(Luận văn thạc sĩ) entrepreneurial enablers, risk perception and behavioral intention the mediating roles of motivational factors

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Duy Quyen

ENTREPRENEURIAL ENABLERS, RISK PERCEPTION
AND BEHAVIORAL INTENTION:
THE MEDIATING ROLES OF MOTIVATIONAL FACTORS

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Duy Quyen

ENTREPRENEURIAL ENABLERS, RISK PERCEPTION
AND BEHAVIORAL INTENTION:
THE MEDIATING ROLES OF MOTIVATIONAL FACTORS

ID:22120106

MASTEROF BUSINESS (Honours)
SUPERVISOR: Dr.Le Nhat Hanh

Ho Chi Minh City –Year 2014

Entrepreneurial enablers, risk perception, and behavioral intention:
The mediating roles of motivational factors

Nguyen Thi Duy Quyen
, Mbus 3.3 International School of Business
Master Thesis
Supervisor: Dr. Le Nhat Hanh
, Vietnam Germany University
December 7nd, 2014


ACKNOWLEDGEMENT
At the first, I would like to thank all those people who made this thesis possible and
valuable experience for my research. Especially, I would like express my grateful sincere to my
supervisor, Dr. Le Nhat Hanh, for her intensive support, worthy suggestions, instructions and
encouragement. All of them play an important role for my research orientation.
Besides, I would like to thank the rest of my thesis committee: Prof Nguyen Dinh Tho,
Dr Nguyen Thi Mai Trang, Dr Pham Ngoc Thuy, Dr Tran Ha Minh Quan as well as other
teachers in International School of Business for the insightful comments and useful instruction
during MBUS course.
In addition, I thank all my classmates in MBUS 3, master students who attended my
survey and my colleagues at Blood TransfusionHematology Hospital for their encouragement
and supporting to me complete this thesis.
Last but not least, my sincere thanks owe to my family who gave me good conditions to
finish this work. I also wish thank all people who spent through their time and generous
support made this thesis project.
Ho Chi Minh City, December, 2014

Nguyen Thi Duy Quyen


Abstract
This research empirically investigates the impact of motivational factors including
perceived desirability and perceived feasibility on entrepreneurial intention in the context of
developing country – Vietnam. It also explores the role of subjective norms, risk perception as
threat and social support on these motivational factors. A sample of 201 master students in Ho
Chi Minh City, Vietnam was surveyed to test the model. Multiple regressionswere used to
analyze the data. The result shows that entrepreneurial intention is positively related to perceive
desirability and perceived feasibility. In addition, risk perception as threat has negative
relationship with perceived feasibility, but in contrast relationship with perceived desirability.
The result also reveals the positive role of social support on perceived feasibility as well as
subjective norms on perceived desirability.
The primary contribution of this study is empirically examine the role of motivational
factors in entrepreneurial intention in Vietnam as well as providing a combination between
different antecedences in one model that was never done before in Vietnam and in the world
research about this field. However limitation of this study is convenience sample of Ho Chi
Minh City„s master students. Cross – region sample and undergraduate will be a direction for
further research.
Key words
Perceived desirability, perceived feasibility, Entrepreneurial intention, Subjective norms, social
support, risk perception


TABLE OF CONTENTS
ACKNOWLEDGEMENT
ABSTRACT
CHAPTER 1:INTRODUCTION .............................................................................................................. 1
1.1.

Research background............................................................................................................... 1

1.2.

Research problem ..................................................................................................................... 3

1.3.

Research objectives .................................................................................................................. 4

1.4.

Research methodology and scope ........................................................................................... 5

1.5.

Significance of the study .......................................................................................................... 6

1.6.

The structure of the study........................................................................................................ 6

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES .............................................................. 8
2.2

Hypotheses development ........................................................................................................ 11

2.2.1

Motivational factors and entrepreneurial intentions ...................................................... 11

2.2.2

Subjective norms and perceived desirability ................................................................... 13

2.2.3

Social support and perceived feasibility .......................................................................... 14

2.2.4

Risk perception as threat in relation of perceived desirability and feasibility ............... 15

CHAPTER 3: RESEARCH METHODOLOGY .................................................................................... 17
3.1

RESEARCH DESIGN ........................................................................................................... 17

3.2

RESEARCH PROCESS ........................................................................................................ 17

3.3

MEASURES OF THE CONSTRUCTS ............................................................................... 19

3.4

DATA ANALYSIS METHOD .............................................................................................. 21

3.4.1

Cronbach’s alpha. ............................................................................................................ 22

