THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG. UNIVERSITY OF ECONOMICS HO CHI MINH CITY INTERNATIONAL SCHOOL OF BUSINESS ---------------------------- NGUYEN THI NGOC QUYEN THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG POSTGRADUATES MASTER OF BUSINESS (Honors) Ho Chi Minh City – Year 2014 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG. UNIVERSITY OF ECONOMICS HO CHI MINH CITY INTERNATIONAL SCHOOL OF BUSINESS ---------------------------- NGUYEN THI NGOC QUYEN THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG POSTGRADUATES ID: 22120107 MASTER OF BUSINESS (Honors) SUPERVISOR: ASSOC PROF. LE NGUYEN HAU Ho Chi Minh City – Year 2014 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG.
Acknowledgement The completion of this study represents a significant turning point in my life. It has been a long journey and has demanded a lot of effort and time. Many people's patience, support and constant encouragement helped bring this work to life. First of all, I would like to thank you very much Assoc Prof.
Le Nguyen Hau who provided guidance and encouragement in his own unique way. I feel extremely blessed to have him as my first supervisor. His passion for research has been exceptionally inspirational. Working under his supervision has been an extremely rewarding experience which has contributed significantly to the completion of the thesis.
By this opportunity, I would like to thank you to postgraduates of University of Economics Ho Chi Minh City because of their kind support. Last but not least, my warm and heartfelt thanks go to my mother, my father and my husband for their everlasting love and support which sustained me in the years it took to bring this work to completion. Thank you for the strength you gave to me. Best regards, 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG.
Abstract This research is part of a larger investigation on factors influencing entrepreneurial intention. This research study examines the relationship between psychological traits as a means of identifying predictors of entrepreneurial intention among postgraduates in Viet Nam. The sample consisted of 250 participants, drawn from postgraduate students enrolled in master courses in University of Economics Ho Chi Minh City. The finding provides evidences that postgraduate students‟ belief in the self-efficacy, and needs for achievement capability to reinstate their entrepreneurial intention.
The finding also points outs that communitarian culture impacts on entrepreneurial intention as particularly internal locus of control - one of typical characteristics of entrepreneur has negative relationship with entrepreneurial intention. Through the findings, the study also presents some implication to promote the entrepreneurial success for both business founders and also employees. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG. Table of content Chapter 1: Introduction 9 1.2 Statement of the research problem 10 1.5 Scope of the study 13 1.6 Contribution of the research 14 1.7 Research structure 14 Chapter 2: Literature review 16 2.3 Locus of control 18 2.3 Relationship between psychological traits & entrepreneurial intention 20 2.1 Achievement motivation & entrepreneurial intention 20 2.2 Self-efficacy & entrepreneurial intention 21 2.3 Locus of control & entrepreneurial intention 22 Chapter 3: Research method 26 3.2 Development of measurement scale 27 3.3 Sampling and data collection method 30 3.4 Data analysis method 32 Chapter 4: Data analysis & findings 34 4.1 Sample demographic 34 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG.1 Scale of achievement motivation 34 4.2 Scale of self-efficacy 35 4.3 Scale of locus of control 36 4.4 Scale of entrepreneurial intention 37 4.3 Exploratory factor analysis (EFA) 40 4.1 EFA for independent variables 40 4.2 EFA for dependent variable 41 4.4 Regression 43 Chapter 5: Conclusion 45 5.3 Limitation of the study and recommendations of future research 47 5.4 Conclusion 48 Reference 49 Appendix 53 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG.
List of tables Table 2.1: Research hypotheses 24 Table 3.1: Questionnaires of achievement motivation Table 3.2: Questionnaire of internal locus of control 26 Table 3.3: Questionnaire of external locus of control 27 Table 3.4: Questionnaire of self-efficacy 27 Table 3.5: Questionnaire of entrepreneurial intention 28 Table 4.1: The reliability statistics of achievement motivation‟s scale 29 Table 4.2: The item-total statistics of achievement motivation scale 34 Table 4.3: The reliability statistics of self-efficacy scale 34 Table 4.4: the item- total statistics of self-efficacy scale 34 Table 4.5: the reliability statistics of external locus of control scale 34 Table 4.6: the item-total statistics of external locus of control scale 35 Table 4.7: the reliability statistics of internal locus of control scale 35 Table 4.8: the item-total statistics of internal locus of control scale 36 Table 4.9: the reliability statistics of entrepreneurial intention scale 36 Table 4.10: the item-total statistics of entrepreneurial intention scale 36 Table 4.11: summary of Cronbach alpha values 37 Table 4.12: KMO & Barlett‟s test of indepentdent variables 37 Table 4.13: Rotated component matrix of independent variables 38 Table 4.14: Total variance explain of dependent variables 38 Table 4.15: model summary 39 Table 4.18: summarized results of hypotheses test 41 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG. List of figures Figure 2.1: Research model 24 Figure 3.1: Research Procedure 25 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG.1 Research background According to Commission of the European Communities (2003), entrepreneurship is viewed as the mindset and process to create and develop economic activity by blending risk-taking, creativity and/or innovation with sound management within a new or an existing organization. It is believed that economic growth occurs not only because of broad improvements in technology, productivity and available resource but also because of entrepreneurs. Nowadays, entrepreneurs play the vital role in economic development in every country.
