A STUDY ON ENTREPRENEURIAL INTENTION AMONG INFORMATION TECHNOLOGY TECHNOPRENEURS RAMESH K S @ MOHD ZAIDI BIN ABD ROZAN Presented as a Partial Fulfillment of the Requirements for the Degree of Master Of Science (Information Technology) MSc. IT FACULTY OF COMPUTER SCIENCE AND INFORMATION SYSTEM UNIVERSITI TEKNOLOGI MALAYSIA OCTOBER 2001 ii “I hereby declare that this writing is the result of my own efforts with the exceptions of the quotation and summary, each of which source has been stated” Signature : Name of Author : Ramesh K S @ Mohd Zaidi Bin Abd Rozan Date : 18th October 2001 PSZ19:16(Pind.1/97) UNIVERSITI TEKNOLOGI MALAYSIA BORANG PENGESAHAN STATUS TESIS◆ JUDUL : A STUDY ON ENTREPRENEURIAL INTENTION AMONG INFORMATION TECHNOLOGY TECHNOPRENEURS SESI PENGAJIAN : 2001/2002 Saya RAMESH K S @ MOHD ZAIDI BIN ABD ROZAN Mengaku membenarkan tesis (PSM/Sarjana/Doktor Falsafah)* ini disimpan di Perpustakaan Universiti Teknologi Malaysia dengan syarat-syarat kegunaan seperti berikut :1. 2. 3. 4. Tesis adalah hakmilik Universiti Teknologi Malaysia Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk tujuan pengajian sahaja. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara institusi pengajian tinggi. **Sila tandakan (√ ) √ SULIT (Mengandungi maklumat yang berdarjah keselamatan atau kepentingan Malaysia seperti yang termaktub di dalam AKTA RAHSIA RASMI 1972) TERHAD (Mengandungi maklumat TERHAD yang telah ditentukan oleh organisasi/badan di mana penyelidikan dijalankan) TIDAK TERHAD Disahkan oleh (TANDATANGAN PENULIS) (TANDATANGAN PENYELIA) Alamat Tetap : C/O JUANITA GOH PETI SURAT 17, JKR, PROF. DR. AHMAD ZAKI BIN ABU BAKAR KOTA BELUD, SABAH Tarikh : 18 OKTOBER 2001 CATATAN : * ** ◆ Nama Penyelia Tarikh : 18 OKTOBER 2001 Potong yang tidak berkenaan Jika tesis ini SULIT atau TERHAD, sila lampirkan surat daripada pihak berkuasa/organisasi berkenaan dengan menyatakan sekali sebab dan tempoh tesis ini perlu dikelaskan sebagai SULIT atau TERHAD Tesis dimaksudkan sebagai tesis bagi Ijazah Doktor Falsafah dan Sarjana secara penyelidikan, atau disertasi bagi pengajian secara kerja kursus dan penyelidikan, atau Laporan Projek Sarjana Muda (PSM) iv DEDICATION SPECIALLY DEDICATED FOR: My Wife Wan Jamilah Binti Wan Omar, For the Love, Support, Passion and Through the Moments of Up and Down Together, My Mom Juanita Goh Shiu Moi, For the Sacrifices and Kindness, My Brother Mohd Fadzli Bin Abd Rozan, For Support and Assistance, My Mother-in-law Lijah Binti Ibrahim, My Brother-In-Law Ghazali Bin Muda And Family, For being Very Understanding and Helpful, Relatives in Sabah and Terengganu, Thanks a Million… v ACKNOWLEDGEMENT Bismillahhirrahmannirrahim… Any major literary or research endeavour is unlikely to be successfully completed without substantial help from others. This study and the process leading up to it was certainly no exception. Firstly, Allah the almighty has given me the consent to complete this study by giving me health, energy and confidence. The past 2-½ years has been a very challenging but pleasant momento to be kept in heart and mind. I would like to thank my supervisor, Prof. Dr. Ahmad Zaki bin Abu Bakar for the assistance and uncountable details during those tough and challenging episode. Prof. Madya Dr. Rose Alinda binti Alias for the motivation and confidence building and Prof. Madya Dr. Mat Noor Bin Sap for the careful assistance. To our Project Coordinator, Prof. Madya. Dr Noraniah, thank you for your advice. Puan Rashidah and Puan Lijah of FSKSM, UTM, JOHOR for the kind assistance. I also like to express my appreciation to all the IT Technopreneur who contributed their time. My best friend Tn. Haji Hashim bin Hj Yusoff, En.Mohd Zakree bin Ahmad Nazri, En. Yahaya bin Abd Rahim and to those who have involved either directly or indirectly. Thank you to Pn. Hajah Rahmah Bt. Muhamad, the Principal of SMK Seri Perling and to all SMKSP staffs for being supportive during my studies. Lastly, Thank you to everyone. vi ABSTRACT The purpose of the study is to investigate entrepreneurial intention among information technology technopreneurs. The model of the study is based on Shapero’s model of entrepreneurial event. Variables included in this model are Perceived Desirability, Propensity for Proactive Behaviour and Breadth and Positiveness of Past Entrepreneurial Experience that contributed towards entrepreneurial intentions for technopreneurs. The differences in values and cultures were believed to affect their entrepreneurial behaviour and intention. These served as a building block on the upbringing of an entrepreneur. Hence, a test was needed to prove this relationship. In this project, tests to compare entrepreneurial intention between three major ethnic groups in Malaysia (Malays, Chinese and Indians) were done. Self-report questionnaires were used as a survey instrument for 129 Information Technology Technopreneurs from Johor Bahru and Kuala Lumpur. The data were analyzed using custom developed software. The results indicated that perceived desirability and propensity for proactive behavior were positively related to the formation of entrepreneurial intentions. In addition, positiveness of past entrepreneurial experiences also supported positively to the perceived desirability of starting a business. It was also found that there were no significant differences on the perception of IT Technopreneurs’ towards Propensity for Proactive Behaviour and Breadth and Positiveness of Past Entrepreneurial Experience related to Race. Only Perceived Desirability showed significant values in relation to Race. Based on this study, it showed that a specific way to view entrepreneurial intention towards starting a business and the exposure to technopreneurship assessment were the practical implications which assisted entrepreneurs’ educators to develop IT techopreneurial programs and decision making among venture capitalists. vii ABSTRAK Tujuan kajian ini adalah untuk menyiasat niat keusahawanan di kalangan teknousahawan teknologi maklumat. Model kajian yang digunakan adalah berasaskan “Model of Entrepreneurial Event” Shapero. Model ini mempunyai beberapa pembolehubah iaitu Keinginan Tanggapan, Kecenderungan ke arah Perilaku Proaktif dan Kualiti serta Kuantiti Pengalaman Keusahawanan yang memberi petunjuk ke atas niat keusahawanan bagi teknousahawan. Perbezaan nilai dan budaya sesuatu ras dipercayai memberi kesan kepada perilaku serta niat keusahawanan mereka. Oleh itu, ujian perlu dijalankan untuk mengkaji sama ada hubungan ini benar-benar memberi kesan atau tidak. Dalam projek ini, kajian dijalankan berkaitan dengan niat keusahawanan, untuk mendapatkan perbandingan antara kumpulan etnik utama Malaysia (Melayu, Cina dan India). Bagi tujuan itu, survey telah dijalankan ke atas 129 teknousahawan teknologi maklumat dari Johor Bahru dan Kuala Lumpur. Sebuah perisian yang dibina dalam projek ini telah digunakan untuk menganalisis hasil kajian. Keputusan kajian mendapati bahawa terdapat persekutuan yang positif antara Keinginan Tanggapan dan Kecenderungan ke arah Perilaku Proaktif ke atas Pembentukan Niat Keusahawanan. Kajian ini juga mendapati bahawa, Kualiti Pengalaman Keusahawanan juga bersekutu secara positif terhadap Keinginan Tanggapan untuk memulakan sesuatu perniagaan. Tidak terdapat perbezaan yang ketara antara tanggapan teknousahawan IT terhadap Kecenderungan ke arah Perilaku Proaktif dan Kuantiti dan Kualiti Pengalaman Keusahawanan terhadap Kaum. Hanya Keinginan Tanggapan sahaja mempunyai perbezaan ketara terhadap Kaum. Berdasarkan kajian ini, suatu atur cara khusus untuk melihat niat teknousahawan untuk memulakan sesuatu perniagaan serta pendedahan kepada keteknousahawanan boleh diaturcarakan bagi membantu para penggubal program keusahawanan teknologi maklumat dan pemodal teroka membuat keputusan. viii TABLE OF CONTENTS CONTENT PAGE NUMBER DECLARATION ii ACCEPTANCE iii DEDICATION iv ACKNOWLEDGEMENT v ABSTRACT vi ABSTRAK vii TABLE OF CONTENTS viii-xi LIST OF TABLES xii-xiii LIST OF FIGURES xiv LIST OF APPENDIXES xv CHAPTER I PAGE NUMBER INTRODUCTION 1 1.0 Introduction 1 1.1 Entrepreneurs & Information Technology Technopreneurs 3 1.2 Statement of Problem 9 1.3 Objectives of Study 10 1.4 Theoretical Framework 11 1.5 Hypothesis of this Study 14 1.6 Scope of Study 15 1.7 Significance of Study 16 1.8 Definition of Terms 18 1.9 Chapter Summary 21 ix II REVIEW OF LITERATURE 23 2.0 Introduction 23 2.1 Malaysian Inter-Cultural Society 28 2.2 Common Cultural Values of Malaysian 30 2.3 Shapero’s Model of Entrepreneurial Event 35 2.4 Research Model and Hypothesis 37 2.4.1 Perceived Desirability and Entrepreneurial Intentions 2.4.2 Breadth and Positiveness of Past Entrepreneurial Experiences 2.4.3 2.4.4 III 38 40 Propensity for Proactive Behaviour and Entrepreneurial Intentions 41 Race (Ethnic Group) 44 2.5 Chapter Summary 44 METHODOLOGY 46 3.0 Introduction 46 3.1 Design and Reliability of Questionnaire 47 3.2 Respondents 48 3.3 Procedures 49 3.4 Measurement of Instruments 50 3.4.1 Entrepreneurial Intentions 50 3.4.2 Perceived Desirability 50 3.4.3 Breadth and Positiveness of Past x IV Entrepreneurial Experience 51 3.4.4 Propensity for Proactive Behavior 52 3.4.5 Demographic Data 53 3.6 Chapter Summary 54 DATA ANALYSIS AND RESULTS 55 4.0 Introduction 55 4.1 Descriptive Survey (i) Background of Respondents 57 (ii) Subject Descriptive Analysis 62 (iii) Level Analysis 67 4.2 Inferential Analysis (i) Correlation 69 Hypothesis 1 70 Hypothesis 2 71 Hypothesis 3 72 (i) Comparison Hypothesis 4 73 Hypothesis 5 65 Hypothesis 6 75 4.3 Chapter Summary V 77 DISCUSSION 5.0 Introduction 79 5.1 Hypothesized Relationships-Hypothesis 1 79 xi 5.2 Hypothesized Relationships-Hypothesis 2 81 5.3 Hypothesized Relationships-Hypothesis 3 81 5.4 Hypothesized Relationships-Hypothesis 4 84 5.5 Hypothesized Relationships-Hypothesis 5 85 5.6 Hypothesized Relationships-Hypothesis 6 85 5.7 Implications of the Study 86 5.8 Theoretical Implications 87 5.9 Practical Implications 89 5.10 Limitations of the Study 91 5.11 Direction for Future Research 92 5.12 Chapter Summary 95 REFERENCES 97 APPENDIX A -Cover Letter 101 APPENDIX B -Questionnaire 102 xii LIST OF TABLES Table No. Title Page No. 2.1 List of Malaysian Ethnic Values 29 2.2 Common Value Orientations at Inter-Cultural Levels 33 3.1 Reliability Test Results Analysis 48 4.1 Respondents by Location 57 4.2 Respondents by Gender (Sex) 58 4.3 Respondents by Race 59 4.4 Respondents by Age Group 60 4.5 Respondents by Level of Education 61 4.6 The Number and Percentage of Respondents Answered every Item in Section 1 –Propensity for Proactive Behaviour 4.7 The Number and Percentage of Respondents Answered every Item in Section 2-Perceived Desirability 4.8a 62 64 The Numbers and Percentage of Respondents Answered every Item in Section 3- Breadth and Positiveness of Past Entrepreneurial Experience 4.8b 65 The Number and Percentage of Respondents Answered every Item in Section 3- Breadth and Positiveness of Past Entrepreneurial Experience (Degree of Positiveness) 4.9 66 The Number and Percentage of Respondents Answered in Section 4Percentage of Entrepreneurial Intention 67 xiii 4.10 Level Analysis of Respondents’ Perception towards Propensity for Proactive Behaviour 4.11 Level Analysis of Respondents’ Perception towards Perceived Desirability 4.12 73 LSD test Analysis for comparison of respondents’ perception towards Perceived Desirability related to Race 4.18 72 Mean Score Analysis and One-Way ANOVA as a comparison of respondents’ perception towards Perceived Desirability related to Race 4.17 71 Correlation Analysis between Propensity for Proactive Behaviour and Entrepreneurial Intentions 4.16 70 Correlation Analysis between Breadth and Positiveness of Past Entrepreneurial Experience towards Perceived Desirability 4.15 69 Correlation Analysis between Perceived Desirability and Entrepreneurial Intentions 4.14 68 Level Analysis of Respondents’ Perception towards Positiveness of Past Entrepreneurial Experience 4.13 68 74 Mean Score Analysis and One-Way ANOVA as a comparison of respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race 4.19 75 Mean Score Analysis and One-Way ANOVA as a comparison of respondents’ perception towards Propensity for Proactive Behaviour related to Race 5.1 5.2 76 Summary for comparison of respondents’ perception towards Perceived Desirability related to Race 84 Summary of Hypotheses Tested 86 xiv LIST OF FIGURES Figure 1.1 Shapero’s (1982) Model of Entrepreneurial Event as a Theoretical Framework for this study Figure 1.2 11 Combination of Shapero’s (1982) Model of Entrepreneurial Event and Race (Ethnic Group) Path Hypothesis 12 Figure 2.1 A Model of Culture and Ethical Behaviors Among Entrepreneurs 24 Figure 2.2 Shapero’s (1982) Model of Entrepreneurial Event and Race (Ethnic Group) 27 Figure 2.3 Relating the Malaysian Inter Cultural Society 33 Figure 2.4 