: Author 5.2 Theoretical and practical implications 5.2.1 Theoretical implications This study enriches researches on antecedents of entrepreneurial intentions It provides empirical support for the idea that role models can exert significant impact 30 on students’ desire of establishing a business venture (Basow & Howe, 1980; Shapero, 1982) The results also back up the notion that ESE could be a crucial mediator between EI and many determinants (Zhao, Hills, & Seibert, 2005) In most of the existing researches, determinants are often closely and clearly connected to entrepreneurship, such as entrepreneurship education or entrepreneurial intention (Oyugi, 2015; Malebana & Swanepoel, 2014; Shinnar, Hsu, & Powell, 2014) This study, however, shows that role models – a factor that is not exclusive to the field entrepreneurship – could also become a significant determinant, implying that other non-entrepreneurship-specific factors have the capability of affect individual entrepreneurial intentions both directly and indirectly through of ESE As for the tested moderating effects of perceived similarity and previous entrepreneurial experience, this study doesn’t provide evidence for existence of such moderating effects As very few studies have provided comprehensive explanation of by what mechanisms role models could affect entrepreneurial intention (Van Auken et al., 2006), it leaves out much room for research regading this matter 5.2.2 Practical implications This study’s findings encourage entrepreneurship education program, or activities of similar purpose of promoting entrepreneurship, to include the element of role models in their teaching contents To ignite the interest of start-up within students, telling stories about role models or organizing activities in which students can interact with role models could be effective methods (Liu, Ma, & Li, 2019) Also, in constructing teaching contents, it is not always necessary to put entrepreneurial intention as the absolutely required output of the programs Granted that the ultimate goal is often the ignited or boosted students’ aspiration for startups, an improvement in learners’ confidence in their entrepreneurial capability could be considered as one successful result 31 As entrepreneurial self-efficacy is firmly established as an efficient mediator between various antecedents and entrepreneurial intentions, a wide range of contents could be added to entrepreneurship education programs such as creativity workshops or problem-solving simulation (Huq & Gilbert, 2017) Even though in this research, no moderating effect from perceived similarity or previous entrepreneurial experience was found, it is still highly likely that there would be certain factors moderating the link between RM and ESE Therefore, for educational programs to better utilize the power of role models, deeper understanding about those possible moderators is recommended 5.3 Limitations and directions for future researches First, the sample size is relatively small and students coming from one same university may influence the experiment’s results A more extensive study with bigger sample of more diverse background could help to deliver better results Also, a better data collection and analysis of sample’s demography would allow more control variables, increasing the reliability of the research’s result Second, undergraduate students may not be the best choice to test the hypothesis regarding previous entrepreneurial experience Even though items such as participation in internships and participation in family members’ businesses are included in the questionnaire to increase the possibilities of students’ having relevant experience, it appears that not too many students have substantial and concrete entrepreneurial experience A possible improvement for future research would be taking samples of students belonging to master programs who have working experience Lastly, perceived similarity is a relatively new concept in general, and in study about entrepreneurial intention in particular Therefore, analyzing this factor by quantitative method only may not be sufficient Qualitative approach could be applied so that better insights or explanations could be found regarding the role and impact of perceived similarity 32 REFERENCES Ajzen, I (1991, 12 1) The theory of planned behavior Organizational Behavior and Human Decision Processes, 50(2), 179-211 Ajzen, I (2002) Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior Journal of Applied Social Psychology, 32(4), 665683 Allen, E., & Collisson, B (2020) Do aspirational role models inspire or backfire? 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(2006) In Researching Entrepreneurship (pp 1-16) Kluwer Academic Publishers Yi, G (2018, 12 1) Impact of internship quality on entrepreneurial intentions among graduating engineering students of research universities in China International Entrepreneurship and Management Journal, 14(4), 1071-1087 37 Zhao, H., Hills, G., & Seibert, S (2005, 11) The mediating role of self-efficacy in the development of entrepreneurial intentions Journal of Applied Psychology, 90(6), 1265-1272 38 APPENDIX QUESTIONNAIRE ON ENTREPRENEURIAL INTENTION OF VIETNAMESE STUDENTS My name is Hoang Duc Trung, and I am currently studying Master of Business Administration at Vietnam Japan University I am conducting this survey as a mean of gathering data for my master thesis regarding entrepreneurial intention of Vietnamese students All the information collected will be kept confidential and used for academic purpose only Thank you for your understanding and cooperation PERSONAL INFORMATION Gender:  Male Female “Indicate your level of agreement with the following statements, value them from (total disagreement) to (total agreement).” I N o Statements In the academic or career path I am pursuing, there is someone I admire I know of someone who has a career that I would like to pursue There is someone I am trying to be like in my academic or career pursuits 39 II N o Statements My role model and I have a lot in common My role model has thoughts and ideas that are similar to mine My role model has personalities that are similar to mine My role model has styles of communications that are similar to mine III N o Statements I am ready to anything to be an entrepreneur I am capable of identifying new business opportunities 10 My professional goal is to become an entrepreneur 11 I am capable of creating new products 12 I will make every effort to start and run my own firm 13 I am capable of thinking creatively 14 I am determined to create a firm in the future 15 I am capable of commercializing an idea or new development 16 I have a very seriously thought of starting a firm 17 I have the firm intention to start a firm someday 40 IV N o Statements I have participated in new business venture start-up I have participated in new market development work I have participated in new product development work I have participated in internships that helped me to understand better about entrepreneurship 2 I have participated in my family or a family member’s business 41 APPENDIX BẢNG CÂU HỎI VỀ DỰ ĐỊNH KHỞI NGHIỆP CỦA SINH VIÊN VIỆT NAM Tơi tên Hồng Đức Trung, sinh viên cao học ngành Quản trị Kinh doanh Đại học Việt Nhật Khảo sát tiến hành nhằm phục vụ cho việc viết khóa luận đề tài dự định khởi nghiệp sinh viên Việt Nam Mọi thông tin thu thập bảo mật sử dụng cho mục đích nghiên cứu Xin chân thành cảm ơn hợp tác Anh Chị THƠNG TIN CÁ NHÂN Giới tính:  Nam Nữ Nêu mức độ đồng ý bạn với phát biểu đây, đánh giá theo thang điểm sau: (hồn tồn khơng đồng ý); (khơng đồng ý); (phân vân); (đồng ý); (hoàn toàn đồng ý) I ST T Phát biểu Trên đường học thuật nghiệp, có người mà tơi ngưỡng mộ Tơi biết vài người có nghiệp mà tơi muốn theo đuổi Có người mà cố gắng trở nên giống đường học thuật nghiệp 42 II STT Phát biểu Hinh mẫu có nhiều điểm tương đồng với tơi Hình mẫu có suy nghĩ ý tưởng tương đồng với Hình mẫu có tính cách tương đồng với tơi Hình mẫu có cách giao tiếp tương đồng với tơi III ST T Phát biểu Tơi sẵn sáng làm điều để trở thành doanh nhân Tơi có khả xác định hội kinh doanh 10 Mục tiêu nghiệp trở thành doanh nhân 11 Tơi có khả tạo sản phẩm 12 Tôi nố lực để thành lập vận hành cơng ty riêng 13 Tơi có khả suy nghĩ sáng tạo 14 Tôi tâm thành lập công ty riêng tương lai 15 Tôi có khả thương mại hóa ý tưởng 16 Tơi có suy nghĩ nghiêm túc việc thành lập cơng ty riêng 17 Tơi có ý định vững việc thành lập công ty riêng thời điểm 43 IV S T T Phát biểu 18 Tôi tham gia vào việc thành lập doanh nghiệp 19 Tôi tham gia vào việc phát triển thị trường 20 Tôi tham gia vào việc phát triển sản phẩm 21 Tôi tham gia thực tập việc thực tập giúp tơi hiểu rõ kinh doanh khởi nghiệp 22 Tôi tham gia vào công việc kinh doanh gia đình thành viên gia đình 44 ... Liu, Ma, and Li (2019) examine the moderating effect of role model’s successfulness and the distance between subjects and role models The result shows that the more successful role models are,... conducted by role models (Morgenroth, Ryan, & Peters, 2015) That is to say, entrepreneurial experience when individuals can work with role models could amplify the impact link between role models and. .. intention H4: Role models has indirect positive impact on Entrepreneurial Intention H5: Previous Entrepreneurial Experience has negative impact on the relationship between Role Model and Entrepreneurial