Academic journal article Academy of Entrepreneurship Journal

Mediating Role of Entrepreneurial Self Efficacy in Developing Entrepreneurial Behavior of Entrepreneur Students

Academic journal article Academy of Entrepreneurship Journal

Mediating Role of Entrepreneurial Self Efficacy in Developing Entrepreneurial Behavior of Entrepreneur Students

Article excerpt

INTRODUCTION

Based on the education level, unemployment from university graduate showed a high number and the percentage is getting higher compared to lower the education stage. In line with the effect of entrepreneurship education, there is a requirement to build an understanding of how to develop and support the emergence of young entrepreneurs whilst they are still learning at schools (Indarti, Rostiani & Nastiti, 2010). (Boyd & Vozikis, 1994) developed Social Cognitive Career Theory by discussing background factors and the important of self-efficacy in enhancing entrepreneurial intention. (Ajzen, 2005) developed Theory of Planned Behaviour by adding individual background factors such as; demography, personality, social, environment and information which effect and individual behaviour, also known as modified theory of planned behaviour.

Based on that development, some researchers suggested that the background factors role which basically consisted of personality aspects (personality traits), entrepreneurial learning and environment support in creating intention and entrepreneurial behaviour development. Research conducted by (Lüthje & Franke, 2003) personality traits as antecedent of entrepreneurial behaviour, which has indirect role towards entrepreneurial intention and does not develop selfefficacy construction effect. Kristiansen & Indarti (2004); Ayodele (2013); Karabulut (2016), conducted background factors, i.e., need for achievement, locus of control (personality) and instrumental readiness (environment) as direct antecedent toward entrepreneurial intention. (Zhao, Seibert & Hills, 2005), is focusing on the role of self-efficacy as mediating between propensity and entrepreneurial learning toward entrepreneurial intention.

Most commonly acquired personality traits in entrepreneurial research are risk propensity and locus of control. Instrumental readiness, entrepreneurial knowledge and entrepreneurial experience are most commonly acquired in environment support and entrepreneurial learning needed for new entrepreneurs. Some researchers showed that there was a positive role of risk propensity, internal locus of control, entrepreneurial knowledge and experience in entrepreneurial practice, instrumental readiness, in explaining entrepreneurial intention and behaviour (Fini, Grimaldi & Sobrero, 2009; Hmieleski & Corbett, 2006; Kristiansen & Indarti, 2004; Liñán & Santos, 2007; Ramayah & Harun, 2005; Zhao, Seibert & Hills, 2005; Sreih, Assaker & Hallak, 2016; Sajilan, Hadi & Tehseen, 2015).

Instead, in some researches, personality traits, entrepreneurial learning, accessibility towards environment were founded as weak predictor and did not give any positive effect on entrepreneurial intention, (Luca & Cazan, 2011) did not find any significant effect of willingness in risk propensity and internal locus of control as construction representing personality traits on entrepreneurial intention. (Lucky & Ibrahim, 2015) did not find significant effect of environmental factor on entrepreneurial intention.

Researches of entrepreneurial intention and behaviour focused on MBA students and nascent entrepreneurs had limitation in applying for entrepreneur students. Entrepreneur students are not only creating new ventures but they are in the end of TEA (Totally Early stage of entrepreneurial Activity), a phase in entrepreneur process which finally they have to decide to continue their business or to stop it (discontinued), as can be seen in Figure 1.

In order to establish their business, they have to choose to stop (discontinuance) or to choose entrepreneur as their career. Entrepreneur students need specific cognitive factor as a mediating some background factors toward a career as entrepreneur. According to (Krueger, Reilly & Carsrud, 2000; Zhao, Seibert & Hills, 2005) entrepreneurial self-efficacy was suggested has the biggest effect toward entrepreneurial intention. …

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