Shapero’s (1982) Model of the Entrepreneurial Event and Race (Ethnic Group) Path Hypothesis 39 Figure 4.1 Pie Chart represents Respondents by Location 57 Figure 4.2 Pie Chart represents Respondents by Gender (Sex) 58 Figure 4.3 Pie Chart represents Respondents by Race 59 Figure 4.4 Bar Chart represents Respondents by Age Group 60 Figure 4.5 Bar Chart represents Respondents by Level of Education 61 Figure 5.1 Shapero’s(1982) Model of Entrepreneurial Event with Hypothesis And Correlation Magnitude for Hypothesis 1 through 3 Figure 5.2 80 Shapero’s(1982) Model of Entrepreneurial Event with ‘f’ value based on ANOVA for Hypothesis 4 through 6 83 xv LIST OF APPENDIXES Cover Letter sent to Respondents APPENDIX A IT Technopreneurial Questionnaire APPENDIX B CHAPTER I INTRODUCTION 1.0 Introduction The need to understand entrepreneurs has become more crucial today. In Malaysia, private sectors, especially entrepreneurs are the catalyst of the nation’s economic development. In the Malaysian Seventh Plan, strategic sectors such as infrastructure, utility, transportation and information technology were better known to be developed and targeted by entrepreneurs (Zainab Ahmad, et al., 1997). Multimedia Development Corporation (MDC) has identified strategic thrust areas to be funded under Eight Malaysia Plan, including the second flagship applications, development of technopreneurs and small and medium-sized enterprises (SMEs)(Dr Mohamed Arif Nun, 2001-Computimes). With the advent and proliferation of the computer, creation of new knowledge has increased geometrically. It is generally recognized as recently as only the past decade. Technologies invented to simplify our lives have made it more complex by accelerating the change and amplifying the effects upon society. This complexity contributes towards the development of technology knowledge society. This tremendous increment of technology knowledge society has contributed to the development of Information Technology (IT) markets locally and globally. This IT 2 markets are now the medium of enterprise for Information Technology oriented entrepreneur. IT entrepreneur in Malaysia are also known as IT Technopreneur (derived from the word “technology entrepreneur”) will be interchangeably used with the word entrepreneur in order to relate that technopreneurship are the subset of entrepreneurship. This is for the purpose of continuity in this writing. The level of industrialization obviously influences the entrepreneurial behaviour in an enterprise and on society. This can be seen in the changes that have taken place in Malaysia as it had developed. If we look back a few decades ago, the major economic activities are mining, agriculture, and then come to industry. As Malaysia developed, it has moved into the production of more high technology, consumer electronics, and mostly towards Information Technology. As for Malaysian IT Technopreneur, of necessity, must be internally innovative and able to adjust to rapid technological changes. Malaysian entrepreneurs must be capable of accommodating themselves in this fast paced environment. They must also stay afloat in their enterprise in order to get the highest achievement as entrepreneurs. Compared with Western counterparts, they appear to be strong work ethics, self-discipline, and acceptance of hierarchy, obedience and respect towards the enterprise. Although Malaysian is made up of three major ethnic and indigenous groups, most entrepreneurs admit that they achieve comfortable level as business owners. Most enterprise has heterogeneous mix of ethnic groups to form their enterprise as employees. This three major ethnic group; Malays, Chinese and Indians definitely have different upbringing and values among them. What makes their enterprise successfully brought up and well managed although they have different culture? Moreover, do they have some similarity in their entrepreneurial behaviour although they came from different cultural environments? The similarity also known 3 as common culture contributes the entrepreneurial behaviour among Malaysian entrepreneur. Sekaran (1970) indicates that while research has yet to clarify and conceptualize the concept of “culture”, the beliefs exist that culture has an impact on organizations because of cultural norms, values, and roles are embedded in the way that organizations develop, organizational structures emerge, and informal and formal patterns of behaviour occur. The aim of this study is therefore to better understand the intention to launch a business as a physical firmness within the differences of values among IT Technopreneurship that are consist of the three major ethnic groups in Malaysia. It is based on research in Kuala Lumpur and Johor Bahru, Johor, which was conducted between May 2001 and August 2001. 1.1 Entrepreneurs & Information Technology Technopreneurs We need to further understand more on the definition of entrepreneur. According to Kao (1995), the entrepreneur is a person who undertakes a wealthcreating and value-adding process, through incubating ideas, assembling resources and making things happen. Entrepreneurs must also function in a framework within the environment, and must act in their interest and the interest of the society (Kao, 1995). There are not many people who can deny that we must create wealth and add value. The wealth creating and value-adding responsibility is not just for businessperson, but also for every single individual on earth. The enterprising culture in Malaysia is the commitment of the individual to the continuing pursuit of opportunities and developing an entrepreneurial endeavor to its growth potentials for 4 the purpose of creating wealth for the individual and adding value to the society. This comes up the importance of entrepreneurship as a contribution to social responsibilities. The common cultural relation among the three major ethnic groups contributes as a special and unique framework within the environment. This indeed has proven that cultural environment plays an important part in entrepreneurial behaviour. IT Technopreneurs must have the understanding that can develop enterprise practices and development programmes that are aligned and in harmony with the values that Malaysians have been “programmed” to internalize during the process of seeding and growing up in Malaysian cultures. In Malaysian context, an entrepreneur or a corporate entity is not only established to achieve a specific task and make profit, but also demonstrate a sense of social responsibility for the advancement of the community and the country. The task of building entrepreneurial enterprise or business ventures that are truly Malaysian in its form, fixtures and features has now become an on-going agenda for most entrepreneurs. What are the effects of culture that contributes vital intentions among IT Technopreneurs in Malaysia? Social relevance is for Malaysian society has, during the past few decades, moved from a relatively stable state to one where the only constant is “Change”. Entrepreneurship is transforming rapidly as it forges ahead towards the accomplishment of their goals, profit making and importantly related to their responsibility for the society. Malicious code programmers, computer security hackers, people in business who deliberately harm others for financial gains, and people exploiting the earth just for the sake of making profit with no consideration for the future, claimed be IT technopreneurs. They might be creating wealth as what Kao (1995) defined, but they 5 could not maintain the value-adding responsibility for every single individual on earth. Do we consider them as IT Technopreneur? Do they have the cultural values that can actually prevent them from acting in this behaviour? This is more to their decayed values and unethical behaviour in making entrepreneurial decision. According to Kao (1995) definition, this type of entrepreneur does not function in a framework within the environment, because they just function for their own interest and not the interest of the society. Yet, who are these IT technopreneurs? The concept of technopreneurship, with all its allure, is surrounded with quite a bit of mystique. Those persons who set out to be IT Technopreneurs are often seen as special, brave, strong, or else well connected to sources of start-up income beyond those that could reasonably expect to obtain. Technology entrepreneurship, the act and process of creating new, technology-intensive start-ups, is a subject of increasing importance in many parts of the world. Entrepreneurship in parts of South East Asia especially Malaysia has recently undergone rapid revitalization. At present, little research has been executed on this field related to Malaysian culture and distinct results are rarely known in Malaysia. There is a shift of terms for technical entrepreneur that involves in Information Technology based enterprise. The term Information Technology Technopreneur (IT Technopreneur) arose from within Malaysian culture to describe an individual whose entrepreneurial endeavours focus on to Information Technology oriented enterprise. IT Technopreneurial businesses are obviously an enormous part of Malaysian economy. Where as, the government has embraced IT Technopreneurs and has launched initiatives to promote IT Technopreneurship as a means of economic 6 catalyst to development. Multimedia Super Corridor or MSC in Malaysia has been the breeding ground or incubator for the Small and Medium scale Industries (SMI) to several Multi National Corporations (MNC). Malaysian government through Multimedia Development Corporation (MDC) is responsible for the establishment of MSC status companies. Until recently, MDC are trying to push up as many SMI to be honored as the MSC status companies. There are 546 locally owned and 45 international MSC status companies as at August 2001 (Othman Yeop Abdullah, 2001-Computimes). The target would be 750 locally owned MSC status companies by 2003. This might be accelerated by more venture capitalist supplying funds for this IT Technopreneurs. Malaysian’s Vision 2020 comprise of nine challenges, the fourth is to establish a developed nation, secure and psychologically liberated with faith and confidence in itself, justifiably proud of what it is, of what it has accomplished, and robust enough to face all manners of adversity. On the other words, establishing a fully moral, liberal, and tolerant society, whose citizens are strong in religious and spiritual values and imbued with the highest ethical standards. The values stressed are religious, spiritual and ethical. This challenge has impact the formation and development of unique Malaysian entrepreneurial identity which able to express itself with pride and confidence. Regardless of ethnic and religion, entrepreneurs at the Malaysian enterprise have to understand what motivates their workforce to excel their work. It is the challenge for entrepreneurs to predict their workforce intentions and behaviour with regard to the motivation style acted to excel their entrepreneurial endeavour. How to harness Malaysian cultural values at workplace? What are the values at the individual, cultural and organization levels that are important for 7 Malaysians? These are just a few type of unstructured question that often produce dilemma for entrepreneurs in Malaysia when they get involved in decision making that affects on Malaysian culture. Discussion regarding this matter will be further talk about in the literature review section. Critical to Learned’s (1992) process is the formation of entrepreneurial intentions. He added, the formation of intentions is the result of the interaction of psychological traits and background experiences of the individual with situations that are favourable to entrepreneurship. Previous research suggests that intentions are the single best predictor of planned behaviour (Krueger, 1993). Planned behaviour and intentions are to be found posits that entrepreneurs will encounter situation that will interact with their traits and backgrounds such as cultural values to cause an action on decision-making. (Krueger, 1993) Therefore, the focus of this study is to test a model that explains the unique combination of the individual entrepreneur and his or her experiences and background that ultimately leads to the formation of entrepreneurial intentions to start a business or towards venture creation. This study will also examine the contribution of the different ethnic aspects related to intention forming of entrepreneurs, this cultural aspect plays an important role in the way entrepreneur think and it is assumed that the way one thinks has a significant impact on the intention to start a business and managing a business. Through this study, we will have a better understanding of the dynamics of IT Technopreneur, in particular capturing their intentions regarding their behaviour. Today, IT Technopreneurship seem to be on an upswing. As the rates of corporate downsizing and layoffs increase, individuals who fear for their jobs find the prospects of being their own bosses to be quite attractive. Even those persons 8 who have relatively stable employment reverie about setting their own schedules, making their own strategic plans, and keeping all of their own profits. However, the risks associated with IT Technopreneurship can be quite daunting. Just as such a business can succeed and reap benefits for the technopreneur, it can also fail, stripping the technopreneur of not only the business itself, but often his or her personal assets as well. Moreover, just as it can be tempting to be in charge of one’s own business, the reality of complete responsibility for such an undertaking can be far from the daydream of short hours and long vacations. To fulfill the purpose of this study, research was conducted as an exploratory basis to determine if the following had a relationship: (a) Perceived Desirability (PD) towards Entrepreneurial Intentions (EI), (b) Propensity for Proactive Behaviour (PPB) towards Entrepreneurial Intentions (EI), (c) Breadth and Positiveness of Past Entrepreneurial Experience (BPPEE) towards Perceived Desirability (PD), and a comparison between racial identification towards PD, PPB and BPPEE. The elements identified in this entrepreneurial study were essential to the Malaysian IT Technopreneurial intention and behaviour evaluation. In this chapter, discussion of the statement of problems are the opening issues that will be presented, secondly the objectives, thirdly theoretical framework, hypotheses, scope, definition of terms used in this writing and the final part will be the chapter summary. 9 1.2 Statement of Problem The different value of inter-cultural society in Malaysia produces challenges in the study of entrepreneurial intentions and behaviour. As for this study, the entrepreneurial intentions that produce entrepreneurial behaviour among the three major ethnic groups in Malaysia will be the main issues that are to be tested. This study suggests that, it is more comprehensive to test those entrepreneurs with different cultural background in order to come up with the Malaysian Culture or Malaysian Values in entrepreneurship. Considering the fact that new entrepreneurial organizations emerge over time because of careful thought and action, entrepreneurship is an example of such planned behaviour (Bird, 1988). In addition, entrepreneurship is a process that does not occur in a vacuum but is influenced by a variety of cultural and social factors as well as personal traits and characteristics (Reynolds, 1992). Intention-based process models are able to capture the complexity of entrepreneurship and provide a framework to build robust, testable process models of entrepreneurship. Researchers have developed intention-based models such as the theory of Shapero’s (1982) model of the entrepreneurial event. Despite the interest in intention-based models, few studies explicitly use theory-driven intention-based process models of entrepreneurship (Gartner, 1988). Therefore, the current study uses an intention-based model to answer the following research question: “What are the relation between Breadth and Positivenesss of Past Entrepreneurial Experience, Perceived Desirability, Propensity for Proactive 10 Behaviour towards Entrepreneurial Intention and also their comparison between 3 major ethnic groups that are Malays, Chinese and Indians?” 1.3 Objectives of the Study The study was designed to build effort in exploring the relationship among inter-cultural society in Malaysia. This inter-cultural society contribute to their personal traits and characteristics of the entrepreneur along with predisposing events can be examined for their relationship with the formation of entrepreneurial intentions. The study focused on using a theoretically sound intention-based process model of entrepreneurship that includes traits and characteristics of the entrepreneur along with predisposing events. The theoretical framework will be discussed in the next section. The results are used as the first step in predicting entrepreneurial behaviour. The following chapter provides an overview of the literature that constitutes the theoretical foundation for the study. Given the significance of intentions, the objectives of this study was to a. Investigate entrepreneurship dimension that are perceived desirability toward entrepreneurial intention. b. Investigate entrepreneurship dimension that are propensity for proactive behaviour toward entrepreneurial intention. c. Investigate entrepreneurship dimension that are breadth and positiveness of past entrepreneurial experience toward entrepreneurial intention. d. Compare those variables with three major ethnic groups in Malaysia that are Malays, Chinese and Indians. 11 1.4 Theoretical Framework Researchers have developed intention-based model such as the model of the entrepreneurial event introduced by Shapero (1982)(Summers, 1998). The Shapero Model of Entrepreneurial Event is used as the theoretical framework for this study, as shown in figure 1.1. Selection of this model will be discussed further in the literature review chapter. Social Support Trigger Event Perceived Desirability Breadth & Positiveness of Past Entrepreneurial Experience Propensity for Proactive Behaviour Entrepreneurial Intentions Perceived Feasibility Figure 1.1: Shapero’s (1982) Model of Entrepreneurial Event as a Theoretical Framework for this study. As a purpose of comparing between three major ethnic groups in Malaysia that are the Malay, Chinese and Indian, the model is modified to show the linkages 12 between the different ethnic groups and the variables involved for the development of their entrepreneurial intention, as shown in figure 1.2. Race (Ethnic Group) H5 H4 H6 Social Support Trigger Event H2 Breadth & Positiveness of Past Entrepreneurial Experience Perceived Desirability Propensity for Proactive Behaviour H1 H3 Entrepreneurial Intentions Perceived Feasibility Figure 1.2: Combination of Shapero’s (1982) Model of Entrepreneurial Event and Race (Ethnic Group) Path Hypothesis In Malaysian context, the national culture, values, roles, norms and patterns of thinking plays an important part in entrepreneurial perceived desirability and propensity for proactive behaviour towards entrepreneurial intentions. This includes the cultural values that are positively or negatively related to entrepreneurial intention. 13 The figure also shows six symbols from H1 to H6 that represent the path hypothesis of the study. The details of the hypothesis will be presented in the next section. Based on the theoretical foundation, the following specific questions can be addressed in the current research study: 1. How does intention-based models such as Shapero Model of Entrepreneurial Event (1982) can be used to explain the formation of IT entrepreneurial intentions? 2. What are the relation between Breadth and Positivenesss of Past Entrepreneurial Experience, Perceived Desirability, Propensity for Proactive Behaviour towards Entrepreneurial Intention and the comparison between three major ethnic groups that are Malays, Chinese and Indians? 3. Is there any level of difference between the three major ethnic groups in Malaysia that could in their own way contribute on entrepreneurial intention for Malaysian IT Technopreneurs? 4. How does intention-based model such as Shapero Model of Entrepreneurial Event (1982) can be used to explain the formation of Entrepreneurial Intentions among the three major ethnic groups in Malaysia that could in their own way contribute on entrepreneurial intention for Malaysian IT Technopreneurs? 14 1.5 Hypothesis of this Study The following Null Hypotheses (Hφ) and Research Hypotheses (HR) are suggested as a statistical statement used for Chapter IV. Null Hypothesis support for the non-association of the variables related to entrepreneurial intentions and their comparison to Race according to the theoretical framework. Contrary to null hypothesis would be the research hypothesis that support the positive association of the variables related to entrepreneurial intentions and their comparison to Race according to the theoretical framework. Hφ1: Perceived Desirability is not associated with the formation of entrepreneurial intentions. HR1: Perceived Desirability is positively associated with the formation of entrepreneurial intentions. Hφ2: The Breadth and Positiveness of Past Entrepreneurial experience is not associated with perceived desirability. HR2: The Breadth and Positiveness of Past Entrepreneurial experience is positively associated with perceived desirability. Hφ3: The Propensity for Proactive Behaviour is not associated with the formation of entrepreneurial intentions. HR3: The Propensity for Proactive Behaviour is positively associated with the formation of entrepreneurial intentions. Hφ4: There is no difference on respondents’ perception towards Perceived Desirability related to Race. 15 HR4: There is a difference on respondents’ perception towards Perceived Desirability related to Race. Hφ5: There is no difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. HR5: There is a difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. Hφ6: There is no difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. HR6: There is a difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. 1.6 Scope of Study This scope of this study covers a discussion on the Malaysian inter-cultural society. Inter-cultural societies are the plural type of personality that is confined to the three ethnic groups that are Malays, Chinese and Indians. Secondly is the investigation of Intention-based models of entrepreneurial behaviour that are the Shapero’s Model of Entrepreneurial Event (Shapero, 1982). This shows the relationship of Malaysian IT Technopreneur toward Perceived Desirability, Propensity for Proactive Behaviour, Breadth and Positiveness of Past Entrepreneurial Experience towards entrepreneurial intentions. The comparisons between three major ethnic groups are then analyzed for any differences between those variables. 16 1.7 Significance of Study The research study was designed to answer the call of researcher for better understanding of the emergence of a new firm with the effect of their cultural differences. The development of this study towards inter cultural relationship according to Shapero’s (1982) model of entrepreneurial event provides several potential benefits. The research model contains both background and dispositional variables that combine to form the intentions to start a business. The model will help researchers understand how the background of the entrepreneur with regard of his cultural differences and the characteristics of the entrepreneur combine to form entrepreneurial intentions. This is important to researchers because it will provide a framework to help answer a variety of questions, such as “Is there any level of difference between the three major ethnic groups in Malaysia that could in their own way contribute better waves on entrepreneurial intentions for Malaysian IT Technopreneurs?” or “Is there any shared value or common cultural values that plays the biggest role in Malaysian IT Technopreneurial intentions” or “What are the intercultural values that might be positively or negatively related with the entrepreneurial intentions for Malaysian IT Technopreneurs?” For entrepreneurs and educators, knowing how entrepreneurial intentions are formed within such values of culture will yield a wealth of practical applications. For example, educators could develop entrepreneurial curriculum that would increase the probability of intentions forming. Entrepreneurs could understand how their intentions are formed and take steps to manipulate the critical variables such as to increase desirability, and become more confident in their ability to take action. This 17 includes the cultural values that might be positively or negatively related to entrepreneurial intention. Entrepreneurs will also develop into being more resourceful in understanding the differences of intention forming among the three ethnic groups. Public policy makers will benefit from understanding the impact of policy initiatives that would encourage the formation of intentions and ultimately, the formation of new business. For example, the influence on entrepreneurial activity created by special economic incentives or the formation of incubator programs will be easier to assess. With the wave of corporate downsizing and outsourcing, economic stability will hinge on new business formation (Krueger, 1993). This demonstrated that huge corporation has deserted the policy of lifetime employment, eliminating jobs of thousand of worker. Therefore, promoting entrepreneurial intentions is both desirable and feasible for creating own business. In Malaysian context, the national culture, values, roles, norms and patterns of thinking plays an important part in entrepreneurial perceived desirability and propensity for proactive behaviour towards entrepreneurial intentions. This includes the cultural values that are positively or negatively related to entrepreneurial intention. These cultural values can be assessed and harness to increase our entrepreneurial workforce ability. This study also suggest researchers to develop tool or psychometric instrument to assess Malaysian IT Technopreneur that can be aligned with the venture’s goals, such as better market, profit making and better understanding of Malaysian culture that can be identified and nurtured in the knowledge based economy. 