To read the full version of this content please select one of the options below:

Reassessing the link between risk aversion and entrepreneurial intention: The mediating role of the determinants of planned behavior

Pingying Zhang (Department of Management, University of North Florida, Jacksonville, Florida, USA)
Kevin W. Cain (Hull College of Business, Augusta University, Augusta, Georgia, USA)

International Journal of Entrepreneurial Behavior & Research

ISSN: 1355-2554

Article publication date: 20 June 2017

Issue publication date: 26 July 2017

Abstract

Purpose

Entrepreneurial intention is regarded as a useful and practical approach to understanding actual entrepreneurial behavior. Planned behavior has been widely applied to examine entrepreneurial intention. Nevertheless, how risk aversion affects entrepreneurial intention using the model of planned behavior is not well understood. The purpose of this paper is to develop an integrated model based on planned behavior to examine the direct and indirect effect of risk aversion on entrepreneurial intention concurrently.

Design/methodology/approach

The paper first uses factor analysis to study the latent constructs underlying determinants of planned behavior, risk aversion, and entrepreneurial intention. Then, it applies the technique of structural equation modeling to explore relationships among latent constructs. There are 306 survey responses collected from dental school students to run the analysis.

Findings

The determinants of planned behavior are positively associated with entrepreneurial intention. There is no direct relationship between risk aversion and entrepreneurial intention. Risk aversion only indirectly reduces entrepreneurial intention through determinants of planned behavior.

Research limitations/implications

The results of the integrated model may be constrained by the sample context of dental students. Replicating the model by using other samples with various educational backgrounds can strengthen the implication of the study. Another limitation is the weakness of the cross-sectional study design, leaving room for improvement by using longitudinal data in the future.

Practical implications

Risk aversion only indirectly reduces entrepreneurial intention. To establish an environment with a strong entrepreneurial intention, a focus on developing a positive attitude and strengthening entrepreneurial skills are perhaps more fruitful than lowering risk aversion. This study also suggests that non-business students may need additional business education to improve the perception of self-efficacy.

Originality/value

The integrated model of this paper is original. The development of the model draws support from planned behavior adjusted to the context of starting a business.

Keywords

Citation

Zhang, P. and Cain, K.W. (2017), "Reassessing the link between risk aversion and entrepreneurial intention: The mediating role of the determinants of planned behavior", International Journal of Entrepreneurial Behavior & Research, Vol. 23 No. 5, pp. 793-811. https://doi.org/10.1108/IJEBR-08-2016-0248

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited