A Hierarchical Multiple Regression Approach on Determining the Effect of Psychological Capital on Entrepreneurial Intention amongst Prospective University Graduates in South Africa
Keywords:
Theory of planned behaviour, entrepreneurial intention, psychological capital, hope, resilience, optimism, self-efficacy, university students, prospective graduates, hierarchical regression
Abstract
The goal of the study is to identify the contribution of psychological capital in the prediction of entrepreneurial intention using the Theory of Planned Behaviour (TPB) as a theoretical lens. South Africa needs young entrepreneurs, not job seekers. However, in order to adapt, graduates must rely on psychological resources to succeed in their entrepreneurial ventures and pursuits. Using the TPB and Psychological capital (Psycap), the researchers explored the influence of planned behaviour and Pyscap on entrepreneurial intention of 270 final year students in the Management and Commerce faculty at a selected university in the Eastern Cape Province of South Africa. A structured questionnaire was used to collect data as the researchers opted for a survey design. Results of hierarchical multiple regression modelling showed that entrepreneurial intentions is positively influenced by perceived behavioural control (β1 = 0.367; p = <0.0001) attitudes towards becoming an entrepreneur (β2 = 0.316; p = <0.0001) and resilience (β3 = 0.130; p = 0.009). The resultant model revealed that resilience (ΔR2 = 0.016; R2 = 0.392; df = 266; p = 0.009) was the only significant psychological capital construct that added unique variance in predicting entrepreneurial intention above and beyond, which is predicted by the theory of planned behavior variables among the prospective graduates. Findings of the study are helpful to policy makers as they try to optimise strategies for entrepreneurial success in the South African context and the developing world.
Downloads
Download data is not yet available.
References
Ajzen, I. (2011). The theory of planned behaviour: Reactions and reflections. Psychology & Health, 26(9), 1113- 127,
Ajzen, I. (2005). Attitudes, Personality and Behaviour (2nd edition). Berkshire, England: Open University Press.
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.
Angriawan, A., Conners, S. E., Furdek, J. & Ruth, D. (2012). An empirical examination of entrepreneurial intent in the equine industry. Proceedings of the Academy of Entrepreneurship, 18(1), 1-8.
Armitage, C. J. & Conner, M. (2001). Efficacy of the theory of planned behaviour: A meta-analytic review. British Journal of Social Psychology, 40, 471–499.
Autio, E., Keeley, R. H., Klofsten, M., Parker, G. G. C. & Hay, M. (2001). Entrepreneurial intent among students in Scandinavia and in the USA. Enterprise and Innovation Management Studies, 2(2), 145–160.
Basu, A. & Virick, M. (2008). Assessing entrepreneurial intentions amongst students: A comparative study. Available online at: http://nciia.org/conf08/assets/pub/basu2.pdf.
Chakraborty, S., Thompson, J. C. & Yehoue, E. B. (2016). The culture of entrepreneurship. Journal of Economic Theory, 163, 288–310.
Chen, G., Gully, S. M. & Eden, D. (2001). Validation of a new general self-efficacy scale. Organizational Research Methods, 4, 62–83.
Conner, M. & Armitage, C. J. (1998). Extending the Theory of Planned Behaviour: A Review and Avenues for Further Research. Journal of Applied Social Psychology, 28(15), 1429-1464.
Dawkins, S., Martin, A. & Scott, J. (2013). Building on the positives: A psychometric review and critical analysis of the construct of Psychological Capital. Journal of Occupational and Organizational Psychology, 86, 348–370.
Delanoë, S. (2013). From intention to start-up: the effect of professional support. Journal of Small Business and Enterprise Development, 20(2), 383–398.
Engle, R. L., Dimitriadi, N., Gavidia, J. E., 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 behaviour. International Journal of Entrepreneurial Behaviour &Research, 16(1), 35-57.
Gartner, W. B. & Shane, S. A. (1995). Measuring entrepreneurship over time. Journal of Business Venturing 10, 283-301.
Gina, G. E. & Marthine, H. (2013). Psychological capital: Internal and external validity of the Psychological Capital Questionnaire (PCQ-24) on a South African sample. South African Journal of Industrial Psychology, 39(2), 1-13.
Gird, A. & Bagraim, J. J. (2008). The theory of planned behaviour as a predictor of entrepreneurial intent amongst final-year university students. South African Journal of Psychology, 38(4), 711-724.
