Modelling the significance of social support and entrepreneurial skills for determining entrepreneurial behaviour of individuals. A structural equation modelling approach

Published date10 September 2018
DOIhttps://doi.org/10.1108/WJEMSD-12-2017-0096
Pages242-266
Date10 September 2018
AuthorMuhammad Shoaib Farooq
Subject MatterStrategy,Business ethics,Sustainability
Modelling the significance of social
support and entrepreneurial skills
for determining entrepreneurial
behaviour of individuals
A structural equation modelling approach
Muhammad Shoaib Farooq
Institute of Business and Management,
University of Engineering and Technology,
Lahore, Pakistan
Abstract
Purpose Although entrepreneurial behaviour is considered a key element for economic development,
yet very less is known abo ut the determinants of f actors leading towards entrepreneurial int ention and
behaviour. In order to b ridge this gap, the purpose of this pape r is to investigate the role of social su pport
and entrepreneurial skills in determining entrepreneu rial behaviour of individuals. De veloping on the base
of the theory of planned behav iour (TPB), this study investigates the rela tionship between social support,
entrepreneurial ski lls and entrepreneurial beh aviour along with existing con structs of the TPB (i.e. attitu de,
subjective norms, pe rceived behavioural control and entrep reneurial intention).
Design/methodology/approach Data was collected from 281 respondents using a simple random
sampling method, and the variance-based partial least-squares, structural equation modelling (PLS-SEM)
approach was used for testing the proposed conceptual model.
Findings Findings of this study have validated the proposed model, which have an explanatory power of
68.3 per cent. Moreover, findings reveal that social support and entrepreneurial skills have a significant
impact on entrepreneurial intention of individuals. However, an unanticipated and non-significant relation
between subjective norms and entrepreneurial intention is also found.
Research limitations/implications Due to the limited scope of this study, a multi-group analysis is not
possible, which is considered as a limitation of this study. Moreover, due to time constraints, this study is
conducted within a specified time-frame; however, a longitudinal study over a period of three to six years can
overcome this limitation.
Practical implications Findings of this study are expected to have substantial implications for policy
makers, future researchers and academicians. Outcomes of this study can help to better understand the
cognitive phenomenon of nascent entrepreneurs. Moreover, it is expected that this study can serve as a
torch-bearer for policy makers to develop better entrepreneurial development programmes, policies and
initiatives for promoting self-employment behaviour.
Originality/value Findings of this study are a unique step forward and offer new insights towards a
better understanding of the determinants of entrepreneurial behaviour. Moreover, this study extends Ajzens
(1991) TPB in the context of entrepreneurial behaviour. By introducing and investigating the impact of two
new variables, i.e. social support and entrepreneurial skills in the TPB and by validating the proposed model
with PLS-SEM approach, this study makes a sizeable theoretical, methodological and contextual contribution
in the overall body of knowledge.
Keywords Entrepreneurial intention,Theory of planned behaviour, PLS-SEM, Entrepreneurship education,
Entrepreneurialbehaviour, Entrepreneurship skills,Social Support
Paper type Research paper
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 14 No. 3, 2018
pp. 242-266
© Emerald PublishingLimited
2042-5961
DOI 10.1108/WJEMSD-12-2017-0096
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
The author would like to thank the editor, Dr Allam Ahmed, and the two anonymous reviewers
for their thoughtful, supportive, and developmental comments. The author would also like to
thank Dr Norizan Jaa far Dr Kartinah Ayup p, Prof Alain Fayolle , Dr Farooq Azam, Mrs S hahida
Parveen and Dr Maimoona Salam for their comments, guidance and unflinching support throughout
this study.