18 The tools or instrument can be displayed using computer programs to ease the process of entrepreneurial assessment this can be done by publishing as an electronic form on the World Wide Web (WWW). As for the advantage of handheld hardware and software, the survey instruments can also me programmed for the use of PDA devices. The use of WWW and PDA as a medium for assessment is the most efficient and productive way to test entrepreneur with regard to their intentions and to evaluate their behaviour. 1.8 Definition of Terms The following definitions are provided for key terms that are used throughout the study. a) Entrepreneur/Entrepreneurship: The literature provides no universally accepted definition of an entrepreneur (Gartner, 1989). In fact, the subject has developed a great deal of controversy. Therefore, as Gartner (1989) suggests, each research study should specifically define the type of entrepreneur that is the focus for that particular study. Consequently, according to Kao (1995), the entrepreneur is a person who undertakes a wealth-creating and value-adding process, through incubating ideas, assembling resources and making things happen. Specifically, entrepreneur is a person who undertakes a wealth-creating and value-adding process, through incubating ideas, assembling resources and making things happen (Kao, 1995). Entrepreneurship is a process of doing 19 something new (creative) and something different (innovative) for creating wealth for the individual and adding value to society (Kao, 1995). b) Information Technology Technopreneurs: The word derives form Technology Entrepreneur, Information Technology Technopreneurs are entrepreneur that are based on information technology oriented enterprise (Soota, 1998). IT Technopreneurs are those entrepreneurs specifically involves in IT solution, whether it engross software, hardware and communication solution. Retail of computer products without IT solution is not included in this definition. c) Culture: Culture is viewed here as a system of patterned meanings or the collective mental programming of a social group (Hofstede, 1980). d) Inter-Culture: The relation among Malays, Chinese and Indians are likely to observe some common cultural attributes as described by Asma, 1992. 20 e) Common Cultural Attributes: A common culture agreed on for the three major ethnic groups in Malaysia that are the Malays, Chinese and Indians. These accepted values are listed according to Asma, 1992. f) Entrepreneurial Behaviour: For this study, entrepreneurial behaviour is defined as performing behaviour that indicates a dedication to the physical creation of a business venture (Behave, 1994). g) Entrepreneurial Intention: Entrepreneurial intention is defined as the commitment to performing behaviour that is necessary to physically start the business venture (Krueger, 1993). The probability, from 0% to 100% that the entrepreneur will achieve MSC Status Company in the near future is the measurement for this study. h) Perceived Desirability: This study will use Shapero’s definition of perceived desirability as described by Krueger (1993). It is defined “…as the degree to which one finds the prospect of starting a business to be attractive; in essence, it reflects one’s affect toward entrepreneurship” (Krueger, 1993, p.8) 21 i) Propensity for Proactive Behaviour: A person with a proactive personality is one who is relatively unconstrained by situational forces and effects environmental change (Crant, 1996). The proactive personality identifies opportunities and acts on them; it shows initiative, takes action, and perseveres until it changes the environment (Crant, 1996). Therefore, propensity for proactive behaviour is tendency of individuals to act in a way consistent with a proactive personality. j) Breadth and Positiveness of Past Entrepreneurial Experience: Shapero (1982) suggest that the quality and quantity of past entrepreneurial experience indirectly influences entrepreneurial intentions. Therefore, breadth of past entrepreneurial experience is defined as to which a person has been exposed to entrepreneurship in the past. Positives are defined as whether the past experiences are perceived as positive, negative, or also known in this study as the degree of positiveness. 1.9 Chapter Summary This chapter is designed to provide a broad overview of the study. First, a statement of the problem and the objectives provided an introduction to the study. Next, the theoretical framework, hypotheses, scope is presented followed by 22 significance of the study, and definitions of the relevant terms used throughout the study. Chapter 2 provides a review of the literature and investigation of the research model, specific research questions and hypothesis to be addressed. Chapter 3 presents the methodology that introduces the design of the research, respondents involved, procedures using questionnaires, the measurement of instrument regarding entrepreneurial intentions, perceived desirability, propensity for proactive behaviour and breadth and positiveness of past entrepreneurial experience and also the chapter summary. Chapter 4 presents the analysis of results in relation to the hypothesis that are tested. The first part covers on descriptive analysis that are the respondents’ demographic information, percentage, mean, standard deviation and level analysis. The second part covers the inferential analysis that comprise of correlation between variables in H1, H2 and H3. The following will be the analysis of score mean and one-way analysis of variance (ANOVA) to observe the variables in relation to H4, H5 and H6. The final chapter discusses on the hypothesized relationship, implications of the study, practical implications, limitations of the study, and direction for future research. CHAPTER II REVIEW OF LITERATURE 2.0 Introduction Researchers have started the soul-searching process to find what entrepreneurs are really like. The huge definition of entrepreneur has been a challenging task where the difficulties arose when there are too many personality type found in this process. There are also many words related to the description of entrepreneurial profile, trait, role, intention, character and all of these are the basis for their entrepreneurial behaviour. An approach in discussing the subject of cultural influences on aspects of entrepreneurial dimensions will be used in this study. For this purpose, it is important to point out that in examining the characteristics of the cultures, one finds that most of the research available focus on differences in values and beliefs rather than on actual behaviours or decisions. These intercultural areas recognize the values and beliefs may not necessarily be translated into behaviours or decisions but that they do significantly overlap. For example, the theory of reasoned action and the research derived from it indicate that attitudes, beliefs, and values often do affect behavioural intentions and subsequent behaviour (Ajzen & Fishbein, 1980). This supports the 24 degree of association between different racial identification with dissimilar upbringing with regard to their behaviour. Of course, part of the problem of predicting behaviour from individual characteristics is that situational factors influence and may overwhelm individual propensities or inclinations in a particular situations. It has been recognized since at least the 1930s, that behaviour is a function of both individual and situational characteristics (Carroll & Gannon, 1997). Indeed, there is presently a good deal of attention to this perspective of behaviour and to the sub field of interactional psychology (Schneider, 1983). This perspective is reflected in the relationship of culture to entrepreneurial ethical behaviour or decision-making as described in the suggested model Figure 2.1 below (Carroll & Gannon, 1997). Origins of Culture History National Cultures Entrepreneurial Practices Primary Mechanism of Cultural Transmission Parenting & Socialization Resources Geography Entrepreneurial Values and Beliefs Education Secondary Mechanism of Cultural Transmission Laws Team Recruitment Religion Organizational Culture Model Value and Beliefs of Entrepreneurs Model Ethical Behaviour of Entrepreneurs Figure 2.1: A Model of Culture and Ethical Behaviours Among Entrepreneurs 25 Before describing the model in more detail, it is better to stress the usefulness of the psychological expectancy model for examining the critical variables in all choice situations, including ethical decision-making. In this model, choices are asserted to be the result of an individual’s expectations about achieving a goal or outcome and the degree of desirability associated with it, considering all of its consequences and their meaning for the individual decision maker. The consequences are a function of individual factors and environmental factors. For example, in deciding to venture into business, an entrepreneur must first calculate whether possible to do it. This is affected by the variables in figure 2.1 (page 24) such as origins of culture (i.e., own ethnic culture), national culture, and primary and secondary mechanism of cultural transmission. These variables will give effect on the two models: a) Model Value & Belief of Entrepreneurs and b) Model Ethical Behaviour of Entrepreneurs. This also apply on the entrepreneur in deciding to do something that is unethical, the individual must first weigh up many factors involved. Obviously, the entrepreneur can control on what action is to be make possible and action that must be avoided because it is a planned behaviour (Krueger, 1993). If action is possible because of some opportunity, and the individual has the capability of doing it, the next calculation is whether the pluses and minuses make it worthwhile. Entrepreneurs’ actions are very difficult to measure in this term. Somehow, entrepreneurs seem to have a few characteristics that are listed repeatedly during many researches (Kilby, 1983). Self-control, self-confidence, comprehensive awareness, emotional stability and lot more that are the personal factors that in fact assisted them to come up with the best possible action and avoid the “no-no” action to further progress as a successful entrepreneur (Kilby, 1983). 26 Over the next few years, the main challenge for entrepreneurs in Malaysia is to examine our local entities and identify shared values and entrepreneurial practices which serve as building blocks to promote a truly Malaysian entrepreneurs with our own Malaysian culture. Values of the Malaysian culture are contributed by mostly the three major ethnic groups, which are Malays, Chinese and Indians. As Malaysia become more exposed to international business practices, IT technopreneurs have to take the lead in identifying local cultures that are applicable and affecting their entrepreneurial behaviour. The need to understand entrepreneurship has never been more important than it is today. In Malaysia alone, entrepreneurial activity accounts for a huge amount of gross domestic product and higher percent of all new jobs (Zainab Ahmad, et al., 1997). This significant economic impact has fueled the current interest in research on the entrepreneurial phenomenon. This chapter contains a review of the literature on Malaysian society and culture touching on three major ethnic cultures that are the Malays, Chinese and Indians. Also listing down the technopreneurial dimension by introducing the Model of Entrepreneurial Event (Shapero, 1982), as the research model and related hypotheses. The first major section examines the Malaysian inter-cultural society. This section discussed on the common value orientations at inter-cultural level and common cultural values. The second section begins with a discussion of the literature that presents research support for the use of intention-based model that provide the theoretical framework for the study, that is Shapero’s (1982) model of the entrepreneurial event (Figure 2.2). 27 Race (Ethnic Group) Social Support Trigger Event Perceived Desirability Breadth & Positiveness of Past Entrepreneurial Experience Propensity for Proactive Behaviour Entrepreneurial Intentions Perceived Feasibility Figure 2.2: Shapero’s (1982) Model of the Entrepreneurial Event and Race (Ethnic Group) The following section presents the entrepreneurial intention-based research model and related hypotheses. As a matter of time constraint, this section presents an overview of the research model followed by only two sections that will discuss the major predictor variables of entrepreneurial intentions along with their antecedents and related hypotheses. The description of the theoretical foundation and related hypothesis associated with perceived desirability, breadth of past entrepreneurial experience, and positiveness of past entrepreneurial experience were also presented. The second section presents propensity for proactive behaviour along with its 28 supporting research and related hypothesis. The last section introduces the addition of race for the Shapero’s Model. 2.1 Malaysian Inter-Cultural Society For most entrepreneurial organizations Malaysia, they are represented by intercultural workplace. The role of the leader and his team is to create a work culture based on a set of shared values and practices that will thrive in Malaysian’s multicultural environment. It is therefore important for them to articulate a clear vision that embodies and conveys in actions and words, the desirable attitudes, values and beliefs of those they are responsible for. The intercultural workplaces in Malaysia have their own unique identities that are based on the cultural values of their enterprise owners and leaders. To introduce new work related value at the workplace, the significance of the existing values and how they are interpreted would have to be recognized and understood. This comes up with the inferences of culture in organizations. The culture of an organization consists of underlying assumptions, values, symbols, rituals and heroes and establishes meanings for its members. As values form the heart of the organization, entrepreneurs or the founder have to communicate them to all employees. When there are organizational values that are incongruent with those that the employees have been exposed to in the homes and schools, entrepreneurs as founders and managers have to take time to ensure that they are being internalized. As we look at the interaction at the Malaysian workplace, some acceptable behaviour at the intercultural levels may not always be well received at a more 29 wider level, that is the cross-cultural level of interactions. Globalization plays to most extensive role in the making of interactions cross culturally. Malaysian entrepreneurs who are only familiar with one level of interaction have to learn through exposure to different work settings, social interaction and observation of work related practices, norms, and ways of doing things at the other levels such as intra-cultural and cross-cultural level to be flexible at their workplaces. The following table (Table 2.1) shows the summary of Malaysian Ethnic values. These values were adapted from: Asma Abdullah (1992), “The influence of Ethnic Values on Managerial Practices in Malaysia”, Malaysian Management Review, Vol: 27, No.1 page 30. Table 2.1: List of Malaysian Ethnic Values A: MALAYS Respect for elders Friendliness Not aggressive Spirituality Politeness Cooperation (Gotong royong) Humility Harmony/peace Good manners (Sopan santun) Face Loyalty Faith in God (Tawakal) Tact Apologetic Family oriented Generosity Formalities Obedience Caring Accommodating Fairness Patience Trustworthiness Sincerity Relationships Discipline Courtesy Sensitivity to Teamwork Self-respect (Hormat diri) Sense of Non-confrontational feelings Honesty appropriateness Indirect Tolerance Rituals Food and ceremonies Harmony with Compliance Tacit system of environment Hierarchy reciprocal obligations 30 B: CHINESE Food Money Gambling/risk taking Hard work Perseverance Filial piety Success Position Respect for hierarchy Diligence Face Integrity Education Thrift Modesty Wealth Meritocracy Honesty Family oriented Generosity Entrepreneurship Happiness Prosperity Pragmatic/practical Harmony Family C: INDIANS Fear of God Participation Loyalty Sense of belonging Hard work Brotherhood Security Champion of causes Family Filial piety Harmony Karma Modesty Face 2.2 Common Cultural Values of Malaysian Based on studies done by Asma (1992), there are common cultural values of Malaysian: i) Collectivistic Team working to accomplish a task. This is because of the sense of belonging. Malaysians are more collectivists than individualist. This may be assembled from the group orientation, concern for others, loyalty and trust, sense of belonging, compromising and relationship orientation which are characteristics of this society. There is a high degree of ‘we’ rather than ‘I’ orientation in Malaysian society, as people prefer doing their activities joy fully together. 31 ii) Hierarchical Malaysia identified as one that have the highest power distance (Hofstede, 1991). Malaysians in general are willing to accept inequality in power is normal. Malaysian leaders are expected to take the lead and be regarded as significant role models and “wise leaders”. iii) Relationship-oriented Malaysia is a high context culture (Hall, 1989), where it is not easy to separate a person with its environment. It is not an easy task to separate their business from private lives. Malaysian entrepreneurs have to spend time to build personal relationship as a ticket to get things done. Communication is indirect rather than direct and where the meaning of a communication depends on knowing the situational clues shown by body language, seating position, and status differences (Hall, 1989) iv) Face Saving Maintaining a person’s dignity by not embarrassing or humiliating others in front of others. If face is preserved, interpersonal relationship will be kept in a harmony to maintain respect. Loses face could be more painful than physical pain, because it may withdraw any good attention from the person. Confrontational behaviours are often counter-productive and go against the concept of face saving. 32 v) Religious Most Malaysians identified with a particular religion, belief in the Supreme Being. For Malays who are Muslim, they have the attitude of giving in or can be interpreted as a sign of autonomous surrender. For the Chinese and Indians, their religious practices are also important sources of contentment and spiritual health. vi) Pursuit of Success Malaysians are now imbued with a sense of purpose and commitment on the emphasis of Vision 2020. This new spirit is important because it allows Malaysians to break away from outmoded thinking and beliefs and to test new grounds but within the boundaries of what it considers to be appropriate for a multicultural society. Because of the diversity of the workforce, the definition of success varies among the three major ethnic groups. Malays defined success in terms of rapport with family, friends and associates. They are also attracted by tangible rewards such as a piece of land, a house, or pilgrimage to Mecca. They also feel comfortable when they receive respects of whom they know. Chinese community defined success as prosperity, which signifies a secure and happy future for the family. Chinese philanthropist are highly respected both inside and outside their communities and more so for their donations to educational and religious institutions. Chinese give a sign of modesty when they are asked about their riches. They tend to say, “Its enough”. Indians tends to gravitate towards organizations that cater for their well-being and development, especially those that enable them to express their points of view. 33 Hence, Indians are more noticeable in trade union activities, the legal professions and voluntary associations such as NGO’s where they are seen to champion a worthy cause. Figure 2.3 presents an intercultural level in Malaysia that embodied from three major ethnic groups that are Malay, Chinese and Indian followed by common value orientations that are shown in table 2.2 (Asma, 1996). Malay Chinese Malaysian Indian Figure 2.3: Relating the Malaysian Inter Cultural Society Table 2.2: Common Value Orientations at Inter-Cultural Levels Collectivism Preserving Face Compromise Religious Food and Ceremonies Protocol Respect for Authority Hospitality Harmony and Tolerance Malaysians, whether Malay, Chinese or Indian, on average believe that money is the main reason why people go to work (Asma, 1996). However, for the multicultural workforce, there are also other factors that are considered important, in particular opportunities for self-development, growth and contribution to the community and nation. As for these factors, these multicultural groups have their 34 way of proactive behaviour and perception regarding to their entrepreneurial endeavour. The afore-mentioned characteristics of the Malaysian workforce are manifestations of the underlying values on the three main groups and their impact on business behaviour at the workplace. The intercultural workplace of Malays, Chinese, Indians and others is more likely to observe the common values of collectivism, hierarchy, relationship oriented, face saving, religion and pursuit of success. Those entrepreneurs who are in the position to lead are expected to preserve the well-regarded values of the workforce and cascade them downwards personally. Effective Malaysian entrepreneurs can transform their workforce to face the challenges ahead by affirming their cultural values and developing appropriate shared practices. Shared values and shared practices can contribute to enhancing group morale and productivity. By stressing on relationship to produce results, developing real spirit and enthusiasm, being sensitive to the values and nuances of all the diverse cultures and taking the lead to initiate new work practices which are based on the core managerial values such as performance orientation, goal clarity, decisiveness, achievement, accountability, commitment, and meeting deadlines, entrepreneurs can help to build a dedicated and resilient Malaysian workforce at the intercultural workplace. 35 2.3 Shapero’s Model of Entrepreneurial Event. Underlying Shapero’s (1982) model of the entrepreneurial event (see Figure 2.2, page 27) is the assumption that most choices of action depend on the perceived desirability and feasibility of the action coupled with an individual’s propensity to take action. Therefore, entrepreneurial intentions that lead to the entrepreneurial event have three primary determinants; perceived desirability, perceived feasibility, and a propensity to take action. Perception of desirability is the degree to which one finds starting a business an attractive thing to do (Shapero, 1982). Perception of feasibility is the degree to which one thinks that he or she is capable of starting a business. One must believe that starting a business is both desirable and feasible before entrepreneurial intentions are formed. In addition, Shapero (1982) suggested that the extent (breadth) and positiveness (depth) of past entrepreneurial experience are two other important factors in determining perceptions of desirability and feasibility. Individuals with a great deal of past entrepreneurial experience, especially if it was positive, will be more likely to form favorable perceptions of desirability and feasibility about entrepreneurial activity. Shapero (1982) also theorized that the formation of entrepreneurial intentions is determined by a person's propensity to act or propensity for person’s proactive behaviour. Propensity to act is a quality to act on one’s decisions and is a result of one’s desire to take control through taking action (Krueger, 1993). In general, the higher the propensity to act, the more likely person is to take action on an intention. 36 The Shapero (1982) model has not received much research attention. These studies provide the primary support for the model and show that perceptions of desirability, feasibility, and a propensity to act are all positively related to entrepreneurial intentions. 