Vol. 14 No. 3 (2026)
September 2026

Articles

The 5Cs framework and entrepreneurial intention: The role of credit management understanding in Thailand

Published 2026-09-30

  • Kawin Magtanaroong
    • ,
  • Pinya Magtanaroong
    • ,
  • Kunnika Jakor
    • ,
  • Piyapan Suwannawach

Kawin Magtanaroong
Rajamangala University of Technology Phra Nakhon

Pinya Magtanaroong
Rajamangala University of Technology Phra Nakhon

Kunnika Jakor
Rajamangala University of Technology Phra Nakhon

Piyapan Suwannawach
Rajamangala University of Technology Phra Nakhon

Abstract

Objective: This article identifies the influence of financial management understanding within the 5Cs framework (character, capacity, capital, collateral, and conditions) on entrepreneurial intention (EI). The article addresses the limited application of the 5Cs framework in explaining entrepreneurial behaviour in developing economies such as Thailand.

Research Design & Methods: We applied a quantitative approach using survey data from 462 respondents in Bangkok and its metropolitan area. We analysed the data using confirmatory factor analysis (CFA) and structural equation modelling (SEM). We assessed instrument reliability and validity and applied procedures to control potential common method bias.

Findings: The proposed model explains entrepreneurial intention effectively. Capital and conditions have positive and significant effects on EI, whereas character, capacity, and collateral are not statistically significant. These findings highlight the importance of financial resources and economic conditions in shaping entrepreneurial decisions in Thailand.

Implications & Recommendations: Improving access to financial capital and maintaining a stable economic environment are essential for encouraging entrepreneurial intention. Policymakers should simplify regulations and provide financial incentives for new ventures. Educational institutions should strengthen training in capital access strategies and financial planning, while financial institutions may reconsider credit evaluation practices to better support potential entrepreneurs.

Contribution & Value Added: This article extends the theory of planned behaviour (TPB) and the resource-based view by incorporating the 5Cs framework into the analysis of entrepreneurial behaviour. It proposes a structural model explaining how financial understanding and economic conditions influence entrepreneurial intention in developing economies and provides insights for policymakers, educators, and financial institutions.

Keywords

entrepreneurial intention, 5Cs framework, theory of planned behaviour (TPB), resource-based view (RBV), structural equation modelling (SEM), Thailand

(PDF) Save

Author Biography

Kawin Magtanaroong

Lecturer at the Faculty of Business Administration, Rajamangala University of Technology Phra Nakhon, Thailand. His research interests include entrepreneurship, finance, and economics.

Pinya Magtanaroong

Lecturer at the Faculty of Business Administration, Rajamangala University of Technology Phra Nakhon, Thai-land. Head of the Department of Entrepreneurship. Her research interests include entrepreneurship, and management.

Kunnika Jakor

Lecturer at the Faculty of Business Administration, Rajamangala University of Technology Phra Nakhon, Thailand. Her research interests include entrepreneurship, finance, and management.

Piyapan Suwannawach

Lecturer at the Faculty of Business Administration, Rajamangala University of Technology Phra Nakhon, Thai-land. His research interests include information systems and computer science.

