Skip to main navigation menu Skip to main content Skip to site footer

The impact of young employees’ perceptions of current paid jobs on the entrepreneurial intention with the mediator of job satisfaction: The case of Vietnam

DOI:

https://doi.org/10.15678/EBER.2022.100404

Abstract

Objective: While research on entrepreneurial intention is popular around the world and relies mostly on data from university students, a question open to academics is: ‘do working people’s perceptions of their employment affect their start-up intention?’. An answer to this question would be useful for employers and other stakeholders, hence, this article aims to explore the impact of young employees’ perception of their current paid jobs on their entrepreneurial intention via the mediator of job satisfaction.

Research Design & Methods: A sample of 272 working people aged 25 to 30 from all three regions of Vietnam with a structure corresponding to the whole population was used to conduct a quantitative study utilising structural equation modelling (SEM). The research model was established based on the entrepreneurship event model (EEM), the theory of planned behaviour (TPB), and the job characteristics model.

Findings: Young employees’ perceptions of current job characteristics (perception of work meaningfulness, responsibility, and results) positively impact their current job satisfaction. In turn, job satisfaction mediates the relationship between the perception of current job characteristics and the entrepreneurial intention of young employees, with its positive effect on the intention.

Implications & Recommendations: Employers should design jobs with many opportunities for learning, and create an intra-entrepreneurial working environment to take advantage of the employees’ start-up intention and keep the talents.

Contribution & Value Added: The findings of this research challenge our long-held belief that job satisfaction has a negative relationship with entrepreneurial intention. The explanation was found in the new employee generations’ high need for learning opportunities. In addition, the study also investigated entrepreneurship through a new lens combined of the entrepreneurship event model (EEM), the theory of planned behaviour (TPB), and the job characteristics model and demonstrated the power of these theories.

Keywords

Entrepreneurial Intention; Job Characteristics; Job Satisfaction; Start-up Ecosystem

(PDF) Save

Author Biography

Tran Thi Hong Lien

A lecturer at the Faculty of Business Administration, University of Economics and Law, Vietnam National University – Ho Chi Minh City. She holds a Ph.D. degree in Management. Her research interests are entrepreneurship, leadership and corporate governance.


