AN INTEGRATED MODEL OF ENTREPRENEURIAL

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1 Doctoral Track and Conference ENTREPRENEURSHIP, CULTURE, FINANCE AND ECONOMIC DEVELOPMENT AN INTEGRATED MODEL OF ENTREPRENEURIAL INTENTIONS Lars Kolvereid*, Tatiana Iakovleva**, Jill Kickul*** * Bodø Graduate School of Business, lars.kolvereid@hibo.no ** Nordland Research Institute, Bode, Norway, Iakovleva@nforsk.no *** Professor, Director Stewart Satter Program in Social Entrepreneurship, NYU Stern School of Business kickuljr@muohio.edu

2 AN INTEGRATED MODEL OF ENTREPRENEURIAL INTENTIONS Lars Kolvereid, Tatiana Iakovleva, Jill Kickul Director, Stewart Satter Program in Social Entrepreneurship NYU Stern School of Business Acknowledgments: Dr. Bjørn Willy Åmo, Bode Graduate School of Business (Norway) ; Dr. Anatoliy Steshin, Baltic State Technical University, St. Petersburg (Russia); Administration of the Helsinki School of Economics (Finland).

3 Insert Larger Model for Future Research

4 Entrepreneurial Research Guided By: (1) Shapero & Sokol s (1982) model of the entrepreneurial event (SEE); (2) Ajzen s (1991) theory of planned behaviour (TPB)

5 SEE Focus on Entrepreneurial Event: Start-Up or Self Employment Desirability attractiveness of starting a business Feasibility degree to which the individual feels capable of starting a business Propensity to act personal disposition to act on one s decisions

6 TPB Behavioural Attitudes towards the behavior degree to which the individual has favorable or unfavorable assessments of the behavior in question Subjective norm perceived social pressure to either perform or not perform the action Perceived behavioral control individual s control beliefs regarding the action in question

7 Previous Research - Findings Both SEE and TPB have been supported There is a need to integrate and reduce the number of alternative intentions models and to use a consistent definition of entrepreneurial intent (Shook, Priem and McGee, 2003)

8 Proposed Research Questions (1) Are employment status choice intentions different from or similar to intentions to start a business? (2) How are the independent variables from the two intention models in question, related to each other and to entrepreneurial intentions?

9 Attitude Subjective Norms Perceived Behavioral Control Desirability self-employment Desirability start-up Feasibility self-employment Feasibility start-up self-employment start-up

10 Models Specification Desirability (se)= F ( A (se), SN (se) ) Feasibility (su)= F ( SN (se), PBC (se/su) ) (1) (se)= F( D (se), F (se) ) Desirability (su)= F (A( se), SN (se) ) Feasibility (su) = F ( SN (se), PCB (se/su) ) (2) (su) = F (D (se), F (se) ) Desirability (su)= F (A( se), SN (se) ) Feasibility (su) = F ( SN (se), PCB (se/su) ) (3) (su) = F (D (su), F (su) )

11 Method Data gathered from 528 business students: 317 Russian students from Baltic State Technical University 226 third year students (Bachelor Business Administration) 20 Master of Business administration students 76 second Master of Business degree Average age 21,5 years, 54% females 111 Norwegian students from Bode Graduate School of Business Third year Bachelor Business Administration program Average age 28 years, 45% females 100 Finnish respondents Undergraduates, Bachelor Business Administration program Average age 22 years, 43% females

12 Measures Attitude toward self employment Gundry and Welsch (2001) I would rather own my own business than earn a higher salary employed by someone else Subjective norms Kolvereid (1996) My closest family think that I should pursue a career as selfemployed * To what extent do you care about what your closest family members think as you decide on whether or not to pursue a career as self-employed Perceived behavioral control Ajzen (2002),Tkachev and Kolvereid (1999) If I wanted to, I could easily become self-employed /start and run a business

13 Measures Continued Desirability Kickul and Krueger (2004) How attractive is starting your own business/being selfemployed? Feasibility Kickul and Krueger (2004) How feasible would it be for you to start your own business/to become self-employed? Kolvereid (1996) and Krueger et al. (2000) How likely is it that you will pursue a career as selfemployee; I will probably start and run my own business one day.

14 Table 2. The Test of the Initial Model Goodness of Fit Statistics Root Mean Square Error of Approximation (RMSEA) = Percent Confidence Interval for RMSEA = (0.33 ; 0.36) P-Value for Test of Close Fit (RMSEA < 0.05) = 0.00 Normed Fit Index (NFI) = 0.75 Non-Normed Fit Index (NNFI) = 0.52 Parsimony Normed Fit Index (PNFI) = 0.39 Incremental Fit Index (IFI) = 0.75 Relative Fit Index (RFI) = 0.52 Root Mean Square Residual (RMR) = 0.72 Standardized RMR = 0.26

15 Table 3. The Test of the Re-Estimated Model Goodness of Fit Statistics Root Mean Square Error of Approximation (RMSEA) = Percent Confidence Interval for RMSEA = (0.15 ; 0.19) P-Value for Test of Close Fit (RMSEA < 0.05) = 0.00 Normed Fit Index (NFI) = 0.95 Non-Normed Fit Index (NNFI) = 0.89 Parsimony Normed Fit Index (PNFI) = 0.42 Incremental Fit Index (IFI) = 0.95 Relative Fit Index (RFI) = 0.88 Root Mean Square Residual (RMR) = 0.50 Standardized RMR = 0.18

16 Results Desirability (se) = 0,57 A (se) + 0,35 SN (se) Feasibility (se) = 0,38 SN (se) + 0,46 PBC (se/su) (se) = 0,45 D (se) + 0,43 PBC (se/su) Desirability (su) = 0,16 A (se) + 0,3011 SN (se) Feasibility (su) = 0,14 SN (se) + 0,14 PBC (se/su) (su) = 0,20 D (su) + 0,067 F (se) + 0,019 F (su)

17 Discussion Test models of entrepreneurial intentions Multiple and competing explanations on the decision making process to launch a new venture Robust not only when participants from the 3 countries were analysed together, but also when separate analyses were carried out on respondents from each of the three countries

18 Discussion As far as intention to become self-employed is concerned, the TPB and SEE models can be successfully integrated into one model Implications, Flash Eurobarometer But, start-up intentions Subjective norms not significant Role of Feasibility?

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