References

  1. 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
  2. Alshebami, A. S., & Al Marri, S. H. (2022). The impact of financial literacy on entrepreneurial intention: The mediating role of saving behavior. Frontiers in Psychology, 13, 911605. https://doi.org/10.3389/fpsyg.2022.911605
  3. Altman, E. I., & Sabato, G. (2007). Modelling credit risk for SMEs: Evidence from the US market. Abacus, 43(3), 332-357. https://doi.org/10.1111/j.1467-6281.2007.00234.x
  4. Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411
  5. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
  6. Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931-2943. https://doi.org/10.1016/j.jbankfin.2006.05.009
  7. Boudreaux, C. J., Nikolaev, B. N., & Klein, P. (2019). Socio-cognitive traits and entrepreneurship: The moderating role of economic institutions. Journal of Business Venturing, 34(1), 178-196. https://doi.org/10.1016/j.jbusvent.2018.08.003
  8. Burnham, K. P., & Anderson, D. R. (2004). Multimodel inference: understanding AIC and BIC in model selection. Sociological Methods & Research, 33(2), 261-304. https://doi.org/10.1177/0049124104268644
  9. Byrne, B. M. (2016). Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming (3rd ed.). Routledge. https://doi.org/10.4324/9781315757421
  10. Cole, S., Paulson, A., & Shastry, G. K. (2016). High school curriculum and financial outcomes: The impact of mandated personal finance and mathematics courses. Journal of Human Resources, 51(3), 656-698. https://doi.org/10.3368/jhr.51.3.0113-5895R1
  11. Coleman, S., & Robb, A. (2009). A comparison of new firm financing by gender: evidence from the Kauffman Firm Survey data. Small Business Economics, 33(4), 397-411. https://doi.org/10.1007/s11187-009-9205-7
  12. Cowling, M., Liu, W., & Ledger, A. (2012). Small business financing in the UK before and during the current financial crisis. International Small Business Journal, 30(7), 778-800. https://doi.org/10.1177/0266242611435516
  13. Darnihamedani, P., & Murphy, P. J. (2025). Formal institutions and the employment growth ambitions of early-stage versus established entrepreneurs. International Journal of Entrepreneurial Behavior & Research, 31(5), 1331-1354. https://doi.org/10.1108/IJEBR-11-2024-1294
  14. Fatoki, O. (2014a). The financial literacy of micro entrepreneurs in South Africa. Journal of Social Sciences, 40(2), 151-158. https://doi.org/10.1080/09718923.2014.11893311
  15. Fatoki, O. (2014b). The financing options for new small and medium enterprises in South Africa. Mediterranean Journal of Social Sciences, 5(20), 748-755. https://pdfs.semanticscholar.org/0569/18949ce65324c3fce7dc56b1def4d1a05fc7.pdf
  16. Fatoki, O., & Asah, F. (2011). The impact of firm and entrepreneurial characteristics on access to debt finance by SMEs in King Williams’ town, South Africa. International Journal of Business and Management, 6(8), 170-179. https://doi.org/10.5539/ijbm.v6n8p170
  17. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
  18. Frame, W. S., & White, L. J. (2004). Empirical studies of financial innovation: lots of talk, little action?. Journal of Economic Literature, 42(1), 116-144. https://doi.org/10.1257/002205104773558061
  19. Fuller, C. M., Simmering, M. J., Atinc, G., Atinc, Y., & Babin, B. J. (2016). Common methods variance detection in business research. Journal of Business Research, 69(8), 3192-3198. https://doi.org/10.1016/j.jbusres.2015.12.008
  20. Grégoire, D. A., & Shepherd, D. A. (2012). Technology-market combinations and the identification of entrepreneurial opportunities: An investigation of the opportunity-individual nexus. Academy of Management Journal, 55(4), 753-785. https://doi.org/10.5465/amj.2011.0126
  21. Hair, J. F. (2014). A Primer On Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage.
  22. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.
  23. 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
  24. Karimi, S., Biemans, H. J., Lans, T., Chizari, M., & Mulder, M. (2016). 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
  25. Kautonen, T., Van Gelderen, M., & Fink, M. (2015). Robustness of the theory of planned behavior in predicting entrepreneurial intentions and actions. Entrepreneurship Theory and Practice, 39(3), 655-674. https://doi.org/10.1111/etap.12056
  26. Kline, R. B. (2023). Principles and practice of structural equation modeling. Guilford publications.
  27. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational And Psychological Measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308
  28. 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
  29. Liñán, F., & Fayolle, A. (2015). A systematic literature review on entrepreneurial intentions: citation, thematic analyses, and research agenda. International Entrepreneurship and Management Journal, 11(4), 907-933. https://doi.org/10.1007/s11365-015-0356-5