The extraordinary power of the entrepreneurial process evolved throughout the world as almost twenty years elapsed. The resurgence of the entrepreneurial spirit is the most significant economic development of this decade. They create and allocate value and benefit for individuals, groups, organizations and society (Lynn, 1977). In particular, entrepreneurs identify opportunities; bring the new technologies and concepts into active commercial use.
Furthermore, they create new business ventures, jobs and wealth, but they also force other firms out of business. As a result, new and better jobs than lost ones are created, the overall of productivity rises and economic well being increase (Shaper & Volery, 2007). As entrepreneurship and SMEs would play crucial role for the economy of each country, which the government of each countries should look forwards on development by how implementing the policy to support and which level. In Vietnam, the Doimoi (renovation) policy in 1986 coupled with the passage of the Enterprise Law in 2000 has stimulated a tremendous growth of small – and medium – sized enterprises (SMEs), which are considered an important vehicle for the economic growth in Vietnam.
Since then, there has been a phenomenal transition to a market- oriented model, in which entrepreneurship has broadly become a universal modality for people wishing to become gloriously rich. For the last decade, the number of newly established enterprises has increased dramatically. The new business formation rate was 3 to be about 6 times larger in 2010 compared with one in 2000. In term of labor scale, there are 248,842 active enterprises on 1 January 2010.
9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG. Number of micro-, small-, and medium enterprise accounted for 97. During 2000-2009, new SMEs can be positioned as a king in job creation. While 59% of total employment in business sector working for state-owned companies in 2000, ten years later, when number of laborers increased to 8,927,900; 59% of them working in small and medium enterprises of non-state sector, contribute over 40% to the Gross Domestic Products (GDP).
According to the General Statistic Office (GSO), in the first half of the year 2012, more than 36,100 new businesses were added with a total registered capital of VND232. Through the statistic numbers presented above, it is abundantly clear that entrepreneurship can be considered as a driving force of the economic growth, innovation and employment in Vietnam. Because of those significant roles, Vietnamese entrepreneurship should be paid much more attention and higher consideration by scholars and governors in order to enforce the economy and assist entrepreneurs to overcome the challenges of globalization era.2 Problem statement Entrepreneurship is timeless. From the very young to very old, people are starting new business at a rapid rate.
One cause of the sudden increase of new entrepreneurs is the current trend of professionals who leave their companies to start putting their own businesses. They believe in modern days that being just an employee is not enough to meet their needs. Most employees are not satisfied with the salaries they get from their employers. Thus, they bind themselves looking for– as many are doing now they start their own company, using the expertise they learned from their previous employers.
The main factor contributing the interest of professionals to engage in entrepreneurship is the high unemployment rate in Viet Nam. In fact, following the result of ILSSA‟s report published on VNExpress e-newsletter, there are total around 178.000 labors with high qualification such as bachelor or master degree being unable to find jobs within the first quarter of 2015. Thus, connected with self-employment such as self-actualization, independence and greater satisfaction, has become more desirable among graduates (Baughn et al. This has been supported by several empirical studies.
Hart and Harrison (1992) for example, investigated tendency of university students in Northern Ireland and found that 47% expressed the intention to 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com THE EFFECT OF PSYCHOLOGICAL TRAITS ON ENTREPRENEURIAL INTENTION AMONG. run their own business. Similarly, a study by Karr (1985) shows that 46% of college students consider own business as a career. However, other research has also documented evidences for a lower entrepreneurial intention.
Brenner et al (1991) reported that although 55% of the study respondents preferred business as a career, only 5% of the students indicated the willingness to operate their own business. It may be due to lack of self-confidence or lack of encouragement or reassurance. There may also be others who are potential entrepreneurs but are not properly aware of the career options that are open to them. As becoming entrepreneur can be one of the options; their intention on becoming self- employed had prompted researchers to investigate particularly on the influence of entrepreneurial characteristics and entrepreneurial intention among undergraduates towards entrepreneurial activities.
Entrepreneurship is not the function that might be outcome of simple actions. It requires a regular and permanent effort as part of psychological traits which have received particular attention all over the world. It was wondered whether individuals with entrepreneurial characteristics affect enterprises more strongly so they looked for an answer for the question of “Who is the entrepreneur? The studies of psychological traits over entrepreneurship have played an important role for a detailed consideration of the concept and in giving the concept the broader meaning that is used now. Traits and characteristics are the same thing.
A trait is a distinguishing characteristic, feature or quality. In psychological terms, we usually think about personality traits and behavioral characteristics that define an individual. We all have traits. Psychologists often refer to personality traits or characteristics.
The unique combination of personality traits we each possess makes us individuals. There are many different entrepreneurial psychological traits but typical ones predicting behavior include achievement motivation, locus of control and self- efficacy.