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International Journal of Innovation, Creativity and Change. www.ijicc.net
Volume 10, Issue 1, 2019
198
The Influence of Entrepreneurial
Orientation, Entrepreneurial
Education and University Support on
the Entrepreneurial Intentions of
Thai graduates, with the Moderating
role of Culture
Krisada Chienwattanasooka, Kittisak Jermsittiparsertb,c*, Krit Jarintod,
aFaculty of Business Administration, Rajamangala University of Technology
Thanyaburi, Pathum Thani, Thailand, bDepartment for Management of Science
and Technology Development, Ton Duc Thang University, Ho Chi Minh City,
Vietnam, cFaculty of Social Sciences and Humanities, Ton Duc Thang
University, Ho Chi Minh City, Vietnam, dFaculty of Administration and
Management, King Mongkut's Institute of Technology Ladkrabang, Bangkok,
Thailand,
*Corresponding Author Email: b,c*kittisak.jermsitt iparsert@tdtu.edu.vn,
akrisada_c@rmutt.ac.th, dkrit.ja@kmitl.ac.th
This study seeks to determine the entrepreneurial intentions among
business graduates of Thai universities, as influenced by various
predictors. The present study aims to investigate the influence of
entrepreneurial orientation, entrepreneurial education and university
support towards the entrepreneurial intentions of young graduates to
become self-employed and entrepreneurs. The study also contributes to
the determination of the moderating role of culture between independent
and dependent variables of the proposed framework, on the basis of
collected data from Thai university graduates by using SMART-PLS.
Results of the study found that entrepreneurial orientation,
entrepreneurial education and environmental support from educational
institutions influences the entrepreneurial intentions of university
graduates. The findings of previous studies and contradictory findings
were considered, in the context of determining the role of university
support, and all direct hypotheses were accepted statistically. The
moderating role between independent and dependent variables by
culture was also examined, and the results demonstrated that culture
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moderated the relationship between entrepreneurial orientation and
entrepreneurial education as independent variables and dependent
variables on entrepreneurial intention significantly, but found that
culture doesn’t moderate the relationship between university support
and intentions towards entrepreneurship. This study investigates this
relationship for the first time in an attempt to determine the intention of
individuals to become entrepreneurs, along with the moderating role of
culture.
Key words: Entrepreneurial Intention, Entrepreneurial Orientation, Entrepreneurial
Education, University Support, Culture.
Introduction
Entrepreneurship activities are driven by newly established small businesses, stable
environments, creativity and competitive power (Thurik & Wennekers, 2004). Researchers,
policymakers and educational institutions encourage involvement in entrepreneurial activities
by highlighting various influential factors that develop the intention towards entrepreneurship
(Turker & Sonmez Selçuk, 2009; Jung, 2018; Chienwattanasook et al., 2019).
Entrepreneurship has gained the attention of scholars, business enterprises, policy development
departments and institutions with an aim towards increasing participation in entrepreneurship
activities. The creation of novel ideas in the business world influences the economy of a country
by providing employment opportunities and helping control poverty (Alarape, 2009;
Anwanaet.al. 2019). Researchers have supported a belief in entrepreneurship as being capable
of significantly influencing and improving the economic conditions of developed and
developing countries, by providing job opportunities and eradicating poverty. Scholars have
focused on entrepreneurship activity that is based on innovation and can contribute towards
growth and wealth accumulation (Ahmad et al., 2018; Keilbach, Tamvada, & Audretsch,
2008). Developing countries are facing various challenges, one of which is youth engagement
in employment. The unemployment rate remained higher among young graduates due to the
unavailability of jobs in relevant professions for academics, and management as well (Aliman
& Jalal, 2013). Generating employment options n for young graduates has become one of the
major concerns of developing nations, since large numbers of successful young graduates leave
college unable to avail themselves of opportunities for employment. Poor controls, and
instability in socioeconomic reform, causes this issue to occur at higher levels in various
developing countries. Political instability can also instigate the issue of unemployment among
young graduates (Akanbi, 2013).
