The role of entrepreneurial intention in the institutionand entrepreneurial activity linkage: Cross-country evidence

Abstract

Objective: The objective of the article is to integrate the theory of planned behaviour (TPB) to argue that entrepreneurial intention plays a moderating role in the relationship between institutions and entrepreneurial activity.

Research Design & Methods: The article uses panel data analysis conducted on a sample of 112 countries from 2001 to 2021, using data from the Global Entrepreneurship Monitor. Various panel regression techniques estimate the total early-stage entrepreneurial activity (TEA) conditional upon institutions and entrepreneurial intention.

Findings: The study found evidence of moderating effects of entrepreneurial intention in the institution and entrepreneurial activity linkage. Results revealed a negative impact of institutions on total entrepreneurial activity, with pre-existing entrepreneurial intention at the country level mitigating this impact by 4% to 50%, depending on institution dimensions. Notably, the moderating effect of entrepreneurial intention weakens over time, lasting up to two years.

Implications & Recommendations: To promote entrepreneurship, policymakers should prioritize initiatives that nurture and shape entrepreneurial intention, recognizing that the moderating effect of entrepreneurial intention weakens over time.

Contribution & Value Added: This article is the first attempt to consider entrepreneurial intention as a key construct to examine the potential moderating mechanisms between institutions and entrepreneurship, drawing on the TPB. The study uncovers a new role of entrepreneurial intention in navigating the institutional context for entrepreneurial activity.

Keywords

institutions, entrepreneurship, entrepreneurial intention, theory of planned behaviour, GEM data

Author Biography

Thi Thu Tra Pham

Associate Professor at The Business School, RMIT Vietnam, Ho Chi Minh City, Vietnam.

Van Ha Thi Cam

Lecturer at Department of Economics and Finance, The Business School, RMIT Vietnam, Hanoi, Vietnam

Duy Nguyen

Assistant professor at Department of Business Administration, Mississippi Valley State University

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