UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Duy Quyen ENTREPRENEURIAL ENABLERS, RISK PERCEPTION AND BEHAVIORAL INTENTION: THE MEDIATING ROLES OF MOTIVATIONAL FACTORS MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Duy Quyen ENTREPRENEURIAL ENABLERS, RISK PERCEPTION AND BEHAVIORAL INTENTION: THE MEDIATING ROLES OF MOTIVATIONAL FACTORS ID:22120106 MASTEROF BUSINESS (Honours) SUPERVISOR: Dr.Le Nhat Hanh Ho Chi Minh City –Year 2014 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Entrepreneurial enablers, risk perception, and behavioral intention: The mediating roles of motivational factors Nguyen Thi Duy Quyen duyquyen.3 International School of Business Master Thesis Supervisor: Dr. Le Nhat Hanh lenhathanh@yahoo.com, Vietnam Germany University December 7nd, 2014 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT At the first, I would like to thank all those people who made this thesis possible and valuable experience for my research. Especially, I would like express my grateful sincere to my supervisor, Dr. Le Nhat Hanh, for her intensive support, worthy suggestions, instructions and encouragement.
All of them play an important role for my research orientation. Besides, I would like to thank the rest of my thesis committee: Prof Nguyen Dinh Tho, Dr Nguyen Thi Mai Trang, Dr Pham Ngoc Thuy, Dr Tran Ha Minh Quan as well as other teachers in International School of Business for the insightful comments and useful instruction during MBUS course. In addition, I thank all my classmates in MBUS 3, master students who attended my survey and my colleagues at Blood TransfusionHematology Hospital for their encouragement and supporting to me complete this thesis. Last but not least, my sincere thanks owe to my family who gave me good conditions to finish this work.
I also wish thank all people who spent through their time and generous support made this thesis project. Ho Chi Minh City, December, 2014 Nguyen Thi Duy Quyen LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Abstract This research empirically investigates the impact of motivational factors including perceived desirability and perceived feasibility on entrepreneurial intention in the context of developing country – Vietnam. It also explores the role of subjective norms, risk perception as threat and social support on these motivational factors. A sample of 201 master students in Ho Chi Minh City, Vietnam was surveyed to test the model.
Multiple regressionswere used to analyze the data. The result shows that entrepreneurial intention is positively related to perceive desirability and perceived feasibility. In addition, risk perception as threat has negative relationship with perceived feasibility, but in contrast relationship with perceived desirability. The result also reveals the positive role of social support on perceived feasibility as well as subjective norms on perceived desirability.
The primary contribution of this study is empirically examine the role of motivational factors in entrepreneurial intention in Vietnam as well as providing a combination between different antecedences in one model that was never done before in Vietnam and in the world research about this field. However limitation of this study is convenience sample of Ho Chi Minh City„s master students. Cross – region sample and undergraduate will be a direction for further research. Key words Perceived desirability, perceived feasibility, Entrepreneurial intention, Subjective norms, social support, risk perception LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT CHAPTER 1:INTRODUCTION.
Research methodology and scope. Significance of the study. The structure of the study. 6 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES .1 Motivational factors and entrepreneurial intentions .2 Subjective norms and perceived desirability .3 Social support and perceived feasibility .4 Risk perception as threat in relation of perceived desirability and feasibility.
15 CHAPTER 3: RESEARCH METHODOLOGY .3 MEASURES OF THE CONSTRUCTS .4 DATA ANALYSIS METHOD .2 Exploratory factor analysis (EFA) .3 Multiple regression analysis. 23 CHAPTER 4: DATA ANALYSIS .2 THE RELIABILITY TEST.3 EXPLORATORY FACTOR ANALYSIS (EFA) .1 The result of EFA with factors involved the first regression in this study was detailed in following table:. 29 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.2 The result of second EFA with factors that related to next regression time of the model was detailed in the following table:\ .3 The result of last EFA with factors that belong to main regression of the model was detailed in the following table: .4 Correlations between all factors: .4 MULTIPLE REGRESSION ANALYSIS .1 Multiple regression analysis to define the impact of subjective norms and risk perception as threat on the perceived desirability of entrepreneurship.2 Multiple regression analysis to evaluate the influence of family support, friend support, perceived risk as threat and the perceived feasibility of entrepreneurship.3 Multiple regression analysis to measure the relationship between entrepreneur intention and the perceived desirability of entrepreneurship as well as perceived feasibility of entrepreneurship. 41 CHAPTER 5: CONCLUSIONS, IMPLICATIONS AND LIMITATIONS.
55 Appendix A: Guideline for qualitative in-depth interview. 55 Appendix B: Questionnaire in English. 58 Appendice C: Questionnaire in Vietnamese. 61 Appendix D: Histogram, Normal Regression & Scatter plot of Dependent Variable: Perceive desirability of entrepreneurship.
64 Appendix E: Histogram, Normal Regression & Scatter plot of Dependent Variable: Perceive feasibility of entrepreneurship. 65 Appendix F: Histogram, Normal Regression & Scatter plot of Dependent Variable: Entrepreneur intention. 67 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 0.1: Theory of planned behavior„s model .2 Krueger & Bazeal‟s entrepreneurial model .3: Conceptual model of this research. 10 LIST OF TABLES Table 1: Sample Characteristics.
26 Table 2: The results of Cronbach’ alpha. 27 Table 3: KMO and Barllett’s test Result of perceive desirability, risk perception and subjective norms. 29 Table 4: Total Variance Explained perceive desirability, risk perception and subjective norms. 29 Table 5: Rotated Component Matrixa of perceive desirability, risk perception and subjective norms.
30 Table 6: KMO and Barllett’s test Result of social support, risk perception and perceived feasibility. 31 Table 7: Total Variance Explained social support, risk perception and perceived feasibility. 31 Table 8: Rotated Component Matrixa of social support, risk perception and perceived feasibility. 32 Table 9: KMO and Barllett’s test Result perceived feasibility, perceived desirability and entrepreneurial intention.
33 Table 10: Total Variance Explained perceived feasibility, perceived desirability and entrepreneurial intention. 33 Table 11: Rotated Component Matrixa of perceived feasibility, perceived desirability and entrepreneurial intention. 34 Table 12: Correlation between all factors. 35 Table 13: Model Summary of perceived desirability, risk as threat, subjective norms.
37 Table 14:Anova of perceived desirability, risk as threat, subjective norms. 38 Table 15: Coefficient matrix of perceived desirability, risk as threat, subjective norms. 38 Table 16:Model Summaryb of risk as threat, perceived feasibility, friend support and family support. 40 Table 17: Anovaof risk as threat, perceived feasibility, friend support and family support.
40 Table 18:Coefficient matrix of friend support, family support and risk as threat. 40 Table 19: Model summary of perceive feasibility, perceived desirability and entrepreneurial intention. 42 Table 20:Anova of perceive feasibility, perceived desirability and entrepreneurial intention. 42 Table 21:Coefficient matrix of perceive feasibility, perceived desirability.
42 Table 22:Summary of hypotheses testing result. 43 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION In this chapter, the important entrepreneurial activities in economics growth are demonstrated. Briefly tell about the small and medium sized enterprisessituation of Vietnam in recent year. Furthermore, providing what is factor influencing individual to intentstart-up in previous research.
Theaim, scope and significance of the study are also introduced. Research background In early 1980s, Vesper supposes that previous authoritative definitions of entrepreneur actually include some reference to venture or enterprise creation.After several decades, Mueller and Thomas (2000) also review that there are numerous authors in entrepreneurship field point out the relationship between entrepreneurship and new venture formation.All of them agree with definition of entrepreneurship as “the creation of new independent businesses” (Learned, 1992; Low & MacMillan, 1998; Pillis & Reardon, 2007). Because of the role of entrepreneurship in economics, more studies about this field are conducted. Carree and Thurik (2003) say that on the macro-level, new and small businesses contribute significantly to job creation, innovation and economic growth.
Besides, Giacomin et al. (2011) link the importance between entrepreneurial activities and economic growth, innovation and employment. For instant, Schmiemann (2008) also makes this relationship clearer when determining entrepreneurship linked to small and medium sized enterprises (SMEs), which are the primary developing force of the developed market economies because percentage of SMEs in total number of enterprises is higher than 95%.Moreover, 95% of the wealth created in the US since 1980 is due to the generation of entrepreneurs who create and recognize opportunities. On the other hand, entrepreneurship is not only concerned in developed countries, but also in developing countries such as Philippine, Taiwan, China, India, Mexico, Thailand, Hongkong and Vietnam.For example, in Vietnam, since December 1986, economic reforms - Doi Moi - have been introduced, the private enterprises is considered as an integral part of a 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com “multi-sector” economy as well as the state passelaws promoting the development of such enterprises.
As a result, more formal private enterprises appear as engine of the economy in the medium term (Kauanui, Dang & Cotleur, 2006). Moreover, Baughn et al. (2005) states the private sector is themost rapidly growing portion of the Vietnamese economy. Between 1996 and 2000, thissector created three times more jobs than the state-owned sector, continued growth in GDP and employmenttwill most likely continue to emanate from this sector.
As mention above, there are numerous studies about entrepreneurship. In the previous decades, researchers have certain concern about factors involving in intention to become an entrepreneur. Many different authors suppose that “entrepreneurial intentions are essential to understand the entrepreneurial process as hey precede any attempt in entrepreneurial behavior and it is affect by different factors” (Bird, Katz & Gartner, Krueger & Carsrud, Alpkan et al., Arendt & Brettel, Ga´mez-Gonza´lez et al., Huang et al., Lin et al., Lindblom & Tikkanen, Zhang & Duan, as cited in Alfonso & Cuevas, 2012, page 722). Up to now, the intention to start-up is mainly based on the following theories: Ajzen‟s theory of planned behavior(1991), Shapero and Sokol‟s model of the entrepreneurial event(1982) and in which the vital elements are explanation and prediction of personal behavior with respect to entrepreneurship.Both models recognize somehow the relevance of thepersonal attitudes and social pressure of entrepreneurship, as well as the perceivedself- efficacy as determining influence in establishing the level of the individual‟sintention.Many next empirical studies are established to test their conceptual model relate to these elements.
Some of them enhance extra factors involve in situation such as past entrepreneur experience, personal traits that affect entrepreneur intention. Most scientists all over the world carry out much empirical research trying to answer different questions related to intentions to start-up business, for example, Turker and Selcuk (2009) wonder whysome people more than others inclined to become entrepreneurs. 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Research problem Benzing, Chu and Callanan(2005) suppose thatthere are substantial differencesin the rate of new business start-ups across countries despite the acknowledged importance of entrepreneurship.
Both developed and developingnationsmake effortsto promote entrepreneurial activity, including government-supported programs in Finland, Hungary, China, India,Russia, Slovenia, and Mexico. Some have had a positive impact, while others have metwith only limited success (Reynolds et al., Vodopivecas cited in Benzing et al. The mixed results ofsuch efforts may reflect inadequate understandings on the part of policy makers regardingessential drivers of entrepreneurship in different country contexts.Therefore understanding why and how people start their businesses may facilitate the development of appropriate policies andfoster entrepreneurial activities more efficiently.It will also help encouraging more potential entrepreneurs for better performance of nation. Alfonso and Cuevas (2012) emphasize that managing those factors in order to affect the entrepreneurial intentions in a positive way will useful for economic growth.