Researchers have noted that despite various efforts the majority of young graduates exposed to
entrepreneurial programs fail to implement their education in practical ways due to a lack of
exposure and experience (Ekpe & Mat, 2012). Scholars have shown that self-reliance and
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becoming an entrepreneur isn’t just related to, or based merely upon educational background,
but that it also strongly relates to, and depends upon, the intentions of an individual. Therefore,
it is necessary to investigate the intentions of individuals, as academics and policy makers, in
regard to the initiation of their own businesses. The significance of entrepreneurship can be
seen by its influence upon, and contributions to the economy, job creation, innovation,
creativity, social and economic development and growth of the country (Prakash, Jain, &
Chauhan, 2015). Entrepreneurship has played a vital role in the economic growth of various
countries, including the US, Germany and Japan. Those researching entrepreneurship have
described it as involving the independent initiation of one’s own business, with independence,
creativity and innovation, while being prepared to take risks in the start-up phase.
Entrepreneurship has been found to be based on both an identification of business
opportunities, and the intentions of an individual (Wang, Lu, & Millington, 2011).
Entrepreneurial intention can be described as a process based on the behaviour of an individual
towards the initiation o f their own business. Entrepreneurial behaviour determines the
intentions of individuals towards starting businesses innovatively (Zhang, Duysters, & Cloodt,
2014). Furthermore, scholars have defined entrepreneurial intention as the intention, and
behaviour of individuals, to participate in initiating a business in creative and risky ways.
Therefore, in explaining entrepreneurial behaviour, various factors must be considered with
respect to the formation of entrepreneurial intention (Fayolle & Gailly, 2015). Researchers
have identified various factors found to be influential in entrepreneurship intention, and
concluded that entrepreneurship education is one of most important influential factors (Bae,
Qian, Miao, & Fiet, 2014), along with the personality of an individual (Dehkordiet al., 2012),
gender (Achtenhagen & Tillmar, 2013) and self-efficacy (Pihie & Bagheri, 2013).
The current study has focused upon entrepreneurial activity in Thailand. The rate of
entrepreneurial activity was obtained fro m the Global Entrepreneurship Monitor (GEM),
which monitors this type of activity. The GEM reported that a large number of adults in the
workforce in Thailand have their own business and stated that this identifies them as
entrepreneurs in Thailand. Furthermore, scholars have found that Thailand has the highest rate
of entrepreneurship activity in the Asian region. According to GEM, Thailand has the highest
total entrepreneurial activity, whereby 20% of the adult population is engaged in
entrepreneurship, and 14% claim to own their own business. In addition, people who are not
active in their own business have positive attitudes towards entrepreneurship. Approximately
86% of adults in the workforce were found to be willing to start up their own business, and
68% of the population claimed to be engaged in entrepreneurial activity (Bosma & Harding,
2006).
After World War II, Thailand was one of the world’s poorest countries, with poor economic
conditions, yet four decades later the economy of Thailand improved on the basis of
development, and rapid economic growth along with a decline in poverty (Durongkaveroj &
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Ryu, 2018; Warr, 2007). Currently, Thailand is considered the “fifth tiger” in the South East
Asian region, after Korea, Hong Kong, Singapore and Taiwan, displaying rapid growth and
productivity. Researchers noted that entrepreneurial activity in Thailand caused rapid growth
of the economy and entrepreneurship was considered a viable mechanism for increasing
growth. Scholars have stated that entrepreneurship has been examined in developed countries
but that it has greater impact in developing nations, and contributes to economic growth in
developing countries. As stated earlier, there are various factors which contribute towards the
development of entrepreneurial intentions. The current study illustrates a few factors which
are believed to contribute towards entrepreneurship intention, including entrepreneurship
orientation, entrepreneurship education, and the support of universities in helping to support,
develop and determine the intentions of an individual.
Therefore, the prime objective of the current study is to determine the factors behind
entrepreneurship intention, which contributes to rapid economic growth and development.
Previously, studies have focused on explaining the role of entrepreneurship in poverty
elimination, and rapid economic growth based on the growth regression model (Beck,
Demirguc-Kunt, & Levine, 2005). In Thailand, entrepreneurial activity was found to be higher
than in other countries, according to GEM, but performance, in comparison, was observed to
be unimpressive and lower. Thailand is still lagging behind most Asian countries, whereas
Cambodia, Myanmar, the Philippines, Vietnam and Malaysia performed better in growth rates
due to entrepreneurial activity (World Bank, 2012). Therefore, this study aims to determine
the role of university education, entrepreneurial orientation and entrepreneurial education, in
order to ascertain entrepreneurial intention in relation to the moderating role of culture.