2.4 Research Model and Hypothesis. As previously discussed, research suggests that intentions are a reliable predictor of behaviour (Ajzen & Fishbein, 1980). As a result, the predictive value of the intentions-behaviour relationship is well established in the literature. Therefore, the research model focuses on the variables that may relate to the formation of entrepreneurial intentions rather than on the intentions-behaviour relationship. Based on strong empirical support (e.g., Ajzen, 1991), Shapero (1982) model provide a solid foundation for research on influences on the formation of entrepreneurial intentions. The findings of Krueger (1993) indicate that the Shapero model is the predictor of intentions. Therefore, the Shapero model is the foundation of the research model. Intention was described as a state of mind that directs a person's attention, experience, and behaviour toward a specific object or method of behaving (Bird, 1992). This implies that intention directs individuals towards a specific action (behaviour). A person with intentions has a commitment to a particular behaviour. In fact, Krueger (1993) defined entrepreneurial intentions as the commitment to starting a business venture. In addition, intentions have the elements of action, target, time, and context. The critical elements are action and target. For this study, the target of entrepreneurial intentions is starting a MSC Status company as a profit-making 37 enterprise, and the action is a behaviour that is critical to making the enterprise a physical reality (i.e., securing a location, purchasing supplies, hiring employees). Therefore, in the research model, entrepreneurial intention is the commitment to the physical creation of a profit making business or a new venture creation. For example, “I intended to tie (action) a deal (target) with Ministry of Education (government body) (context) next week (time)” is a statement of intended behaviour to tie a deal in a specific context during a specific time. The measure of behaviour must correspond to the action, target, context, and time elements of intention by asking if the subject sought contract at Ministry of Education (government body) during the next week. Overall, the research model suggests that entrepreneurial intentions are formed by three primary factors: perceived desirability, propensity for proactive behaviour, and perceived feasibility. The basic premise of the model is that entrepreneurial intentions are formed when people perceive that entrepreneurship is desirable, they believe that they are capable of doing what is required, and they take action on their beliefs. Perceived desirability is Shapero's (1982) construct defined as the degree to which one finds the prospect of starting a business attractive. In addition, perceived desirability is influenced by social support (what important others think) and the breadth (quantity) and positiveness (quality) of past entrepreneurial experience (Shapero, 1982; Krueger, 1993). Shapero (1982) theorized that positive attitudes alone were not enough to produce entrepreneurial intentions, but also required a propensity to take action. Shapero deducted that propensity to take action is rooted in a person's desire to take control. He proposed locus of control as a proxy variable (Krueger, 1993). 38 Propensity for proactive behaviour is a personality type that is relatively unconstrained by situational forces, identifies opportunities, and acts on them (Bateman & Crant, 1993). It is a result of one's need to maneuver and control the situation. This construct captures the idea of control, which is the central theme of Shapero's (1982) propensity to act. As a resu1t, propensity for proactive behaviour is included in the research model as compulsory for the formation of entrepreneurial intentions. This section has provided an overview of the study's research model. The following sections will more fully develop the theoretical foundation for each variable and describe the associated hypotheses. 2.4.1 Perceived Desirability & Entrepreneurial Intentions Shapero (1982) model include measures of attitude as a determinant of intentions. In each case, attitude is an evaluative measure of the desirability of performing the intended behaviour. Thus, in the research model used in the study, perceived desirability is a measure of a person's attitude toward starting a business. 39 Race (Ethnic Group) H5 H4 H6 Social Support Trigger Event H2 Breadth & Positiveness of Past Entrepreneurial Experience Perceived Desirability Propensity for Proactive Behaviour H1 H3 Entrepreneurial Intentions Perceived Feasibility Figure 2.4: Shapero’s (1982) Model of Entrepreneurial Event and Race (Ethnic Group) Path Hypothesis Attitudes about any behaviour (in this case, starting a business) are determined by the individual’s beliefs about performing the behaviour (Ajzen & Fishbein, 1980). Associating the intended behaviour with various characteristics, qualities, and attributes grows beliefs. From these associations, individuals will either like (have a favorable attitude) or dislike (have an unfavorable attitude) toward performing the behaviour (Ajzen & Fishbein, 1980). Individuals with favorable attitudes toward a behaviour will be more likely to form strong entrepreneurial 40 intentions and, thus, perform the behaviour than individuals with unfavorable attitudes (Ajzen & Fishbein, 1980). As a result, the following research hypothesis is suggested. H1: Perceived Desirability is positively associated with the formation of Entrepreneurial Intentions 2.4.2 Breadth and Positiveness of Past Entrepreneurial Experience People develop beliefs during the normal course of their lives. These beliefs may be the result of direct involvement and/or observation, or the acceptance of information from outside sources (verbal persuasion) (Ajzen & Fishbein, 1980). Therefore, the research model suggests that two major sources of beliefs influence the formation of perceived desirability. The breadth and positiveness of experience, which are evaluations of the quantity and quality of past entrepreneurial experience, provide information concerning the desirability of entrepreneurial behaviour from direct involvement or observation. Shapero (1982) model suggest that attitudes such as perceived desirability are influence by past experience. In addition, the influence may be greater if the past experience is with an industry related to the one the entrepreneur is considering (Brockhaus & Horwitz, 1986). Some empirical support for the influence of past experience on attitudes is found in research examining the impact of past experience on the career development of executives. It is also shown that many executives share attitudes based on both the breadth and quality of past experience. (Brockhaus & Horwitz, 1986) showed a relation between life experience and vocational choice. 41 Krueger (1993) found limited empirical support for the role of past entrepreneurial experience in the formation of perceived desirability. Although the breadth and positiveness of past entrepreneurial experience have been theorized as a determinant of attitudes such as perceived desirability (Krueger, 1993; Shapero, 1982), little empirical support is available because very few studies address the variables specifically. As a result, the current research attempts to provide support for the following theorized relations. H2: The Breadth and Positiveness of Past Entrepreneurial Experience is positively associated with Perceived Desirability 2.4.3 Propensity for Proactive Behaviour & Entrepreneurial Intentions Shapero's (1982) model suggests that it would be difficult to form intentions without a strong desire to act on them. Intentions direct attention, experience, and behaviour toward the accomplishment of a specific action (Bird, 1992). Therefore, the stronger a person’s desire to take action, the stronger the intentions (Krueger, 1993). Shapero (1982) theorized that a person's propensity to act is grounded in desire to gain control of a situation by taking action (Krueger, 1993). While new ventures are not forced into existence, they also are not the stagnant result of environmental conditions (Bird, 1992). New ventures are a result of planned attempts to take actions that will influence or create the environment in such a way as to allow the formation of the venture. Therefore, entrepreneurial intentions are determined by an individual’s desire to take actions that will influence the environment (Crant, 1996). 42 This is also known as locus of control. In this theory, there are two types of people; a) externals, those who believe that what happens to them is a result of fate, chance, luck, or forces beyond their control; and b) internals, those who believe that for the most part the future is theirs to control through their own effort. Clearly, people who undertake a new business must believe that their effort will have something to do with the business’s future performance. A logical hypothesis would be that internals are more entrepreneurial than externals. However, evidence supporting this hypothesis has been inconclusive (Brockhaus, 1982). Some studies have shown that internals are overly represented in the entrepreneurial population, but others show no difference between entrepreneurs and others. In fact, it could be argued that any good manager must also possess the qualities of an internal: a person who believes that efforts affect outcomes. So, while locus of control might distinguish people who believe in astrology and those who do not, it may not differentiate potential entrepreneurs form potential managers or just plain business students. The desire to take control is described by Bateman and Crant's (1993) relatively new construct of proactive behaviour. They defined the "proactive personality" as a person who has a propensity for proactive behaviour. Consequently, proactive behaviour is a natural construct that identifies differences among people in the extent to which they take action to influence their environment (Bateman & Crant, 1993). It is result of a person's need to manipulate and control the environment. The construct is rooted in the interactionist's perspective (Bandura, 1977) that holds that behaviour is both internally and externally controlled. Situations are as much a function of the individual as they are of the environment (Schneider, 1983). Examples of proactive behaviour are starting a new venture, 43 solving long-range problems, and identifying a market opportunity and capitalizing on it (Bateman & Crant, 1993), all of which are important to entrepreneurship. Therefore, it is reasonable to assume that people with proactive personalities would be drawn to entrepreneurial careers (Crant, l996) Bateman and Crant (1993) describe the prototypic proactive personality as one who is reactively unconstrained by situational forces, and who creates environmental change. These individuals scan the environment for opportunities, show initiative, take action, and persevere until they read closure with environmental change. They are pathfinders who change the mission of their organizations and seek out and solve problems. They make it their mission to affect the world around them. On the other hand, people who are not proactive show little initiative, passively adept to change, and even endure their circumstances. The proactive personality intuitively describes the prototypic entrepreneur. Little research has been conducted on the proactive personality because the construct is relatively new. Bateman and Crant (1993) developed and validated a proactive personality scale. In their research, they found a proactive personality related to McCelland's need for achievement, which has been found to have a significant correlation with entrepreneurship. In addition, Crant (1996) found a positive relationship between proactive personality and success entrepreneurs. In addition, Crant (1996) found a positive association between proactive personality and this formation of entrepreneurial intentions. In this study, it is expected that the propensity for proactive behaviour, which is the tendency of a person to act in a manner consistent with a proactive personality, is positively associated with the formation of entrepreneurial intentions. As a result, the following hypothesis is proposed. 44 H3: The Propensity for Proactive Behaviour is positively associated with the formation of Entrepreneurial Intentions 2.4.4 Race (ethnic group) The addition of Race linked to the Shapero’s model is mainly for the purpose of exploratory study. The makeup of the race is from the three major ethnic groups in Malaysia. That is the Malays, Chinese and Indians. As for the exploratory purpose of this study, the following hypotheses were also proposed. H4: There is a difference on respondents’ perception towards Perceived Desirability related to Race H5: There is a difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race H5: There is a difference on respondents’ perception towards Proactive Behaviour related to Race. 2.5 Chapter Summary The first part of this chapter provided a review of Malaysian society and culture. Inter cultural relation involves three major ethnic group in Malaysia. In this review, the values are discussed and summarized to describe these three ethnic groups. There are similarities in the value they possess, these are known as the common cultural attributes as a Malaysian. 