The role of entrepreneurial mindset in the relationship between entrepreneurial perceived and entrepreneurial implementation intentions of students in the southeast of Vietnam

136 Tạp chí Kinh tế - Kỹ thuật THE ROLE OF ENTREPRENEURIAL MINDSET IN THE RELATIONSHIP BETWEEN ENTREPRENEURIAL PERCEIVED AND ENTREPRENEURIAL IMPLEMENTATION INTENTIONS OF STUDENTS IN THE SOUTHEAST OF VIETNAM Nguyen Quang Thu1, Tran The Hoang2, Ha Kien Tan3 ABSTRACT This study examines the relationship between perceived, Implemental mindsets and entrepreneurial implementation intention of final year students in HCM City, Binh Duong Province, Dong Nai Province, Ba Ria Vung Tau Province. These relationships were determined by the 438 students who had entrepreneurial intention (or starting or started). The objective of this study extends the Event Entrepreneur model (EEM) by adding the implementation intention factor into the model. This new model was examined by 438 students who had started (or starting) the business. The results of the study show that perceived feasibility has been a direct impact to on entrepreneurial implementation intention very strong, next by implemental mindsets and perceived desirability. The addition of implemental mindsets to the model is statistically significant and the model is improved. Finally, the study drew conclusions and implications for university policies and direction of research future. Keyword: Entrepreneurship, Entrepreneurial perceived desirability, Entrepreneurial perceived feasibility, Entrepreneurial Implemental mindsets, Entrepreneurial implementation intentions, University student 1. INTRODUCTION Entrepreneurship has always been a topic of concern for governments, policymakers and academics. The main reason is that the more businesses start the more faster economic growth (Audretsch, 2007) while minimizing unemployment (Santarelli, Carree, & Verheul, 2009). Students in developing countries are a potential force to supplement their start-up forces (Fayolle et al., 2006). According to GEM (2016), the percentage of respondents who want opportunity and ability to start a business in Vietnam in 2015 is 56.8%. This rate has fallen slightly from 2014 (58.2%) due to fierce competition fears in the context of deep integration into the world economy. Meanwhile, the rate of failure of Entrepreneurship in 2015 in Vietnam is 45.6% quite high compared to other countries with the same level of development and tends to increase in many years. This indicator reflects the carefulness of being involved in start-ups, which creates barriers that many people have not embarked on to start their career, despite their opportunities and start-ups (GEM, 2016). In developing countries, the percentage of people who are aware of high probability of starting a business has a high proportion of people who intend to start a business (average of 36.5%). 1 University of Economics Ho Chi Minh City – ngthu@ueh.edu.vn 2 University of Economics Ho Chi Minh City – athena@ueh.edu.vn 3 Binh Duong Economic and Technology University – hktan@ktkt.edu.vn 137 Hội thảo Khoa học Quốc tế ... In Vietnam alone, the rate of intention to start a business is 22.3% quite low compared to the proportion of people who are aware of opportunities and start-ups. Moreover entrepreneurial mindset of Vietnamese students is different from that of other developed countries. Vietnamese students are more aware of starting up their businesses, creating more jobs, increasing their income and becoming a career choice (GEM, 2016). According to GEM, the next three years, the rate of Entrepreneurship in Vietnam will still be very low. But the intention to start a business is an important indicator influencing the establishment of new business. So to increase the number of entrepreneurial, it is important to understand the cognitive, mindset, and entrepreneurial intentions most likely to be students. Thus the objective of this study is to test the relationship between entrepreneurial perception and entrepreneurial intentions through the entrepreneurial Implemental mindsets of students in a number of South East provinces with two new contributions: - Test the role of the moderator of Implemental mindsets in the relationship between entrepreneurial perception and entrepreneurial intention - Test the relationship between entrepreneurial perception and intention entrepreneurial The following sections of this paper, after the introduction, include: (1) Literature review; (2) research methodology; (3) Results and discussion; (4) Conclusions and policy implications. 