Literature Review
Individuals’ actions are predicted by their intentions, as described by Ajzen(1991). Various
motivational factors drive the intentions of individuals, such as behaviour, an individual’s
efforts, along with planning to transform behaviours in actions or practices, as described by
Liñán, Urbano, & Guerrero (2011). Various scholars believe that intention plays a vital and
important role in determining the performance of an individual, as the behaviour of employees
or individuals influences performance. The literature also discusses the relationship and
influence of intention upon behaviour; intention is considered to be one of the important factors
of entrepreneurial behaviour (Krueger Jr, Reilly, & Carsrud, 2000). The understanding of
behaviour becomes clearer in the presence of knowledge about antecedents of intentions. The
willingness of an individual to engage in entrepreneurial behaviour and to become involved in
entrepreneurial activities is referred to as entrepreneurial intention (Dohse & Walter, 2010).
The literature explains the phenomenon of self-employment as being largely dependent upon
the intentions of an individual, and further, that various other personal and situation related
variables are believed to have an indirect effect upon entrepreneurship and affects the attitudes
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and motivations of an individual (Krueger Jr et al., 2000). The effectiveness of the relationship
between the influence of role models and entrepreneurial intention is related to changing beliefs
of self-efficacy. It includes guts, courage and ambition to start up a business and engage in
successful entrepreneurial activity. The individual must possess specific qualities or have the
personality of an entrepreneur, but these capabilities can’t be transformed unless an individual
has the intention to convert these capabilities and qualities into entrepreneurial activities (Baba,
2014).
Researchers have paid attention towards entrepreneurship and the intention of individuals
towards entrepreneurial activities. However, there is a lack of studies that discuss the attributes
of the behaviour of individuals, and theories which focus on entrepreneurial activities and
intentions. Furthermore, research scholars have included psychological approaches and
personality attributes and traits in order to determine the intention related factors on self-
employment, including a risk taking capability, goal orientation, the need for achievement and
locus of control. To become an entrepreneur an individual must be capable and possess a
specific type of personality and psychological attributes. Researchers have discussed
behavioural approaches, and particular behaviours, by combining them with the phenomenon
of intention, followed by the action taken by an entrepreneurial individual.
Researchers have used the theory of planned behaviour (TPB) as a way of describing an
individual’s intentions towards entrepreneurial activities. The theory of planned behaviour
illustrates the intentions of individuals as depending upon three perceptions, which include
attitudes towards behaviour, subjective norms, and perceived behavioural control (Ajzen,
1991; Ekpe & Mat, 2012). TPB shows that the intention of an individual predicts the behaviour,
hence entrepreneurial intention must be understood when considering the entrepreneurial
process (Krueger Jr et al., 2000).
Entrepreneurial Orientation and Entrepreneurial Intention
Conceptual explanations of entrepreneurial orientation have been offered by various scholars
and defined at the business level. The firm with capabilities of employ market and product
innovation and take risky steps and investments considered as entrepreneurial firms and their
entrepreneurial orientation (Wu, 2009). Researchers have defined three dimensions for the
assessment of firms regarding entrepreneurial orientation; these dimensions include
innovation, risk taking capabilities and a proactive approach. Various authors have defined
entrepreneurial orientation as a strategy devising process that lead firms towards becoming
entrepreneurial in its decision-making, according to the dimensions stated above. In the
literature related to entrepreneurship, it has been widely discussed that the entrepreneurial
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orientation of a firm has a vital role to play and this construct has been used widely in the
literature. Researchers have found that entrepreneurial orientation is an influential factor, with
respect to the performance of a business; profitability, growth and innovation is also influenced
by entrepreneurial orientation (Jiang, Liu, Fey, & Jiang, 2018; Shuet al., 2019; Tanget al.,
2008). Scholars have further shown that the personal attributes of an individual enhance the
chances of becoming an entrepreneur, due to the durability of personal traits as they last longer
and don’t change on frequent changes due to deep association with person’s intention towards
entrepreneurial intention (Konon & Kritikos, 2018; Zhao, Seibert, & Lumpkin, 2010). The
current study aims to explore entrepreneurial orientation from an individual’s perspective while
considering the characteristics of students in relation to their intentions for setting up a
business.
Previously, studies have been conducted with the aim of examining the entrepreneurial
orientation for measuring performance at a business level (Richard, Wu, & Chadwick, 2009;
Wang et al., 2011). Various studies have been carried out which have focused on the
dimensions of entrepreneurial orientation, including innovative capability, desire for taking
risks, autonomy, competitiveness, aggressiveness and proactive approaches in decision
making. The findings of the studies indicated that the higher score against these dimensions
demonstrates the performance level as high. These studies have stated positive and significant
influences regarding entrepreneurial orientation towards the performance of organisations. A
study, that was carried out in the USA at Midsouth University, found that the tendency of an
individual to take risks, and to show a proactive behavioural approach, and innovative
capabilities, are correlated with intentions to become an entrepreneur, and were found to be
helping in measuring students’ intentions of becoming self-employed (Langkamp Bolton &
Lane, 2012). The study was conducted on the health sector in order to investigate
entrepreneurial orientation and their motivation to become an entrepreneur, and compared the
health care professionals of both approaches as entrepreneurial and non-entrepreneurial
professionals on the base of cognitive and psychological factors (Marques et al., 2013). The
results of the study demonstrated that specific psychological traits instigate an individual to
become an entrepreneur and get involved in entrepreneurial activities.
Based on previous studies, the current study proposed the hypothesis:
H1: Entrepreneurial Orientation positively and significantly influences the entrepreneurial
intentions among Thai graduates in the higher education sector.
Entrepreneurial Education and Entrepreneurial Intention
Education related to entrepreneurship is considered as training that is given to individuals in
order to produce innovative and progressive business owners. Entrepreneurial education
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referred as knowledge and skill of an individual possessed in specific field since long time span
with an impact (Ekpe & Mat, 2012). Furthermore, entrepreneurial education is described as a
training program initiated to help and assist participants to develop the abilities and traits
related to entrepreneurial activities, in order to support them to initiate and introduce innovative
ventures (Ediagbonya, 2013). Thus, entrepreneurial education extends its function beyond
simply guiding people to start a business; instead, it aims to enhance their creativity levels,
critical thinking skills and develop a sense of self-employment and accountability. Researchers
have defined entrepreneurial education as the teaching of skills and abilities, and influences the
intention of individuals towards business, innovatively and creatively (Fatoki, 2014).
Entrepreneurial education enables students and individuals to improve business ideas in order
to capitalise upon and avail themselves of opportunities. Furthermore, it assists and helps
individuals to obtain higher returns from entrepreneurial activities for successful business.
Various other studies revealed the comparisons of entrepreneurial activities between less and
highly developed countries in conducting business. Similarly, lBRU (2009) illustrated that
entrepreneurs are highly educated in developed countries, as compared to developing or less
developed countries. In the US, for example, the interest of individuals in entrepreneurship
contributed towards higher degrees of development. Similarly, European countries focused on
entrepreneurial activities in order to boost their long term economic benefits (Iacobucci &
Micozzi, 2012).
Researchers believe that the participation of students in entrepreneurial courses and classes
influences their behaviours and attitudes significantly towards establishing their own business
and becoming self-employed. Entrepreneurial education influences the possibility of initiating
new successful businesses., Studies that have been conducted on business and engineering
students show that their participation in entrepreneurial activities influences and enhance the
ability to develop and trust themselves to initiate their own businesses (Tessema Gerba, 2012).
Fatoki (2014) conducted a study on South African undergraduate business students to examine
their entrepreneurial intentions. The findings of the study demonstrated that there was a
significant relationship between the intention to become self-employed and the training or
education related to business-oriented courses and studies. Similar results have been found by
other researchers in determining entrepreneurial intentions (Souitaris, Zerbinat i, & Al-Laham,
2007; Tessema Gerba, 2012); it has been found that education related to business setup
evidences a higher level of intention with regard to initiating businesses and becoming self-
employed. The studies indicate that entrepreneurial training influences attitudes towards
entrepreneurship and the development of the intention to become an entrepreneur in the future.
Therefore, based on the above discussion, the study has proposed the following hypothesis:
H2: Entrepreneurial Education positively and significantly influences the Entrepreneurial
Intentions of Thai students in the higher education sector.
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University Support and Entrepreneurial Intention
Researchers have found that entrepreneurship becomes more effective with the involvement of
institutions. Universities and other educational institutions play a vital role in promoting
entrepreneurship by providing related education and support to influence the intention of
individuals. The role of university in providing education related to entrepreneurship and
support students and participants for start up and set up new businesses to become entrepreneur
(Romero & Petrescu, 2011). Studies have been conducted to examine entrepreneurship
intentions influenced by personality traits and qualities in loosing strength but environmental
factors plays vital role in determining the entrepreneurship intention (Schwarz, Wdowiak,
Almer-Jarz, & Breitenecker, 2009). These studies have emphasised the control of universities
upon situational factors which enhance the intention to become self-employed or an
entrepreneur. Universities and educational institutions initiate entrepreneurial activities by
providing creative, conducive, and supportive environments that produce business people with
intentions of becoming entrepreneurs (Hofer & Potter, 2010).