References

  1. Ajzen, I. (1987). Attitudes, traits, and actions: Dispositional prediction of behavior in personality and social psychology. Advances in Experimental Social Psychology, 20, 1-63. https://doi.org/10.1016/S0065-2601(08)60411-6
  2. Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T
  3. Azoulay, P., Jones, B.F., Kim, J.D., & Miranda, J. (2020). Age and high-growth entrepreneurship. American Economic Review: Insights, 2(1), 65-82. https://doi.org/ 10.1257/aeri.20180582
  4. Bagozzi, B., & Bluedorn, R. (1989). The relationship between corporate entrepreneurship and entrepreneurial intention. Strategic Management Journal, 20, 21-44.
  5. Bentler, P.M., & Bonett, D.G.J.P.b. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88(3), 588-606. https://doi.org/10.1037/0033-2909.88.3.588
  6. Berkup, S.B. (2014). Working with generations X and Y in generation Z period: Management of different generations in business life. Mediterranean Journal of Social Sciences, 5(19), 218-218. https://doi.org/10.36941/mjss
  7. Blaese, R., Noemi, S., & Brigitte, L. (2021). Should I stay, or should I go? job satisfaction as a moderating factor between outcome expectations and entrepreneurial intention among academics. International Entrepreneurship and Management Journal, 17(3), 1357-1386. https://doi.org/10.1007/s11365-021-00744-8
  8. Busenitz, L.W., & Barney, J.B. (1997). Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making. Journal of Business Venturing, 12(1), 9-30. https://doi.org/10.1016/S0883-9026(96)00003-1
  9. Ciavarella, M.A., Buchholtz, A.K., & Riordan, C.M., et al. (2004). The Big Five and venture survival: Is there a linkage?. Journal of Business Venturing, 19(4), 465-483. https://doi.org/10.1016/j.jbusvent.2003.03.001
  10. Costa, S.F., Caetano, A., & Santos, S.C. (2016). Entrepreneurship as a career option: do temporary workers have the competencies, intention and willingness to become entrepreneurs?. The Journal of Entrepreneurship, 25(2), 129-154. https://doi.org/10.1177/0971355716650363
  11. D’Amato, A., & Herzfeldt, R. (2008). Learning orientation, organizational commitment and talent retention across generations: A study of European managers. Journal of Managerial Psychology, 23(8), 929-953. https://doi.org/10.1108/02683940810904402
  12. Doan Xuan Toan, & Phan Thi Thu Hien (2020). The impact of entrepreneurial education on entrepreneurial intention: The case of Vietnamese. Management Science Letters, 10(8), 1787-1796. https://doi.org/10.5267/j.msl.2019.12.040
  13. Doanh, Duong Cong (2021). The role of contextual factors on predicting entrepreneurial intention among Vietnamese students. Entrepreneurial Business and Economics Review, 9(1), 169-188. https://doi.org/10.15678/EBER.2021.090111
  14. Douglas, E.J., & Shepherd, D.A. (2000). Entrepreneurship as a utility maximizing response. Journal of Business Venturing, 15(3), 231-251. https://doi.org/10.1016/S0883-9026(98)00008-1
  15. Dries, N., Pepermans, R., & De Kerpel, E. (2008). Exploring four generations’ beliefs about career: Is “satisfied” the new “successful”?. Journal of Managerial Psychology, 23(8), 907-928. https://doi.org/10.1108/02683940810904394
  16. Eisenhauer, J.G. (1995). The entrepreneurial decision: Economic theory and empirical evidence. Entrepreneurship Theory Practice, 19(4), 67-79. https://doi.org/10.1177/104225879501900405
  17. Ensher, E.A., Murphy, S.E., & Sullivan, S.E. (2002). Reel women: Lessons from female TV executives on managing work and real life. Academy of Management Perspectives, 16(2), 106-120. https://doi.org/10.5465/ame.2002.7173564
  18. Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research. Philosophy and Rhetoric, 10(2), 130-132.
  19. Gartner, W.B. (1990). What are we talking about when we talk about entrepreneurship?. Journal of Business Venturing, 5(1), 15-28. https://doi.org/10.1016/0883-9026(90)90023-M
  20. GEN. (2020). The Global Startup Ecosystem Report 2020. Retrieved from https://startupgenome.com/reports/gser2020 on August 27, 2022.
  21. Gianakos, I. (1999). Patterns of career choice and career decision-making self-efficacy. Journal of Vocational Behavior, 54(2), 244-258. https://doi.org/10.1006/jvbe.1998.1668
  22. Gilad, B., & Levine, P. (1986). A behavioral model of entrepreneurial supply. Journal of Small Business Management, 24(4), 45-53.
  23. Hackett, G., & Betz, N.E. (1981). A self-efficacy approach to the career development of women. Journal of Vocational Behavior, 18(3), 326-339. https://doi.org/10.1016/0001-8791(81)90019-1
  24. Hackman, J.R., & Oldham, G.R. (1980). Work Redesign. Readding, Mass: Addison-Wesley.
  25. Hair, J.F.J., Black, W.C., Babin, B.J., & Anderson, R.E. (2019). Multivariate Data Analysis (Eighth Edition ed.). United Kingdom: Cengage.
