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PREFACE

Malaysian Chinese marketing activities are influenced by the growth and development of East Asian economies such as four Newly Industrialized countries (NICs) of East Asia, Hong Kong, Singapore, and Taiwan and even South Korea.

How do Chinese business owned-managers achieve economic success? Several studies have revealed that Chinese value has a significant and positive correlation with success of entrepreneur attitude orientation. These Chinese values have significantly influenced the Chinese way of life and personality.

In order to understand how the Chinese value will affect the entrepreneur attitude orientation in Malaysia, the questionnaires were widely distributed to many locations. The survey is important because it can provide insight and more accurate result so to have a better understanding of the topic in a detail research.

This research is conducted with the purpose to investigate how the Chinese value will affect entrepreneur attitude orientation. We have proven that Chinese value has affected the entrepreneur attitude orientation.

ABSTRACT

Research generally concludes that in Malaysia small firm's particularly Chinese small firms have played a very important role for economic growth in this country. Chinese firms have managed to survive, grow and succeed either in Malaysia or anywhere else in the world. Most prior research found that the success factor was related to the Chinese value. Yet, researchers examined the relationship between Chinese values toward the entrepreneurial attitude orientation. Yet, it is said that Chinese management is more relationship-oriented “guanxi” than performance-oriented.

It was particularly on certain selected values related to integration, human heartedness, confusion work dynamism, moral discipline. This research proposed that Chinese values are the main factor that affect the way Chinese small firms market their operation. Thus, the current study thus proposed that how Chinese value have significant contribution to their success or their failures.

CHAPTER 1: INTRODUCTION

1.0 Introduction

Chapter 1 is the introductory chapter which provides an overview of the study content. This chapter covers eight parts of the study. The first section is research background which outlines the broad field of the chapter. In section one, we discussed the Malaysia Entrepreneurial History and why Chinese Value is important. Next, the second section is about problem statement. It explained the important issues behind the study. The third section is research objective (general objective and specific objective) which explained the aim of investigation. The forth section is research questions that can provide us an understanding about how the Chinese Value affect by the Entrepreneurial Attitudes Orientation. This chapter is continuing by chapter layout which briefly outlines each chapter of the research report. The final section is conclusion, providing a summary of the impact on Chinese Value towards Entrepreneurial Attitudes Orientation.

1.1 Research Background

In Malaysia, the small and medium-sized enterprises (SMEs) sectors play an important part of the developed and developing economies. The SMEs sector in Malaysia plays a significant role and part in the national economy. The sector's contributions to the nation's economy can be seen from various aspects such as associated primarily with their role in stimulating economic growth due to the employment opportunities offer by as well as lead to increase economic output. Apart from these contributions, the SMEs sector in Malaysia is also known to make other valuable contributions such as regional income generation, savings, training, stimulation of competition, aiding large firms, introduction of innovation, and as a seed-bed for growth. Thus, a country can reduce its vulnerability to financial crisis by strengthening its SMEs (Hashim, 1999). In Malaysia, the growth and development of the SMEs sector may be best observed in the National Economic Policy and the Malaysian Development Plans (the five-year plans).

From the research we know that small and medium firms have played a very important role for economic growth, particularly Chinese small firms. Chinese owner-manager have managed to survive, grow and succeed either in Malaysia or anyway else all over the world. In other word, Chinese-owned companies in Malaysia were more resilient to economic and financial turmoil than businesses of other ethnic groups. In fact, Malaysian Chinese marketing activities were influence by the growth and development of East Asian economies such as four Newly Industrialized Countries (NICs) of East Asia, Hong Kong, Singapore, and Taiwan and even South Korea's whose culture was under the influence of Confucianism. Their successfulness is very significant and highly remarkable (Redding, 1990).

Majority of the SMEs are owned by Chinese, hence it is important to study Chinese values (Tan, 1990). For Chinese, culture counts specifically guanxi, “the ages-old practice of continuously cultivating and valuing relationships” which is also the culture that most emphasized by Chinese when doing the business. In order to for Malays to be equally successful as the Chinese such as Entrepreneurial development program for Malays must be spelt out in a master plan and definitely they need guidance and leadership in business especially in marketing from professionals. According to Forbes 5000, out of ten billionaires in Malaysia, eight of them are Chinese. For example: one of the 10 Great Malaysian Entrepreneurs is Lim Goh Tong who migrated from the China mainland in his youth.

1.2 Problem statement

Many countries have indicated successful entrepreneurship as a major component in a healthy market economy and important source of job creation (Hisrich & Peter, 1988; Jackson & Rodkey, 1994; Jennings, 1994; Kroon, 2002; North, 2002; Timmons, 1994; Van Aadrt & Van Aardt, 1997). The presence of entrepreneurial thinking in existing organizations can lead the competitive advantage (Covin and Miles, 1990) and improved financial performance (Goosen, De Coning & Smit, 2002)

According to the research of Brock and Evans (1986) conclude that small businesses are contributed to the economic development. In Malaysia and many countries, small firms had played an important role for economic development. There has been minimal research conducted to examine why most of the companies that survive, grow and succeed are mostly Chinese owner-managers compared to Malay and Indian owner-managers.

Several studies have revealed that Confucian culture has a significant and positive correlation with economic success. These cultural values have significantly influenced the Chinese way of life and personality (Wah, 2002). From the sociological point of view, the family is a basic unit of society for Chinese. In the Chinese Confucianism society, the family is the center of all relationships. Business ownership and management is normally retained within the circle of family members. It is common to find that the Chinese business is normally started by the first generation of the family with the intention to be passed down to the second generation or even third generation. Due to lack of research study on the reason in most of the companies that survive, grow and succeed are mostly Chinese owner-managers. This researches and studies give a way to have a depth understand about the Chinese Value towards Entrepreneurial Attitudes Orientation.

1.3 Research Objectives

The purpose of this study is to find out the impact on Chinese value towards entrepreneurial attitudes orientation. To address the above mentioned problem the following objectives are derived:

1.3.1 General objective

To identify how the four dimension of Chinese value (integration, human heartedness, Confucian work dynamism and moral discipline) determines the entrepreneurial attitudes orientation in Malaysia.

1.3.2 Specific objective

  • To examine whether there is a significant relationship between integration and entrepreneurial attitude orientation.
  • To examine whether there is a significant relationship between human heartedness and entrepreneurial attitude orientation.
  • To examine whether there is a significant relationship between Confucian work dynamism and entrepreneurial attitude orientation.
  • To examine whether there is a significant relationship between moral discipline and entrepreneurial attitude orientation.
  • To examine whether the Integration, Human heartedness, Confucian work dynamism and Moral discipline is significant explain the variance in Entrepreneurial Attitudes Orientation.

1.4 Research questions

  • Are there any relationship between integration and entrepreneurial attitudes orientation?
  • Are there any relationship between human heartedness and entrepreneurial attitudes orientation?
  • Are there any relationship between Confucian work dynamism and entrepreneurial attitudes orientation?
  • Are there any relationship between moral discipline and entrepreneurial attitudes orientation?
  • Are there Integration, Human heartedness, Confucian work dynamism and Moral discipline can be use to explain the variance in Entrepreneurial Attitudes Orientation.

1.5Hypothesis of the study

H1 : There is a significant relationship between Integration and Entrepreneurial Attitude Orientation.

H2 : There is a significant relationship between Confusion Work Dynamism and Entrepreneurial Attitude Orientation.

H3 : There is a significant relationship between Human-heartedness and Entrepreneurial Attitude Orientation.

H4 : There is a significant relationship between Moral Discipline and Entrepreneurial Attitude Orientation.

H5 : The independent variables will significantly explain the variance in Entrepreneurial attitudes orientation.

1.6 Significance of the study

Nowadays, the role of Chinese entrepreneurs in small and medium enterprises has been increasing. Chinese are present in everywhere, businessman in international trade will often find themselves dealing with the Chinese customers. So, a comprehensive understanding of the Chinese value is worthy to all businessman.

The importance of this study will explain the development and validation of the Entrepreneurial Attitude Orientation (EAO), based on Chinese Value Survey (CVS) and specifically designed to predict entrepreneurship. The (CVS) are used to access whether an impact towards the entrepreneurs attitude orientation.

Despite the importance of small firms in Malaysia's economy, there has been minimal research conducted to examine why most of the companies that survive, grow and succeed are mostly Chinese owner-managers as compared to other owner-managers.

1.7 Chapter Layout

In this research report, chapter 1 is the introductions that provide an overview on the background of the phenomena that being study. In general, this chapter will provide a clear understanding of the research topic. It introduces the research background, research objectives and significant of study is to explain the importance of the study.

Chapter 2 will be the literature review that proposed the theoretical background of the research topic. This could help the researcher to better understanding of the important variables in this research report. It serves as a fundamental of the hypothesis to be tested. Literature review is the based on the empirical research which done by previously by researcher who has studied existing work and the field with insight.

Next, is the chapter 3 research methodology that describes the collection method that is suitable for this research report which included the research design, data collection method, sampling design, operational definition of construct measurement scale and the data analysis technique use. By implementing the appropriate sampling method could help to minimize the errors that associated with the research.

Following, chapter 4 will present the pattern of the result and the analyses of the result which obtain from the descriptive analyses, reliability test and inferential analyses to examine the reliability and the relationship of the variables. Furthermore, the research result that shows the result of the data analysis figures, chart, table and graph are used to present the findings.

The last chapter in this research report would be discussion and conclusion that provides discussion of major findings and recommendations for future research. It will provide a whole summary of the whole research project and limitations that researcher faced during the research process.

1.8 Conclusion

Proposed of chapter 1 is act as a foundation for this research project. It form a brief outlines in each chapter presented the chapter. In the following chapter, the variables will be further discussed in depth and the proposed conceptual framework will be illustrated.

CHAPTER 2: LITERATURE REVIEW

2.0 Introduction

In previous chapter, research problem, research objectives, research questions and hypotheses of the study have been identified. In this chapter 2, provide a literature review which convey the knowledge and ideas that have been established on this research topic and related with the research objectives. It contains the discussions and evaluation of the research topic in this section. Through reviewing the relevant journals, it provides the foundation to develop a good theoretical framework for the research. Besides that, it allows the research project lead to further identified relationship among the dependent variables and the independent variables and hypotheses testing in order to reach the research objectives.

2.1 Review of literature

We will adopt attitude theoretical approach (Robinson., P.B., Stimpson, D.V., Huefner, J.C., Hunt, H.K.. 1991a) explaining the development of Chinese entrepreneurs behavior. This is a method of investing entrepreneurial orientated individual. Five important entrepreneurial attitudes were identified from literature, achievement, self-esteem, personal control, innovation and opportunity recognition. This instrument is called Entrepreneurial Attitude Orientation Scale (EAOS).

Besides, we will obtain Chinese Value Survey (CVS) to measure and evaluate cultural values within the setting of a Chinese social value system that is derived from the Confucian ethos. In the CVS consideration is focussed on four dimensions such as Integration, human-heartedness, Confusion work dynamism and moral discipline.

2.2 Review of Relevant Theoretical Model

After read through the relevant journals, few theoretical models are being found related to the research regarding Chinese values (CV) and Entrepreneurial attitudes orientation (EAO).

2.2.1 Chinese Culture values and development

According to Williams (1968), Rokeach (1973), Rokeach, (1973) and Ball-Rokeach (1989), values provide potentially powerful explanations and influence on human behaviors because they serve as the standards or criteria of conduct tend to be limited in number and are remarkably stable over time (as cited in Fok, V. S. & Chong, V.K., 1996). Values establish and reflect expected behaviour and also used to enforce sanctions such as blame and praise as well as social inclusion and exclusion (Anderson, 2000).

Based upon psycho-sociological studies on the significance of cultural values as determinants of human behavior, the two things are related to each other (Hofstede, 1980). Hofstede (1991, p.5) describe culture as “the collective programming of the mind that differentiates one group from another group”. In early, Hofstede's study suggests that his classic model view as a traditional quantitative design with four dimension of culture. There are power distance, individualism-collectivism, uncertainty avoidance and masculinity-femininity.

