There is a lack of research on the effect of institutional forces on entrepreneurship activity in developing countries. Moreover, there is a call by scholars to investigate the indirect effect of institutions on entrepreneurship. Drawing on Institutional Theory and the Theory of Planned Behavior, this dissertation analyzes the impact of perceptions of the institutional environment on the entrepreneurial intention of undergraduate students in Ethiopia. It examines regulatory, cognitive, and normative institutions, as well as entrepreneurial cognitive factors such as personal attitude and perceived behavioral control. By doing so, this study adds new insights into literature and proposed a new research direction for future study.
The study employed a concurrent triangulation mixed-method design, where both qualitative and quantitative data collection and analysis techniques applied simultaneously. Quantitative data was collected using a survey technique from 431 students of three universities and analyzed by structural equation modeling, whereas qualitative data were collected using a face-to-face interview with 15 students and analyzed using thematic analysis technique. Additionally, secondary data were also utilized to reveal important aspects of what institutional factors influence entrepreneurial intention of university students in Ethiopia.
The study results revealed that both regulatory and cognitive institutions have an insignificant effect on student’s EI. Hence, the finding suggests that to increase venture creation intention of young generations, policymakers or any other concerned agencies should emphasis on building supportive regulatory and cognitive institutional forces. As the study expected, the result indicates normative institutional arrangements support for EI much more matter than other institutional environment features. Hence, the institutional environment conceptualization in a developing economy never underestimates the role of local traditions in stimulating entrepreneurship.
Table of Contents
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Purpose of the Study
1.3 Research Questions
1.4 Definitions of Important Terms
1.5 Significance of the Study
1.6 Outline of the Dissertations
CHAPTER TWO: INSTITUTIONAL AND ENTREPRENUERSHIP CONTEXT OF ETHIOPIA
2.1 Introduction
2.2 Background about Ethiopia
2.3 Institutional Arrangements in Ethiopia
2.3.1 Regulatory Institutions
2.3.1.1 Entrepreneurship Support Policy in Ethiopia
2.3.1.2 Legislations and Regulations
2.3.1.4 Key Institutional Actors for Entrepreneurship Development in Ethiopia
2.3.2 Normative Institution
2.3.3 Cognitive Institution
2.4 Entrepreneurship Context in Ethiopia
CHAPTER THREE: CONCEPTUAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT
3.1 Introduction
3.2 Conceptual Framework
3.3 Hypotheses Development
3.3.1 Institutional Environment, Entrepreneurial Cognitive factors and EI
3.3.1.1 Regulatory Institution, Entrepreneurial Cognitive factors and EI
3.3.1.2 Cognitive Institution, Entrepreneurial Cognitive factors and EI
3.3.1.3 Normative Institution, Entrepreneurial Cognitive factors and EI
3.3.2 Entrepreneurial Intention
3.3.2.1 Shapiro and Sokol (1982), Theory of Entrepreneurial Event (EEM)
3.3.2.2 Krueger and Brazeal (1994), Entrepreneurial Potential Model
3.3.2.3 Ajzen (1991), Theory of Planned Behavior (TPB)
3.3.2.3.1 Attitude Toward Behavior as Antecedent of EI
3.3.2.3.2 Perceived Behavioral Control as Antecedent of EI
3.3.3 Mediating effect of PA and PBC on the relationship between Institutions and EI
3.4. Demographic Variables Influence Entrepreneurial Intention
3.4.1 Age
3.4.2 Gender
3.4.3 Previous Entrepreneurship Experience
3.4.4 Family Entrepreneurial Background
CHAPTER FOUR: METHODOLOGY OF THE STUDY
4.1 Introduction
4.2 Research Philosophy
4.3 Methods of Previous Studies in Institutions and Entrepreneurship
4.4 Mixed Method Approach
4.5 Design of the Study
4.6 Quantitative Method
4.6.1 Population and Sample
4.6.1.1 Population of the study
4.6.1.2 Sample and Methods
4.6.1.3 Sample Size Determination
4.6.2 Measurement of the Study
4.6.2.1 Measuring Institutional Environment Dimensions
4.6.2.2 Measuring Entrepreneurial Intention
4.6.2.3 Measuring Entrepreneurial Cognitive Factors
4.6.2.4 Measuring Control Variables
4.6.3 Data Collection Instruments and Procedure
4.6.4 Pre-Testing of Instruments
4.6.5 Analysis of the Study
4.6.6 Reliability and Validity Test of Measurement Instruments
4.6.6.1 Validity
4.6.6.2 Measurement Validity
4.6.6.3 External Validity
4.6.6.4 Internal Validity
4.6.7 Reliability
4.7 Qualitative Method
4.7.1 Participants Selection Criteria
4.7.2 Qualitative Data Collection Techniques
4.7.3 Qualitative Data Analysis
CHAPTER 5: DATA ANALYSIS
5.1 Introduction
5.2 Quantitative Data Analysis
5.2.1 Examination of Data
5.2.1.1 Screening of Data
5.2.1.2 Identifying Missing Data and Remedies
5.2.1.3 Detecting and Handling Outliners
5.2.1.4 Statistical Testing of Normality
5.2.1.5 Test for Multicollinearity
5.2.1.6 Test for Common Method Bias
5.2.2 Biographic Information of Respondents