2. LITERATURE REVIEW 2.1. Theoretical foundations 2.1.1. Event Entrepreneur model - EEM (Krueger et al., 2000) Krueger et al. (2000) suggest that Entrepreneurial intentions is dependent on perceived desirability, the propensity to act and perceived feasibility. It is necessary to make changes in people’s lives, such as job dissatisfaction, divorce, job loss, etc., which are positive or positive factors such as finding a good partner or having financial support is the drag factor. However, an individual who commits a life-altering behavior if the pulling and pulling factors occur, but that change leads to Entrepreneurship or leads to another choice depends on entrepreneurial perceived desirability and Entrepreneurial perceived feasibility of that individual (Le Thu Thuy, 2015). 2.1.2. Entrepreneurial mindsets theory (Mathisen & Arnulf , 2013) According to Mathisen & Arnulf (2013), Entrepreneurship decisions often from personal beliefs when they perceive business opportunities as attractive. Therefore, the difference in entrepreneurship decision can be attributed to differences in their ability to recognize business opportunities. Thought is an activity of perception (Freitas, Gollwitzer, & Trope, 2004), according to Mathisen & Arnulf (2013), mindset is self-reflecting, product of experience from existing problems. In addition, mindset not only describes a stimulating response but also an environmentally sensitive response in a way that takes advantage of cognitive effort, promptness and this leads to influential mindset and influenced by thoughts, calculations, assertiveness and suspicion from the interaction between entrepreneurial opportunities and entrepreneurship competence (Cao Quoc Viet et al., 2016). In the context of entrepreneurship, Mathisen & Arnulf (2013) argue that entrepreneurial mindsets has a relationship of entrepreneurial behavior and categorizes entrepreneurial mindset into two concepts: (1) Elaborating mindsets; (2) Entrepreneurial Implemental mindsets. 2.2. Liturature review The following are the empirical studies related to this study: 138 Tạp chí Kinh tế - Kỹ thuật Authors Theoretical foundations Comment Marco van & Associates (2008); by Pa & Associates (2011); Bui Thi Thanh and Nguyen Xuan Hiep (2016); Le Ngoc Thong (2013); Huynh Dinh Thai Linh & Associates (2006) Theory of Planned Behavior Ajzen (1991); Event Entrepreneur model (Krueger et al., 2000) Use of theoretical factor to test for university or secondary students from developed countries (Germany, France, Spain, Portugal) or other developing economies. (Romania, Ukraine, Malaysia, China, Tunisia, Ethiopia, Afghanistan, Peru, Vietnam) Hmieleski & Corbett (2006); Hayton & Cholakova (2012) Theory of Planned Behavior Ajzen (1991) Add the factor of proclivity for improvisation to the original model De Clercq et al. (2013) Theory of Planned Behavior Ajzen (1991); Event Entrepreneur model (Krueger et al., 2000) Research on the relationship between perceived ability and attraction to intent is governed by academic orientation and work passion. Fitzsimmons & Douglas (2011); Theory of Planned Behavior Ajzen (1991); Event Entrepreneur model (Krueger et al., 2000) Research the interaction between entrepreneurship awareness and feasibility Nabi & Liñán (2013) Theory of Planned Behavior Ajzen (1991) Research the influence of personality, psychological state and demographics on the entrepreneurial intentions Bhandari (2012) ; Hadjimanolis & Poutziouris (2011) Theory of Planned Behavior Ajzen (1991) Research the relationship between the foundation of the family and entrepreneurial intentions Guerrero et al. (2008); ); Bui Thi Thanh and Nguyen Xuan Hiep (2016) Theory of Planned Behavior Ajzen (1991) Research the relationship between the educational background and entrepreneurial intentions Gird & Bagraim (2008) Theory of Planned Behavior Ajzen (1991) Study the relationship between experience and entrepreneurial intentions Walker et al. (2013) Theory of Planned Behavior Ajzen (1991); Event Entrepreneur model (Krueger et al., 2000) The environmental, cultural, institutional, and supportive institutions that influence entrepreneurial intentions VCCI (2009); Le Quan (2007) Theory of Planned Behavior Ajzen (1991); some perceived risk theory Factors limiting entrepreneurship Nguyen Hoang Kiet (2016) Theories of Entrepreneurial motivation Study the relationship between motivation and entrepreneurial intentions Cao Quoc Viet et al. (2016) Entrepreneurial mindsets theory (Mathisen & Arnulf , 2013) Study the relationship between personality, entrepreneurial mindsets and entrepreneurial intentions Source: Summary from the authors Thus, according to the authors’ understanding, these studies are only entrepreneurial intentions and there has not been much empirical research on the relationship between perception, mindset 139 Hội thảo Khoa học Quốc tế ... and entrepreneurial intentions Moreover, the perception and mindset of Vietnamese students (as a country with a transitional economy) is somewhat different from that of developing countries. Therefore, the article will approach the direction of perceived, entrepreneurial mindset and entrepreneurial intentions. 2.3. Concepts in research models and hypotheses Entrepreneurial intentions In order to better understand entrepreneurship, this study will begin to introduce entrepreneurial intentions. According to Shane & Venkataraman (2000), the intention to start a business is the process of identifying, evaluating, and exploiting business opportunities; Sheeran (2002), the intention to start a business is the motivation of a person to perform a behavior, including both directions (to do X vs. zero) and intensity (how much time and effort that person ready to invest in the implementation of X); Souitaris et al. (2007), entrepreneurial intentions is the involvement of an individual’s intention to start a business and some other definitions. Thus, there are many definitions of entrepreneurial intentions. In this study, the authors will use the definition of Shane & Venkataraman (2000) and Sheeran (2002), for two reasons: first, Shane & Venkataraman (2000) approaches the process of identifying opportunities, evaluating performance, planning the implementation (how much time and effort the person is willing to invest startup business) and other. Secondly, behavioral research through intent is proven to be superior to other approaches. Entrepreneurial Goal intentions According to Gollwitzer (1993), goal intention is intention in Theory of Planned Behavior Ajzen (1991) or Event Entrepreneur model (Krueger et al., 2000), with Fayolle & Liane (2014) Goal intentions is a form of commitment and is a necessary step before Implementation intentions and behaviors. In goal setting theory, it is a challenging goal because of the new challenge individuals make. Entrepreneurial Implementation intentions According to Sheeran & Silverman (2003) distinguishes between the “motivational stage in which the person decides to act and the volitional stage he or she plans on how to make a decision.” The motivational stage is the stage in the process of identifying opportunities for start- ups and the possibility of starting a business in intentional models. The planning phase refers to intentional action and is not addressed in intentional models. However, it is still part of the process of performing the behavior. Implementation intentions determines when, where and how they plan to issue their intentions (Gollwitzer & Brandstätter, 1997). Implementation intentions corresponds to a process if - then (if - then) facilitates the transfer of target intent into behavior. The intent of the action is to see a predictable situation signal, and it will trigger planned action with a predetermined target intention (Parks-Stamm, Gollwitzer, & Oettingen, 2007) or say Alternatively, it is the mediation between the goal intention and behavior. Entrepreneurial Implemental mindsets According to McMullen & Kier (2016), consideration is made between goals and competencies, experiences in the motivational stage, with the aim of minimizing risk to make the decision to continue Targeted promotion (promotion focus) or prevention (prevention focus). Mathisen & Arnulf (2013), individuals will think of calculating the desire and ability to fulfill that desire through action plans closer to the goal orientation in order to answer the question of how I am starting . Cao Quoc Viet et al (2016), is the assertion of the entrepreneur. 140 Tạp chí Kinh tế - Kỹ thuật From the above definitions, the authors argue that those with Entrepreneurial Implemental mindsets are more likely to be aware, closer to the goals that have driven their earlier entrepreneurship with detailed and specific entrepreneurship plans. Entrepreneurial perceived A business opportunity is often defined as a future situation that is considered attractive and feasible (Stevenson & Jarillo, 2007). Desirability refers to cognitive value or attraction of opportunity (eg, high potential profit opportunity is appreciated as desirable). Feasibility refers to performance or difficulty of opportunity. Event Entrepreneur model (Krueger et al, 2000) starts when an individual discovers an entrepreneurial opportunity that they deem feasible and desirable. However, in order to change into a start-up action, it is necessary to have the influence of push factors such as: losing a job, dissatisfaction with the current job ... or dragging on to find a good partner or support financial aid ... Lack of one of the two components, individuals will have difficulty planning and act in the future. The relationship between entrepreneurial implemental mindsets and entrepreneurial implementation intentions The Entrepreneurial goal are more successful when combined with intentional actions (Gollwitzer & Brandstätter, 1997). Because it creates a close connection between the signals and the behavior in memory and purpose, it increases the mental accessibility so that it causes action (Gollwitzer, 1993). However, when, how do you intend to act effectively in leading the