However, Hofstede added a fifth dimension named long term orientation in year 2001(as cited in Fontaine, R. & Richardson, S., 2005). Hofstede and Bond (1988) derived that Confucian dynamism as one of the values that contribute to the economic growth in 22 countries during the period 1965 to 1985. Confucian values towards entrepreneurial development in Singapore, Taiwan, South Korea, Hong Kong and Japan bring the name as four dragons at the same time they hold top five positions in economic growth. Mostly countries are within the Confucian influence circle and their economies have been driven to a large extent by entrepreneurship in the small and medium sized business sectors.

Another model act as an improvement on Hofstede classic model (1980) is Schwartz's model (1994). Itworks out to replace Hofstede's dimension of Individualism by two dimensions (Autonomy versus Conversation and Hierarchy and Mastery at the cultural level). Furthermore, this model used to eliminate validity and reliability limitation on Hofstede's model as it has proved valid and reliable across cultures when research have taken Schwartz's theory and developed a different instrument. Later, Schwartz's SVS act as a measure instrument which comprises 57 values represent ten dimension at the individual level (power, achievement, hedonism, stimulating, self-direction, universalism, benevolence, tradition, conformity and security) and seven dimension at the cultural level (embeddedness, hierarchy, mastery, affective autonomy, intellectual autonomy, egalitarianism and harmony)(as cited in Fontaine, R. & Richardson, S., 2005).

Chinese cultural values are created from interpersonal relationships and social orientations. The works of Confucius is generally regarded as the pillars of Chinese cultural values Yang (1972). There are four major studies about Chinese value orientations and development of measuring scales. First study, Ways to Live Survey designed by Morris (1956) consisting of 13 alternative conceptions which included values advocated and defended in the several ethical and religious systems of human societies. Second study found that the younger generation showed a considerable change different from their parents who pursue on traditional practices, or be influence by friends and change across time. (Lin 1966).

Continue study was Chinese Value Survey (CVS) developed by the Chinese Culture Connection (1987). It is an idiographic design which is recognized as more appropriate in cross cultural research and not based on Western social science but used 40-scale items which is the fundamental and basic values for Chinese people. Michael Bond and his colleagues conducted this research aim to develop a new questionnaire with the input from several Chinese social scientists in Hong Kong. CVS consist of four dimensions which are integration, Confucian work dynamism, human-heartedness and moral discipline respectively. This instrument that tapped concerns fundamental to the Chinese world view and identify an additional value indigenous to the Chinese people, which they termed “Confucian work dynamism” as the principle attributes reflect the teachings of Confucius and the social continuity of an extant civilization of over 2,500 years(as cited in Steven Ward, 2002).

latest study on Chinese values orientation was the Chinese Cultural Values Scale (CCVS) by Yau (1994). It is the only one scale developed for exploring the relationship between Chinese cultural values and consumer attitudes and behaviors. It is nothing related with entrepreneurial attitudes orientation.

2.2.2 Chinese Value (CV)

Chinese Value is selected to be independent variables in this research. The Chinese Value Survey (referred to as the CVS) was developed by Bond and a group of research workers known collectively as the Chinese Culture Connection in response to their perceived need to measure and evaluate cultural values within the setting of a Chinese social value system that is derived from the Confucian ethos. The Confucian ethos has tended towards the formation of a dedicated and motivated as well as educated population which manifests a responsible and enhanced sense of commitment to its ideals and institutions as well as to the identity and moral fiber of its organization with the resultant establishment of desirable outcomes (Chang et al., 1997).

Values are enduring belief of desired end-state of existence or modes of behaviour (Kluckholn, 1951). In psychology, values are operationalized as the ‘guiding principles of a person's behaviour' (Schwarts & Bilsky, 1990). The values measured by Bond and his colleagues remain universal in nature, but they also include some values which are uniquely Confucian (Hofstede, 1991). Examples are respect for tradition, humility, filial piety, and protecting one's face. This is not to say such values do not exist in Western culture, but rather their implied importance is not as great as in Eastern culture. The study used 40-scale items which were identical to those in the study so as to find out different culture dimensions in valuing (Ng, 1982).

There are four dimensions of (CVS) such as Integration, Human-heartedness, Confusion work dynamism and moral discipline. Integration dimension focuses upon social stability and can be characterized by having tolerance for others. Integration also places importance upon being trustworthy and enjoying a close friendship. It corresponds to Hofstede's power distance dimension which identifies the degree of power distance that is seen as appropriate between a superior and a subordinate. In the organizational context, it can be an indicator of the degree of centralization that is deemed appropriate.

Secondly, human-heartedness dimension deals with an individual's level of social consciousness or awareness. It is a measure of one's compassion toward others. It is characterized by the need to be kind, forgiving and courteous. In the business setting, it may be viewed as presenting a contrast between the task-oriented and people-oriented styles of management. Human-heartedness also may be viewed as comparable to Hofstede's (1980) masculinity dimension.

The third is the Confusion work dynamism, it reflects the teachings of Confucius that emphasize a social hierarchy or structure (Louie, 1980). It can be characterized by a respect for tradition with a strong desire to save "face." It also implies a need to order relationships by status and to respect the order of that status. Confucian work dynamism fills a void in the content of Western instruments which, not too surprisingly, do not include Confucian values in their constructs (Hofstede & Bond, 1988).

lastly, is the moral discipline. The focus of this dimension is upon keeping oneself under control in relation to others. It is characterized by the need to be moderate, prudent and adaptable. Following the "high road" is a part of moral discipline when compared with Hofstede's (1980) IBM research, three of the four CVS dimensions aligned closely with three of the four Hofstede dimensions (Hofstede & Bond 1988). The four Hofstede's dimensions namely are 1), individualism 2), masculinity, 3) power distance, and 4) uncertainty avoidance. Although Hofstede did not specify the relationship between culture and entrepreneurial, his culture dimensions are useful in identifying the key elements of culture related to entrepreneurial orientation. All four indices were based on responses to questions framed by Western social scientists.