Studies have been conducted in entrepreneurship in relation to individual and environmental
factors; the model of entrepreneurial intention has been developed by Sesen (2013) for
examining and comparing the efficiency to influence entrepreneurial intention among students
of Turkish Universities. This study stated that the university environment doesn’t influence the
entrepreneurial intentions of students. In contrast, other studies found differing results after
conducting research on MIT’s students which showed that entrepreneurial intentions are
influenced by environmental factors, since unique entrepreneurship educational programs and
training influences the intentions of individual students. Furthermore, it has been established
that a lack of entrepreneurial education programs negatively affect intentions towards
becoming an entrepreneur (Fayolle & Liñán, 2014). Various other researchers have statistically
analysed and examined the relationship between the entrepreneurship intentions to become
self-employed among Spanish students (Coduras, Urbano, Rojas, & Martínez, 2008).
Similarly, a study by Johannisson, Halvarsson, and Lövstäl (2001) examined the effect of the
university environment and support on entrepreneurial intention by organising meetings
between students and entrepreneurs and by teaching entrepreneurship. The results of the study
showed that educational environments and teaching programs have an impact on the intentions
of students, with respect to becoming entrepreneurs.
The literature has discussed entrepreneurship, its antecedents and outcomes, including personal
and environmental factors, but there is a lack of empirical research and little is known about
the environmental factors associated with the influence of educational institutions upon
students in becoming entrepreneurs. As discussed above, previous studies have demonstrated
mixed findings with respect to the university influence upon student intentions, self-
employment and entrepreneurship. The current study intends to determine the relationship
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between university support and entrepreneurship intentions among Thai students in the higher
education sector. Therefore, on the basis of the above discussion, the following hypothesis is
proposed:
H3: University support positively influences the entrepreneurial intentions of Thai students.
The Moderating Role of Culture
Culture is considered to be one of the integral parts of any organisation and plays a significantly
important role in determining organisational related outcomes. Literature on entrepreneurship
from the point of view of cultural impact on entrepreneurial intentions of university graduates.
The cultural aspect is comprised of three different factors, including ambiguity, accountability
and performance objectives (Hesselbein, Goldsmith, Beckhard, & Schubert, 1998; Oh, Min,
Kim, & Park, 2017). The cultural aspect of firms refers to the symbols, values, and shared
norms of employees or participants of organisations. Researchers have emphasised the
importance of understanding the cultural aspects of organisat ional settings and the impact it
has upon outcomes. The present study includes a focus on cultural aspects as moderating
factors between predictors of entrepreneurial intention among university graduates of Thailand.
Culture has been found to be an important factor in understanding, developing and maintaining
the entrepreneurial orientation of firms (Cornwall & Perlman, 1990; Umrani, 2016). In
educational institutes, entrepreneurial orientation and culture plays an important role in shaping
the behaviours and intentions of graduates; the literature has shown that in order to achieve a
high degree of innovation and creativity organisations should encourage an entrepreneurial
culture. The goals and objectives of the firms determine the direction of departments, while the
clarity and transparency of their goals and objectives impact the members and stakeholders of
firms and assists them to devise strategies and simplify tasks. Entrepreneurship includes risk
taking behaviours and the attitudes of members in sharing goals that will reduce the level and
degree of ambiguity and uncertainty for the achievement of goals (Kaufmann, Borry, &
DeHart‐Davis, 2019; Moon, 1999).
Unclear, inconsistent and ambiguous working environment and culture leads firms towards
problems related to innovative solutions and in adoption of entrepreneurial process at higher
education sector (Pillay & Bilney, 2015; Sadler, 1999). Other researchers have explained the
ambiguity of goals and the cultural ambiguities in the implementation of entrepreneurial
settings; the implementation of an entrepreneurial process needs cultural and organisational
support (Oh et al., 2017). In contrast, if the goals of firms are found to be too rigid and strictly
developed, organisations can become defensive and engage in overly careful behaviours in
their initiatives towards risk taking and entrepreneurial intentions. An ambiguous and unclear
culture hinders the possibility of innovative opportunities due to inflexibility and an uncertain
direction regarding the entrepreneurial process. Accountability is referred to as positive
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exploitation concerning the willingness to take risks in uncertain situations. The more efficient
and effective resource allocation permission exercised under accountability for lowering the
cost and increase in flexible decision making. Similarly, alternatives for organisations
regarding new activities are also considered using an accountability process. In addition to
this, performance objectives take entrepreneurial opportunities into account, since in order to
meet its objectives businesses must incorporate innovation in their entrepreneurial activities.
In a nutshell, a risk taking, ambiguous and objective based culture impacts the intention and
behaviour of firms’ stakeholders regarding entrepreneurial adoption (Oh et al., 2017).
Therefore, on the basis of the above discussions, the following hypotheses are devised:
H4: Culture moderates the relationship between entrepreneurial orientation and entrepreneurial
intention.
H5: Culture moderates the relationship between entrepreneurial education and entrepreneurial
intention.
H6: The relationship between university support and entrepreneurial intentions is significantly
and positively moderated by Culture.
Research Framework
The current part of this study demonstrates the proposed research framework of the study;the
relationships being tested between independent and dependent variables are shown with the
moderating effect of culture.
Figure 1. Proposed Framework
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Research Methodology
The present part of the study explains the research methodology and design, as it refers to the
master plan of the research regarding data collection and analysis (Zikmund & Carr, 2000).
The data for analysis was collected a single time, which is consistent with a cross sectional
research design. The researcher distributed 550 questionnaires among Thai undergraduate
students from three leading universities in Thailand which provide business education,
hospitality management and entrepreneurial education. A total of 340 useable questionnaires
were received for analysis. Studies have shown that young students are more likely to be
attracted to the field of business and (both genders) have the highest propensity of becoming
entrepreneurs, according to a Global Report (GEM, 2015).
Instrument development
The research instrument was adopted for each variable from previously published research on
entrepreneurs. All the items were examined using a 5-point Likert scale, where 1 demonstrates
‘highly disagree’, 2 is ‘disagree’, 3 is ‘neutral’, 4 is ‘agree’ and 5 is ‘highly agree’.
The current study adopted a research instrument from previous studies, related to the collection
of responses, as the nature of study is quantitative. The dependent variable ‘Entrepreneurial
Intention’ was observed on the measurement scale developed by Liñán and Chen (2009) and
consists of six items. ‘Entrepreneurial orientation’ was used in the present study as an
independent variable and the measurement scale was adopted from the study of Elenurm,
Ennulo, & Laar (2007) and consists of three items. The measurement scale for ‘Entrepreneurial
Education’ was adopted from the study of Keat, Selvarajah, & Meyer (2011) and consists of
three items. The scale for ‘University Support’ was adopted from the study of Keat et al., (2011)
and consists of four items. The scale used to measure ‘culture’ as a moderating variable was
adopted from the study of Kim (2011) and consists of ten items.
Analysis and Discussion
The following section demonstrates the measurement model and the structural model using
SMART-PLS-SEM.
Reliability and Validity Assessments
The Cronbach’s alpha in social sciences is used for measuring internal consistency; another
internal consistency measure, the composite reliability, has been suggested (Hair Jr & Lukas,
2014). The internal consistency reliability can be determined by composite reliability values,
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and as stated by Hair Jr & Lukas (2014), it should be higher than 0.70. Table 1 demonstrates
the composite reliability.
Table 1: Composite Reliability
Sr#
Constructs
CR
Remarks
1
Entrepreneurship Intention
0.881
Acceptable
2
Entrepreneurship Education
0.813
Acceptable
3
Entrepreneurship Orientation
0.781
Acceptable
4
University Support
0.761
Acceptable
5
Culture
0.845
Acceptable
Table 2 demonstrates the discriminant validity of the measurement scale., The square root of
AVE is presented for each construct, and must be higher than the cross-correlation.
Table 2: Discriminant Validity
Sr#
Constructs
1
2
3
4
5
1
Ent-Int
0.777
2
Ent-Edu
0.672
0.797
3
Ent-Ori
0.701
0.651
0.832
4
Uni-Sup
0.523
0.602
0.781
0.862
5
Culture
0.661
0.691
0.613
0.781
0.762
The estimation of the structural model and hypothesis testing is demonstrated in the current
section of the study. PLS-SEM has been used for hypothesis testing. The results of the
hypothesis and relationship testing produced interesting results. The independent variables
were examined and found to be influential on the dependent variable, on the basis of data
collected from university students in Thailand with respect to entrepreneurial intention. The
direct hypothesis was examined on the basis of collected data for testing the influence of, and
the links between, entrepreneurial orientation and the development of entrepreneurial intention
and the effect and influence of entrepreneurial education and entrepreneurial intention. Another
relationship that was examined was the hypothesised relationship between university support
and intentions towards entrepreneurship. Furthermore, the moderating effect was examined
using PLS-SEM regarding the links between culture and entrepreneurial orientation, and
entrepreneurial education and university support, in students from the Thai education sector,
in order to determine their entrepreneurial intentions.
Hypothesis Testing: Direct Relations
The current phase demonstrates the first hypothesis result and examined the independent
variable ‘Entrepreneurial Orientation’ and the dependent variable ‘Entrepreneurial Intention’.
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Hypothesis H1: Entrepreneurial Orientation and Entrepreneurial Intention
Figure 2. H1
Figure 2 demonstrates hypothesis H1 in order to examine the influence of entrepreneurial
orientation on intentions towards entrepreneurship; the statistical figures showed that
entrepreneurial orientation positively and significantly influences the entrepreneurial intentions
of university graduates. The β value was observed as 0.569, whereas the t-value was observed
as 2.256 which is higher than the cut-off point of 1.96 and p<0.01. Therefore, H1 significantly
and positively demonstrated the relationship’s impact. Similarly, previous studies arrived at the
same results, in that research scholars demonstrated that entrepreneurial orientation positively
influences entrepreneurial intentions, along with other variables (Jiang et al., 2018; Wu, 2009).
Hypothesis H2: Entrepreneurial Education and Entrepreneurial Intention
Figure 3. H2
Figure 3 demonstrates the relationship between ‘entrepreneurial education’ and
‘entrepreneurial intention’ The statistical figures showed that hypothesis H2 was positive and
significant; β was observed as 0.353, whereas the t-value was observed as 4.567. Therefore,
H2 was accepted on statistical grounds. Previous studies also showed that entrepreneurial
education positively influences the intention of individuals to initiate businesses after
graduation (Ekpe & Mat, 2012; Fatoki, 2014).
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Hypothesis H3: University Support and Entrepreneurial Intention
Figure 4. H3
Figure 4 demonstrates the relationship between ‘university support’ & ‘entrepreneurial
intention’ on statistical grounds, regarding the influence of university support and intentions
towards entrepreneurship. The above figure depicted the β value as 0.451, which is positive.
The results of hypothesis H3 observed the t-value of H3 as 2.321,which is higher than 1.96;
therefore, H3 was accepted and supported on statistical grounds. In contrast, previous studies
found an insignificant relationship between the support of the university and the intention
towards becoming an entrepreneur (Fayolle & Liñán, 2014; Sesen, 2013).
Table 3: Hypothesis Results (Direct Effect)
Sr.
Hypothesis
Beta (β)
T-value
P-value
Result
H1
Ent-Ori
Ent-Int
0.569
2.256
0.001
Accepted
H2
Ent-Edu
Ent-
Int 0.353 4.567 0.030
Accepted
H3
Uni-sprt
Ent-
Int 0.451 2.321 0.020
Accepted
Hypothesis Testing: Moderating Effect
The current phase of the study examined the moderating role of ‘culture’ between independent
and dependent variables. Hypothesis H4 presented the moderating effect of culture between
entrepreneurial orientation and entrepreneurial intention. Figure 5 demonstrates the moderating
relationship between constructs in the proposed framework.
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Hypothesis H4: Culture moderates Entrepreneurial Orientation and Entrepreneurial Intention.
Figure 5. H4
Figure 5 demonstrates the moderating role of culture between the orientation of
entrepreneurship & intentions towards entrepreneurship, and entrepreneurial activities. The
statistical values show that a direct relationship was found to be effective and positively
significant between constructs in the proposed framework. The moderating variable ‘culture’
was found to be positive and significant statistically; the t-value was found to be 4.531 which
is higher than the 1.96 cut-off point and p<0.000; therefore, H4 was accepted on statistical
grounds.