  26. Hershatter, A., & Epstein, M. (2010). Millennials and the world of work: An organization and management perspective. Journal of Business Psychology, 25(2), 211-223. https://doi.org/10.1007/s10869-010-9160-y
  27. Hoole, C., & Bonnema, J. (2015). Work engagement and meaningful work across generational cohorts. SA Journal of Human Resource Management, 13(1), 1-11. https://doi.org/10.4102/sajhrm.v13i1.681
  28. Hoppock, R. (1935). Job Satisfaction. New York: Harper and Brothers.
  29. Hu, L.T., & Bentler, P.M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: a Multidisciplinary Journal, 6(1), 1-55. https://doi.org/10.1080/10705519909540118
  30. Hunjra, A.I., Ahmad, H.M., Rehman, K.U., & Safwan, N. (2011). Factors influencing intention to create new venture among young graduates. Africa Journal of Business Management, 5(1), 121-127.
  31. Isen, A.M., & Baron, R.A. (1991). Positive affect as a factor in organizational-behavior. Research in Organizational Behavior, 13, 1-53.
  32. Jeno, L.M., & Diseth, Å. (2014). A self-determination theory perspective on autonomy support, autonomous self-regulation, and perceived school performance. Reflecting Education, 9(1), 1-20.
  33. Jeong, J., & Choi, M. (2017). The expected job satisfaction affecting entrepreneurial intention as career choice in the cultural and artistic industry. Sustainability, 9(10), 1-16. https://doi.org/10.3390/su9101689
  34. Jusoh, M., Simun, M., & Chong, S.C. (2011). Expectation gaps, job satisfaction, and organizational commitment of fresh graduates. Education+Training, 53(6), 515-530. https://doi.org/10.1108/00400911111159476
  35. Kahneman, D. (1979). Prospect theory: An analysis of decisions under risk. Econometrica, 47, 313-327. https://doi.org/10.2307/1914185
  36. Korn, K.J.M. (2010). A second look at generational differences in the workforce: Implications for HR and talent management. People Strategy, 33(2), 50.
  37. Krueger Jr, N.F., Reilly, M.D., & Carsrud, A.L. (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(5-6), 411-432. https://doi.org/10.1016/S0883-9026(98)00033-0
  38. Lee, L., Wong, P.K., Der Foo, M., & Leung, A. (2011). Entrepreneurial intentions: The influence of organizational and individual factors. Journal of Business Venturing, 26(1), 124-136. https://doi.org/10.1016/j.jbusvent.2009.04.003
  39. Lee, R., & Wilbur, E.R. (1985). Age, education, job tenure, salary, job characteristics, and job satisfaction: A multivariate analysis. Human Relations, 38(8), 781-791. https://doi.org/10.1177/001872678503800806
  40. Li, J., Yang, F., Qi, J., Sun, R., & Geng, R. (2022). The influence of job satisfaction on entrepreneurial inten-tion: a cross-level investigation. International Small Business Journal, 40(3), 385-402. https://doi.org/10.1177/02662426211018831
  41. Locke, E.A., & Latham, G.P. (1984). Goal Setting: A Motivational Technique that Works!. Englewood Cliffs, NJ: Prentice-Hall.
  42. Lohmöller, J.B. (1989). Latent Variable Path Modeling with Partial Least Squares. Springer Science & Business Media.
  43. Maresch, D., Harms, R., Kailer, N., & Wimmer-Wurm, B. (2016). The impact of entrepreneurship education on the entrepreneurial intention of students in science and engineering versus business studies university programs. Technological Forecasting Social Change, 104, 172-179. https://doi.org/10.1016/j.techfore.2015.11.006
  44. Mihalcea, A.D., Mitan, A., & Vițelar, A. (2012). Generation Y: views on entrepreneurship. Economia. Seria Management, 15(2), 277-287.
  45. Nguyễn Anh Tuấn, Do, T.H.H., & Vu, T.B.T., et al. (2019). Factors affecting entrepreneurial intentions among youths in Vietnam. Children Youth Services Review, 99, 186-193. https://doi.org/10.1016/j.childyouth.2019.01.039
  46. Nguyen Cuong (2015). Entrepreneurial intention in Vietnam: Same as everywhere?. Journal of Asia Entrepreneurship Sustainability, 11(4), 108-135. https://doi.org/10.2139/ssrn.3906124
  47. Nguyen Cuong (2018). Demographic factors, family background and prior self-employment on entrepreneur-ial intention-Vietnamese business students are different: why?. Journal of Global Entrepreneurship Re-search, 8(1), 1-17. https://doi.org/10.1186/s40497-018-0097-3
  48. Nguyen Xuan Truong (2020). Factors Affecting Entrepreneurial Decision of Nascent Entrepreneurs Belonging Generation Y in Vietnam. The Journal of Asian Finance, Economics, Business, 7(8), 407-417. https://doi.org/10.13106/jafeb.2020.vol7.no8.407
  49. Nguyen, T.V., Bryant, S.E., Rose, J., Tseng, C.H., & Kapasuwan, S. (2009). Cultural values, market institutions, and entrepreneurship potential: A comparative study of the United States, Taiwan, and Vietnam. Journal of Developmental Entrepreneurship, 14(01), 21-37. https://doi.org/10.1142/S1084946709001120