action, especially when goals can be achieved through actions, or for a relatively complex behavioral model Mathisen & Arnulf (2013) argues that implemental mindsets increases the likelihood of action and its effectiveness does not diminish over time and that implemental mindsets can also help solve it effectively, anxiety and negative emotions (Mathisen & Arnulf, 2013). Thus, based on the above analysis, the hypothesis H1 is stated as follows: Hypothesis H1: Entrepreneurial implemental mindsets will have a positive effect on entrepreneurial implementation intentions. The relationship between entrepreneurial perceived and entrepreneurial implemental mindsets According to entrepreneurial mindsets theory (Mathisen & Arnulf , 2013), individuals will think about calculating the desire and ability to fulfill that desire through action plans closer to the goal orientation than to answer to ask how I got started. Implemental mindsets of individuals are those who have the assertiveness of starting a business regardless of the limitations of available resources. Therefore, the more they are aware of the opportunities for entrepreneurship and their abilities, the more active they are and opposite. Thus, the hypothesis H2a, H3a is expressed as: Hypothesis H2a: Entrepreneurial perceived feasibility will have a positive effect on entrepreneurial Implemental mindsets. Hypothesis H3a: Entrepreneurial perceived desirability will have a positive effect on entrepreneurial Implemental mindsets. The relationship between entrepreneurial perceived and entrepreneurial implementation intentions Gollwitzer (1993) argues that the perceived stage is the motivational stage for starting a business. An individual with motivation will form a goal intention or implementation intentions. The power of implementation intentions in linking Gollwitzer’s first perceived, goal and behavioral 141 Hội thảo Khoa học Quốc tế ... and other empirical research. The research by M Brännback & Carsrud, Elfving (2006), focuses on entrepreneurship primarily on perceptions of entrepreneurial opportunities and perceptions of entrepreneurship. In the study of (Schlaegel & Koenig, 2014), the combination of two TPB models (Ajzen, 1991) and EEM (Krueger et al., 2000). Thus, the hypothesis H2b, H2b is expressed as: Hypothesis H2b: Entrepreneurial perceived feasibility will have a positive effect on entrepreneurial implementation intentions. Hypothesis H3b: Entrepreneurial perceived desirability will have a positive effect on entrepreneurial implementation intentions. Synthesis of these hypotheses, proposed research model: Figure 1: Proposed research model 3. DATA RESEARCH AND METHODOLOGY 3.1. Data research Research using direct interview data through a questionnaire with 7-level liker scale (from 1: totally disagree to 7: fully agree). Sampling research This research uses direct interview technique with questionnaires with final year students in Ho Chi Minh City, Binh Duong province, Dong Nai province and Ba Ria Vung Tau province. Interview time from April 4-7/2017. The convenience sampling is selected with the ratio of 5: 1 (Nguyen Dinh Tho, 2011). Models have (21 variable observations + 02 control variables) * 5 = 115. Issued 3000 receipts to 2637 votes. Of those, 496 answered and have started, of which 58 have the same number of blank answers as 10% of the total or the same number of question marks. The remaining 438 are included in the main study. Measurable of concepts The measurable is adjusted and developed based on the baseline scales of previous studies and adjusted after qualitative research. All scales in the research model are multivariate scales. These scales use a 7-step likert. The model has 4 research concepts with 21 variables of observation and 02 variables (gender and student’s academic year) are presented in Table 2. H2a+ H2b+ 142 Tạp chí Kinh tế - Kỹ thuật Table 2 Measurable of concepts in model Concept Number of observation variables Source Entrepreneurial implementation intentions (INT) 05 Gollwitzer & Brandstätter (1997). Entrepreneurial Implemental mindsets (IMP) 04 Gollwitzer & Brandstätter (1997). Entrepreneurial perceived desirability (DES) 05 Krueger & Carsrud (2000) Entrepreneurial Perceived feasibility (FEA) 05 Krueger & Carsrud (2000) Source: Summary from the authors 3.2. Methodology Methodology are implemented through 2 phases: (1) preliminary research; and (2) formal study. Preliminary qualitative research: used to adjust the observation variables that measure the concepts. The focus group is selected so that scales can be clearly and conspicuously understood in terms of perceived feasibility, perceived desirability, entrepreneurial implemental mindsets and entrepreneurial implementation intentions Conduct focus group with 03 groups of students who have been starting (or started) a business. The first group consists of 07 students from Binh Duong Eco