Empirical studies testing and applying the SEE and TPB

In the previous sections, the SEE and TPB models were discussed with the purpose of highlighting the antecedents of entrepreneurial intent in each model. These models were found to be compatible. An exposition of empirical studies that have tested and applied the SEE and TPB models is given in the next sections.

2.3.5.1 Perceived feasibility and perceived desirability as determinants of entrepreneurial intent

Using a two-country sample involving the Taiwanese and the Spaniards of 533 business and economics students, Liñán and Chen (2006:1) tested the TPB and developed the entrepreneurial intention questionnaire with a view to overcome limitations of previous instruments. Their findings supported the TPB with regard to perceived behavioural control and attitude towards the behaviour but not with regard to social norms (Liñán and Chen, 2006:11; Liñán and Chen, 2009:30). They found that social norms affect personal attraction and self-efficacy/perceived behavioural control (Liñán and Chen, 2006:13; Liñán and Chen, 2009:30). These findings corroborate those in Krueger et al. (2000:422); Emin (2003:11); Liñán et al. (2005:14); Li (2006:6) Brännback et al. (2007:5); Liñán et al. (2007:7) and Liñán (2008:266). On the contrary, in a longitudinal study that involved 297 Nowergian business founders Kolvereid and Isaksen (2006:880) report a significant relationship between the attitude and subjective norms and self-employment intentions.

Additionally, Brännback et al. (2005:8) reported a direct link between entrepreneurial intent and perceived personal desirability and perceived personal feasibility. Social norms were found to be non-significant (Brännback et al., 2005:10). Kennedy et al. (2003:9) confirm the validity of using perceived feasibility, perceived desirability and subjective norms to explain entrepreneurial intentions for first-year university students across multiple campuses. Kennedy et al. (2003:10) posit that subjective norms influence entrepreneurial intent in situations where employment is not feasible. Audet (2004:1) studied the entrepreneurial intentions of students using a longitudinal study. Perceived desirability and perceived feasibility explained 49 percent of variation in the long-term intentions to start a business compared to 32 percent in the short-term

intentions. Perceived desirability surpassed perceived feasibility in predicting both long and short-term intentions (Audet, 2004:7). Liñán (2008:266) found that perceived behavioural control and personal attraction explained 59 percent of the variance in entrepreneurial intention.

Grundstén (2004:1) investigated the relationship between the entrepreneurial behaviour of an individual and the environment. Entrepreneurial behaviour was defined as “the set of actions of nascent entrepreneurs that form a path towards new venture creation” (Grundstén, 2004:47). The environment was conceptualised as being made up of affective and rational environmental factors (Grundstén, 2004:48). Affective factors refer to attributes in the social environment such as social identification, role models and social norms. Social identification denotes how individuals relate themselves to the surrounding environment as entrepreneurs. It is how people see themselves as entrepreneurs, as being more appreciated or as less appreciated. Role models refer to “the amount of successful entrepreneurs in the environment that the person knows, which may occur in the family or within other social contexts”. Social norms include the attitude of fellow men towards entrepreneurship and entrepreneurial occupation. Rational factors consisted of financial expectations, perceived opportunity, and perceived availability of resources such as technology-related, financial, social capital, access to the market and human resources. Figure 2.8 shows the modified intention model of the relationship between the environment and entrepreneurial intentions.

Figure 2.8: Model of the relationship between the environment and entrepreneurial intentions

Source: Grundstén (2004:52)

Grundstén (2004:69) found that entrepreneurial intentions are a function of environmental variables that are expressed in terms of affective and rational factors. Entrepreneurial intentions were indirectly affected by social norms through perceived desirability of entrepreneurship (Grundstén, 2004:69) and directly affected by social identification (Grundstén, 2004:70). Rational factors that affected entrepreneurial intentions through perceived feasibility are financial expectations and the availability of technology-related resources (Grundstén, 2004:70). Entrepreneurial intentions were strongly associated with perceived desirability and perceived feasibility. However, there was no significant relationship between roles models, perceived opportunity, perceived availability of financial resources, perceived availability of social capital, and perceived availability of human resources.

Moreover, Engle, Dimitriadi, Gavidia, Schlaegel, Delanoe, Alvarado, He, Buame and Wolff (2010:35) tested the ability of the TPB to predict entrepreneurial intent of 1748 business students from twelve countries that included Spain, France, Sweden, Finland, Germany, Ghana, Russia, Egypt, China, Bangladesh, Costa Rica and the United States of America. They found that the antecedents of entrepreneurial intent differed greatly between countries in their ability to predict entrepreneurial intent

Affective factors  Social identification  Role models  Social norms Rational factors  Financial expectations  Perceived opportunity  Perceived technology availability  Perceived financing availability

 Perceived social capital (networks) availability

 Perceived market access

 Perceived human resources availability Perceived desirability Perceived feasibility Entrepreneurial intentions Entrepreneurial activity

(Engle et al., 2010:50). All the three antecedents (attitude towards the behaviour, social norms and perceived behavioural control) were statistically significant predictors of entrepreneurial intent only in Finland and Russia. In Costa Rica social norms were the only significant predictor of the entrepreneurial intent of the respondents. Other countries had at least two antecedents in the TPB as significant predictors. Social norms and attitude towards the behaviour were significant predictors of entrepreneurial intent of the respondents in China, Finland, Ghana, Russia, Sweden and USA. Entrepreneurial intent of the respondents in Bangladesh, Egypt, Finland, France, Germany, Russia and Spain was significantly predicted by social norms and perceived behavioural control. Social norms were found to be a significant predictor in all the twelve countries.

2.3.5.2 A model integrating the SEE model and the TPB

Kolvereid et al. (2007:1) developed and tested an integrated model of entrepreneurial intentions with the goal of investigating whether the SEE model and the TPB can be integrated into one model. The model was also used to predict individuals’ decision to be self-employed and ultimately the intention to start a business. Their sample involved 528 university students enrolled in entrepreneurship programs in three countries (Kolvereid et al., 2007:2). Kolvereid et al. (2007:5) found that the intention to become self-employed and to start a business is a function of desirability and feasibility of self-employment. The desirability of self-employment was influenced by attitudes and subjective norms while feasibility was influenced by subjective norms and perceived behavioural control. Kolvereid et al. (2007:5) report that in an attempt to predict the intention to become self-employed, the TPB and the SEE models can be successfully integrated into one model. An integrated model of entrepreneurial intentions is depicted in Figure 2.9.

Figure 2.9: An integrated model of entrepreneurial intentions

Source: Kolvereid et al. (2007:7)