2.2.3 Entrepreneurial Attitude Orientation and Development

The previous research has found that various personality and attitudinal constructs in the field of entrepreneurship. Lumpkin and Dess (1996) have defined Entrepreneurial attitude orientation (EAO) as the processes, practices, decision-making activities that lead to new entry. Furthermore, Hornaday and Aboud (1971) has mentioned EAO is a set of personal psychological traits, values, attributes and attitudes strongly associated with a motivation to engage in entrepreneurial activities.

The six major schools of thought on entrepreneurship were discovered by Barton and Lischeron (1991). These are “Great Person School”, “The Psychological Characteristics School”, “Classical School”, “Management School”, “The Leadership School”, and "Intrapreneurship School”. Each of these schools of thought can be according to its interests in studying personal characteristics, opportunities, management or need for adapting an existing venture. The Psychological Characteristics School has focuses on personality factors and believes that entrepreneurs have unique values and attitudes toward work and life. Beside, Lachman (1980) has suggested that entrepreneurs can differentiate from non-entrepreneurs by personality characteristics such as the people who possess the characteristics entrepreneurs will have higher potential to perform entrepreneurial acts than those who do not possess such characteristics. Based on the three personalities characteristic to distinguish and recognize entrepreneurs from non-entrepreneurs. First, the personal values such as honesty, duty, responsibility, ethical behavior. Second, risk-taking propensity. Last, the need for achievement (as cited in Barton and Lischeron, 1991).

With further empirical supports personality traits contribute to entrepreneurial attitude orientation from McClelland (1961) and Collins, Hanges & Locke (2004) asserted that need for achievement is a strong entrepreneurial trait, and Gasse (1985) and Hansemark (2003) found that entrepreneurs often possess a greater internal locus of control than the general population. Brockhous (1982) identified three attributes consistently associated with entrepreneurial behavior are need for achievement, internal locus of control, and a risk-taking propensity. Krueger & Brazeal, 1994; Erickson, 2002; Frazier & Niehm, 2006 have suggested the higher self-efficacy is associated with entrepreneurship and business creation. (as cited in Harris, M. & Gibson, S., 2009). However, there are also background factors, which relate to individual personality such as gender (Buttner & Rosen, (1989) and education (Storey, 1982) which is also linked to the attitude to establish a business (as cited in Mohammad Shariff, M. N., & Basir Saud, M. 2009).

According to Ajzen & Fishbein (1977), they agreed that the personality theories frequently loss its effectiveness in measuring entrepreneurial attitudes. There are still founded some limitations with lacked predictive validity in groups of entrepreneurship and non- entrepreneurship (Sexton and Bowman 1986). It means certain characteristics have differed on variety of characteristics which are supposed to be stable across time and situation according to personality theory. The possible reasons to explain the limitation are the instruments lack adequate reliability and validity and people are change across time or situation.

In order to deal with the limitation on personality mode entrepreneur research works out attitude model to correct inadequacy of psychological models based on personality. Olson and Bosserman (1984), Gasse (1986), Sexton (1987) have found that attitude in conjunction with entrepreneurship. The concept of “attitude” is a dynamic interactive way of relating to the environment in conjunction with a specific person, place, thing, event, activity, idea or lifestyle. The dynamic nature of the concept implies that it changes across time and from situation to situation (as cited in Robinson., P.B., Stimpson, D.V., Huefner, J.C., Keith Hunt, H., 1991a). . Ajzen (1982), Rosenberg and Hovland (1960) & Shaver (1987) has stated that attitude is the predisposition to respond in a generally favorable or unfavorable manner with respect to the object of the attitude. In addition, Allport (1935), Breckler (1983 and 1984), Carlson (1985), Kothandapani (1970) and others categorized attitude as the tripartite model consisting of three types of reaction to everything: affect, cognition, and conation (as cited in Robinson., P.B., Stimpson, D.V., Huefner, J.C., Keith Hunt, H., 1991b).

The following research conducted by Robinson, P.B., Stimppson, D.V., Heufner, J.C. & Hunt, K.N. (1991), they has adopted this attitudinal theoretical approach explaining the behavioral tendencies of entrepreneurs. Entrepreneurial Attitude Orientation Scale (EAOS) is one method of investigating entrepreneurial orientated individuals provide valid measurement based on attitude theory. Hence, this scale is used to distinguish entrepreneurs from non-entrepreneurs with the four important entrepreneurial attitudes included Achievement, Self-Esteem, Personal Control and Innovation. The four sub-scales described as Achievement in creating a business, Perceived self esteem as indication of self-evaluated competence in business affairs, Perception of personal controland influence over business incentives, and Innovation by acting upon business incentives. Each of the sub-scales is reported to be the product of the three theoretical attitudinal behavioural components of cognition (belief and thoughts), affection (positive or negative conviction) and conative Behaviour (intentions and actions).

Furthermore, another model came out after the attitudinal approach called entrepreneurial opportunity recognition (EOR) by Covin & Slevin, (1989). Both of the researchers have gave more attention to incorporate specific situational factors related to the emotions, cognition, behaviourial action germane to a specific environmental stimulus instead of attitudinal measures. The literature has developed a study that an association of opportunity recognition with the concept of entrepreneurship (as cited in McCline, R.L., Bhat, S. & Baj, P., 2000).

2.2.4 Entrepreneurs Attitude Orientation (EAO)

Entrepreneurial attitude orientation (EAO) is the dependent variable in our research project. Bygrave and Hofer (1991, p.14) define an entrepreneur as “. . . someone who perceives an opportunity and creates an organization to pursue it”. In formulating national policy recommendations, entrepreneurship act as “the creation of new independent businesses” (Vesper, 1983, p.1). Founder of a new business and started the business before others also can applied as an entrepreneurs (Gartner, 1985). The term has been used to define a wide range of activities such as creation, founding, adapting, and managing a venture. Entrepreneurship is not only associated with the formation of new firms, but also with entrepreneurial action in the sense of starting something new (Wennekers and Thurik, 1999).