242
WJEMSD
14,3
Introduction
Entrepreneurial behaviour is a result of cognitive process; several studies have frequently
applied Ajzens (1991) theory of planned behaviour (TPB) to explain the decision making
process, which leads to the creation of a new business ventures (Farooq, 2016). Par ticularly,
authors such as Farooq, Salam, Fayolle, Jaafar and Ayupp (2018), Farooq, Salam, Ur Rehman,
Fayolle, Jaafar and Ayupp (2018), Krueger (2007), Krueger et al. (2000), Heuer and Kolvereid
(2014), Iakovleva et al. (2011), Kolvereid (1996a), Fayolle et al. (2006), Fayolle and Gailly (2008)
Liñán and Santos (2007) and Liñán (2004, 2008) used TPB for analysing the entrepreneurial
intentionsand entrepreneurialdecision making process. Somehow these studies agreethat the
intention to choose self-employment depends on characterspersonal attitude, perceived
behavioural control towards entrepreneurship and the effect of perceived subjective norms
towards entrepreneurship (Farooq, Salam, Fayolle, Jaafar and Ayupp, 2018; Farooq, Salam,
Ur Rehman, Fayolle, Jaafar and Ayupp, 2018). Despite this, there is still much to be explored
regarding the way in which entrepreneurial intention is formed (Salam et al., 2017). Authors
such as Farooq, Salam, Fayolle, Jaafar and Ayupp (2018), Farooq, Salam, Ur Rehman,
Fayolle, Jaafar and Ayupp (2018), Liñán and Santos (2007) and Davidson an d Honig (2003)
arguethat personal beliefs andsocial values affect themotivational drivetowards becoming an
entrepreneur. Hence, if thesocial environment is more supportivetowards the entrepreneurial
activity, it is plausible that an individual will be more inclined towards choosing
self-employment as a career option (Farooq et al., 2017). Similar to the external environment,
personal attributes of an individual may also affect entrepreneurial intention
(Burger-Helmchen, 2012). This study argue, that entrepreneurship is different from other
human behaviours (e.g. eating, sleeping, smoking and travelling behaviour); there is a strong
reason to believe that entrepreneurial behaviour requires special skills (entrepreneurial skills),
whereas any special skills are definitely not required for smoking behaviour (Farooq, 2016).
Further, entrepreneurial behaviour requires social support because business, being an
economic activity, cannot be performed in isolation, unlike sleeping or eating behaviour
(Farooqet al., 2017). Fur therin thesame context, th isstu dyarg ues that entrepreneurial activity
requires way more resources (such as financial resources, human resources, information
resources, etc.) than any other behavioural aspect (Farooq, 2016). Unfortunately, previous
studies have been treating entrepreneurial behaviour similar to other human behaviours
(e.g. sleeping, eating, smoking and travelling, etc.) which do not require much social support
and skills (Farooq, Salam, Fayolle, Jaafar and Ayupp, 2018; Farooq, Salam, Ur Rehman,
Fayolle, Jaafar and Ayupp, 2018). Moreover, this study argues that entrepreneurial skills and
social support can influence entrepreneurial behaviour of individuals.
There is a probability of a strong connection between entrepreneurial skills and perceived
behavioural control towards entrepreneurship (Farooq, Salam, Fayolle, Jaafar and Ayupp, 2018;
Farooq, Salam, Ur Rehman, Fayolle, Jaafar and Ayupp, 2018). Moreover, it is argued that
individuals having a strong grip on specific entrepreneurial skills will probably feel more
confident to start their own business, instead of working for any other organisation (Farooq,
Salam, Fayolle, Jaafar and Ayupp, 2018; Farooq, Salam, Ur Rehman, Fayolle, Jaafar and Ayupp,
2018). Other than this, it can also be argued that a strong grip on entrepreneurial skills would
also be associated with a higher attitude towards entrepreneurship (Salam et al., 2017). Yet, it is
unfortunate that the literature on entrepreneurship is generally underdeveloped and there is
little research on this topic to inform us about the significance of entrepreneurial skills and other
initiatives of social support (Adomako et al.,2016;Bayonet al.,2015;Martinet al., 2013; Weaver
et al., 2006; Zhao, 2012). In this aspect, this study argues that social support and entrepreneurial
skills are essential for strong entrepreneurial behaviour. This study is a contribution to the
literature of entrepreneurship, through theory building in a relatively less-developed area of
entrepreneurship literature. In addition to this, this study is an effort to answer the call for more
research by various scholars in the field of entrepreneurship (e.g. Brink and Madsen, 2015;
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