  30. Liñán, F., & Jaén, I. (2022). The Covid-19 pandemic and entrepreneurship: some reflections. International Journal of Emerging Markets, 17(5), 1165-1174. https://doi.org/10.1108/IJOEM-05-2020-0491
  31. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. American Economic Journal: Journal of Economic Literature, 52(1), 5-44. https://doi.org/10.1257/jel.52.1.5
  32. Malhotra, N. K. (2010). Marketing Research: An Applied Orientation. United Kingdom: Pearson Education.
  33. Murendo, C., & Mutsonziwa, K. (2017). Financial literacy and savings decisions by adult financial consumers in Zimbabwe. International Journal of Consumer Studies, 41(1), 95-103. https://doi.org/10.1111/ijcs.12318
  34. Nabi, G., Liñán, F., Fayolle, A., Krueger, N., & Walmsley, A. (2017). The impact of entrepreneurship education in higher education: A systematic review and research agenda. Academy Of Management Learning & Education, 16(2), 277-299. https://doi.org/10.5465/amle.2015.0026
  35. Nguyen, T. T. (2020). The Impact of Access to Finance and Environmental Factors on Entrepreneurial Intention: The Mediator Role of Entrepreneurial Behavioural Control. Entrepreneurial Business and Economics Review, 8(2), 127-140. https://doi.org/10.15678/EBER.2020.080207
  36. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory (3rd ed.). McGraw-Hill.
  37. Papadaki, E., Chami, B., & Branch, S. B. P. (2002). Growth Determinants of Micro-Businesses in Canada. Ottawa: Small Business Policy Branch, Industry Canada.
  38. Pashaei, A., Hassani, M., Mohajeran, B., & Shahbazi, K. (2024). Economics education, decision-making, and entrepreneurial intention: A mediation analysis of financial literacy. Open Education Studies, 6(1), 20220222. https://doi.org/10.1515/edu-2022-0222
  39. Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63(1), 539-569. https://doi.org/10.1146/annurev-psych-120710-100452
  40. Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903. https://doi.org/10.1037/0021-9010.88.5.879
  41. Rauch, A., & Frese, M. (2007). Let’s put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners’ personality traits, business creation, and success. European Journal of Work and Organizational Psychology, 16(4), 353-385. https://doi.org/10.1080/13594320701595438
  42. Rocha, R. G., Ed-Dafali, S., & Sharma, N. (2025). Entrepreneurial orientation, agility and responsibility: a triad for sustainable competitive advantage. Journal of Small Business and Enterprise Development, 32(2), 470-495. https://doi.org/10.1108/JSBED-04-2024-0224
  43. Schlaegel, C., & Koenig, M. (2014). Determinants of entrepreneurial intent: A meta-analytic test and integration of competing models. Entrepreneurship Theory and Practice, 38(2), 291-332. https://doi.org/10.1111/etap.12087
  44. Sharma, A., & Singh, K. (2025). Ownership and state-based underpinnings of financial distress among successful entrepreneurial firms. Journal of Small Business and Enterprise Development, 32(2), 371-387. https://doi.org/10.1108/JSBED-07-2024-0379
  45. Stephan, U., Uhlaner, L. M., & Stride, C. (2015). Institutions and social entrepreneurship: The role of institutional voids, institutional support, and institutional configurations. Journal Of International Business Studies, 46(3), 308-331. https://doi.org/10.1057/jibs.2014.38
  46. Svotwa, T. D., Jaiyeoba, O., Roberts-Lombard, M., & Makanyeza, C. (2022). Perceived Access to Finance, Entrepreneurial Self-Efficacy, Attitude Toward Entrepreneurship, Entrepreneurial Ability, and Entrepreneurial Intentions: A Botswana Youth Perspective. Sage Open, 12(2). https://doi.org/10.1177/21582440221096437
  47. Ukil, M. I., Ullah, M. S., Islam, K. Z., Razzak, B. M., Saridakis, G., & Alamoudi, S. M. (2025). Examining the emotion-entrepreneurial intention link using the theory of planned behavior. Journal of Small Business and Enterprise Development, 32(2), 344-370. https://doi.org/10.1108/JSBED-08-2023-0398
  48. Urbano, D., Aparicio, S., & Audretsch, D. (2019). Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?. Small Business Economics, 53(1), 21-49. https://doi.org/10.1007/s11187-018-0038-0
  49. Van Gelderen, M., Thurik, R., & Bosma, N. (2006). Success and risk factors in the pre-startup phase. Small Business Economics, 26(4), 319-335. https://doi.org/10.1007/s11187-004-6837-5
  50. Williams, L. J., Hartman, N., & Cavazotte, F. (2010). Method variance and marker variables: A review and comprehensive CFA marker technique. Organizational Research Methods, 13(3), 477-514. https://doi.org/10.1177/1094428110366036
  51. Wise, S. (2013). The impact of financial literacy on new venture survival. International Journal of Business and Management, 8(23), 30-39. https://doi.org/10.5539/ijbm.v8n23p30
  52. Yin, R. K. (2017). Case study research and applications: Design and Methods. Sage publications.

Downloads

Download data is not yet available.