Decomposition of effects for the structural model consisting of two mediating latent variables: an example of entrepreneurial intention

Abstract

Purpose

In this study, the mediating effects of perceived behavior control and attitudes toward being an entrepreneur were investigated in the relationship between family business experience and entrepreneurial intentions of university students. First, the variables of perceived behavioral control and attitude toward being an entrepreneur were defined as the mediators used in explaining the entrepreneurial intention. Then, the process of investigating the mediation effects with the structural equation modeling (SEM) approach in two cases with one and two mediating latent variables is explained.

Design/methodology/approach

In this study, the process of investigating the mediation effects in two situations where there is one and two mediating latent variables by SEM is presented. In addition, the decomposition of the effects for the model consisting of two mediating latent variables is given in detail with matrix notation.

Findings

It has been determined that the latent variable of perceived behavior control functions as a “full mediator” in the relationship between the family ownership story and the entrepreneurial intention. The study also revealed that students whose family's business ownership score is high and who are self-confident in the process of becoming an entrepreneur have stronger entrepreneurial intentions.

Originality/value

In the research, the distinction between the model used in determining the entrepreneurial intentions of university students and their mediation and indirect effects is explained in detail with matrix notations with the SEM approach.

Citation

Yilmaz, V. (2023), "Decomposition of effects for the structural model consisting of two mediating latent variables: an example of entrepreneurial intention", Journal of Modelling in Management, Vol. 18 No. 3, pp. 973-992. https://doi.org/10.1108/JM2-01-2022-0008