Gultekin, A., Sozuer, A., Altan, D. & Demirtas, T. H. (2013). The Role of Work Hope on Entrepreneurial Self-efficacy and Entrepreneurial Intentions: Evidence from Business Students in Turkey. International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo, 1 (1). ISSN 2303-4564
Hamid, M. A. & Isa, S. M. (2015). The Theory of Planned Behaviour on Sustainable Tourism. Applied Environment Biology Science, 5(65), 84-88,
Henley, A. (2007). Entrepreneurial aspiration and transition into self-employment: Evidence from British longitudinal data. Entrepreneurship and Regional Development, 19(3), 253–280.
Herrington, M. & Kew, J. (2014). GEM South Africa 2013 Report. Available (online) http://www.gemconsortium.org/docs/3336/gem-south-africa-2013-reportaccessed 11/09/2016.
Iakovleva, T., Kolvereid, L. & Stephan, U. (2011). Entrepreneurial intentions in developing and developed countries. Education & Training, 53(5), 353-370.
Kautonen, T., Van Gelderen, M. & Tornikoski, E. T. (2013). Predicting entrepreneurial behaviour: a test of the theory of planned behaviour. Applied Economics, 45(6), 697- 707.
Keen R., McCoy, M. L. & Powell, E. (2012). Rooting for the Bad Guy: Psychological Perspectives. Studies in Popular Culture, 34 (2), 129-148.
Kolvereid, L. & Isaksen, E. (2006). New business start-up and subsequent entry into self-employment. Journal of Business Venturing, 21, 866–885.
Krueger, N. F., Reilly, M. D. & Carsrud, A. L. (2000).Competing models of entrepreneurial intentions. Journal of Business Venturing, 15, 411–432.
Krueger, N. F. & Carsrud, A. L. (1993). Entrepreneurial intentions: Applying the theory of planned behaviour. Entrepreneurship & Regional Development, 5(4), 315–330.
Küttim, M., Kallaste, M., Venesaar, U. & Kiis, A. (2014). Entrepreneurship education at university level and students’ entrepreneurial intentions Procedia - Social and Behavioral Sciences, 110, 658 – 668
European Commission. (2003). Linking creativity and entrepreneurship. Available: [Online http://ec.europa.eu/education/lifelong-learning policy/doc/creativity/report/oecd.pdf accessed 11/09/2016.
Fenghua, X., Haibei, L. & Le, Q. (2013). Research on the Relation between College Students’ Psychological Capital, Entrepreneurial Intention and Entrepreneurial Ability--Based on the empirical analysis of the Chinese college students. Journal of Convergence Information Technology (JCIT), 8, 11, 229-238.
Li, W. (2006). Entrepreneurial intention among international students: testing a model of entrepreneurial intention. [Online] Available at: http://www.sbaer.uca.edu/research/usasbe/2006/pdffiles/toc_cases.pdf. Accessed: 13 March 2006.
Liñán, F. (2004). Intention-based models of entrepreneurship education. Piccola Impresa/Small Business, 3, 11–35.
Liñán, F. & Chen, Y. (2009). Development and cross-cultural application of a specific instrument to measure entrepreneurial intentions. Entrepreneurship Theory and Practice, 3, 593–617.
Liñán, F., Nabi, G. & Krueger, N. (2013). British and Spanish entrepreneurial intentions: a comparative study. Revista de Economia Mundial, 33, 73–103.
Liñán, F., Urbano, D. & Guerrero, M. (2011).Regional variations in entrepreneurial cognitions: start-up intentions of university students in Spain. Entrepreneurship and Regional Development, 23(3), 187–215.
Lortie, J. & Castogiovanni, G. (2015). The theory of planned behavior in entrepreneurship research: what we know and future directions. International Entrepreneurship and Management Journal, 11, 935–957.
Luthans, F., Avey, J. B., Avolio, B. J., Norman, S. M. & Combs, G. M. (2006). Psychological capital development: toward a micro-intervention. Journal of Organizational Behaviour, 27, 387–393.
Luthans, F., Avolio, B. J., Avey, J. B. & Norman, S. M. (2007). Positive psychological capital: Measurement and relationship with performance and satisfaction. Personnel Psychology, 60(3), 541–572.
Luthans, F. & Youssef, C. M. (2004). Human, social, and now positive psychological capital management: Investing in people for competitive advantage. Organizational Dynamics, 33(2), 143-160.
Malebana, M. J. & Swanepoel, E. (2015). Graduate entrepreneurial intentions in the rural provinces of South Africa. Southern African Business Review, 19, 189-111.
Marcin, S. & Katarzyna, A. (2016) Start-up intentions of potential entrepreneurs – the contribution of hope to success. Economic Research-Ekonomska Istraživanja, 29(1), 233-249.
