Sculpting Factors of Entrepreneurship among University Students in Indonesia
Objective: The objective of this article is to investigate students as a young generation and their intention to start their own business by analysing the internal and external factors of entrepreneurial intentions in Indonesia.
Research Design & Methods: The research sample included 652 undergraduate students spread across universities on the five largest islands in Indonesia collected using an online survey form sent using email and group chat. The collected data was analysed by using partial least square-structural equation modelling (PLS-SEM) to investigate the proposed hypotheses in the model.
Findings: The results indicated that from the structural model, we confirmed that entrepreneurial self-efficacy shows non-significant results on entrepreneurial intention. However, the most considerable effect of the supporting condition demonstrated better results on entrepreneurial self-efficacy rather than on behavioural control.
Implications & Recommendations: The non-significance effect of entrepreneurial self-efficacy on entrepreneurial intention indicated that having sufficient knowledge regarding entrepreneurship is not enough without the confidence to apply it.
Contribution & Value Added: From the empirical evidence, this research has two implications for educators: it is crucial to improve student creativity and to increase the role of external stakeholders to develop entrepreneurial spirit among the students.
supporting condition; entrepreneurial self-efficacy; perceived behavioral control; entrepreneurial intention
Adelekan, S.A., Williamson, M., Atiku, S.O., & Ganiyu, I.O. (2018). Mediating Influence of Self-Efficacy in the Development of Entrepreneurial Intentions among Undergraduates. Jounal of Accounting and Management, 8(3), 14-26.
Ajzen, I. (2002). Constructing a TpB Questionnaire: Conceptual and Methodological Considerations. Retrieved from http://people.umass.edu/aizen/pdf/tpb.measurement.pdf on 15 August, 2019.
Amaro, S., & Seabra, C. (2015). Comparing CB-SEM and PLS-SEM Results: An empirical example. In 2nd International Symposium on Partial Least Squares Path Modeling - the Conference for PLS Users. Sevilla: Catedra Metropol Parasol. https://doi.org/http://dx.doi.org/10.3990/2.357
Bandura, A., Freeman, W.H., & Lightsey, R. (1997). Self-Efficacy: The Exercise of Control. Journal of Cognitive Psychotherapy, 13(2), 158-166. https://doi.org/10.1891/0889-83188.8.131.52
Baron, R.M., & Kenny, D.A. (1986). The moderator mediator variable distinction in social psychological research: Conceptual strategic and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182. https://doi.org/10.1037/0022-35184.108.40.2063
Davis, S.M. (2011). Social Entrepreneurship: Towards an Entrepreneurial Culture for Social and Economic Development. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.978868
Directorate of Cooperatives and SME’s Development. (2016). Warta KUMKM. Jakarta. Retrieved from https://www.bappenas.go.id/files/8014/8116/6753/Warta_KUMKM_2016_Vol_5_No_1.pdf on December 25, 2019.
Doanh, D.C., & Bernat, T. (2019). Entrepreneurial self-efficacy and intention among Vietnamese students: A meta-analytic path analysis based on the theory of planned behaviour. Procedia Computer Science, 159, 2447-2460. https://doi.org/10.1016/j.procs.2019.09.420
Engle, R.L., Dimitriadi, N., Gavidia, J.V., Schlaegel, C., Delanoe, S., Alvarado, I., He, X., Buame, S., Wolff, B. (2010). Entrepreneurial intent: A twelve-country evaluation of Ajzen’s model of planned behavior. Team Performance Management, 16(1), 35-57. https://doi.org/10.1108/13552551011020063
Esfandiar, K., Sharifi-Tehrani, M., Pratt, S., & Altinay, L. (2019). Understanding entrepreneurial intentions: A developed integrated structural model approach. Journal of Business Research, 94, 172-182. https://doi.org/10.1016/j.jbusres.2017.10.045
Fayolle, A., Gailly, B., & Lassas-Clerc, N. (2006). Assessing the impact of entrepreneurship education programmes: A new methodology. Journal of European Industrial Training, 30(9), 701-720. https://doi.org/10.1108/03090590610715022
Franke, N., & Lüthje, C. (2004). Entrepreneurial intentions of business students - A benchmarking study. International Journal of Innovation and Technology Management, 1(3), 269-288. https://doi.org/10.1142/S0219877004000209
Fuller, B., Liu, Y., Bajaba, S., Marler, L.E., & Pratt, J. (2018). Examining how the personality, self-efficacy, and anticipatory cognitions of potential entrepreneurs shape their entrepreneurial intentions. Personality and Individual Differences, 125, 120-125. https://doi.org/10.1016/j.paid.2018.01.005