Attitude is known as a part of personality that is supported by belief and is able to arouse emotions that investigate specific behaviors (Oppenheim, 2000). There are some research revealed that attitude is an important factor of an individual success in entrepreneurship. This is because a successful entrepreneurs is said to be influenced and stimulated by the individual own attitude. In this research, the attitude approach is the best way to explain the success of an entrepreneur because it links the individual and the ever-changing attitudinal object (Kuratko and Hodgetts 2004; Robinson et al. 1991a).Attitudes can therefore also be changed purposely to be more favorable towards entrepreneurship.

Attitude does not appear as a single aspect, but is connected to other aspects of an individual (Oppenheim, 2000). According to Oppenheim, an individual has several extraordinary characteristics that portray his or her personality. Therefore, a person need a true and positive attitude to choose and participated to become successful entrepreneurship (Mohd Salleh et al. 2005). Entrepreneurial attitude orientation is the studies of entrepreneurial personality characteristics. The work of Robinson, Stimpson, Huefner, and Hunt (1991) was one of the first to integrate an attitude scale to predict entrepreneurial activity. (Robinson et al., 1991b) adopted this theoretical approach to investigate entrepreneurial oriented individual by explaining the development of the behaviour. Robinson et al. (1991a) developed the Entrepreneurial Attitude Orientation (EAO) model based on the four dimensions of achievement, innovation, personal control, and self esteem in business.

The first dimension, need for achievement, is an important determining factor in choosing entrepreneurship as a career. The individual desire for appreciation corresponds to the needed motivation for becoming a successful entrepreneur is high (Davidson 1995; McClelland 1961; Moorman and Halloran 1993). The individual that possesses this need is said to be inclined in exploratory efforts and be able to become a very successful entrepreneur (McClelland, 1961). This is some characteristic such as, increases self-satisfaction, readiness in facing challenges, and the freedom to determine the amount of effort needed to succeed in the chosen field.

The second dimension is internal locus of control. It is an individual attitude in handling his or her daily affairs influences his decisions and actions. Thus, one's internal locus of control is one's belief in one's ability to control one's future, self-confidence, commitment, and creativity, among many other things. Past research has down-played this attitude in determining individual's involvement level in entrepreneurship (Hisrich and Peters 1998). The characteristic of competitiveness is essential because it is able to provide confidence, commitment, and determination, thus enabling an individual to persevere with his or her choice of entrepreneurship (Mohd Salleh et al. 2005)

The third dimensions is innovative behaviour, it is commonly view as the key to continuous entrepreneurship (Johnson, 1994), and has been presented as the main criterion for entrepreneur activity (Schumpter, 1983: Miller and Friesen, 1982). According to (Carland, 1984) the entrepreneurial individual is characterized principally by innovative behaviour. Innovation activity includes creating new products, methods, markets or a new organization. It relates to perceiving and acting upon business activities in new and unique ways (Drucker 1985).

The forth dimensions is self-esteem which is associated with feelings about oneself. It is an important construct of personality for researches because perceptions of others about self esteem may influence individuals' outcomes (Strauss 2005). Perceived self-esteem in business is pertaining to the self-confidence and perceived competency of an individual in conjunction with his or her business affairs. Self-esteem is associated with feelings about oneself (Hogg and Cooper, 2003) and self-efficacy (as part of self-esteem) is defined as belief in capability to perform the task (Chen et al., 1998). Entrepreneurship literature has also found that persons who believe that their skill and ability set is adequate for achieving success with a new venture are motivated to exert the necessary effort (Douglas and Shepherd, 2000).

The fifth dimension is known as opportunity recognition. Venkatraman (1997) noted that it is one thing to be aware that entrepreneurial opportunities exist, but a significantly different matter to know how to exploit these opportunities. There must be something quite unique about the entrepreneurial individual that gives him or her the propensities to gain economically in the midst of the change, chaos and confusion that tend to foster the emergence of entrepreneurs (Schumpeter, 1976; Stevenson, 1983). Opportunity recognition can known as perceiving possibility for new profit through the founding and formation of a new venture or significant impromevent of an existing venture (Christensen, Madsen & Peterson, 1989).

2.3Proposed Theoretical/ Conceptual Framework

In this section, the interrelationship among each variable will be discussed:

Theoretical Framework: Factors that affect the Entrepreneurial Attitude Orientation

2.3.1 Relationship between Integration and Entrepreneurial Attitude Orientation

Integration is an index of the degree of tolerance, harmony and friendship a society endorses, at the expense of competitiveness, it has a broadly integrative, socially stabilizing emphasis (The Chinese Culture Connection, 1987). It has significant relationship with Entrepreneurial Attitude Orientation. Integration refers to the compatibility of decision making among various departments in the organization. It includes the use of interdepartmental committees for joint decision making, task forces which are temporary bodies set up to facilitate interdepartmental collaboration on a specific project and liaison personnel whose specific job is to coordinate the efforts of several departments for purposes of specific product (Miller & Danny, 1983). Integration assumes importance as in large firms there is a need for a coordinated effort to remain focused in pursuit of objectives of the firm.

2.3.2 Relationship between Confusion Work Dynamism and Entrepreneurial Attitude Orientation

Confucian dynamism is having a significant relationship with Entrepreneurial Attitude Orientation. The culture of Confucianism promotes individual responsibility, the unity of family, and limited government, all of which contribute to entrepreneurial activity (Macaulay, 1986). High Confucian dynamics indicate that the individuals place more importance values associated with Confucian teachings that are future oriented (persistence, status-ordered relationships, thrift, and a sense of shame), and low Confucian dynamism indicate that the individuals who place more importance values associated with Confucian teachings that are past and present oriented (steadiness and stability, protection of face, respect for tradition, and reciprocation of greeting, favors, and gifts). Confucian dynamism associated with entrepreneurial achievement, motivation and with levels of national economic growth (Redding and Ng, 1983; Kahn, 1979).

2.3.3 Relationship between Human-heartedness and Entrepreneurial Attitude Orientation

Human-heartedness may present a contrast between the task oriented and people oriented styles of management. Thus, it has a significant relationship with Entrepreneurial Attitude Orientation. The decline in the value of Human-heartedness probably reflects a move towards more individual values since the benefits of cooperation without government support would have been more prevalent for those people (Ward el at., 2002). When clearly emphasis on cultural traits such as strong-heartedness and risk taking, it encourage the entrepreneurship by taking advantages of opportunities but being mindful of the corresponding risks at the same time (Co and Mitchell, 1990). The human-heartedness value relates to the typology of an individual's leadership style (Bass, 1990). For instance, there has been a comparable grow over 12 years period in people orientation in both Hong Kong and mainland China, such that they remain divergent from one another (Ralston, 1997).

2.3.4 Relationship between Moral discipline and Entrepreneurial Attitude Orientation

Moral discipline is having a significant relationship with the Entrepreneurial Attitude Orientation. In Confucian doctrine, rectification is the clear and express establishment of the moral guideline of a society. The most effective way to develop the mind is moral discipline, which at the same time appeals to the goodness in human nature and leads to crime prevention. Moral discipline allows people to exercise self control by virtue (Ramirez, 2010). The focus of this dimension is upon keeping oneself under control in relation to others. That entrepreneurial success requires moral imagination, in addition handling of the strategic dimensions of starting a new venture (Dunham et al., 2008). Some entrepreneurs may indeed generally place a greater emphasis on ethical behavior (Bucar and Hisrich, 2001) and exhibit higher levels of moral reasoning (Teal and Carroll, 1999).

2.4 Hypothesis Development

H1 : There is a significant relationship between Integration and Entrepreneurial Attitudes Orientation.

H2 : There is a significant relationship between Confusion Work Dynamism and Entrepreneurial Attitudes Orientation.

H3 : There is a significant relationship between Human-heartedness and Entrepreneurial Attitudes Orientation.

H4 : There is a significant relationship between Moral Discipline and Entrepreneurial Attitudes Orientation.

H5 : The independent variables will significantly explain the variance in Entrepreneurial attitudes orientation

2.5 Conclusion

In chapter 2, from review of literature, Entrepreneurial attitude orientation (EAO) is the dependent variable is our research project. EAO model based on the four dimension of achievement, innovation, personal control, self esteem in business. Chinese value is selected to be independent variable in this research. There are quite number of Chinese value determinants affecting EAO which is human heartedness, Confucian work dynamism, integration and moral discipline. In review of relevant theoretical model, few theoretical models are being found related to the research regarding CV and EAO. While in the proposal theoretical conceptual framework, the interrelationship among each variable will be discussed. Further explain will be discuss in the following chapter.

Chapter 3 Research Methodology

3.0 Introduction

The research methodologies that used for the study of how the Chinese Value affects by the Entrepreneurial Attitudes Orientation will be describe in this Chapter 3. This chapter will explain on the outline of major methodology used to collect data and information that required for the study. There are several essential elements which are necessary for carrying out the research study systematically. It includes the research design, data collection method, sampling design, data processing and data analysis.

3.1 Research design

Research design refer to the plan that providing the overall framework for collecting the data and draw out the steps in the study with the way of data gathering (Strauss & Corbin, 1997). Further explanation a research design is a plan or structure applied during the investigation in order to answer the research questions (Mc Millan & Schumacher, 1993). On the other hand, research design can be a tool as creation of means of obtaining reliable and valid data by means of which formal announcements about the phenomenon may be confirmed or rejected (Booyse, J.J., Dednam, A., Du Toit L., Landsberg, E. I. & Van Wyk, P. C.¼Œ1993).

3.1.1 Quantitative research design

Quantitative research is the standard experimental method of most scientific disciplines which sometimes referred to as true science and use traditional mathematical and statistical means to measure conclusively (Shuttleworth, M., 2008). The objective of adopting the quantitative research design is to test the developed hypothesis and determine the relationship among the important variables which are CV and EAO.

3.1.2 Causal research

Causal research knows as predictive research as well given way researchers seeks to explain what is happening in a particular situation and identify cause and effect relationship among variables. It aims to generalise from an analysis by predicting certain phenomena on the basis of hypothesised general relationships (Eric Williams, 1998). This investigation is sought to determine the relationship between the impact on CV and EAO.

3.2 Data Collection Method

Through this section, data source available and the chosen data collection techniques will be discussed. In order to enhance the accuracy of this study, the primary method is being used. The data obtained will then be used to analyzed and become the basic for informed decision making; thus, this will in turn helps to reduce the risk of making costly error (Zikmund, 2003)

3.2.1 Primary Data

Primary data are the data usually gathered and assembled specifically for the project at hand. The researches will collect the primary data through the information provided from questionnaire, survey and observation and etc. The reason that researches use primary data to conduct this research because it is first hand information and the information gathered are more suitable in this research.

3.2.1.1 Questionnaire Design

Questionnaires are the primary sources for using in this research. We have decided to use this instrument because questionnaires allow the collection of primary data in an expensive way within a short period of time from a large number of respondents. A good questionnaire appears to be clear and simple. It should be designed in a way that it is self explanatory in nature where the respondent could complete it themselves. Therefore we were using self-administered questionnaire

Each of the members in this research will distribute 50 questionnaires to the targeted respondents. The total distributed and collected is 300. The questionnaire consists of 3 sections: section A, section B, section C. Section A consists of questionnaire on demographic profile. The purpose of demographic questions is to know some basic information of the respondents. The questions include gender, age, industry, education level, and years of experience. Section B is to know the degree of importance of each value of entrepreneur. Section C is to known respondents' strength agreement about a group of statements.

3.3 Sampling design

One of the stages in the basic business research procedure is sampling design. This step involves defining the target population, sample element, sample technique and sampling size. Sample is a subset of the population where by studying sample, researcher will able to draw conclusion to the population of interest (Zikmund, 2003). It helps to provide reliable information which is more convenience, cost-saving and data can be collected quickly, therefore it is useful for the researcher to carrying out the research systematically. If a sample was being measured and manage properly, the sample will be able to represent for the overall population.