3.4.2

Exploratory factor analysis (EFA) .................................................................................. 22

3.4.3

Multiple regression analysis ................................................................................................ 23

CHAPTER 4: DATA ANALYSIS ......................................................................................................... 25
4.1

SAMPLE CHARACTERISTICS ......................................................................................... 25

4.2

THE RELIABILITY TEST................................................................................................... 26

4.3

EXPLORATORY FACTOR ANALYSIS (EFA) ................................................................ 28

4.3.1 The result of EFA with factors involved the first regression in this study was detailed in
following table: ............................................................................................................................... 29

4.3.2 The result of second EFA with factors that related to next regression time of the model
was detailed in the following table:\ .............................................................................................. 31
4.3.3 The result of last EFA with factors that belong to main regression of the model was
detailed in the following table: ...................................................................................................... 33
4.3.4
4.4

Correlations between all factors: ..................................................................................... 35

MULTIPLE REGRESSION ANALYSIS ............................................................................ 36

4.4.1 Multiple regression analysis to define the impact of subjective norms and risk
perception as threat on the perceived desirability of entrepreneurship. ...................................... 37
4.4.2 Multiple regression analysis to evaluate the influence of family support, friend support,
perceived risk as threat and the perceived feasibility of entrepreneurship. ................................. 39
4.4.3 Multiple regression analysis to measure the relationship between entrepreneur
intention and the perceived desirability of entrepreneurship as well as perceived feasibility of
entrepreneurship. ........................................................................................................................... 41
CHAPTER 5: CONCLUSIONS, IMPLICATIONS AND LIMITATIONS ........................................... 46
5.1

CONCLUSION........................................................................................................................... 46

5.2

IMPLICATION .......................................................................................................................... 47

5.3

LIMITATION ............................................................................................................................ 48

Reference ................................................................................................................................................ 50
APPENDENDICES ................................................................................................................................ 55
Appendix A: Guideline for qualitative in-depth interview ..................................................................... 55
Appendix B: Questionnaire in English ................................................................................................... 58
Appendice C: Questionnaire in Vietnamese ........................................................................................... 61
Appendix D: Histogram, Normal Regression & Scatter plot of Dependent Variable: Perceive
desirability of entrepreneurship .............................................................................................................. 64
Appendix E: Histogram, Normal Regression & Scatter plot of Dependent Variable: Perceive feasibility
of entrepreneurship ................................................................................................................................. 65
Appendix F: Histogram, Normal Regression & Scatter plot of Dependent Variable: Entrepreneur
intention .................................................................................................................................................. 67


LIST OF FIGURES
Figure 0.1: Theory of planned behavior„s model ...................................................................................... 9
Figure 0.2 Krueger & Bazeal‟s entrepreneurial model ............................................................................. 9
Figure 0.3: Conceptual model of this research ....................................................................................... 10

LIST OF TABLES
Table 1: Sample Characteristics ............................................................................................................. 26
Table 2: The results of Cronbach’ alpha ................................................................................................ 27
Table 3: KMO and Barllett’s test Result of perceive desirability, risk perception and subjective norms
................................................................................................................................................................. 29
Table 4: Total Variance Explained perceive desirability, risk perception and subjective norms .......... 29
Table 5: Rotated Component Matrixa of perceive desirability, risk perception and subjective norms .. 30
Table 6: KMO and Barllett’s test Result of social support, risk perception and perceived feasibility... 31
Table 7: Total Variance Explained social support, risk perception and perceived feasibility ............... 31
Table 8: Rotated Component Matrixa of social support, risk perception and perceived feasibility ....... 32
Table 9: KMO and Barllett’s test Result perceived feasibility, perceived desirability and

