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The mediating effect of entrepreneurial self-efficacy in entrepreneurial intention – a study in Saudi Arabian context

Journal: Problems and Perspectives in Management (Vol.16, No. 1)

Publication Date:

Authors : ; ;

Page : 267-275

Keywords : entrepreneurial intention; entrepreneurial self-efficacy; mediating effect; partial least square; Saudi Arabia; structural equation modeling;

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Abstract

The purpose of the present study is to test how do the four important psychological antecedents, namely need for achievement (nAch), propensity to risk (PtR), self-confidence (SeC), internal locus of control (IlC) are mediated by the entrepreneurial self-efficacy (ESE) to predict the entrepreneurial intention (EI) in a traditionally oil-based Saudi economy striving for economic diversification. Hypotheses are tested by applying the partial least square (PLS) structural equation modeling (SEM) to a sample of 282 undergraduate business students (male and female) collected from a public university of Kingdom of Saudi Arabia (KSA). The results suggest that psychological variables and self-efficacy play a fundamental role in enhancing entrepreneurial intention (EI) of Saudi students. Personality-related variables have direct influence over EI in other context, but in Saudi context, psychological variables are necessary but not sufficient to develop entrepreneurial intention unless combined with self-efficacy. Self-efficacy has a strong mediating effect between psychological variables and entrepreneurial intentions in Saudi context.

Last modified: 2018-04-25 22:36:47