Hypothesis H5: Moderating Role of Culture between Entrepreneurial Education and
Entrepreneurial Intention
Figure 6. H5
Figure 6 demonstrates the relationship between entrepreneurial education and intention. H5
examines the moderating effect of culture between the two constructs. The direct relationship
between entrepreneurial education and intention was found to be positively significant on the
basis of statistical grounds when considering the t-value and p-value, while β presents a positive
relationship between constructs. The moderating relationship demonstrated the β value as being
0.349, which shows a positive relationship. The t-value was observed as 2.01, which is higher
than the cut-off point of 1.96 and the p-value was found to be p<0.001. Therefore, the
moderating effect of culture was found, and the hypothesis was accepted on statistical grounds.
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Hypothesis H6: The relationship between University support and entrepreneurial intention was
significantly and positively moderated by culture in a study of university graduates.
Figure 7. H6
Figure7 demonstrates the relationship between ‘university support’ and ‘entrepreneurial
intention’, while culture was examined as a moderating variable between constructs in the
proposed framework. The direct effect was found to be positively significant, while the
moderating effect was surprisingly found to be insignificant; The t-value was found to be
lower than the 1.96 cut-off point, and observed as 1.82 with a significant value of p<0.60;
therefore, H6 was rejected on statistical grounds. The reason for this can be discerned by
looking at the study of Fayolle and Liñán (2014) which stated that university support doesn’t
significantly affect entrepreneurial intention. On the basis of statistical values, H6 was rejected.
The following table demonstrated the moderating hypotheses results.
Table 4: Moderating Effects
Sr.
Hypothesis
Beta (β)
T-value
P-value
Results
H4
Ent-Ori*cul
Ent-
Int 0.349 4.531 0.000
Accepted
H5
Ent-Edu*culEnt-
Int 0.471 2.01 0.001
Accepted
H6
Uni-sprt*culEnt-
Int
0.576 1.82 0.60
Rejected
Conclusion
The purpose of this study was to examine the entrepreneurial intentions as influenced by certain
predictors, including entrepreneurial orientation, entrepreneurial education and university
support. Another objective of the study was to determine the moderating effect of the culture
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Volume 10, Issue 1, 2019
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of the graduates of higher education institutes in Thailand. Previously, studies were conducted
in order to determine the relationship between various predictors considered influential in the
development of the entrepreneurial intentions of individuals. The current study attempted to
examine the relationship between entrepreneurial orientation and the intention towards
entrepreneurship of individuals in the higher education sector in Thailand. Previous studies
have yielded less knowledge about the importance of entrepreneurial education in the
development of intentions towards self-employment and entrepreneurship. Furthermore, the
study contributed to the investigation of the relationship and the influence of university support
towards the development of intention in the graduates of Thai universities.
The results were analysed using SMART-PLS, the measurement model and structural equation
modelling techniques. The results demonstrated that all independent variables, including
entrepreneurial orientation, entrepreneurial education and university support were influential
and predicted entrepreneurial intentions among Thai graduates. The findings of this study
validate the results of previous studies, as stated in the analysis phase of the current study. The
results detailed in the analysis phase show that entrepreneurial orientation positively and
significantly influences the entrepreneurial intentions of new graduates, and that graduates
were indeed influenced towards setting up their own businesses and becoming entrepreneurs.
In addition, entrepreneurial education was found to be influential in the development of
entrepreneurial intention, which is similar to previous studies. University support was also
found assist in the development of entrepreneurial intention among graduates in Thailand,
although previous studies had evidenced contradictory findings, namely, that university
support doesn’t influence entrepreneurial intention. Therefore, H1, H2 and H3, as direct
hypotheses, were all accepted on statistical grounds. The second phase of the study examined
the moderating effect of culture between the constructs of the study. In this respect, the first
and second hypotheses, H4 and H5, were found to be statistically significant, whereby the
results demonstrated that culture moderates the relationship between entrepreneurial
orientation, entrepreneurial education and dependent variable entrepreneurial intention.
Conversely, hypothesis H6 was rejected on statistical grounds, as statistical values were found
to be insignificant between university support and entrepreneurial intention with the
moderating role of culture. Therefore, culture was found to have a moderating relationship
with respect to entrepreneurial orientation, entrepreneurial education and entrepreneurial
intention, but is not a moderating factor in university support and entrepreneurial intentions.
There are various limitations of the study, as data was collected from business students alone.
In future, researchers might focus on commerce-based graduates and may introduced financial
literacy based indicators in order to determine entrepreneurial intentions.
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