entrepreneurial intention ........................................................................................................................ 33
Table 10: Total Variance Explained perceived feasibility, perceived desirability and entrepreneurial
intention .................................................................................................................................................. 33
Table 11: Rotated Component Matrixa of perceived feasibility, perceived desirability and
entrepreneurial intention ........................................................................................................................ 34
Table 12: Correlation between all factors .............................................................................................. 35
Table 13: Model Summary of perceived desirability, risk as threat, subjective norms .......................... 37
Table 14:Anova of perceived desirability, risk as threat, subjective norms ........................................... 38
Table 15: Coefficient matrix of perceived desirability, risk as threat, subjective norms ....................... 38
Table 16:Model Summaryb of risk as threat, perceived feasibility, friend support and family support.. 40
Table 17: Anovaof risk as threat, perceived feasibility, friend support and family support ................... 40
Table 18:Coefficient matrix of friend support, family support and risk as threat .................................. 40
Table 19: Model summary of perceive feasibility, perceived desirability and entrepreneurial intention
................................................................................................................................................................. 42
Table 20:Anova of perceive feasibility, perceived desirability and entrepreneurial intention ............... 42
Table 21:Coefficient matrix of perceive feasibility, perceived desirability ............................................ 42
Table 22:Summary of hypotheses testing result ...................................................................................... 43


CHAPTER 1: INTRODUCTION
In this chapter, the important entrepreneurial activities in economics growth are
demonstrated. Briefly tell about the small and medium sized enterprisessituation of Vietnam in
recent year. Furthermore, providing what is factor influencing individual to intentstart-up in
previous research. Theaim, scope and significance of the study are also introduced.
1.1.

Research background
In early 1980s, Vesper supposes that previous authoritative definitions of entrepreneur

actually include some reference to venture or enterprise creation.After several decades, Mueller

and Thomas (2000) also review that there are numerous authors in entrepreneurship field point
out the relationship between entrepreneurship and new venture formation.All of them agree
with definition of entrepreneurship as “the creation of new independent businesses” (Learned,
1992; Low & MacMillan, 1998; Pillis & Reardon, 2007).
Because of the role of entrepreneurship in economics, more studies about this field are
conducted. Carree and Thurik (2003) say that on the macro-level, new and small businesses
contribute significantly to job creation, innovation and economic growth. Besides, Giacomin et
al. (2011) link the importance between entrepreneurial activities and economic growth,
innovation and employment. For instant, Schmiemann (2008) also makes this relationship
clearer when determining entrepreneurship linked to small and medium sized enterprises
(SMEs), which are the primary developing force of the developed market economies because
percentage of SMEs in total number of enterprises is higher than 95%.Moreover, 95% of the
wealth created in the US since 1980 is due to the generation of entrepreneurs who create and
recognize opportunities. (Timmons,as cited in Alfonso & Cuevas, 2012).
On the other hand, entrepreneurship is not only concerned in developed countries, but
also in developing countries such as Philippine, Taiwan, China, India, Mexico, Thailand,
Hongkong and Vietnam.For example, in Vietnam, since December 1986, economic reforms Doi Moi - have been introduced, the private enterprises is considered as an integral part of a
1


“multi-sector” economy as well as the state passelaws promoting the development of such
enterprises. As a result, more formal private enterprises appear as engine of the economy in the
medium term (Kauanui, Dang & Cotleur, 2006). Moreover, Baughn et al. (2005) states the
private sector is themost rapidly growing portion of the Vietnamese economy. Between 1996
and 2000, thissector created three times more jobs than the state-owned sector, continued
growth in GDP and employmenttwill most likely continue to emanate from this sector. (The
formal private sector, which consists of 70,000 registered corporations, accounts for 8% of
GDP and 2–3% of employment (one million people).
As mention above, there are numerous studies about entrepreneurship. In the previous
decades, researchers have certain concern about factors involving in intention to become an

entrepreneur. Many different authors suppose that “entrepreneurial intentions are essential to
understand the entrepreneurial process as hey precede any attempt in entrepreneurial behavior
and it is affect by different factors” (Bird, Katz & Gartner, Krueger & Carsrud, Alpkan et al.,
Arendt & Brettel, Ga´mez-Gonza´lez et al., Huang et al., Lin et al., Lindblom & Tikkanen,
Zhang & Duan, as cited in Alfonso & Cuevas, 2012, page 722).
Up to now, the intention to start-up is mainly based on the following theories: Ajzen‟s
theory of planned behavior(1991), Shapero and Sokol‟s model of the entrepreneurial
event(1982) and in which the vital elements are explanation and prediction of personal
behavior with respect to entrepreneurship.Both models recognize somehow the relevance of
thepersonal attitudes and social pressure of entrepreneurship, as well as the perceivedselfefficacy as determining influence in establishing the level of the individual‟sintention.Many
next empirical studies are established to test their conceptual model relate to these elements.
Some of them enhance extra factors involve in situation such as past entrepreneur experience,
personal traits that affect entrepreneur intention. Most scientists all over the world carry out
much empirical research trying to answer different questions related to intentions to start-up
business, for example, Turker and Selcuk (2009) wonder whysome people more than others
inclined to become entrepreneurs.

2


1.2.

Research problem
Benzing,

Chu

and

Callanan(2005)

suppose

thatthere

are

substantial

differencesin the rate of new business start-ups across countries despite the
acknowledged

importance

developingnationsmake

of

effortsto

entrepreneurship.
promote

Both

entrepreneurial

developed
activity,

and

including

government-supported programs in Finland, Hungary, China, India,Russia, Slovenia,
and Mexico. Some have had a positive impact, while others have metwith only limited
success (Reynolds et al., Vodopivecas cited in Benzing et al., 2005). The mixed results
ofsuch efforts may reflect inadequate understandings on the part of policy makers
regardingessential drivers of entrepreneurship in different country contexts.Therefore
understanding why and how people start their businesses may facilitate the
development of appropriate policies andfoster entrepreneurial activities more
efficiently.It will also help encouraging more potential entrepreneurs for better performance of
nation. Alfonso and Cuevas (2012) emphasize that managing those factors in order to affect the
entrepreneurial intentions in a positive way will useful for economic growth.
Vietnam begin recognizes the importance of SEMs from 1986, government also creates
and change Enterprise Law many times to encourage and support entrepreneur.In recent period,
the number of small and medium sized enterprises isincreasing significantly from 70,000
registeredcorporations in 2000 to 540,000 ones in 2011. Besides, their contribution to GDP
jumps to nearly 40% and provide 60% non – agricultural employment until 2011 (To,
2013).There are some researches about this field in Vietnam such as the studies of Hoang
(1993),Mekong ProjectDevelopment Facility (Webster & Taussig, 1999), Han and
Baumgarte (2000), and Steerand Taussig (2002) about the entrepreneurial problems
and changes in the private sector climate (as cited in Benzing et al., 2005). Besides,
some recent studies concentrate on Vietnam entrepreneurial performance as well as
entrepreneur‘s interest, motivation such as Kauanui ‘s research in about human

3


resource and entrepreneur performance in 2006 and Baughn et al. (2006)

make

comparison about entrepreneur ‘s motivation between China, Vietnam and Philiipin.
However, while entrepreneur activities have positive effect on Vietnam development as
well as there are more and more SMEs take part in current period, the research about
entrepreneurship in Vietnam is still limited. Most of previous researchers just focus on
demographic characteristics and problems, but they did not interview Vietnamese
entrepreneurs about their motivation for starting a business or about thefactors
necessary for success(Benzing et al., 2005). They could find out adequately which
motivations influence someone decides to become an entrepreneur in Vietnam. Therefore
entrepreneurship in Vietnam context is under-studied area of research.
There are huge studies about entrepreneurial field in the worldrelate to
entrepreneurialsuccess, performances, motivation to find out main factors that impact
entrepreneur whichbase on the foundation theory of planned behavioralto explorethe
relationship among entrepreneurship and perceived desirability and perceived feasibility. Some
of authorsalso focus on antecedents of these two factors. However, literature rarely addresses the
relationship among subjective norms, risk perception as threat and perceived desirability of
entrepreneurship. Moreover, impact of social support as well as risk perception as threat on
perceived feasibility of entrepreneurship.
1.3.

Research objectives
All of above issues makes the study about entrepreneurial intention in Vietnam context

in adequate way necessary to explore primary factors that impact start-up intention. This
research focus on investigating the impacts of entrepreneurial enablers (i.e., subjective norms
and social support) and risk perceptions on perceived desirability and feasibility, which in turn
affects entrepreneurial intention. Therefore, the specific objectives of the research are listed as
follows:

1. What are the effects of subjective norms and risk perceptions as threaton
perceiveddesirability?

4


2. What are the effects of social support and risk perceptions as threaton
perceivedfeasibility?
3. What is the relationship between perceived desirability and perceived feasibility of
entrepreneurship on entrepreneurial intention?
1.4.

Research methodology and scope
The research is conducted on master students in Ho Chi Minh City which is the biggest

city in Vietnam. It centralizes all master students with different majors in some universities.The
reason that the sample of this study is master students can be explained by the results of
previous research in that field as well as Vietnam concept.
Wu and Wu(2008) stated that entrepreneurship is less attractive to students in China
with postgraduate degree than those with diploma and undergraduate degree. They assume that
diploma and undergraduate students are young and full of enthusiasm to begin their new
venture; while, postgraduate students are facing high opportunity cost of time and stable cash
flow demand to challenge new opportunities.However, postgraduated students can be easily
successful when becoming entrepreneur because they usually have more experience,
knowledge than other degrees. Supporting evidences come from some previous researchesshow
that successfulfirms have more college-educated or formal education owner-managers than do
firms that fail(Hoad & Rosko, 1964; Sexton &Auken, 1982 as cited in Ertuna, 2009). Hence,
this research focuses on master students to find outfactors of entrepreneurial intention of
themin oder to have efficient stratergies for development and success of entrepreneur in
Vietnam.

This study‟s sample is postgraduate students in HoChiMinh City who are not
representative for all people have intention to become entrepreneur in Vietnam as well as in
HoChiMinh City.The author applied data analysis tool (SPSS) to handle the collected data and
to perform the research. And then, using SPSS to test the scale reliability (Cronbach‟ s Alpha),
Factor analysis to determine which of a fairly large set of items were answered most similarly

5


by the respondents, using Multiple Regression to check the relationship between independent
variables and dependent variables.

1.5.

Significance of the study
After this study, it is hopeful that its founding will affect entrepreneurial enablers, risk

perception as threat, and motivational factors to develop the suitable strategies to improve
entrepreneurial intention of master students.
In detail, the result will present the relationship between perceived desirability,
feasibility and entrepreneurial intention. Besides, it also show the effect of social support,
subjective norms ans risk perception as threat to both motivational factors. Base on all result,
the implication would be used to motivate more master students to create new venture in the
future, support for development of Vietnam economics.
1.6.

The structure of the study

This thesis is organized into five chapters:
Chapter 1: Introduction

This chapter presents the research background of the study, research statements/ research
problems, research objectives, research scopes and methodology, the significance of the study,
and the research structure.
Chapter 2: Literature review and hypotheses
In this chapter, the author presents the fundamental theories and definition of each mentioned
concept and theoretical modeling with the proposed hypotheses. In this chapter, the conceptual
model of the study is also presented.
Chapter 3: Research Methodology
This chapter mentions about the research design, research methodology and illustrate the
process of conducting the research.
Chapter 4: Data analysis and data results

6


For this chapter, the author summaries the characteristics of collected samples and presents the
result of the research after analyzing collected data. From that result, the author draws the
conclusions for the research hypotheses proposed in Chapter 2.
Chapter 5: Conclusions, implications and limitations
This chapter performs the main results of the research, the contribution of the study in
management theory and practice as well as the limitations of the study for future research
direction.

7


CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES
This section will present some models that involving entrepreneurial intention as well as
some concepts related to three important matters as perceived feasibility, perceived desirability
and their antecedences. From these concepts and model had researched and developed in the

world, the hypothesis and model thatshow the impact of among perceived feasibility, perceived
desirability andentrepreneurial intention will be proposed. This chapter has four parts: 1/ Points
ofview for theoricalentrepreneurial intention models 2/ the conceptual model, 3/ theoutlook for
motivational factors and their antecedences and 4/ the hypothesis for relationships between
these notions.
2.1

Theoretical background
For the purposes of this research the definition of entrepreneurship by Shane and

Venkantaraman (as cited in Sirec & Mocnik, 2010) is applied, which says: “Entrepreneurship is
an activity that involves discovery, evaluation, and exploitation of opportunities to introduce
new goods and services, ways of organizing, markets, processes, and raw materials through
organizing efforts that previously have not existed.”(page 3). According to Alfonso and
Cuevas(2012), the first study of entrepreneur relates to defining entrepreneur‟s standard
throughout typical psychological characteristics and personality traits of entrepreneur belong to
McClelland. Up to 1980s and early 1990s, other authors focus on importance of the
entrepreneurial intention as antecedent to entrepreneurial behavior.
Numerous studies about entrepreneur base on two main entrepreneurial intention models
which are the entrepreneurial event theory (Shapero & Sokol, 1982) and the theory of planned
behavior (Ajzen, 1991). Both of them are widely adopted by entrepreneurial intention research
to analyze new venture creation and have emerged in the literature as the main theory-driver
models (Alfonso & Cuevas, 2012). The model of Krueger and Bazeal (1994) is developed
fromShapero and Sokol„s model that is also considered as the third primary model in this field.

8


Figure 0.1: Theory of planned behavior„s model

Figure 0.2 Krueger & Bazeal‟s entrepreneurial model

Previous researches show that entrepreneurial intention is impacted directly by
numerous factors. They are mentioned such as subjective norms, attitude toward behavior,
perceived behavioral control in Aizen„s model.Besides, factors affect entrepreneurial intention
appear entrepreneurial goal commitment in Drnovsek and Erikson„s research in 2005.From the
main theory of planned behavior, many studies achieve new factors that are known as
perceived desirability which involves attitude of someone and perceived feasibility that relates

9


to self efficacy or perceived behavioral control. (Krueger& Bazeal, 1994; Guerrero et al., 2006;
Devonish et al., 2009; Byabashaija, Katono& Isabalija, 2010).Furthermore, previous
researchers concern about antecedents of two primary factors (perceived feasibility and
perceived desirability). These antecedents are considered as subjective norm, empathy, moral,
social support as well as environment factors. (Krueger & Carsrud, 1993; Kennedy, 2003; Mair
& Noboa, 2003). As a result, this study is established on Krueger & Bazeal„s model in 1994.
However, it also focuses on antecedents of primary factors. The conceptual model represents an
alternative explanation of entrepreneurial intentions using similar variables of previous models
(Krueger, 1993; Shapero and Sokol, 1982). The model is based on a social-cognitive approach
to the study of entrepreneurial intentions.

Subjective norms

Risk perception
as threat

Perceived Desirability
of entrepreneurship

Entrepreneurial
Intention

Perceived Feasibility
of entrepreneurship
Social support

Figure 0.3: Conceptual model of this research

This model presents the relationship between perceived feasibility and perceived
desirability and entrepreneurial intention. Furthermore, it also predicts the impact of Subjective
norms on perceived desirability and social support on perceived feasibility. Finally, this model
explores the role of risk perception as threat on two motivational factors of entrepreneurial
intention.

10


2.2

Hypotheses development

2.2.1 Motivational factors and entrepreneurial intentions
Entrepreneurial intention
Dross(2010) who define entrepreneurial intention as one's intention to engage in
entrepreneurship and one`s intention to start one`s own business or become self- employed,
driven by desiring for autonomy and expectation of economic gain.
Perceived desirability
Perceived desirability can be interpreted into how attractive the idea of starting up a

business is. In past studies, perceived desirability has been defined as a personal attitude
(Devonish et al., 2009). In this research, the perceived desirability is also considered as attitude
toward entrepreneurship. It means that personal attitude to have own business.
The relationship between entrepreneurial intention and perceived desirability
Davidson (1991) and Katz (1992) state that starting a business reflects a process in
which attitudes and intentions are involved and are based on the development of individual
competence, experience and relations to the business context as cited in Schwarz et al., 2009.
Kolvereid (1996), Robinson et al.(1991) also recognize the importance of domain-specific
attitudes in explaining entrepreneurial intention and behavior has been in entrepreneurship
research. (as cited in Schwarz et al., 2009). In that research, attitude toward entrepreneurship
also acts as a primary determinant of students‟ willingness to be self-employed that refers to the
individual‟s perception of the personal desirability of performing the behavior, i.e. creation of a
new venture, and corresponds to the attitude toward the act in the Aizen‟s theory of planned
behaviour. Obviously, the stronger person interest to start a business, more possibly they intent
to chose the entrepreneurial career path.
Furthermore, the previous literature argues that people will form an intention to become
entrepreneur base on their entrepreneurial attitudes‟ these being the attitudes held towards the
greater decision-making autonomy, firm ownership, risk, hard work, and perquisites that tend
to be associated with entrepreneurship. According to Douglas & Shepherd, 2000(as cited in

11


Fitzsimmons & Douglas, 2005) individuals desiring more income, more independence, and
more net perquisites are more likely to want to engage in entrepreneurial behavior. Likewise,
an individual with a higher tolerance for risk and less aversion to work effort should be
expected to be more likely to want to engage in entrepreneurial behavior. Fitzsimmons and
Douglas (2005) find that attitude to ownership is a better predictor of entrepreneurial intentions
than is independence. They also find out when individual have stronger desire about establish
their own business, the more intention to become entrepreneur they have.

Perceived feasibility
The perceived feasibility meansthe individual‟s assessment of the chances that
entrepreneurial activity will succeed given the balance of supporting and constraining
contextual influences. (Byabashaija et al., 2010). Besides, Devonish et al. (2009) stated that
perceived feasibility has been defined as perceived self-efficacy.
However, there are many arguments about relation between perceived self-efficacy and
perceived feasibility. Some authors say that perceived self-efficacy is not the same as perceived
feasibility but others claim that perceived feasibility is conceptually associated with selfefficacy.For example, Krueger (2000) discusses the notion of perceived self-efficacy as a proxy
for feasibility perceptions. This approach is adopted in the current study where perceived selfefficacy is treated as a proxy for feasibility perceptions, as both constructs deal with
perceptions of personal capability.
The relationship between entrepreneurial intention and perceived feasibility
Entrepreneurial intentions have been shown to depend on perceived feasibility (Boyd &
Vozikis, 1994; Crick, Greene & Chen, 1998; de Noble, Jung & Erlich, 1999; Markman, Balkin
& Baron, 2002 as cited in Fitzsimmons & Douglas, 2005a). It is measured by the strength of an
individual‟s belief that they can accomplish a specific task or series of related tasks. It is related
to self confidence and individual capabilities, and these are dependent on prior experience,
vicarious learning, social encouragement, and physiological issues (Bandura, 1982; Bandura &
Wood,1989 as cited in Boyd & Vozikis, 1994 ). It is found that the stronger a person‟s self-

12


confidence in relation to a specific task that involved in starting a new venture, the greater the
probability that the individual will subsequently engage in that specified intention (Crick,
Greene & Chen, 1998 as cited in Fitzsimmons & Douglas , 2005b).
Besides the metioned studies about relationshipof entrepreneur intention and motivation
factors, there are a lot of researchers conducted their studies with the concept of perceived
desirability and perceived feasibility of entrepreneurship. For instance, Shapero and Sokol (as
cited in Gelderen et al., 2008), Krueger (1993) explains entrepreneurial intention on the basis of
perceived desirability, perceived feasibility and the propensity to act that explaining over half

of the variance in self-employment intentions.Moreover, several researchers also test the
impact of perceived feasibility and desirability on self-employment intentions. For instant,
Fitzsimmons and Douglas(2011); Segal et al. (2002) find that entrepreneurial intentions to be
positively related to both perceived feasibility and perceived desirability. Consequently,
Shapero‟s model and the above-mentioned studies agree that new ventures emerge as a result
of choices made by individuals who decide whether the future outcomes are the most desirable
and whether it is feasible to pursue these outcomes. To sum up, base on the aforementioned
arguments, the following two hypotheses are formulated.
Hypothesis 1: Perceived feasibility of entrepreneurship is positively associated with
entrepreneurial intentions.
Hypothesis 2: Perceived desirability of entrepreneurship is positively associated with
entrepreneurial intentions.
2.2.2 Subjective norms and perceived desirability
Subjective norms in previous studies are mentioned as impact of social, important
people to thinking and behavior of someone (Aizen, 1991; Kennedy, 2003). Previous
entrepreneurial intention research has proven subjective norms to be important (Krueger,
1993;Kolvereid, 1996b). One reason for this might be that generally students are still in
thestage of finding out their career choice preferences. The opinions of parents, partners,friends
and important others might be influential in this process.

13


However, subjective norms in this research are considered as degree to which the
individual perceive the university environment to encourage entrepreneurship, and the degree
to which entrepreneurship is perceived as an acceptable career alternative after graduation. It is
argued that, when individual recognizes others success from entrepreneurial activity or
university encouragement about start –up, they feel more attractive with entrepreneurship. All
of effects from university can influence attitude toward owning their business.
Besides, some previous studies state that subjective norms affect of perceived

desirability. For example, following Shapero-Sokol‟s lead, Davidsson (1995); Byabashaija et
al. (2010) assume that subjective norms are embedded in perceived desirability. However,some
studies concentrate on the influence of perceived desirability and feasibility on entrepreneurial
intentions but neglect the role of subjective norms emphasized by Azjen (as cited in Audet,
2002).Besides, from the result of Kennedy et al. (2003) empirical study, subjective norms
indirectly relates entrepreneurial intention through perceived feasibility and perceived
desirability.Furthermore, testing the extension of the theory of planned behavior (TPB),
Tarkiainen and Sundqvist(2005) conduct research in an organic food buying context. They
justify that subjective norms positively influence attitudes towards buying organic food. As
mentioned above by Devonish et al.(2009) perceived desirability in Shapero„s model is
correspondent to attitude toward behavior in Ajzen„s theory.
Thus, it is hypothesis that:
Hypothesis 3: Subjective norms are positively associated with Perceived desirability of
entrepreneurship.
2.2.3 Social support and perceived feasibility
Social support is conceived as trust and cooperation derived from social network
(Backman & Smith, as cited in Mair & Noboa, 2003). Baron (2000) also supposes that social
supports are actual and potential resources from knowledge about other as being a part of social
network of them.

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In entrepreneurial field, social support is understood from family, friends that can be
financial or spiritual support. While perceived feasibility of entrepreneurship is confidence,
belief to success when they start new venture. It is clear to see that individual„s perceived
behavioral control is stronger when they have good social support. Reynold (1991) states that
important factor affect entrepreneur „s success involved in efficient network that is defined as
all kind of relation refer to venture capital, supplier, facilities, etc (as cited in Mair& Noboa,
2003).Some authors research intimate link between social support and entrepreneurship. They

consider entrepreneurship as rooted in networks of recurrent social relation, which can act as a
facilitator but also as a constraint. (Aldrich & Zimmer, as cited in Mair & Noboa, 2003).There
are few studies find out the relationship between social support and perceived feasibility.
Therefore, following Mair & Noboa„s conceptual model, the proposition of this study could be:
Hypothesis 4: Social support is positively associated with Perceived feasibility of
entrepreneurship.
2.2.4 Risk perception as threat in relation of perceived desirability and feasibility
Risk perception has been conceptualized as a multidimensional psychological construct
comprising two elements: risk as opportunity (focusing on the upside of risk) and risk as threat
(focusing on the downside of risk); Barbosa et al.; Dickson & Giglierano; Mullins & Forlani, as
cited in Nabi & Linan, 2013).Risk perception as threat means that people perceive risk as
failure, difficulties as well as challenges that they could face when conducting new venture.
When someone intent to establish a new business, they usually consider many different
factors, one of them is risk that they can take. It means that, risk perception as threat could be
affect start – up intention. However, it also affectsof the level perceived feasibility and
desirability to start new business directly (Macko & Tyszka, 2009). It can be understood that
when risk is considered as threat, individual „s confidence to success can reduce. Likewise,
interest to do something can also lessen.
The hypothesis of this research about risk perception as threat and entrepreneurial
motivation factors are being:

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Hypothesis 5: The greater risk is considered as a threat(i.e. fear of failure), the weaker
the perceiveddesirability of entrepreneurship
Hypothesis 6: The greater risk is considered as a threat (i.e. fear of failure), the weaker
the perceived feasibility of entrepreneurship
Summary
This chapter mentions about definition and theoretical background of each concept in

the model. From previous literature, entrepreneur is impacted by two factors: perceived
feasibility andperceived desirability toward entrepreneurship. These factors also are influenced
by subjective norms, social support and risk perception as threat.

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CHAPTER 3: RESEARCH METHODOLOGY
This chapter mentions about the ways to conduct research to find out the answer for research
questions, including: research design, research process, research scale, sample size, data
collection procedure and data analysis method.
3.1

RESEARCH DESIGN
In order to create a design for research, researchers considered the kind of model and

measured were suitable to the subject of the research. The focus of this research was examining
the two factors affecting entrepreneur intention that includes perceived feasibility, perceived
desirability. Besides, this study also tested subjective norms, risk perception as threat and social
support as two factors‟ antecedents. An operation model was presented in Figure 2.7. This
research used primary data that collected from master students in Ho Chi Minh City. Thus, a
questionnaire survey design was used as the data collecting method.
3.2

RESEARCH PROCESS
The research comprised two phases, a pilot study and a main survey. The pilot study was

undertaken by qualitative method and a main survey by quantitative method.
Qualitative research
Based on literature from previous research about the impact of perceived desirability

and perceived feasibility on entrepreneur intention as well as the relationship between these
factor and their antecedents, the research proposed six hypotheses which were proposed in
Chapter 2. After that, the model was adjusted and selected the preliminary the scale for
questionnaire of the study.
After finishing the preliminary questionnaire, the researcher conducted the in-depth
interviews with 5 master students have entrepreneurial intention in Ho Chi Minh City to obtain
the correct items in the context of Vietnamese entrepreneurs; checked the content and meaning
of words used in the initial measurement scales and modified them to be more suitable and
understanding. Although most of the measures of the constructs were mentioned in the
previous literature, this step was necessary to make them appropriate and easy to understand in

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