  50. Noorderhaven, N., Thurik, R., Wennekers, S., & Van Stel, A. (2004). The role of dissatisfaction and per capita income in explaining self–employment across 15 European countries. Entrepreneurship Theory Practice, 28(5), 447-466. https://doi.org/10.1111/j.1540-6520.2004.00057.x
  51. OECD (1998). Fostering entrepreneurship. Industries Services and Trade, 16(1), 277-290.
  52. Orlando, B., Tortora, D., & Riso, T., et al. (2021). Entrepreneurial intentions and high-status seeking in career expectations: a portrait of talents in emerging countries. The International Journal of Human Resource Management, 32(1), 1-34. https://doi.org/10.1080/09585192.2021.1875495
  53. Purwanto, A., Asbari, M., & Santoso, T.I., et al. (2020). Social and Management Research Quantitative Analy-sis for Medium Sample: Comparing of Lisrel, Tetrad, GSCA, Amos, SmartPLS, WarpPLS, and SPSS. Jurnal Ilmiah Ilmu Administrasi Publik, 10(2), 518-532.
  54. Ringle, C.M., Wende, S., & Becker, J.M. (2015). SmartPLS 3: Bönningstedt: SmartPLS. Retrieved from http://www.smartpls.com on August 30, 2021.
  55. Ross, A. (2019). Basic and Advanced Statistical Tests: Writing Results Sections and Creating Tables and Figures. Leiden, The Netherlands: Brill.
  56. Schawbel, D. (2012). Millennials vs. baby boomers: Who would you rather hire. Retrieved from https://business.time.com/2012/03/29/millennials-vs-baby-boomers-who-would-you-rather-hire/ on August 20, 2021.
  57. Schjoedt, L., & Shaver, K.G. (2007). Deciding on an entrepreneurial career: A test of the pull and push hypotheses using the panel study of entrepreneurial dynamics data. Entrepreneurship Theory Practice, 31(5), 733-752. https://doi.org/10.1111/j.1540-6520.2007.00197.x
  58. Schoon, I., & Duckworth, K. (2012). Who becomes an entrepreneur? Early life experiences as predictors of entrepreneurship. Developmental Psychology, 48(6), 1719. https://doi.org/10.1037/a0029168
  59. Shapero, A., & Sokol, L. (1982). The social dimensions of entrepreneurship. Encyclopedia of Entrepreneurship. Englewood Cliffs, NJ: Prentice-Hall, 72-90.
  60. Spreitzer, G.M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of Management Journal, 38(5), 1442-1465. https://doi.org/10.5465/256865
  61. Steger, M.F., Dik, B.J., & Duffy, R.D. (2012). Measuring meaningful work: The work and meaning inventory (WAMI). Journal of career Assessment, 20(3), 322-337. https://doi.org/10.1177/1069072711436160
  62. Terjesen, S. (2005). Senior women managers’ transition to entrepreneurship: Leveraging embedded career capital. Career Development International, 10(3), 246-259. https://doi.org/10.1108/13620430510598355
  63. Tran Ngoc Them. (2001). Return to the Tenet of Vietnam Culture: NXB TP. Hồ Chí Minh.
  64. Tran Thi Hong Lien. (2021). A brief history of innovative startups in Vietnam and the role of public policies. Journal of Trade Science, 157, 107-116.
  65. VCCI. (2016). Provincial Competitive Index PCI 2016. Retrieved from https://pcivietnam.vn/an-pham/bao-cao-pci-2016-ct170 on 7th July 2021
  66. Walsh, J.T., Taber, T.D., & Beehr, T.A. (1980). An integrated model of perceived job characteristics. Organizational Behavior Human Performance, 25(2), 252-267. https://doi.org/10.1016/0030-5073(80)90066-5
  67. Watson, K., Hogarth‐Scott, S., & Wilson, N. (1998). Small business start‐ups: success factors and support implications. International Journal of Entrepreneurial Behavior Research, 4(3), 217-238. https://doi.org/10.1108/13552559810235510
  68. Weiner, S.P. (2000). Worldwide technical recruiting in IBM: Research and action. PD Bachiochi (Chair), Attract-ing and keeping top talent in the high-tech industry. Practitioner Forum at the Fifteenth Annual Confer-ence of the Society for Industrial and Organizational Psychology, New Orleans, LA.
  69. Werner, A., Gast, J., & Kraus, S. (2014). The effect of working time preferences and fair wage perceptions on entrepreneurial intentions among employees. Small Business Economics, 43(1), 137-160. https://doi.org/10.1007/s11187-013-9528-2
  70. Wijethunge, W., Tennakoon, W., & Dilshani, A. (2020). What Prevent Them Shifting? Perceived Barriers of Employee Transition to Entrepreneurship: A Concept Paper. Paper presented at the International Conference on Business and Information (ICBI) Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.
  71. Yang, K.P., Hsiung, H.H., & Chiu, Y.J. (2015). The comfort zone of the value circumplex for entrepreneurship: a structural analysis. Career Development International, 20(6), 663-683. https://doi.org/10.1108/CDI-07-2014-0087
  72. Zondag, H.J. (2004). Knowing you make a difference: Result awareness and satisfaction in the pastoral profession. Review of Religious Research, 45(3), 254-268. https://doi.org/10.2307/3512263.

Downloads

Download data is not yet available.