45 The final section introduces the application of Shapero’s model used in the study. The model indicates that perceived desirability, propensity for proactive behaviour, related to the formation of entrepreneurial- intentions. The model also indicates that perceived desirability is influenced by the breadth and positiveness of past entrepreneurial experience. As for the purpose of this study, a new link is added in the Shapero’s model for the ease of reference and hypothesis display. Finally, the concluding sections of the chapter described the theoretical support and six proposed hypotheses for the relationships suggested in the model. CHAPTER III METHODOLOGY 3.0 Introduction This chapter introduces the methodology used to determine the entrepreneurial intention. An overview of the participants and survey design will be reviewed. The instrumentation used captures the, perceived desirability, propensity for proactive behaviour, breadth and positiveness of past entrepreneurial experience, entrepreneurial intention and additionally included question on demographic information. This chapter is divided into different sections (a) Introduction, (b) Design, (c) Respondents, (d) Procedures, (e) Measurement of Instruments. It is expected that these instruments answer the major research questions, “What are the relation between Breadth and Positivenesss of Past Entrepreneurial Experience, Perceived Desirability, Propensity for Proactive Behaviour towards Entrepreneurial Intention and also their comparison between 3 major ethnic groups that are Malays, Chinese and Indians?” Because of relatively large number of dimensions that play a role in entrepreneurship, a discussion of the design, respondents, procedures were also presented. Finally, a discussion of the variables and the specific instrument used to measure these variables are included. 47 3.1 Design and Reliability of Questionnaire This research designed as a field study utilizing survey methodology chiefly to explore the relationship between Entrepreneurial Intentions that are derived from Perceived Desirability, Propensity for Proactive Behaviour and Breadth and Positiveness of Past Entrepreneurial Experience that affects the behaviour of the entrepreneur. One survey instrument related to Entrepreneurial Intentions (EI), Perceived Desirability (PD), Propensity for Proactive Behaviour (PPB) and Breadth and Positiveness of Past Entrepreneurial Experience (BPPEE) used to identify these four domains. A pilot test performed in order to produce better and more reliable questionnaire. The pilot test are done by having discussion with a few IT technopreneurs in order to omit or modify questions in sections and also overall. Most entrepreneurs suggested the initial questionnaire to be revised since the questionnaire takes a long time complete. On average, the first suggested questionnaire takes more than 40 minutes to complete but the new set of questionnaire that are very research specific only takes less than 20 minutes to be completed. Table 3.1 below shows the reliability coefficients (Cronbach’s alpha) of the measures. According to the recommendations made by Bagozzi and Yi (1988), if the alpha value is greater than 0.5 or reaching 1.0, the measuring instrument is high reliability. All the four sections in the questionnaire presented a high alpha value. This indicated the high reliability of the questions used. 48 Table 3.1 : Reliability Test Results Analysis Factors Alpha Value 1 Propensity for Proactive Behaviour (Ordinal) 0.91 2 Perceived Desirability (Ordinal) 0.84 3a Breadth of Past Entrepreneurial Experience (Nominal) 0.74 3b Positiveness of Past Entrepreneurial Experience (Ordinal) 0.78 Test-retest reliability method was also used in this study. This test is important as the purpose of measuring the same set of respondents completing a survey at two different points in time to see how stable the responses are. It is a measure of how reproducible a set of results is. Correlation coefficients, or r-values, are then calculated to compare the two sets of responses. In this study, the correlation coefficient, r is equivalent to 0.87. According to Mark (1995), the r-values are considered good if they are equal or exceed 0.70. With regard to the statement, it found out that the test-retest reliability for the instrument in this study has a very high degree of reliability. 3.2 Respondents. Gartner (1989) stated that a persistent weakness of research into the determinants of entrepreneurial intentions is the inability to select a sample that includes individuals serious about entrepreneurship. To address this weakness, potential respondents for this study were referred in this way:(a) Malay Chamber of Commerce, (b) Chinese Chamber of Commerce (c) India Chamber of Commerce, (d) Technopreneurs Association Of Malaysia 49 (TEAM) and (d) Computer Era (a comprehensive computer directory). Respondents were contacted at The Regional Initiative for Information & Communication Technology Strategies 2001 Conference and Exhibition that was held in Putra World Trade Centre on the 24th to 26th July 2001. The sample for this study consisted of 129 IT Technopreneurs that are located in Johor Bahru and Kuala Lumpur. More samples are actually needed to reduce the sampling error. According to Falik (1983), 129 samples actually represent a population of 200 respondents. This study managed to acquire 129 respondents because of time and cost factor that are part of the constraint of the research. 3.3 Procedures The assessment were done in two way, i) using a self-administered questionnaire and ii) direct distribution to respondents during conference and exhibition. For procedure i), the questionnaire was mailed to the founder or CEO of each entrepreneur enterprise or company. The mail constitutes of a package contained three items: a covering letter, one IT Technopreneurial Questionnaire, and a stamp-affixed envelope. The covering letter explained the purpose and the objectives of the survey and requested the technopreneur to return the completed questionnaire within three weeks using the stamp-affixed envelope provided. The respondents are assured of the strictest confidentiality of their responses. A follow-up letter is sent to the business that had not responded 3 weeks after sending out the questionnaires. 50 As for procedure ii), the questionnaire was distributed to every booth and collected in an hour time. 3.4 Measurement of Instruments 3.4.1 Entrepreneurial Intentions Entrepreneurial intentions were measured with a single question item asking respondents to choose a probability, from 0% to 100%, that they would align with the terms and regulations to develop their entrepreneurial enterprise to achieve MSC Status Company in the near future (Section 4, Appendix B). The scale was developed using a format suggested by Ajzen and Fishbein (1980). The higher the percentage indicated the stronger the intentions to become an IT Technopreneur. Therefore, aligning with the terms and condition to be honored the MSC Status is a highest achievement in becoming a successful IT Company, and is an indication of the individual’s commitment to the physical creation of his or her business. There is consistent with Behave’s (1994) suggestion that “starting” a business is best indicated by a behaviour that shows commitment to physical creation. 3.4.2 Perceived Desirability Perceived desirability for starting a business is defined for the current study”…as the degree to which one finds the prospect of starting a business to be 51 attractive; in essence, it reflects one’s affect toward entrepreneurship” (Krueger, 1993, p.8). The questions were used to assess perceived desirability. Responses were gathered on a 5-point scale ranging from 1 = negative perception to 5 = a positive perception (Section 2, Appendix B). Total scale scores were obtained by summing the five questions. Research question that related to this measurement is how does perceived desirability associated with the formation of entrepreneurial intentions. The hypothesis is, H1: Perceived Desirability is positively associated with the formation of Entrepreneurial Intentions. 3.4.3 Breadth and Positiveness of Past Entrepreneurial Experience The breadth and positiveness of past entrepreneurial experience is defined for the study as the extent to which a person had been exposed to the entrepreneurship (information technology) in the past and whether the past experiences are perceived as positive or negative. The variables were measured on scales developed by Krueger (1993). These scales were modified to be an Information Technology specific (Section 3, Appendix B). Breadth of past experience was measured by asking subjects whether they had been exposed to each of entrepreneurial experience (Krueger, 1993). Breadth of experience is the sum of the eight “yes”-“no” questions (coded 1 for yes, 0 for no). Positiveness of past entrepreneurial experience was measured by asking subjects, after each of the breadth questions that were answered “yes”. Positiveness also known in this study as the degree of positiveness. To rate the experience as depth of the experience, a 5-point scale were used representing from 1=very negative 52 to 5=very positive. Positiveness of experience is the sum of each of these items (Krueger, 1993). Research question that related to this measurement is how does the breadth and positiveness of past entrepreneurial experience associated with perceived desirability. The hypothesis is, H2: The Breadth and Positiveness of Past Entrepreneurial Experience is positively associated with Perceived Desirability. 3.4.4 Propensity for Proactive Behaviour For this study, propensity for proactive behaviour is defined as a tendency of individuals to act in a way consistent with proactive personality. The proactive personality is someone who identifies opportunities and acts on them; the person shows initiative, takes action, and perseverance until it changes the environment (Crant, 1996). Responses were obtained on a 5-point scale ranging from 1 = strongly disagree to 5 = strongly agree. The total score was determined by summing responses to the individual items (Section 1, Appendix B). The higher the sum, the greater the propensity for proactive behaviour. Research question that related to this measurement is how does propensity for proactive behaviour associated with the formation of entrepreneurial intentions. The hypothesis is, H3: A Propensity for Proactive Behaviour is positively associated with the formation of Entrepreneurial Intentions. 53 3.4.5 Demographic Data For this study, the demographic data are the most essential part that contributed the validity of the study. The Racial/Ethnic Identification attributes are the compulsory attributes that must me filled in by respondents. Any missing data on this would then be a waste. Any unfilled questionnaire on this attribute will cause the questionnaire to be invalid. Another factor that play a role in making the questionnaire invalid is the selection of Racial/Ethnic identification other than Malay, Chinese and Indian. As for the purpose of the study, only these 3 major ethnic groups will be treated to data processing. Any questionnaires that were filled other than the first 3 selections will be ignored. Other attributes in this section would be sex, education level and age. (Please refer to Section 5-Appendix B). The hypotheses that are related to demographic data would be, H4: There is a difference on respondents’ perception towards Perceived Desirability related to Race. H5: There is a difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. H6: There is a difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. 54 3.5 Chapter Summary This chapter presented a description of the study’s sample consisting of 129 IT technopreneurs. This was followed by a discussion of the procedure. The next section described each of the measures including scoring techniques and the results to obtain support for use of measures developed in this research. CHAPTER IV DATA ANALYSIS & RESULTS 4.0 Introduction This chapter presents the analysis of results for the current study. The results are branched into two subsections below: - Subsection 4.1 – Results on Descriptive survey: - i) Respondents Demographic information. ii) Descriptive analysis that are percentage, mean and standard deviation for item in Section 1-Propensity for Proactive Behaviour (PPB), Section 2 Perceived Desirability (PD), Section 3 - Breadth and Positiveness of Past Entrepreneurial Experience (BPPEE) and Section 4- Entrepreneurial Intentions (EI) iii) Level analysis on Respondents’ perception towards Section 1 – Propensity for Proactive Behaviour (PPB), Section 2 - Perceived Desirability (PD), Section 3 - Breadth and Positiveness of Past 56 Entrepreneurial Experience (BPPEE) and Section 4- Entrepreneurial Intentions (EI) Subsection 4.2 – Inferential Analysis are as follows: - i) Analysis of Results -Correlation between Perceived Desirability and Entrepreneurial Intention. ii) Analysis of Results -Correlation between Breadth and Positiveness of Past Entrepreneurial Experience and Perceived Desirability. iii) Analysis of Results -Correlation between Propensity for Proactive Behaviour and Entrepreneurial Intention. iv) Mean Score Analysis and One Way Analysis of Variance (ANOVA) to view the respondents’ perception on Propensity for Proactive Behaviour, Perceived Desirability and Breadth and Positiveness of Past Entrepreneurial Experience related to their Race (Ethnic Group). 