Greblikaite, J., Sroka, W., & Gerulaitiene, N. (2016). Involving young people in Polish and Lithuanian social enterprises by fostering entrepreneurial skills and abilities as entrepreneurial opportunity at university. Entrepreneurial Business and Economics Review, 4(3), 131-152. https://doi.org/10.15678/EBER.2016.040310
Hair, J.F., Ringle, C.M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. The Journal of Marketing Theory and Practice, 19(2), 139-152. https://doi.org/10.2753/MTP1069-6679190202
Hair, J. F., Ringle, C.M., & Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance. Long Range Planning, 46(1-2),
Hair, J. F., Risher, J.J., Sarstedt, M., & Ringle, C.M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hajli, N. (2015). Social commerce constructs and consumer’s intention to buy. International Journal of Information Management, 35(2), 183-191. https://doi.org/10.1016/j.ijinfomgt.2014.12.005
Hajli, N., & Lin, X. (2016). Exploring the Security of Information Sharing on Social Networking Sites: The Role of Perceived Control of Information. Journal of Business Ethics, 133(1), 111-123. https://doi.org/10.1007/s10551-014-2346-x
Hayes, A.F. (2009). Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millennium. Communication Monographs, 76(4), 408-420. https://doi.org/10.1080/03637750903310360
Henderson, R., & Robertson, M. (1999). Who wants to be an entrepreneur? Young adult
attitudes to entrepreneurship as a career. Education & Training, 41(5), 236-245. https://doi.org/10.1108/00400919910279973
Heuer, A., & Kolvereid, L. (2014). Education in entrepreneurship and the theory of planned behaviour. European Journal of Training and Development, 38(6), 506-523. https://doi.org/10.1108/EJTD-02-2013-0019
Huang, J., & Zhou, L. (2018). Timing of web personalization in mobile shopping: A perspective from Uses and Gratifications Theory. Computers in Human Behavior, 88, 103-113. https://doi.org/10.1016/j.chb.2018.06.035
Kalitanyi, V., & Bbenkele, E. (2019). Measuring University Students’ Perceptions About the Role of Self-efficacy on Entrepreneurial Intentions in Cape Town. Journal of Entrepreneurship and Innovation in Emerging Economies, 5(2), 1-19. https://doi.org/10.1177/2393957519863900
Karimi, S., Biemans, H.J.A., Lans, T., Chizari, M., & Mulder, M. (2014). The Impact of Entrepreneurship Education: A Study of Iranian Students’ Entrepreneurial Intentions and Opportunity Identification. Journal of Small Business Management, 54(1), 187-209. https://doi.org/10.1111/jsbm.12137
Kelley, D.J., Singer, S., & Herrington, M. (2012). 2011 Global Report (The Global Entrepreneurship Monitor). Retrieved from https://www.gemconsortium.org/report/gem-2011-global-report, on 23 August 2019.
Krueger, N.F., & Carsrud, A.L. (1993). Entrepreneurial intentions: Applying the theory of
planned behaviour. Entrepreneurship and Regional Development, 5(4), 315-330. https://doi.org/10.1080/08985629300000020
Laguía, A., Moriano, J.A., & Gorgievski, M.J. (2019). A psychosocial study of self-perceived creativity and entrepreneurial intentions in a sample of university students. Thinking Skills and Creativity, 31(March 2019), 44-57. https://doi.org/10.1016/j.tsc.2018.11.004
Liñán, F. (2008). Skill and value perceptions: How do they affect entrepreneurial intentions?. International Entrepreneurship and Management Journal, 4(3), 257-272. https://doi.org/10.1007/s11365-008-0093-0
Liñán, F., & Chen, Y.W. (2009). Development and cross-cultural application of a specific instrument to measure entrepreneurial intentions. Entrepreneurship: Theory and Practice, 33(3), 593-617. https://doi.org/10.1111/j.1540-6520.2009.00318.x
Mat, S.C., Maat, S.M., & Mohd, N. (2015). Identifying Factors that Affecting the Entrepreneurial Intention among Engineering Technology Students. Procedia – Social and Behavioral Sciences, 211, 1016-1022. https://doi.org/10.1016/j.sbspro.2015.11.135
Ministry of Cooperatives and SMEs. (2016). PERKEMBANGAN DATA USAHA MIKRO, KECIL, MENENGAH (UMKM) DAN USAHA BESAR (UB) TAHUN 2010 – 2015. Retrieved from http://www.depkop.go.id/uploads/laporan/1562040307_SANDINGAN_DATA_UMKM_2010-2015_.pdf on December 25, 2019
Ministry of Cooperatives and SME’s. (2018). PERKEMBANGAN DATA USAHA MIKRO, KECIL, MENENGAH (UMKM) DAN USAHA BESAR (UB) TAHUN 2016-2017. Retrieved from http://www.depkop.go.id/uploads/laporan/1549946778_UMKM 2016-2017 rev.pdf, on December 25, 2019.
