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CASE STUDY Entrepreneurial Intention

This section reviews the appropriate literature or previous research done on entrepreneurial self efficacy that served as mediator for mastery experience, vicarious experience, verbal persuasions and physiological states on entrepreneurial intention.

Entrepreneurial intent has proven to be a primary predictor for future entrepreneurial behavior (Krueger et al.,2000). Therefore, investigating what factors determine the entrepreneurial intent is a crucial issue in entrepreneurship research (Schwarz et al., 2009). According to the theory of planned behavior, Ajzen, (2002), individual’s attitudes have an impact on behavior via intention. In particular, there are three fundamental attitudinal antecedents of intent: personal attitude toward outcomes of the behavior, perceived social norm, and perceived behavioral control (self-efficacy).

According to Bird (1988), intentionality can be defined as a state of mind directing a person’s attention, experience and action towards a specific goal or path to achieve something. Therefore, entrepreneurial action can also be classified as an intentional behavior (Bird, 1988). A number of studies have investigated the antecedents of entrepreneurial intentions, with Shapero’s Model of the Entrepreneurial Event (SEE) and Ajzen’s Theory of Planned Behavior (TPB) featuring prominently as framework to guide these studies (Krueger et al., 2002). The three factors TPB uses to predict entrepreneurial intent are attitude toward the act, social norms and perceived behavioral control (self efficacy) (Nabi et al., 2010).

2.2 Entrepreneurial Self-efficacy

The concept of self-efficacy is derived from social learning theory and refers to a judgment of one’s capability to accomplish a certain level of performance or achieve a desired outcome. Chen, Green and Crick (1998) define entrepreneurial self-efficacy as the extent to which one believes that he or she can successfully perform entrepreneurial tasks and roles. According to Markham, et al.,(2002), it is the perceptions of self-efficacy, rather than objective ability that motivates individuals to demonstrate entrepreneurial behavior. Unlike other personality traits of entrepreneurship which are relativeky static, self-efficacy is affected by contextual factors such as education and past experiences (Hollenbeck & Hall, 2004).

2.3 Antecedents of Entrepreneurial Self efficacy

Self efficacy is a motivational construct that has been shown to influence an individual’s choice of activities, goal levels, persistence, and performance in a range of context. Accroding to Bandura, (1986), an individual’s sense of self efficacy can be influenced by four sources: enactive mastery, vicarious experience, verbal persuasion and physiological states.

Mastery experiences

Bandura’s (1986) emphasis that one’s mastery experiences are the most influential source of self efficacy information has important implications for self enhancement model. This is usually accomplished through programs that emphasize enhancing self-beliefs through verbal persuasion methods.

Vicarious experience

Second source of efficacy is the vicarious experience of the effects produced by the actions of others. A significant model in one’s life can help instill self-beliefs that will influence the course and direction that life will take. Part of one’s vicarious experience also involves the social comparisons made with other individuals. These comparisons, along with peer modeling, can be powerful influences on developing self-perceptions of competence (Schunk, 1983). For example, if a model’s failure has a more negative effect on the self-efficacy of observers when observers judge themselves as having comparable ability of the model.

Verbal persuasions

Individuals also create and develop self-efficacy beliefs as a result of the verbal persuasions they receive from others. These persuasions involve exposure to the verbal judgements that others provide. Persuaders can play an important part in the development of an individual’s self belief (Zeldin & Pajares, 1997).

Physiological states

Physiological states such as anxiety, stress, arousal, fatigue, and mood states also provide information about efficacy beliefs. Because individuals have the capability to alter their own thinking, self-efficacy beliefs, in turn, also powerfully influence the physiological states themselves.

In addition, personality traits have not been found to be reliable predictors of future behavior (Ajzen, 1987, 1988; Ganner, 1989). Thus, attempts to develop a personality profile of the typical entrepreneur have been largely unsuccessful (Low & MacMillan, 1988).

2.4 Framework

The study framework was adapted from Zhao H., Hills G.E., Seibert S.E (2005) who used a variety level of analysis to discuss the role of self-efficacy in developing entrepreneurial intention. In their study, they include perceptions of formal learning, entrepreneurial experience, risk propensity and gender in affecting entrepreneurial self-efficacy. In this study, only two elements were adopted with additional two other elements which is verbal persuasions and physiological states as presented below.

Physiological states

Mastery experience

Vicarious experience

Verbal persuasions

Entrepreneurial Self-Efficacy

Entrepreneurial Intention

(Sources Zhao et al., 2005)

Diagram above illustrate the four major determinants of entrepreneurial self-efficacy (Bandura, 1986) and the relationship among the variables. In this study master experience, vicarious experience, verbal persuasions and physiological states are the independent variables which have proven theoretically by many researchers have impact on entrepreneurial self-efficacy. Entrepreneurial self-efficacy works as the mediating role in developing the entrepreneurial intention which is the dependent variable.

The objectives of this study is to determine :-

The relationship between self-efficacy and entrepreneurial intention

The relationship between mastery experiences and entrepreneurial self-efficacy

The relationship between vicarious experience and entrepreneurial self-efficacy

The relationship between social persuasion and entrepreneurial self-efficacy

The relationship between verbal persuasions and entrepreneurial self-efficacy.

The relationship between physiological states and entrepreneurial self-efficacy.

The relationship between mastery experiences, vicarious experiences, social persuasions and physiological states and entrepreneurial self-efficacy.

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