3.3.1 Target population

Target population defines as the specific, complete group relevant to the research project. Researcher need to define the target population precisely in order to get accurate result. In this research study, the target populations are the baby boomers (1946-1960), Generation X (1960-1980) and Generation Y (1980-1996) in Malaysia whose is an entrepreneurial. The reason of choosing those respondents as the research's sample is because of they are more closely related to the study of how the Chinese Value affects by the Entrepreneurial Attitudes Orientation. The chosen sample size for this research study is 300 respondents.

3.3.2 Sampling frame and sampling location

Sampling is the process of using a small number of items or parts of larger population to make conclusion about the whole population (Zikmund, 2003). A sampling frame is a list of elements from which the sample may be drawn in the appropriate population. In this research study, the sampling frame consists of Perak, Pahang and Pulau Pinang areas which those entrepreneurial are located. The main reason for choosing these areas is because there are easier for the researcher to collect the questionnaires which the respondents are located near researcher's hometown. Researchers distribute the questionnaire to the entrepreneurial who manage the business which are the researchers target scope.

3.3.3 Sampling element

The research study's respondents are including all the Chinese entrepreneurial and have the ability to manage the day-to-day business operation. The reason researchers focus on the respondents who are manage day-to-day business operation is because some essential information is needed to find out about what kind of Chinese Value can impact and motivate them to start a business.

3.3.4 Sampling technique

The major alternative sampling plans may be grouped into two: probability sampling and nonprobability sampling.

Non probability sampling is the element do not have known or predetermined chance of being selected as subjects. Non probability sampling design is used when time or others factors, rather than generalize ability, become critical (Sekaran, 2003). The selection of sampling units in non probability sampling is relying heavily on personal judgment. There are no appropriate statistical techniques for measuring random sampling errors from a non probability sample. Thus, projecting the data beyond the sample is statistically inappropriate (Zikmund, 2003).

For non probability sampling, the first sampling is Convenience sampling refers to sampling procedure of obtaining the people who are most conveniently available. Second, Judgment sampling is an experience individual selects the sample upon his or her judgment about some appropriate characteristic required of the sample members. Third, Quota sampling is mean subject are conveniently chosen from targeted group according to some predetermined number or quota. Fourth, Snowball sampling is mention to a variety of procedures in which initial respondent are selected by probability method, but additional respondents are then obtained from information provided by the initial respondent (Zikmund, 2003).

In the researcher's research, the research sampling design that is suitable to used is nonprobability sampling. It is because researchers do not have whole list of population for the entrepreneurial. Moreover, the probability for selecting any particular entrepreneurial of the population is unknown. The types of sampling technique that researcher using in the research is convenient sampling. It is due to this technique is easy and economical to obtain information from respondents, it save time and cost for looking a respondent. 300 sets of questionnaires are distributed based on the technique of convenient sampling.

3.3.5 Sampling size

The number of population is the sample size of statistical sample. It is always denoted by “n” and a positive integer. The bigger the sampling size means the more accurate the data generated but the sampling size was different due to the different situation (Malhotra and Peterson, 2006). Larger sample size will increase accuracy of various properties in the population. The result would be less accurate because it affected by systematic errors.

During questionnaire distribution, a total 300 sets of questionnaires have been prepared and distributed through convenience sampling method within the time and other resource constraint. Researchers are focus on the entrepreneurial which located in Perak, Pahang and Pulau Pinang areas in order to test the how Chinese Value affects by the Entrepreneurial Attitudes Orientation. All sets of questionnaires were collected and completed between September 2010 and October 2010, after the pilot test was success.

3.4 Research Instrument

In this research, questionnaire was the instrument that the research used to collect primary data. The questionnaire was set according to the hypothesis of the research project, and refers to the literature review and other reading materials which are clearly explain in the Chapter 2.

In order to improve understandability of questionnaire, the structure of questionnaire should be simple and question must be easily to understand and to the point. There are one types of question ask in the questionnaire in the research, that is closed question.

Closed question is fixed- alternative question whereby respondent are allowed to choose only one answer among a set of the alternative given by researcher (Sekaran, 2003). Hence, researcher had use this types of question to set questionnaire. It is because respondent can make quick decision in choosing the answer among the several alternative. It is not only save the time of respondent, while it also help researcher getting the result more efficiently.

3.4.1 Pilot test

Pilot test is preliminary test or study of the program or evaluation activities to try out procedures and make any needed changes or adjustment (Glossary, n. d.). Before distributing questionnaires to the actual target respondent, a pilot test is being conducted. This pre-testing allows researcher to obtain data to help plan the full study before going to actual target population. Pilot test help to helps improve the quality and usefulness of questionnaire.

During the pilot test process, a group of 30 entrepreneurs were randomly select surveyed to comment on representatives and suitability of the question. Respondent were given a chance to voice out their opinion, comment, and suggestion towards the questionnaire. Respondent can evaluate the questionnaire structure and response option. Grammar and vocabulary mistake also can be detected. After collecting and analyzing the result, researcher modifies and rearranges the sequences of the question in a more accurate way where potential mistake and error were corrected. After that, researcher has run reliability test by using SPSS and found out that the CV reliability value are integration (0.887), Confucian work dynamism (0.821), human heartedness (0.890), moral discipline (0.608). EAO reliability values are achievement (0.967), personal control (0.860), innovation (0.898), opportunity recognition (0.929), self-esteem (0.800). The overall questionnaire was reliable. Finally, 300 questionnaires were distributed.

Table 3.1 : Reliability of pilot test

CV

Elements

Cronbach's Alpha

N of items

Integration

0.887

11

Human-heartedness

0.890

5

Confucian work dynamism

0.821

8

Moral discipline

0.608

5

EAO

Elements

Cronbach's Alpha

N of items

Achievement

0.967

23

Self-esteem

0.800

14

Personal control

0.860

12

Innovation

0.898

26

Opportunity recognition

0.927

6

As a conclusion for this chapter, a sample of 300 respondents was selected to investigate impact on Chinese value towards entrepreneurial attitudes orientation. Besides that, SPSS version 15 was used to analyze the collected data according to the question after we collect back the entire questionnaire. There are six hypotheses formulated to test and explain relationship between four Chinese value and EAO.