5.2.3 Descriptive Statistics of Data
5.2.4 Validity and Reliability Assessment of Constructs
5.2.4.1 Content Validity of Study
5.2.4.2 Exploratory Factor Analysis
5.2.4.2.1 Exploratory Factor Analysis on Institutional Pillars
5.2.4.2.2 Exploratory Factor Analysis on Theory of planned Behavior
5.2.4.2.3 Exploratory Factor Analysis on Entrepreneurial Intention
5.2.5 Structural Equation Modeling (SEM)
5.2.6 Confirmatory Factor Analysis (CFA)
5.2.6.1 Confirmatory Factor Analysis of Regulatory Construct
5.2.6.2 Confirmatory Factor Analysis of Cognitive Construct
5.2.6.3 Confirmatory Factor Analysis of Normative Construct
5.2.6.4 Confirmatory Factor Analysis for Full Institutional Constructs
5.2.6.5 Confirmatory Factor Analysis of Personal Attitude Construct
5.2.6.6 Confirmatory Factor Analysis of Perceived Behavioral Control Construct
5.2.6.7 Confirmatory Factor Analysis of Entrepreneurial Intention Construct
5.2.6.8 Confirmatory Factor Analysis for Pooled Construct
5.2.7 The Structural Model of Study
5.2.8 Multiple Regression
5.2.9 Results and Interpretation Pertaining to Hypotheses
5.2.10 Mediation Effect of PA and PBC
5.2.11 Control Variables and Entrepreneurial Intention
5.2.11.1 Gender and Entrepreneurial Intention
5.2.11.2 Prior Experience and Entrepreneurial Intention
5.2.11.3 Family Entrepreneurial Background and Entrepreneurial Intention
5.3 Qualitative Data Analysis
5.3.1 Demographic characteristics of Respondent
5.3.2 Qualitative Study Findings
5.3.3 Institutional Environment Elements Affecting Entrepreneurship in Ethiopia
CHAPTER 6: DISCUSSION
6.1 Introduction
6.2 Institutional Environment Perceptions and Entrepreneurial Intention
6.3 Institutional Environment Perceptions Effect on Personal Attitude Toward Entrepreneurship and Perceived Behavioral Control
6.4 Direct Effect of Personal Attitude and Perceived Behavioral Control on Entrepreneurial Intention
6.5 The Mediation Role of PA and PBC on the Relation Between Institutions and EI
6.6 Institutional Arrangements of Ethiopia and Student Perceptions
6.7 Demographic Factors and Entrepreneurial Intention
CHAPTER 7: CONCLUSIONS
7.1 Introduction
7.2 Contribution of the study
7.3 Limitation of the study
7.4 Directions for Future Research
Research Objectives and Core Themes
This dissertation analyzes the impact of perceived institutional environments (regulatory, cognitive, and normative) and entrepreneurial cognitive factors (personal attitude and perceived behavioral control) on the entrepreneurial intention of higher education students in Ethiopia, utilizing a mixed-method approach.
- Investigation of institutional environment perceptions and their influence on entrepreneurial intention.
- Application of Institutional Theory and the Theory of Planned Behavior (TPB) in a developing economy context.
- Examination of the mediating role of personal attitude and perceived behavioral control between institutions and entrepreneurial intention.
- Utilization of a concurrent triangulation mixed-method design combining structural equation modeling (SEM) and qualitative thematic analysis.
- Assessment of unique institutional fabrics and student perceptions within higher education institutions in Ethiopia.
Excerpt from the Book
1.1. Background of the study
Despite many decades of research, scholars still have limited understanding of what forces lead a person to become an entrepreneur and search for such forces continues as an important stream of research (Sánchez-García et al., 2018; Stenholm et al., 2013; Hechavarria & Reynolds, 2009). Recently studies have been focused on institutional and policy antecedents that lead a person to desire to create a new enterprise (Garcia-Cabrera et al., 2018; Kazumi & Kawai, 2017; Gupta et al., 2012; Zahra & Wright, 2011). Moreover, most of studies have been also focused on the individual’s psychological determinants of entrepreneurial intention without incorporating institutional environment effects together (Feola et al.,2017; Terjesen et al., 2016). The scholars are failed to propose all-encompassing models that include the role of both psychological and institutional factors simultaneously(Feola et al., 2017), despite the interaction of both factors are mentioned to be critical for venture creation in literature(Liñán et al., 2011; Shane & Venkataraman, 2000). Moreover, empirical testing of previously developed models of the relationship between institutional environments and entrepreneurship was focused on a developed nation (Dheer, 2016; Lim et al., 2010). Most of these studies conducted were emphasized on comparison in the rate of entrepreneurship activity related to institutional profiles among countries and overlooked how single country institutional environment arrangements influence entrepreneurship activity (Stenholm et al., 2013). These studies were limited to data collected by an international organization such as Global Entrepreneurship Monitor (GEM), International Monetary Fund (IMF) and World Bank and challenged by inconsistency in the characterization of the specific country-level institutional environment (Bruton et al., 2010).
Hence, this dissertation in the part of the quantitative study is focused on investigating the way in which institutional environment (regulatory, cognitive, and normative), influence entrepreneurial intention in conjunction with entrepreneurial cognitive factors (attitude toward entrepreneurship and perceived behavioral control) in the less emphasized Ethiopian context.
Chapter Summary
CHAPTER ONE: INTRODUCTION: Provides an introduction to the research background, purpose, research questions, definitions, significance, and dissertation outline.
CHAPTER TWO: INSTITUTIONAL AND ENTREPRENEURSHIP CONTEXT OF ETHIOPIA: Reviews the background of Ethiopia, institutional arrangements, government policies, regulatory frameworks, key actors, and socio-cultural dimensions.
CHAPTER THREE: CONCEPTUAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT: Establishes the theoretical foundation integrating Institutional Theory and the Theory of Planned Behavior, leading to the development of the study's hypotheses.
CHAPTER FOUR: METHODOLOGY OF THE STUDY: Details the research philosophy, mixed-method design, population and sample selection, instrument measurement, data collection procedures, and validation techniques.
CHAPTER 5: DATA ANALYSIS: Presents comprehensive quantitative results via structural equation modeling and exploratory factor analysis, alongside qualitative interview findings.
CHAPTER 6: DISCUSSION: Evaluates and interprets the findings regarding institutional environment perceptions, cognitive factors, control variables, and hypotheses outcomes.
CHAPTER 7: CONCLUSIONS: Summarizes key findings, theoretical and methodological contributions, study limitations, and directions for future research.
Keywords
Institutional Environment, Entrepreneurial Intention, Theory of Planned Behavior, Institutional Theory, Ethiopia, Higher Education Students, Regulatory Institution, Cognitive Institution, Normative Institution, Personal Attitude, Perceived Behavioral Control, Mixed-Method Design, Structural Equation Modeling, Entrepreneurship Context
Frequently Asked Questions
What is the primary focus of this dissertation?
The dissertation investigates how the institutional environment—specifically regulatory, cognitive, and normative dimensions—influences the entrepreneurial intentions of higher education students in Ethiopia, using cognitive factors as mediators.
What are the core theoretical frameworks utilized in the study?
The study relies on Institutional Theory (Scott, 1995) to categorize institutional environments and the Theory of Planned Behavior (Ajzen, 1991) to explain entrepreneurial intention through personal attitude and perceived behavioral control.
What is the main research objective regarding developing economies?
The research aims to fill a gap in literature by analyzing institutional effects within a developing country context (Ethiopia), where traditional informal institutions often carry greater weight than formal regulations.
What research methodology was employed for the study?
A concurrent triangulation mixed-method design was used, combining quantitative survey data from 431 university students analyzed via structural equation modeling (SEM) with qualitative semi-structured interviews from 15 students.
What topics are covered in the main body chapters?
The main body covers the contextual background of Ethiopia, conceptual framework and hypothesis development, research methodology, extensive quantitative and qualitative data analysis, and detailed discussion of findings.
Which keywords best characterize the publication?
Key terms include Entrepreneurial Intention, Institutional Theory, Theory of Planned Behavior, Ethiopia, Regulatory Institution, Cognitive Institution, Normative Institution, and Structural Equation Modeling.
How does the normative institutional pillar affect student intentions in Ethiopia?
Unlike regulatory and cognitive institutions, the normative pillar—including traditional financial systems like Iqub and societal respect for successful entrepreneurs—demonstrated a direct positive and significant effect on entrepreneurial intention.
Why were regulatory and cognitive institutions found to have an insignificant direct effect?
Qualitative findings revealed that political instability, high taxation, corruption, lack of access to finance, and inadequate business skills among existing entrepreneurs created a hostile and complex environment that hindered student startup intentions.
What role do personal attitude and perceived behavioral control play in the model?
Both personal attitude and perceived behavioral control serve as cognitive antecedents and partial mediators connecting supportive institutional environments (specifically normative factors) to entrepreneurial intention.
What practical recommendations does the author suggest for policymakers?
The author recommends that policymakers reduce regulatory complexities, combat corruption, facilitate easier access to debt financing, improve business education, and establish a more stable political and economic environment.
- Quote paper
- Tarekegn Woldesenbet (Author), 2020, Institutional Environment and Entrepreneurial Cognitive Antecedents in Shaping New Venture Start-Up Intention, Munich, GRIN Verlag, https://www.grin.com/document/1772342