Masten, A. S. & Reed, M. G. J. (2002). Resilience in development In C. R. Snyder & S. J. Lopez (Eds.), Handbook of positive psychology (pp. 74–88). Oxford, England: Oxford University Press.
Mónico, L. M., Pais, L., dos Santos, N. R. & Santos, D. (2014). Psychological capital in Portuguese workers: Contributions to the validity and reliability of the Psycap Questionnaire. Proceedings of the Conferences on Social Sciences and Arts, 1, 319-326.
Mueller, S. (2011). Increasing entrepreneurial intention: effective entrepreneurship course characteristics. International Journal of Entrepreneurship & Small Business, 13(1), 55-74.
Oldham, G. & Hackman, J. R. (1980). Work design in the organizational context. Research in Organizational Behavior, 2, 247-278.
Otuya, R., Kibas, P., Gichira, R. & Martin, W. (2013). Entrepreneurship education: Influencing students’ entrepreneurial intentions. International Journal of Innovative Research &Studies, 2(4), 132-148.
Peng, Z., Lu, G. & Kang, H. (2013). Entrepreneurial intentions and its influencing factors: A survey of the university students in Xi’an China. Creative Education, 3(8), 95.
Schlaegel, C. & Koenig, M. (2014). Determinants of entrepreneurial intent: A meta-analytic test and integration of competing models. Entrepreneurship Theory and Practice.
Snyder, C. R., Irving, L. & Anderson, J. (1991). Hope and health. In C. R. Snyder & D. R. Forsyth (Eds.), Handbook of social and clinical psychology (pp. 285–305). Elmsford, NY: Pergamon.
Souitaris, V., Zerbinati, S. & Al-Laham, A. (2007). Do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? The effect of learning, inspiration and resources. Journal of Business Venturing, 22, 566-591.
van Gelderen, M., Brand, M., van Praag, M., Bodewes, W., Poutsma, E. & van Gils, A. (2008). Explaining entrepreneurial intentions by means of the theory of planned behavior Career Development International, 13(6), 538-559.
Yang, J. (2013). The theory of planned behaviour and prediction of entrepreneurial intent among Chinese undergraduates. Social Behaviour and Personality, 41(3), 367–376.
Yousaf, S. U., Hizam-Hanafiah, M. & Usman, B. (2015). Psychological Capital: Key to Entrepreneurial performance and Growth intentions. International Research Journal of Social Sciences, 4(9), 39-45.
Walter, S. G. & Block, J. H. (2016). Outcomes of entrepreneurship education: An institutional perspective. Journal of Business Venturing, 31, 216–233.
Wong, M. & Choo, S. (2009). Entrepreneurial intention: Triggers and barriers to new venture creation in Singapore. Singapore Management Review, 28(2), 47-64.
Zhang, Y. & Yang, J. (2006). New venture creation: evidence from an investigation into Chinese entrepreneurship. Journal of Small Business and Enterprise Development, 13(2), 161–173.
Ajzen, I. (2005). Attitudes, Personality and Behaviour (2nd edition). Berkshire, England: Open University Press.
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.
Angriawan, A., Conners, S. E., Furdek, J. & Ruth, D. (2012). An empirical examination of entrepreneurial intent in the equine industry. Proceedings of the Academy of Entrepreneurship, 18(1), 1-8.
Armitage, C. J. & Conner, M. (2001). Efficacy of the theory of planned behaviour: A meta-analytic review. British Journal of Social Psychology, 40, 471–499.
Autio, E., Keeley, R. H., Klofsten, M., Parker, G. G. C. & Hay, M. (2001). Entrepreneurial intent among students in Scandinavia and in the USA. Enterprise and Innovation Management Studies, 2(2), 145–160.
Basu, A. & Virick, M. (2008). Assessing entrepreneurial intentions amongst students: A comparative study. Available online at: http://nciia.org/conf08/assets/pub/basu2.pdf.
Chakraborty, S., Thompson, J. C. & Yehoue, E. B. (2016). The culture of entrepreneurship. Journal of Economic Theory, 163, 288–310.
Chen, G., Gully, S. M. & Eden, D. (2001). Validation of a new general self-efficacy scale. Organizational Research Methods, 4, 62–83.
Conner, M. & Armitage, C. J. (1998). Extending the Theory of Planned Behaviour: A Review and Avenues for Further Research. Journal of Applied Social Psychology, 28(15), 1429-1464.
Dawkins, S., Martin, A. & Scott, J. (2013). Building on the positives: A psychometric review and critical analysis of the construct of Psychological Capital. Journal of Occupational and Organizational Psychology, 86, 348–370.
Delanoë, S. (2013). From intention to start-up: the effect of professional support. Journal of Small Business and Enterprise Development, 20(2), 383–398.
Engle, R. L., Dimitriadi, N., Gavidia, J. E., 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 behaviour. International Journal of Entrepreneurial Behaviour &Research, 16(1), 35-57.
Gartner, W. B. & Shane, S. A. (1995). Measuring entrepreneurship over time. Journal of Business Venturing 10, 283-301.
Gina, G. E. & Marthine, H. (2013). Psychological capital: Internal and external validity of the Psychological Capital Questionnaire (PCQ-24) on a South African sample. South African Journal of Industrial Psychology, 39(2), 1-13.
Gird, A. & Bagraim, J. J. (2008). The theory of planned behaviour as a predictor of entrepreneurial intent amongst final-year university students. South African Journal of Psychology, 38(4), 711-724.
Gultekin, A., Sozuer, A., Altan, D. & Demirtas, T. H. (2013). The Role of Work Hope on Entrepreneurial Self-efficacy and Entrepreneurial Intentions: Evidence from Business Students in Turkey. International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo, 1 (1). ISSN 2303-4564
Hamid, M. A. & Isa, S. M. (2015). The Theory of Planned Behaviour on Sustainable Tourism. Applied Environment Biology Science, 5(65), 84-88,
Henley, A. (2007). Entrepreneurial aspiration and transition into self-employment: Evidence from British longitudinal data. Entrepreneurship and Regional Development, 19(3), 253–280.
Herrington, M. & Kew, J. (2014). GEM South Africa 2013 Report. Available (online) http://www.gemconsortium.org/docs/3336/gem-south-africa-2013-reportaccessed 11/09/2016.
Iakovleva, T., Kolvereid, L. & Stephan, U. (2011). Entrepreneurial intentions in developing and developed countries. Education & Training, 53(5), 353-370.
Kautonen, T., Van Gelderen, M. & Tornikoski, E. T. (2013). Predicting entrepreneurial behaviour: a test of the theory of planned behaviour. Applied Economics, 45(6), 697- 707.
Keen R., McCoy, M. L. & Powell, E. (2012). Rooting for the Bad Guy: Psychological Perspectives. Studies in Popular Culture, 34 (2), 129-148.
Kolvereid, L. & Isaksen, E. (2006). New business start-up and subsequent entry into self-employment. Journal of Business Venturing, 21, 866–885.
Krueger, N. F., Reilly, M. D. & Carsrud, A. L. (2000).Competing models of entrepreneurial intentions. Journal of Business Venturing, 15, 411–432.
Krueger, N. F. & Carsrud, A. L. (1993). Entrepreneurial intentions: Applying the theory of planned behaviour. Entrepreneurship & Regional Development, 5(4), 315–330.
Küttim, M., Kallaste, M., Venesaar, U. & Kiis, A. (2014). Entrepreneurship education at university level and students’ entrepreneurial intentions Procedia - Social and Behavioral Sciences, 110, 658 – 668
European Commission. (2003). Linking creativity and entrepreneurship. Available: [Online http://ec.europa.eu/education/lifelong-learning policy/doc/creativity/report/oecd.pdf accessed 11/09/2016.
Fenghua, X., Haibei, L. & Le, Q. (2013). Research on the Relation between College Students’ Psychological Capital, Entrepreneurial Intention and Entrepreneurial Ability--Based on the empirical analysis of the Chinese college students. Journal of Convergence Information Technology (JCIT), 8, 11, 229-238.
Li, W. (2006). Entrepreneurial intention among international students: testing a model of entrepreneurial intention. [Online] Available at: http://www.sbaer.uca.edu/research/usasbe/2006/pdffiles/toc_cases.pdf. Accessed: 13 March 2006.
Liñán, F. (2004). Intention-based models of entrepreneurship education. Piccola Impresa/Small Business, 3, 11–35.
Liñán, F. & Chen, Y. (2009). Development and cross-cultural application of a specific instrument to measure entrepreneurial intentions. Entrepreneurship Theory and Practice, 3, 593–617.
Liñán, F., Nabi, G. & Krueger, N. (2013). British and Spanish entrepreneurial intentions: a comparative study. Revista de Economia Mundial, 33, 73–103.
Liñán, F., Urbano, D. & Guerrero, M. (2011).Regional variations in entrepreneurial cognitions: start-up intentions of university students in Spain. Entrepreneurship and Regional Development, 23(3), 187–215.
Lortie, J. & Castogiovanni, G. (2015). The theory of planned behavior in entrepreneurship research: what we know and future directions. International Entrepreneurship and Management Journal, 11, 935–957.
Luthans, F., Avey, J. B., Avolio, B. J., Norman, S. M. & Combs, G. M. (2006). Psychological capital development: toward a micro-intervention. Journal of Organizational Behaviour, 27, 387–393.
Luthans, F., Avolio, B. J., Avey, J. B. & Norman, S. M. (2007). Positive psychological capital: Measurement and relationship with performance and satisfaction. Personnel Psychology, 60(3), 541–572.
Luthans, F. & Youssef, C. M. (2004). Human, social, and now positive psychological capital management: Investing in people for competitive advantage. Organizational Dynamics, 33(2), 143-160.
Malebana, M. J. & Swanepoel, E. (2015). Graduate entrepreneurial intentions in the rural provinces of South Africa. Southern African Business Review, 19, 189-111.
Marcin, S. & Katarzyna, A. (2016) Start-up intentions of potential entrepreneurs – the contribution of hope to success. Economic Research-Ekonomska Istraživanja, 29(1), 233-249.
Masten, A. S. & Reed, M. G. J. (2002). Resilience in development In C. R. Snyder & S. J. Lopez (Eds.), Handbook of positive psychology (pp. 74–88). Oxford, England: Oxford University Press.
Mónico, L. M., Pais, L., dos Santos, N. R. & Santos, D. (2014). Psychological capital in Portuguese workers: Contributions to the validity and reliability of the Psycap Questionnaire. Proceedings of the Conferences on Social Sciences and Arts, 1, 319-326.
Mueller, S. (2011). Increasing entrepreneurial intention: effective entrepreneurship course characteristics. International Journal of Entrepreneurship & Small Business, 13(1), 55-74.
Oldham, G. & Hackman, J. R. (1980). Work design in the organizational context. Research in Organizational Behavior, 2, 247-278.
Otuya, R., Kibas, P., Gichira, R. & Martin, W. (2013). Entrepreneurship education: Influencing students’ entrepreneurial intentions. International Journal of Innovative Research &Studies, 2(4), 132-148.
Peng, Z., Lu, G. & Kang, H. (2013). Entrepreneurial intentions and its influencing factors: A survey of the university students in Xi’an China. Creative Education, 3(8), 95.
Schlaegel, C. & Koenig, M. (2014). Determinants of entrepreneurial intent: A meta-analytic test and integration of competing models. Entrepreneurship Theory and Practice.
Snyder, C. R., Irving, L. & Anderson, J. (1991). Hope and health. In C. R. Snyder & D. R. Forsyth (Eds.), Handbook of social and clinical psychology (pp. 285–305). Elmsford, NY: Pergamon.
Souitaris, V., Zerbinati, S. & Al-Laham, A. (2007). Do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? The effect of learning, inspiration and resources. Journal of Business Venturing, 22, 566-591.
van Gelderen, M., Brand, M., van Praag, M., Bodewes, W., Poutsma, E. & van Gils, A. (2008). Explaining entrepreneurial intentions by means of the theory of planned behavior Career Development International, 13(6), 538-559.
Yang, J. (2013). The theory of planned behaviour and prediction of entrepreneurial intent among Chinese undergraduates. Social Behaviour and Personality, 41(3), 367–376.
Yousaf, S. U., Hizam-Hanafiah, M. & Usman, B. (2015). Psychological Capital: Key to Entrepreneurial performance and Growth intentions. International Research Journal of Social Sciences, 4(9), 39-45.
Walter, S. G. & Block, J. H. (2016). Outcomes of entrepreneurship education: An institutional perspective. Journal of Business Venturing, 31, 216–233.
Wong, M. & Choo, S. (2009). Entrepreneurial intention: Triggers and barriers to new venture creation in Singapore. Singapore Management Review, 28(2), 47-64.
Zhang, Y. & Yang, J. (2006). New venture creation: evidence from an investigation into Chinese entrepreneurship. Journal of Small Business and Enterprise Development, 13(2), 161–173.
Published
2017-03-12
How to Cite
Hlatywayo, C. K., Marange, C. S., & Chinyamurindi, W. T. (2017). A Hierarchical Multiple Regression Approach on Determining the Effect of Psychological Capital on Entrepreneurial Intention amongst Prospective University Graduates in South Africa. Journal of Economics and Behavioral Studies, 9(1(J), 166-178. https://doi.org/10.22610/jebs.v9i1(J).1568
Issue
Section
Research Paper
Copyright (c) 2017 Journal of Economics and Behavioral Studies
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