Moriano, J.A., Gorgievski, M., Laguna, M., Stephan, U., & Zarafshani, K. (2012). A Cross-Cultural Approach to Understanding Entrepreneurial Intention. Journal of Career Development, 39(2), 162-185. https://doi.org/10.1177/0894845310384481
Natalia, C., & Rodhiah. (2019). Pengaruh Kreativitas, Edukasi Dan Efikasi Diri Terhadap Intensi Berwirausaha Dalam Generasi Z. Jurnal Manajerial Dan Kewirausahaan, 1(2), 164-171.
Okręglicka, M., Havierniková, K., Mynarzová, M., L.-M.A. (2013). Entrepreneurial Intention Creation of Students in Poland, Slovakia and Czechia. Polish Journal of Management Studies, 8(7), 288-297. https://doi.org/10.17512/pjms.2017.15.2.15
Parkinson, J., David, P., & Rundle-Thiele, S. (2017). Self-efficacy or perceived behavioural control: Which influences consumers’ physical activity and healthful eating behaviour maintenance?. Journal of Consumer Behaviour, 16(5), 413-423. https://doi.org/10.1002/cb.1641
Qiao, X., & Huang, J.-H. (2019). Effect of College Students’ Entrepreneurial Self-Efficacy on Entrepreneurial Intention: Career Adaptability as a Mediating Variable. International Journal of Educational Methodology, 5(3), 305-313. https://doi.org/10.12973/ijem.5.3.305
Saeed, S., Yousafzai, S.Y., Yani-De-Soriano, M., & Muffatto, M. (2015). The Role of Perceived University Support in the Formation of Students’ Entrepreneurial Intention. Journal of Small Business Management, 53(4), 1127-1145. https://doi.org/10.1111/jsbm.12090
Sentanu, I.G.E.P.S., Zamrudi, Z., & Praharjo, A. (2019). Consumer Generated Media: Understanding Indonesian Social Traveller. Journal of Physics: Conference Series, 1175. https://doi.org/10.1088/1742-6596/1175/1/012221
Straub, D., Boudreau, M.-C., & Gefen, D. (2004). Validation Guidelines for Is Positivist. Communications of the Association for Information Systems, 13. https://doi.org/10.17705/1CAIS.01324
Turker, D., & Selcuk, S.S. (2009). Which factors affect entrepreneurial intention
of university students?. Journal of European Industrial Training, 33(2), 142-159. https://doi.org/10.1108/03090590910939049
Venema, E., Otten, S., & Vlaskamp, C. (2015). The efforts of direct support professionals to facilitate inclusion: the role of psychological determinants and work setting. Journal of Intellectual Disability Research, 59(10), 970-979. https://doi.org/10.1111/jir.12209
Wong, K.K. (2013). Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques Using SmartPLS. Marketing Bulletin, 24(1), 1-32. Retrieved from http://marketing-bulletin.massey.ac.nz/v24/mb_v24_t1_wong.pdf, on 23 March 2018.
Yurtkoru, E.S., Kabadayı Kuşcu, Z., & Doğanay, A. (2014). Exploring the Antecedents of Entrepreneurial Intention on Turkish University Students. Procedia - Social and Behavioral Sciences, 150, 841-850. https://doi.org/10.1016/j.sbspro.2014.09.093
Zamrudi, Z., Karim, S., Faridha, M., Maharani, D., & Kuraesin, A. D. (2019). Smart meter adoption: The role of consumer experience in using smart device. Journal of Physics: Conference Series, 1175, 1-6. https://doi.org/10.1088/1742-6596/1175/1/012038
Zhao, H., Hills, G.E., & Seibert, S.E. (2005). The mediating role of self-efficacy in the development of entrepreneurial intentions. Journal of Applied Psychology, 90(6), 1265-1272. https://doi.org/10.1037/0021-9010.90.6.1265
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a CC BY-ND licence that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are asked to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) only the final version of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). We advise using any of the following research society portals: