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Entrepreneurship and Differences in Locus of Control

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Entrepreneurship and Differences in Locus of Control
Kroeck, K Galen;Bullough, Amanda M;Reynolds, Paul D
Journal of Applied Management and Entrepreneurship; Jan 2010; 15, 1; ABI/INFORM Complete
pg. 21
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... To some degree, findings have been disaggregated by gender and race-though more research is needed on this front. For example, although women seem to hold a more externalized belief about luck than men (Sherman et al., 1997), female entrepreneurs tend to hold a more internalized belief about luck than the general population of women (Kroeck et al., 2010). Another study found that internal locus of control related to women's skills, ability, competency, and hard work were major factors affecting a woman's entrepreneurial orientation (Spillan & Brazier, 2003). ...
... A similar phenomenon holds true for African American entrepreneurs (Kroeck et al., 2010). These discrepancies may explain why fewer people from communities of color engage in entrepreneurship; a high internal locus of control positively predicts one's likelihood of entrepreneurial engagement (Hisrich et al., 2007;Mohd Noor et al., 2021). ...
... Interestingly, differences in perceptions of luck become relatively equalized when analyzed within entrepreneurs as an analytical category. Groups of people within the entrepreneur demographic who would stereotypically lean toward a more externalized belief of luck, such as women or African Americans, tend to hold a more internalized viewpoint (Arkorful & Hilton, 2021;Kroeck et al., 2010). Thus, trends in the perception of luck comparing entrepreneurs with the general population may not hold as well when assessing entrepreneurs only. ...
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This study analyses transcripts derived from 183 podcast interviews that ask successful entrepreneurs whether luck or skill and hard work account for their success. It quantitatively disaggregates founders' answers to this standard question based on differences in their gender, race, and country of origin. Qualitative analysis further considers the degree to which founders' perspectives might be associated with an internalised locus of control and their social positioning, alongside their identities and belief systems. Findings indicate differences across gender, but no strong evidence of difference was evident by race and geography. Thematic analysis of transcripts revealed several additional determinants that founders attributed to their success. By investigating the lived experiences of successful founders disaggregated by gender, race, and geography, this study sheds light on how diverse founders attribute their success to various internal and external forces.
... Locus of control is the behavior that subjects perceive with regard to generalized expectations for control (Levenson, 1973). On the one hand, there is the internal locus of control that is associated with individuals who have control over the results of their achievements, the protection of their interests and the implementation of plans with determination (Kroeck et al., 2010). On the other hand, there is the external locus of control, which is associated with individuals who consider that situations are beyond their immediate control and, therefore, are more influenced by external factors (Anwar and Saleem, 2019;Kroeck et al., 2010;Rotter, 1966). ...
... On the one hand, there is the internal locus of control that is associated with individuals who have control over the results of their achievements, the protection of their interests and the implementation of plans with determination (Kroeck et al., 2010). On the other hand, there is the external locus of control, which is associated with individuals who consider that situations are beyond their immediate control and, therefore, are more influenced by external factors (Anwar and Saleem, 2019;Kroeck et al., 2010;Rotter, 1966). For example, individuals will persist in an activity if they attribute their success to internal, stable and intentional factors while attributing their failures to external, variable or accidental factors (Gatewood et al., 1995). ...
Article
Purpose The aim of this study is to examine the influence of locus of control, the university environment and the social environment on the entrepreneurial attitude of female Latin American university students. Design/methodology/approach The study applies a quan–qual design. The quan section analyzes the data of 10,781 female university students from 11 Latin American countries included in the Global University Entrepreneurial Spirit Students Survey 2018. A hierarchical multiple regression analysis was applied. The qual section applies in-depth interviews for sequential methodological triangulation analysis. Findings The evidence indicates that locus of control, the university environment and the social environment positively impact the entrepreneurial attitude of female Latin American university students. The most influential factor was locus of control. Originality/value This empirical study focuses on female university students and their propensity for business venturing and determines the main influences on their entrepreneurial attitudes.
... Ng et al., (2006) note that perceived control has been extensively explored in psychological literature owing to its association with a number of cognitive, physiological and behavioural outcomes and across a variety of age groups. The notion of control belief was thought to arise from social experiences but others suggest that some people have the disposition to believe that they have control over the external environment than others (Ng et al., 2006;Kroeck, Bullough & Reynolds, 2010;Wang, Bowling, & Eschleman, 2010). This dispositional trait is LOC, which is a different personality trait from the Big Five (which was more popular in organisational research). ...
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The low job creation prospects in Ghana has intensified efforts to boost young university students' intention to start entrepreneurial activity in the future. Several efforts have been triggered at national levels but not much progress has been made and attempts to understand the phenomenon has been inconclusive. Studies have suggested examining the issue from a psychological perspective to offer a more comprehensive understanding of the mind-set of young people regarding entrepreneurship. Several psychological factors have been suggested but one that has been loosely conceptualized within the context is locus of control. This study, therefore, examined locus of control as a key explanatory factor for undergraduate students' entrepreneurial intention. Data was gathered from 298 final year undergraduate students through validated survey instruments. Analysed data using hierarchical multiple regression revealed both internal and external locus of control significantly predicted entrepreneurial intention but external locus of control was found to be a better predictor. The study re-echoes the need to create an entrepreneurial environment that is capable of whipping the interest of students to develop the mind-set for starting their own business venture after graduating from the university. The study also highlights the implications for all those in the entrepreneurial ecosystem in Ghana.
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Applying social cognitive career theory (Lent, Brown, & Hackett, 2002) to entrepreneurship, this paper addresses the effects of locus of control and need for achievement on entrepreneurial intentions, and whether the effects are mediated by entrepreneurial self-efficacy and vary according to sex. The participants were 111 students enrolled in the business administration program in Turkey. Using longitudinal survey data, the research model was tested with the moderated mediation procedure suggested by Hayes (2013). The findings showed that entrepreneurial self-efficacy mediated the relationship between locus of control and entrepreneurial intention, as well as the relationship between need for achievement and entrepreneurial intention. Moreover, the conditional indirect analysis showed that the effect of locus of control on entrepreneurial intention depended on sex, with the effect of locus of control being greater for men. By showing empirical evidence for the usefulness of social cognitive career theory to entrepreneurship, our research adds to current literature. Implications for practice and recommendations for future research are discussed.
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This study investigates whether and how different decision logics (i.e., effectuation and causation) are linked to venture performance (i.e., annual average growth in revenue and profit as well as subjective assessments of venture performance and funding status). We also examine how dispositional characteristics of an entrepreneur (i.e., learning and performance goal orientations, ambiguity tolerance, desire for change, and locus of control) influence the use of different decision logics. The results indicate that causation has a significantly positive effect on revenue growth as well as subjective assessments of venture performance and funding status, while effectuation has a significantly negative effect on profit growth. We find that learning-goal orientation leads to a greater reliance on effectuation, while performance-goal orientation increases the use of causation. An internal locus of control positively affects the reliance on both effectuation and causation, while the desire for change increases the use of effectuation.
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Thesis
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