3.5 Construct Measurement (Scale and Operational Definition)

Scale is a continuous spectrum or series of categories. (Sekaran, 2003) defined the scale as a tool or mechanism by which individual are distinguish as to how they differ from one another on the variables of interest to our study. There are four basis types of scales: nominal, ordinal, interval and ratio. In this research study, we are using three types of scales which are nominal, ordinal and interval scale.

3.5.1 Nominal scale

Nominal scale is a scale in which the numbers or letters are assigned to object serve as a label for identification or classification (Sekaran, 2003). It is the simplest type of measurement scale. In this questionnaire, some of the questions in section A are used by the nominal scale to measure the gender of respondents and industry category of business.

Sample of question as below:

3. Gender æ€åˆ« : Male ç”· Female 女

3.5.2 Ordinal scale

An ordinal scale is next up the list in terms of power of measurement. An ordinal scale also is a ranking scale. It place objects into a predetermined category that is rank ordered according to some criterion such as age, education level and years of experience of the respondents. There is no objective distance. Ordinal data would use non-parametric statistic.

Sample of question as below:

2. Age 年龄 : 20-25 26-30 31-35 36-40

41-45 46-50 51-55 56-60

Others 其它 ____

3.5.3 Interval scale (Likert)

An interval scale uses numbers to rate objects or events so that the distances can be identified. Thus, with an interval scale differences between points on the scale can be interpret and compare meaningfully. Interval scales are also scale which is defined by metrics such as logarithms. In these cases, the distances are noted equal but they are strictly definable based on metric used.

A likert scale attempts to measure attitudes or opinion. Likert scale in section B uses a nine scale to show and express the degree of important of each value of entrepreneurial while section C uses ten point scales to show and express the respondents' strength agreement about a group of statements. The questionnaire set with nine point and ten point scale in research because it provides respondents to give the actual answer from their real feeling.

Every question in section B is given nine points. In section B, the rating of 8 or 9 are the same meaning but different degree of importance of each value, 1 or 2 are the same meaning but different degree of importance of each value and 5 is stand for neutral to statement. However, every question in section is given ten points in section C. The rating of 9 or 10 are the same meaning but different agree level of the statement, 1 or 2 are the same meaning but different disagree level of the statement and 5 or 6 also represent neutral of the statement.

Sample of question as below:

Task significance

1 (of no importance to me at all) ß à 9 (of supreme importance to me)

1 (对我来说最不重è†çš„) ß à 9 (对我来说最重è†çš„)

3. Tolerance of others 容忍

1

2

3

4

5

6

7

8

9

3.6 Data Processing

3.6.1 Data Checking

Questionnaires checking involve checking for completeness and interviewing quality. All the research questionnaires need to be checked once the questionnaires are collected from the field in order to detect any problem that exist in the survey early, and to take any necessary corrective actions (Aaker, 2006).

3.6.2 Data editing

After the questionnaires are being checked, data editing process will conducted. Data editing process involves screening of the questionnaire to identify illegible, incomplete, inconsistent, or ambiguous responses to ensure that the data collected were completed, consistent and avoid inaccuracy. (Malhotra & Peterson, 2006)

3.6.3 Data coding

According to Aaker (2006) coding means assigning a code or number to each possible response to each question. The code includes an identification of the column position and date recorded it will occupy. In the research project, the Statistical Package for Social Science version 15 (SPSS software version 15) will be used for the data coding. Answer will be grouped into categories and numbers will assign to each answer.

3.6.4 Data transcribing

According to Malhotra (2007), transcribing means that the data was transcribe into computer through key-punching. Key punching is the most frequently and commonly used method for drop-off surveys when mark sense forms and optical scanning is unavailable.

3.7 Data Analysis

The SPSS software version 15.0 was used for analyzing the data collected. This is because its capability to perform many types of statistical analysis within a short period of time.

3.7.1 Descriptive analysis

Descriptive analysis is used to describe the sample characteristics of typical respondents and disclosing the general patterns of responses (Burns and Bush, 2006). There are several types of descriptive analysis, which is obtained from interval and ratio scales, the proposed measures of descriptive analysis include central tendency (mean), dispersion (standard deviation and/or range), and distribution (skewness and kurtois) and the normal and ordinal scales, the central tendency (mode) and the bar chart are used to describe the sample characteristics. Data that deal with the research questions are going to be analyzed using frequency procedure. Frequency analysis indicated the frequency with which respondents give a particular answer. This consists of the tabulation of data where frequency and percentage will be displayed. Frequency analysis is used to analyze section A of questionnaires and at the same time represents the frequencies of the demographic of the sample such as gender, age, industry, education and experience. For section B and C, mean was used to analyze data and are determined by using nine-ten-point Likert scale ranging from strongly disagree to strongly agree.

3.7.2 Scale Measurement (reliability test)

The reliability test can be used to determine the stability and consistency with which the research instrument measures the construct. The extent of consistency between a measuring instrument and concept can be shown by using Cronbach Alpha Reliability Coefficient to assess the reliability (Cronbach, 1951). Cronbach's Alpha reliability test varies from 0 to 1 and value of 0.6 or less generally indicates unsatisfactory internal consistency reliability.

Table 3.2 : Rules of thumb about Cronbach's Alpha Coefficient Size

Alpha Coefficient Range

Strength of Association

<0.60

Poor

0.60 to < 0.70

Moderate

0.70 to < 0.80

Good

0.80 to < 0.90

Very Good

0.90>

Excellent

3.7.3 Inferential Analysis

Inferential analysis is goes beyond drawing conclusion about a larger population based on smaller sample (300 respondents). This is important for establishing the representativeness of the smaller sample population which is usually based on random distribution and describing the characteristics of data and the examination of correlation between variables.

Pearson Correlation is to examine the relationship between two metric variables. Through the measurement provide a way to indicate the association and strength and significance of the bivariate relationship among all variable that were measured at an interval or ratio level. It range the value from -1.00 to +1.00, with zero represent absolutely no association between two variable, Pearson correlation with a probability not more than 0.05 is considered statistically significant.

Suanders, Lweis and Thornhill (2007) mentioned a value of -1 represent a perfect negative correlation, -0.7 represent strong negative correlation, -0.3 repres


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