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Modelling the significance of social support and entrepreneurial skills for determining entrepreneurial behaviour of individuals: A structural equation modelling approach

Muhammad Shoaib Farooq (Institute of Business and Management, University of Engineering and Technology, Lahore, Pakistan)

World Journal of Entrepreneurship, Management and Sustainable Development

ISSN: 2042-5961

Article publication date: 11 April 2018

Issue publication date: 29 August 2018

Abstract

Purpose

Although entrepreneurial behaviour is considered a key element for economic development, yet very less is known about the determinants of factors leading towards entrepreneurial intention and behaviour. In order to bridge this gap, the purpose of this paper is to investigate the role of social support and entrepreneurial skills in determining entrepreneurial behaviour of individuals. Developing on the base of the theory of planned behaviour (TPB), this study investigates the relationship between social support, entrepreneurial skills and entrepreneurial behaviour along with existing constructs of the TPB (i.e. attitude, subjective norms, perceived behavioural control and entrepreneurial intention).

Design/methodology/approach

Data was collected from 281 respondents using a simple random sampling method, and the variance-based partial least-squares, structural equation modelling (PLS-SEM) approach was used for testing the proposed conceptual model.

Findings

Findings of this study have validated the proposed model, which have an explanatory power of 68.3 per cent. Moreover, findings reveal that social support and entrepreneurial skills have a significant impact on entrepreneurial intention of individuals. However, an unanticipated and non-significant relation between subjective norms and entrepreneurial intention is also found.

Research limitations/implications

Due to the limited scope of this study, a multi-group analysis is not possible, which is considered as a limitation of this study. Moreover, due to time constraints, this study is conducted within a specified time-frame; however, a longitudinal study over a period of three to six years can overcome this limitation.

Practical implications

Findings of this study are expected to have substantial implications for policy makers, future researchers and academicians. Outcomes of this study can help to better understand the cognitive phenomenon of nascent entrepreneurs. Moreover, it is expected that this study can serve as a torch-bearer for policy makers to develop better entrepreneurial development programmes, policies and initiatives for promoting self-employment behaviour.

Originality/value

Findings of this study are a unique step forward and offer new insights towards a better understanding of the determinants of entrepreneurial behaviour. Moreover, this study extends Ajzen’s (1991) TPB in the context of entrepreneurial behaviour. By introducing and investigating the impact of two new variables, i.e. social support and entrepreneurial skills in the TPB and by validating the proposed model with PLS-SEM approach, this study makes a sizeable theoretical, methodological and contextual contribution in the overall body of knowledge.

Keywords

Acknowledgements

The author would like to thank the editor, Dr Allam Ahmed, and the two anonymous reviewers for their thoughtful, supportive, and developmental comments. The author would also like to thank Dr Norizan Jaafar Dr Kartinah Ayupp, Prof Alain Fayolle, Dr Farooq Azam, Mrs Shahida Parveen and Dr Maimoona Salam for their comments, guidance and unflinching support throughout this study.

Citation

Farooq, M.S. (2018), "Modelling the significance of social support and entrepreneurial skills for determining entrepreneurial behaviour of individuals: A structural equation modelling approach", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 14 No. 3, pp. 242-266. https://doi.org/10.1108/WJEMSD-12-2017-0096

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited