The effect of entrepreneurial self-efficacy on entrepreneurial intentions: The moderating role of entrepreneurial passion for founding
Abstract
Objective: The study aims to explore the moderating role of entrepreneurial passion for founding to unearth the mechanisms that underlie the effect of entrepreneurial self-efficacy on entrepreneurial intentions in the context of student entrepreneurship.
Research Design & Methods: This study employed survey methods involving 200 students from several private and public universities in greater Manado, North Sulawesi, Indonesia. We processed the data with Hayes’ PROCESS Macro version 4.1 via SPSS 26.
Findings: Students’ entrepreneurial passion for founding moderated the positive influence of students’ entrepreneurial self-efficacy on entrepreneurial intentions. The significance of this moderating effect is that it applied only to students with a high entrepreneurial passion for founding.
Implications & Recommendations: In an initiative to rev up students’ entrepreneurship development, it is essential to focus on founding passion due to its vital role in strengthening the relationship between self-efficacy and intention. Thus, the government and higher education institutions must create a supportive ecosystem to encourage students to develop a stronger passion for entrepreneurship.
Contribution & Value Added: This research enriches the literature by providing further insight into the mechanisms that underlie the process of forming students’ entrepreneurial intentions. These findings confirm that students’ passion for founding can strengthen the effect of self-efficacy on entrepreneurial intentions.
Keywords
student entrepreneurship, entrepreneurial passion for founding, entrepreneurial self-efficacy, entrepreneurial intention
Author Biography
Debora Vista Silty Ticoalu
Lecturer at the Faculty of Economics and Business, Universitas Negeri Manado, North Sulawesi, Indonesia. Her research interests include public economy, institutional economics and entrepreneurship.
Sarwono Nursito
Lecturer and researcher at the Department of Management, Faculty of Economics and Psychology, Universitas Widya Dharma, Klaten, Central Java, Indonesia. His research interests include strategic management, entrepreneurship, and organisational development.
Jeanne Maria Tuerah
Lecturer at the Faculty of Mathematics, Natural and Earth Science, Universitas Negeri Manado, North Sulawesi, Indonesia. Her research interests include chemistry and entrepreneurship.
References
- Al-Mamary, Y.H.S., Abdulrab, M., Alwaheeb, M.A., & Alshammari, N.G.M. (2020). Factors impacting entrepreneurial intentions among university students in Saudi Arabia: Testing an integrated model of TPB and EO. Education + Training, 62(7/8), 779-803. https://doi.org/10.1108/ET-04-2020-0096 DOI: https://doi.org/10.1108/ET-04-2020-0096
- Anjum, T., Heidler, P., Amoozegar, A., & Anees, R.T. (2021). The Impact of Entrepreneurial Passion on the Entrepreneurial Intention; Moderating Impact of Perception of University Support. Administrative Sciences, 11(2), 45. https://doi.org/10.3390/admsci11020045 DOI: https://doi.org/10.3390/admsci11020045
- Ayob, A.H. (2021). Entrepreneurship education, institutions and student entrepreneurship: A cross-country analysis. Compare: A Journal of Comparative and International Education, 51(5), 745-763. https://doi.org/10. 1080/03057925.2019.1673701 DOI: https://doi.org/10.1080/03057925.2019.1673701
- Baluku, M.M., Kikooma, J.F., Otto, K., König, C.J., & Bajwa, N.U.H. (2020). Positive Psychological Attributes and Entrepreneurial Intention and Action: The Moderating Role of Perceived Family Support. Frontiers in Psychology, 11, 546745. https://doi.org/10.3389/fpsyg.2020.546745 DOI: https://doi.org/10.3389/fpsyg.2020.546745
- Barba-Sánchez, V., Mitre-Aranda, M., & Brío-González, J.D. (2022). The entrepreneurial intention of university students: An environmental perspective. European Research on Management and Business Economics, 28(2), 100184. https://doi.org/10.1016/j.iedeen.2021.100184 DOI: https://doi.org/10.1016/j.iedeen.2021.100184
- Bartlett, J.E., Kotrlik, J.W., & Higgins, C.C. (2001). Organizational Research: Determining Appropriate Sample Size in Survey Research. Information Technology, Learning, and Performance Journal, 19(1), 43-50. Retrieved from https://www.opalco.com/wp-content/uploads/2014/10/Reading-Sample-Size1.pdf on July 1, 2024.
- Biraglia, A., & Kadile, V. (2017). The Role of Entrepreneurial Passion and Creativity in Developing Entrepreneurial Intentions: Insights from American Homebrewers: Journal of Small Business Management. Journal of Small Business Management, 55(1), 170-188. https://doi.org/10.1111/jsbm.12242 DOI: https://doi.org/10.1111/jsbm.12242
- Brändle, L., Berger, E.S.C., Golla, S., & Kuckertz, A. (2018). I am what I am—How nascent entrepreneurs’ social identity affects their entrepreneurial self-efficacy. Journal of Business Venturing Insights, 9, 17-23. https://doi.org/10.1016/j.jbvi.2017.12.001 DOI: https://doi.org/10.1016/j.jbvi.2017.12.001
- Cardon, M.S., Foo, M., Shepherd, D., & Wiklund, J. (2012). Exploring the Heart: Entrepreneurial Emotion is a Hot Topic. Entrepreneurship Theory and Practice, 36(1), 1-10. https://doi.org/10.1111/j.1540-6520.2011. 00501.x DOI: https://doi.org/10.1111/j.1540-6520.2011.00501.x
- Cardon, M.S., Gregoire, D.A., Stevens, C.E., & Patel, P.C. (2013). Measuring entrepreneurial passion: Conceptual foundations and scale validation. Journal of Business Venturing, 28(3), 373-396. https://doi.org/10. 1016/j.jbusvent.2012.03.003 DOI: https://doi.org/10.1016/j.jbusvent.2012.03.003
- Cardon, M.S., & Kirk, C.P. (2015). Entrepreneurial Passion as Mediator of the Self–Efficacy to Persistence Relationship. Entrepreneurship Theory and Practice, 39(5), 1027-1050. https://doi.org/10.1111/etap.12089 DOI: https://doi.org/10.1111/etap.12089
- Cardon, M.S., Wincent, J., Singh, J., & Drnovsek, M. (2009). The nature and experience of entrepreneurial passion. Academy of Management Review, 34(3), 511-532. https://doi.org/10.5465/amr.2009.40633190 DOI: https://doi.org/10.5465/amr.2009.40633190
- Chien-Chi, C., Sun, B., Yang, H., Zheng, M., & Li, B. (2020). Emotional Competence, Entrepreneurial Self-Efficacy, and Entrepreneurial Intention: A Study Based on China College Students’ Social Entrepreneurship Project. Frontiers in Psychology, 11, 547627. https://doi.org/10.3389/fpsyg.2020.547627 DOI: https://doi.org/10.3389/fpsyg.2020.547627
- Cooper, D.R., & Schindler, P.S. (2014). Business research methods (12. edition). Irwin/McGraw-Hill.
- De Clercq, D., Honig, B., & Martin, B. (2013). The roles of learning orientation and passion for work in the formation of entrepreneurial intention. International Small Business Journal: Researching Entrepreneurship, 31(6), 652-676. https://doi.org/10.1177/0266242611432360 DOI: https://doi.org/10.1177/0266242611432360
- Elnadi, M., & Gheith, M.H. (2021). Entrepreneurial ecosystem, entrepreneurial self-efficacy, and entrepreneurial intention in higher education: Evidence from Saudi Arabia. The International Journal of Management Education, 19(1), 100458. https://doi.org/10.1016/j.ijme.2021.100458 DOI: https://doi.org/10.1016/j.ijme.2021.100458
- Ertz, M., Karakas, F., & Sarigöllü, E. (2016). Exploring pro-environmental behaviors of consumers: An analysis of contextual factors, attitude, and behaviors. Journal of Business Research, 69(10), 3971–3980. https://doi.org/10.1016/j.jbusres.2016.06.010 DOI: https://doi.org/10.1016/j.jbusres.2016.06.010
- 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 DOI: https://doi.org/10.1016/j.paid.2018.01.005
- Hayes, A.F. (2018). Partial, conditional, and moderated moderated mediation: Quantification, inference, and interpretation. Communication Monographs, 85(1), 4-40. https://doi.org/10.1080/03637751.2017.1352100 DOI: https://doi.org/10.1080/03637751.2017.1352100
- Hill, S., Ionescu-Somers, A., Coduras, A., Guerrero, M., Menipaz, E., Boutaleb, F., Zbierowski, P., Sahasranamam, S., & Shay, J. (2024). GEM 2023/2024 Global Report: 25 Years and Growing (pp. 1-240). Global Entrepreneurship Research Association, London Business School, Regents Park, London NW1 4SA, UK.
