Transcript Comparison of Entrepreneurial Intention Level between Overseas

Comparison of Entrepreneurial Intention Level
between Overseas Scholarship Recipients and
Local Students in Taiwan
National Chiao-Tung University
Marketing Research
Prof. Charles Trappey
Fall 2007
Karen Ochaeta 9573601
Outline
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Introduction
Literature Review
Research Questions
Hypotheses
Methodology
Results
Analysis and Discussion
Limitations
Conclusion
Future Research
References
Introduction
• Based on previous studies about entrepreneurial intention
models, the present research aims to establish the
entrepreneurial intention level of two samples: overseas
students under a scholarship programme in Taiwan and
local students, both on the second year of Master degree
(students facing career decisions).
• The purpose of this research it to find out if there is a
direct relationship between the entrepreneurial intention
level and the situation under individuals study their
graduate career (i.e. overseas or locally) and at which
degree it affects its decision to start a new business in the
future.
Literature Review
• Entrepreneurship is a way of thinking that emphasizes
opportunities over threats.
• Intentions are valid predictors of entrepreneurial behavior.
• Attitudes influence behavior by their impact on intentions.
• Intentions and attitudes depend on the situation and
person.
• Intention models will predict behavior better than
individual (personality) variables
(Krueger, 2000).
Literature Review
• According to Segal (2005), the motivation to become
an entrepreneur follows the pattern shown in the
Figure below:
Personal
Background
Attitude
Conviction
Intention
Situation
Literature Review
• Other researchers have established a similar pattern,
although with small variances (Liñan, 2005)
Perceived
Desirability
Propensity
to act
Perceived
Feasibility
Intention
Research Questions
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Question No.1: The difference between the level of
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Question No. 2: Are the entrepreneurial attitude and
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Question No. 3: Are the entrepreneurial attitude and
entrepreneurial intention of two groups of students
–local and overseas- can be used to determine the influence
of international education experience on entrepreneurial
behavior?
intentions among overseas scholarship recipients in Taiwan
influenced by the experience gained during the programme?
intentions among overseas scholarship recipients in Taiwan
influenced by the knowledge acquired during the programme?
Hypotheses
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Hypothesis 1: The entrepreneurial intention level between
local and overseas students is different
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Hypothesis 2: The perceived influence that the experience of
graduate education has over entrepreneurial intention is
different between local and overseas students
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Hypothesis 3: There is a direct relationship between the
experience of graduate education and the entrepreneurial
intention level
Methodology
• Sample
• 28 overseas students under a
Scholarship Programme,
coming from developing countries
from 2 different universities in Taiwan
• 28 local students from 1 university
• Questionnaire – Likert Scale
1
Professional Attraction
2
Entrepreneurial Capacity
3
Entrepreneurial Intention
4
Education Experience
Local
students
overseas
Second year of Master
degree Technology
Management,
Computer Science, and
Industrial Engineering
Management
Graduate Education
International Education
Methodology
• Data Analysis
T-test
Comparison of sections (1),
(2), and (3) of both samples,
local and overseas students to
test hypothesis 1 and 2
Correlation
analysis
Establish the strength of
relationship among
Graduate/International
education experience and
level of entrepreneurial
intention to test
hypothesis 3
Results
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Hypothesis 1: The professional attraction toward entrepreneurship is different
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Hypothesis 2: The entrepreneurial intention level between local and overseas
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Hypothesis 3: The perceived influence that the experience of graduate education
between local and overseas students (not supported)
students is different (supported)
has over entrepreneurial intention is different between local and overseas
students (supported)
Local
Students
Overseas
Students
Pr > t
Null
Hypothesis
Hypothesis
Supported?
Professional Attraction
4.61
5.37
0.0056
n/a
n/a
Entrepreneurial
Intention
4.13
5.42
0.0003
Rejected
YES
Perceived Influence of
graduate education
experience
3.43
5.20
<0.0001
Rejected
YES
Results
• Correlation analysis for overseas students
Significant
correlation
Professional
Attraction
0.63
Weak
association
(Perceived
Desirability)
Conviction
Entrepreneurial
Capacity
0.50
Weak
association
Entrepreneurial
Intention
(perceived
Feasibility)
0.33
x
Graduate
Education
Experience
(situation)
0.86
Strong
association
Results
• Correlation analysis for local students
Professional
Attraction
0.52
Weak
association
(Perceived
Desirability)
Conviction
Entrepreneurial
Capacity
0.61
Weak
association
Entrepreneurial
Intention
(perceived
Feasibility)
Strong
association
0.80
Graduate
Education
Experience
(situation)
0.56
Weak
association
Discussion
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Although the level of entrepreneurial intention between local and
overseas students is significantly different, it is possible to establish a
pattern of behavior based on the correlation analysis of the responses.
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For local students, the perceived feasibility (entrepreneurial capacity)
of becoming entrepreneurs is strongly associated to the graduate
education experience, nevertheless it does not affect positively the
entrepreneurial intention level, since they perceive that their capacity is
not enough to take the risk of running a business.
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The previous statement is the contrary for overseas students; they
perceive that the graduate experience does not influence directly the
entrepreneurial capacity –the knowledge associated with it- but it does
influence the entrepreneurial intention level. In this case, this behavior
can be related to the fact they are considering the graduate education
experience as an incentive to become entrepreneurs based on the
overall experience of studying abroad.
Limitations
• Availability of overseas students under
different graduate programmes.
• Difficulties to do sample segmentation
in order to eliminate the personal
background factor and its influence over
the entrepreneurial intention level.
Conclusion
• The present research has addressed a situational
factor that can affect the entrepreneurial intention
level of a sample of graduate students that are about
to face career decisions. The cultural background
clearly influences the decision making, nevertheless
the results show how the experience of studying
abroad is directly related to the intention level of
becoming an entrepreneur in the future, and how
different cultures perceive the influence that
academic education has on entrepreneurial capacity.
Future Research
• Test the difference between overseas
students before and after the graduate
programme to eliminate the cultural factor
during the comparison of two samples.
• Establish the specific experiences and
situations (e.g. internship, career design) that
might have influence over entrepreneurial
intention for overseas students.
References
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Douglas, E., and Shepherd, D. (2002). Self-employment as a career choice: attitudes
entrepreneurial intentions, and utility maximization. Journal of Entrepreneurial Theory and
Practice, 26(3), 81-90.
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Krueger, N.F., Reilly, M.D., and Carsrud, A. (2000). Competing models of entrepreneurial intentions. Journal
of Business Venturing, 15, 411-432.
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Legget, K. (2007). International education is helping to spread the benefits of social
entrepreneurship across the globe. International Educator Journal, 6, 31-38.
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Liñán, F., and Chen, Y.W. (2006). Testing the entrepreneurial intention model on a two country
sample. Document de Treball d’economia dell’empresa, 37.
•
Liñán, F., Rodríguez, J.C., and Rueda, J.M. (2005). Factors affecting entrepreneurial intention
levels. 45th Congress of European Regional Science Association. Amsterdam.
•
Paasio, K., and Pukkinen, T. (2006). Path dependency in becoming an entrepreneur. 51st World
Conference of International Council for Small Business, 8.
•
Segal, G., Borgia, D., and Schoenfeld, J. (2005). The motivation to become an entrepreneur.
Journal of Entrepreneurial Behavior & Research, 11(1), 42-57.
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Schroder, E., and Schmitt-Rodermnd, E., (2006). Crystallizing enterprising interests among adolescents
though a career development program: The role of personality and family background. Journal of
Vocational Behavior, 69, 494-509.