- Hill, S., Ionescu-Somers, A., Coduras, A., Guerrero, M., Menipaz, E., Boutaleb, F., Zbierowski, P., Schott, T., Sahasranamam, S., & Shay, J. (2023). Global Entrepreneurship Monitor 2022/2023 Global Report: Adapting to a “New Normal” (pp. 1-253). Global Entrepreneurship Research Association, London Business School, Regents Park, London NW1 4SA, UK.
- Hsu, D.K., Burmeister-Lamp, K., Simmons, S.A., Foo, M.-D., Hong, M.C., & Pipes, J.D. (2019). “I know I can, but I don’t fit”: Perceived fit, self-efficacy, and entrepreneurial intention. Journal of Business Venturing, 34(2), 311-326. https://doi.org/10.1016/j.jbusvent.2018.08.004 DOI: https://doi.org/10.1016/j.jbusvent.2018.08.004
- Hu, W., Xu, Y., Zhao, F., & Chen, Y. (2022). Entrepreneurial Passion and Entrepreneurial Success—The Role of Psychological Capital and Entrepreneurial Policy Support. Frontiers in Psychology, 13, 792066. https:// doi.org/10.3389/fpsyg.2022.792066 DOI: https://doi.org/10.3389/fpsyg.2022.792066
- Jackson, D.L. (2003). Revisiting Sample Size and Number of Parameter Estimates: Some Support for the N:q Hypothesis. Structural Equation Modeling: A Multidisciplinary Journal, 10(1), 128-141. https://doi.org/ 10.1207/S15328007SEM1001_6 DOI: https://doi.org/10.1207/S15328007SEM1001_6
- 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), 214-232. https://doi.org/10.1177/2393957519863900 DOI: https://doi.org/10.1177/2393957519863900
- Karimi, S. (2020). The role of entrepreneurial passion in the formation of students’ entrepreneurial intentions. Applied Economics, 52(3), 331-344. https://doi.org/10.1080/00036846.2019.1645287 DOI: https://doi.org/10.1080/00036846.2019.1645287
- Kiani, A., Liu, J., Ghani, U., & Popelnukha, A. (2020). Impact of Future Time Perspective on Entrepreneurial Career Intention for Individual Sustainable Career Development: The Roles of Learning Orientation and Entrepreneurial Passion. Sustainability, 12(9), 3864. https://doi.org/10.3390/su12093864 DOI: https://doi.org/10.3390/su12093864
- Kong, F., Zhao, L., & Tsai, C.-H. (2020). The Relationship Between Entrepreneurial Intention and Action: The Effects of Fear of Failure and Role Model. Frontiers in Psychology, 11, 229. https://doi.org/10.3389/fpsyg. 2020.00229 DOI: https://doi.org/10.3389/fpsyg.2020.00229
- Kusumojanto, D.D., Wibowo, A., Kustiandi, J., & Narmaditya, B.S. (2021). Do entrepreneurship education and environment promote students’ entrepreneurial intention? The role of entrepreneurial attitude. Cogent Education, 8(1), 1948660. https://doi.org/10.1080/2331186X.2021.1948660 DOI: https://doi.org/10.1080/2331186X.2021.1948660
- Lam, L.W. (2012). Impact of competitiveness on salespeople’s commitment and performance. Journal of Business Research, 65(9), 1328-1334. https://doi.org/10.1016/j.jbusres.2011.10.026 DOI: https://doi.org/10.1016/j.jbusres.2011.10.026
- Lee, Y., Cortes, A.F., & Joo, M. (2021). Entrepreneurship Education and Founding Passion: The Moderating Role of Entrepreneurial Family Background. Frontiers in Psychology, 12, 743672. https://doi.org/10.3389/fpsyg. 2021.743672 DOI: https://doi.org/10.3389/fpsyg.2021.743672
- Li, C., Murad, M., Shahzad, F., Khan, M.A.S., Ashraf, S.F., & Dogbe, C.S.K. (2020). Entrepreneurial Passion to Entrepreneurial Behavior: Role of Entrepreneurial Alertness, Entrepreneurial Self-Efficacy and Proactive Personality. Frontiers in Psychology, 11, 1611. https://doi.org/10.3389/fpsyg.2020.01611 DOI: https://doi.org/10.3389/fpsyg.2020.01611
- 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 DOI: https://doi.org/10.1007/s11365-015-0356-5
- Loan, L.T., Doanh, D.C., Thang, H.N., Viet Nga, N.T., Van, P.T., & Hoa, P.T. (2021). Entrepreneurial behaviour: The effects of the fear and anxiety of Covid-19 and business opportunity recognition. Entrepreneurial Business and Economics Review, 9(3), 7-23. https://doi.org/10.15678/EBER.2021.090301 DOI: https://doi.org/10.15678/EBER.2021.090301
- Maleki, A., Moghaddam, K., Cloninger, P., & Cullen, J. (2023). A cross-national study of youth entrepreneurship: The effect of family support. The International Journal of Entrepreneurship and Innovation, 24(1), 44-57. https://doi.org/10.1177/14657503211054284 DOI: https://doi.org/10.1177/14657503211054284
- McGee, J.E., & Peterson, M. (2019). The Long‐Term Impact of Entrepreneurial Self‐Efficacy and Entrepreneurial Orientation on Venture Performance. Journal of Small Business Management, 57(3), 720-737. https:// doi.org/10.1111/jsbm.12324 DOI: https://doi.org/10.1111/jsbm.12324
- Memon, M., Soomro, B.A., & Shah, N. (2019). Enablers of entrepreneurial self-efficacy in a developing country. Education + Training, 61(6), 684-699. https://doi.org/10.1108/ET-10-2018-0226 DOI: https://doi.org/10.1108/ET-10-2018-0226
- Miralles, F., Giones, F., & Gozun, B. (2017). Does direct experience matter? Examining the consequences of current entrepreneurial behavior on entrepreneurial intention. International Entrepreneurship and Management Journal, 13(3), 881-903. https://doi.org/10.1007/s11365-016-0430-7 DOI: https://doi.org/10.1007/s11365-016-0430-7
- Mumi, A., Ciuchta, M.P., & Yang, Y. (2018). Social Media for Entrepreneurial Opportunity and Process: An Effectuation Perspective. Academy of Management Proceedings, 2018(1), 15826. https://doi.org/10.5465/ AMBPP.2018.27 DOI: https://doi.org/10.5465/AMBPP.2018.27
- Neneh, B.N. (2020). Entrepreneurial passion and entrepreneurial intention: The role of social support and entrepreneurial self-efficacy. Studies in Higher Education, 47(3), 587-603. https://doi.org/10.1080/03075079. 2020.1770716 DOI: https://doi.org/10.1080/03075079.2020.1770716
- Newman, A., Obschonka, M., Schwarz, S., Cohen, M., & Nielsen, I. (2019). Entrepreneurial self-efficacy: A systematic review of the literature on its theoretical foundations, measurement, antecedents, and outcomes, and an agenda for future research. Journal of Vocational Behavior, 110, 403-419. https://doi.org/10.1016/j.jvb. 2018.05.012 DOI: https://doi.org/10.1016/j.jvb.2018.05.012
- Ng, L., & Jenkins, A.S. (2018). Motivated but not starting: How fear of failure impacts entrepreneurial intentions. Small Enterprise Research, 25(2), 152-167. https://doi.org/10.1080/13215906.2018.1480412 DOI: https://doi.org/10.1080/13215906.2018.1480412
- Nowiński, W., Haddoud, M.Y., Lančarič, D., Egerová, D., & Czeglédi, C. (2019). The impact of entrepreneurship education, entrepreneurial self-efficacy and gender on entrepreneurial intentions of university students in the Visegrad countries. Studies in Higher Education, 44(2), 361-379. https://doi.org/10.1080/03075079. 2017.1365359 DOI: https://doi.org/10.1080/03075079.2017.1365359
- Osadolor, V., Agbaeze, E.A., Isichei, E.I., & Olabosinde, T.O. (2021). Entrepreneurial self-efficacy and entrepreneurial intention: The mediating role of the need for independence. Journal of Entrepreneurship, Management and Innovation, 17(4), 91-119. https://doi.org/10.7341/20211744 DOI: https://doi.org/10.7341/20211744
- Rosalina, G., & Satrya, A. (2021). Effect of entrepreneurial self-efficacy and proactive personality on the entrepreneurial intention of post-migrant workers through attitude toward entrepreneurship. In S. Noviaristanti, Contemporary Research on Business and Management (1st ed., pp. 133-136). CRC Press. https://doi.org/ 10.1201/9781003196013-33 DOI: https://doi.org/10.1201/9781003196013-33
- 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 DOI: https://doi.org/10.1111/jsbm.12090
- Santos, S.C., & Cardon, M.S. (2019). What’s Love Got to do With It? Team Entrepreneurial Passion and Performance in New Venture Teams. Entrepreneurship Theory and Practice, 43(3), 475-504. https://doi.org/10. 1177/1042258718812185 DOI: https://doi.org/10.1177/1042258718812185
- Santos, S.C., & Liguori, E.W. (2020). Entrepreneurial self-efficacy and intentions: Outcome expectations as mediator and subjective norms as moderator. International Journal of Entrepreneurial Behavior & Research, 26(3), 400-415. https://doi.org/10.1108/IJEBR-07-2019-0436 DOI: https://doi.org/10.1108/IJEBR-07-2019-0436
- Schmutzler, J., Andonova, V., & Diaz-Serrano, L. (2019). How Context Shapes Entrepreneurial Self-Efficacy as a Driver of Entrepreneurial Intentions: A Multilevel Approach. Entrepreneurship Theory and Practice, 43(5), 880-920. https://doi.org/10.1177/1042258717753142 DOI: https://doi.org/10.1177/1042258717753142
- Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A skill-building approach (7. edition). John Wiley & Sons.
- Shirokova, G., Osiyevskyy, O., & Bogatyreva, K. (2016). Exploring the intention–behavior link in student entrepreneurship: Moderating effects of individual and environmental characteristics. European Management Journal, 34(4), 386-399. https://doi.org/10.1016/j.emj.2015.12.007 DOI: https://doi.org/10.1016/j.emj.2015.12.007
- Sieger, P., Fueglistaller, U., & Zellweger, T. (2016). Student Entrepreneurship 2016: Insights From 50 Countries. St. Gallen/Bern: KMU-HSG/IMU.
- Suhartanto, E. (2021). Entrepreneurial Intention, Behaviour and Activities of Indonesian Universities Students—The Indonesia Report of the 2021 GUESSS Project. Universitas Prasetya Mulya, Indonesia (Association of Indonesian Entrepreneurship Educators (PERWIRA).
- Tajpour, M., & Razavi, S.M. (2023). The effect of team performance on the internationalization of Digital Startups: The mediating role of entrepreneurship. International Journal of Human Capital in Urban Management, 8(1). https://doi.org/10.22034/IJHCUM.2023.01.02
- Thompson, E.R. (2009). Individual Entrepreneurial Intent: Construct Clarification and Development of an Internationally Reliable Metric. Entrepreneurship Theory and Practice, 33(3), 669-694. https://doi.org10.1111/j.1540-6520.2009.00321.x DOI: https://doi.org/10.1111/j.1540-6520.2009.00321.x
- Türk, S., Zapkau, F.B., & Schwens, C. (2020). Prior entrepreneurial exposure and the emergence of entrepreneurial passion: The moderating role of learning orientation. Journal of Small Business Management, 58(2), 225-258. https://doi.org/10.1080/00472778.2019.1659678 DOI: https://doi.org/10.1080/00472778.2019.1659678
- Vallerand, R.J., Blanchard, C., Mageau, G.A., Koestner, R., Ratelle, C., Léonard, M., Gagné, M., & Marsolais, J. (2003). Les passions de l’âme: On obsessive and harmonious passion. Journal of Personality and Social Psychology, 85(4), 756-767. https://doi.org/10.1037/0022-3514.85.4.756 DOI: https://doi.org/10.1037/0022-3514.85.4.756
- Vatavu, S., Dogaru, M., Moldovan, N.-C., & Lobont, O.-R. (2022). The impact of entrepreneurship on economic development through government policies and citizens’ attitudes. Economic Research-Ekonomska Istraživanja, 35(1), 1604-1617. https://doi.org/10.1080/1331677X.2021.1985566 DOI: https://doi.org/10.1080/1331677X.2021.1985566
- Wardana, L.W., Narmaditya, B.S., Wibowo, A., Fitriana, Saraswati, T.T., & Indriani, R. (2021). Drivers of entrepreneurial intention among economics students in Indonesia. Entrepreneurial Business and Economics Review, 9(1), 61-74. https://doi.org/10.15678/EBER.2021.090104 DOI: https://doi.org/10.15678/EBER.2021.090104
- Zhao, H., Seibert, S.E., & Hills, G.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 DOI: https://doi.org/10.1037/0021-9010.90.6.1265