57 4.1 (i) Background of Respondents There are 129 respondents (n=129) for this study. The background of respondents covers the aspect of sex, racial/ethnic identification, age group and level of education for the demographic information. Table 4.1: Respondents by Location Location Frequency Percentage Johor Bahru 71 55 Kuala Lumpur 58 45 Total 129 100 RESPONDENTS BY LOCATION JOHOR BAHRU 55% 58 Respondents 71 Respondents KUALA LUMPUR 45% Figure 4.1: Pie Chart represents Respondents by Location 58 Table 4.1 and Figure 4.1 shows the number of respondents and their percentage related to their location. 129 respondents were sampled, and from this amount, 71 (55%) were from Johor Bahru and 58 (45%) respondents were from Kuala Lumpur. Table 4.2: Respondents by Gender (Sex) Gender Frequency Percentage Male 94 73 Female 35 27 Total 129 100 RESPONDENTS BY GENDER (SEX) FEMALE 27% 55 Respondents 94 Respondents MALE 73% Figure 4.2: Pie Chart represents Respondents by Gender (Sex) Table 4.2 and Figure 4.2 shows the number of respondents and their percentage related to their gender (sex). There were 94 (73%) male and 35 (27%) female. 59 Table 4.3: Respondents by Race Race Frequency Percentage Malay 45 35 Chinese 47 36 Indian 37 29 Total 129 100 RESPONDENTS BY RACE INDIAN 29% MALAY 35% 37 Respondents 45 Respondents 47 Respondents CHINESE 36% Figure 4.3: Pie Chart represents Respondents by Race Table 4.3 and Figure 4.3 shows the number of respondents and their percentage related to their race/ethnic group. 60 Table 4.4: Respondents by Age Group Age Frequency Percentage Between 19 – 25 26 20.3 Between 26 – 30 38 29.7 Between 31 – 35 32 25.0 Between 36 – 40 18 14.1 41 and above 14 10.9 Total 128 100.0 RESPONDENTS BY AGE GROUP 38 32 40 35 30 25 20 15 10 5 0 Figure 4.4: 26 18 14 19-25 26-30 31-35 36-40 41 AND ABOVE Bar Chart represents Respondents by Age Group Table 4.4 and Figure 4.4 show the number of respondents related to their age group. 61 Table 4.5: Respondents by Level of Education Education Level Frequency Percentage 7 5.7 Vocational/Technical School 6 4.9 Polytechnic 6 4.9 Diploma 30 24.6 Bachelors Degree 62 50.8 Masters Degree 3 2.5 Others (e.g. MCP, MCSE, CCNP) 8 6.6 122 100.0 School Certificate (SRP/PMR/SPM/STPM/HSE) Total RESPONDENTS BY LEVEL OF EDUCATION 70 62 60 50 40 30 Figure 4.5: POLYTECHNIC DIPLOMA MASTERS DEGREE OTHERS (MCP, MCSE, CNNA) CCNP) 0 6 3 6 7 SCHOOL CERT 8 10 BACHELORS DEGREE 20 VOCATIONAL /TECHNICAL SCHOOL 30 Bar Chart represents Respondents by Level of Education 62 Table 4.5 and Figure 4.5 shows the respondents and their percentage related to their level of education. 4.1 (ii) Subject Descriptive Analysis The analysis for percentage, mean score and standard deviation as a purpose of exploring the respondents’ perception towards every item included in Section 1 Propensity for Proactive Behaviour, Section 2 - Perceived Desirability and Section 3Breadth and Positiveness of Past Entrepreneurial Experience. The answer format for Section 1 is strongly disagree, disagree, neutral, agree and strongly agree. Format for Section 2 are from strongly dislike to strongly like and for Section 3 would be “Yes” and “No”. If “Yes” is the choice for the answer, the succeeding selection would be very negative, negative, neutral, positive and very positive. Table 4.6: The Number and Percentage of Respondents Answered Every Item in Section 1- Propensity for Proactive Behaviour Statement 1 I am constantly on the SD 1 lookout for new ways to improve my life 2 I feel driven to make a difference in my community and maybe the world 3 I tend to let others take D NT A SA 7 41 80 0.8% 1 5 5.4% 31.8% 62.0% 31 44 48 0.8% 3.9% 24.0% 34.1% 37.2% 22 41 22 24 20 the initiative to start new projects 17.1% 31.8% 17.1% 18.6% 15.5% Mean SD 4.54 0.67 4.03 0.92 3.16 1.34 63 4 Wherever I have been, I have been a powerful force for constructive change 5 2 1.6% I enjoy facing and overcoming obstacles to Nothing is more exciting 28 50 46 1.6% 21.9% 39.1% 35.9% 2 23 61 42 - my ideas 6 2 2 1.6% 18.0% 47.7% 32.8% 2 14 52 58 than seeing my ideas turn into reality 7 If I see something I don’t like, I fix it 8 1.6% 1.6% 10.9% 40.6% 45.3% 1 1 18 62 45 0.8% 0.8% 14.2% 48.8% 35.4% 2 23 54 49 No matter what the odds, if I believe in something I - will make it happen 9 I love being a champion 1 1.6% 18.0% 42.2% 38.3% 7 28 57 35 for my ideas, even against others’ opinions 10 I excel at identifying opportunities 11 12 0.8% 5.5% 21.9% 44.5% 27.3% 1 15 41 46 26 0.8% 11.6% 31.8% 35.7% 20.2% 17 61 46 13.5% 48.4% 36.5% 35 55 36 I am always looking for 2 better ways to do things 1.6% If I believe in an idea, no obstacle will prevent me 2 1.6% 27.3% 43.0% 28.1% 1 5 29 61 32 0.8% 3.9% 22.7% 47.7% 25.0% 1 6 44 57 20 from making it happen 13 When I have a problem, I tackle it head-on 14 I am great at turning - problems into opportunities 15 0.8% I can spot a good opportunity long before 34.4% 44.5% 15.6% 11 49 50 19 - others can 16 4.7% 8.5% 38.0% 38.8% 14.7% If someone is in trouble, I 1 1 18 71 38 help out in any way I can 0.8% 0.8% 14.0% 55.0% 29.5% The underlined figure represents the number of respondent 4.06 0.89 4.12 0.75 4.27 0.84 4.17 0.76 4.17 0.77 3.92 0.88 3.63 0.96 4.18 0.78 3.98 0.79 3.92 0.84 3.70 0.82 3.60 0.84 4.12 0.72 64 n=129 SD D NT A SA - Strongly disagree - Disagree - Neutral - Agree - Strongly agree Table 4.7: The Number and Percentage of Respondents Answered Every Item in Section 2-Perceived Desirability Statement 1 1 How would you feel if you become an IT How stressful would it be as an IT Technopreneur? 3 How enthusiastic would 3 4 5 1 37 37 53 - Technopreneur? 2 2 9 0.8% 28.9% 28.9% 41.4% 21 55 18 23 7.1% 16.7% 43.7% 14.3% 18.3% 1 2 49 38 36 you be as an IT Technopreneur? 4 0.8% How much personal independence would you feel as an IT How much personal satisfaction would you get as an IT 38.9% 30.2% 28.6% 6 41 43 36 - Technopreneur? 5 1.6% 4.8% 32.5% 34.1% 28.6% 3 32 46 45 2.4% Technopreneur? 25.4% 36.5% Mean SD 4.11 0.85 3.20 1.14 3.84 0.89 3.87 0.89 4.06 0.84 35.7% The underlined figure represents the number of respondent n=129 Question 1 I’d hate doing it 1 2 3 4 5 I’d love doing it Question 2 Very Stressful 1 2 3 4 5 Not Stressful at all Question 3 Not enthusiastic at all 1 2 3 4 5 Very enthusiastic Question 4 Not independent at all 1 2 3 4 5 Very independent Question 5 Not much at all 1 2 3 4 5 A great deal 65 Table 4.8a: The Number and Percentage of Respondents Answered Every Item in Section 3-Breadth and Positiveness of Past Entrepreneurial Experience Statement 1 Have your parents ever been an IT Technopreneur? 2 Yes No Frq % Frq % 4 3.1 124 96.9 83 64.8 45 35.2 68 53.1 60 46.9 69 53.9 59 46.1 18 14.1 110 85.9 62 48.4 66 51.6 48 37.2 81 62.8 19 14.7 110 85.3 Do you know anyone else who is or has been an IT Technopreneur? 3 Have you worked for any IT Technopreneur company or firm? 4 Have your ever done any IT activity (i.e., software development, web page authoring, e-commerce application, etc)? 5 Have your parents started a business other than IT? 6 Do you know anyone else who has started a business other than IT? 7 Have you ever worked for a small business other than IT? 8 Have you ever started your own business other than IT? 66 Table 4.8b: The Number and Percentage of Respondents Answered Every Item in Section 3-Breadth and Positiveness of Past Entrepreneurial Experience (Degree of Positiveness) Statement 1 Have your parents ever been an IT Technopreneur? (If yes, was your experience?) VN N NT P 1 1 1 1 0.8% 0.8% 0.8% 0.8% 5 25 33 NP Mean SD - 0.08 0.48 2.34 1.95 1.87 1.96 1.92 1.92 0.51 1.37 1.69 1.89 1.18 1.67 Do you know anyone 2 else who is or has been an IT Technopreneur? (If 16 - yes, was your 3.9% 19.7% 26.0% 12.6% 2 22 28 11 experience?) 3 Have you worked for any IT Technopreneur company or firm? (If yes, was your experience?) 4 1 0.8% 1.6% 17.3% 22.0% 8.7% 8 20 30 10 Have your ever done any IT activity (i.e., software development, web page authoring, e-commerce 6.3% application, etc)? (If yes, 15.6% 23.4% 7.8% 4 7 5 was your experience?) 5 Have your parents started a business other than IT? (If yes, was your - - experience?) 6 3.1% 5.5% 3.9% 33 15 11 Do you know anyone 1 else who has started a business other than IT? - (If yes, was your 0.8% 25.8% 11.7% 8.6% 5 22 15 3 experience?) 7 Have you ever worked for a small business other than IT? (If yes, was your experience?) 3.9% 17.2% 11.7% 2.3% 67 8 Have you ever started your own business other than IT? (If yes, was your experience?) 2 11 5 - 1.6% 8.6% 0.45 1.13 3.9% The underlined figure represents the number of respondent n=129 VN N NT P VP - Very Negative - Negative - Neutral - Positive - Very positive Table 4.9: The Number and Percentage of Respondents Answered in Section 4- Percentage of Entrepreneurial Intention Respondent Frequency Percentage Below 25% 12 11.0 Between 26% - 50% 56 51.4 Between 51% - 75% 25 22.9 76% and above 16 14.7 Total 109 100.0 4.1 (iii) Level Analysis These are the Level Analysis with regard to respondents’ perception for Section 1 - Propensity for Proactive Behaviour, Section 2 - Perceived Desirability and Section 3 - Breadth and Positiveness of Past Entrepreneurial Experience that are branched down to three level, lower level, medium level and high level. The distributions of score for every each of the level are shown below: - 68 Level Score 1 Low - 1 through 2.333 2 Medium - 2.334 through 3.663 3 High - 3.664 through 5 Table 4.10: Level Analysis of Respondents’ Perception towards Propensity For Proactive Behaviour Frequency Percentage Low 2 1.6 Medium 29 23.4 High 93 75.0 Total 124 100.0 Level Table 4.10 displays the perception level of respondents towards propensity for proactive behaviour. Out of a total of 124 responses, 93 (75.0%) were high perception towards propensity for proactive behaviour, 29 (23.4%) were medium and the remainder 2 respondents (1.6%) were low. Table 4.11: Level Analysis of Respondents’ Perception towards Perceived Desirability Frequency Percentage Low 2 1.6 Medium 63 50.0 High 61 48.4 Total 126 100.0 Level 69 Table 4.11 displays the perception level of respondents towards perceived desirability. Out of a total of 126 responses, 61 (48.4%) were high perception towards perceived desirability, 63 (50.0%) were medium and the remainder 2 respondents (1.6%) were low. Table 4.12: Level Analysis of Respondents’ Perception towards Positiveness of Past Entrepreneurial Experience Frequency Percentage Low 50 70.4 Medium 20 28.2 High 1 1.4 Total 71 100.0 Level Table 4.12 displays the perception level of respondents towards Positiveness of Past Entrepreneurial Experience. Out of 71 who responded, 1 (1.4%) was high perception towards positiveness of entrepreneurial experience, 20 (28.2%) were medium and the remainder 50 respondents (70.4%) were low. 4.2 Inferential Analysis – i) Correlation Here are the results of the correlation analysis between perceived desirability and entrepreneurial intention, between breadth and positiveness of past entrepreneurial experience and perceived desirability and between breadth and positiveness of past entrepreneurial experience and perceived desirability. 70 The relationship between two variables were established by Falik (1983) as 0.00 = No Relationship, 0.01-0.20 = Weak Positive, 0.21-0.40 = Low Positive, 0.410.60 = Moderate Positive, 0.61-0.80 = Strong Positive, 0.81-1.00 = Very Strong Positive and 1.00 = Perfect Positive. Hypothesis 1: Perceived Desirability is positively associated with the formation of Entrepreneurial Intention Table 4.13: Correlation Analysis between Perceived Desirability and Entrepreneurial Intentions Entrepreneurial Intentions (Correlation value) Perceived Desirability 0.49** p=0.001 **Significant at confidence level p<0.01 *Significant at confidence level p<0.05 Table 4.13 shows the correlation between perceived desirability and entrepreneurial intentions. From this table, it is shown that the association between perceived desirability and entrepreneurial intentions are positive, moderate with a correlation value of 0.49, and significant at level 0.01. Hypothesis 1 accepted for this analysis. Therefore the following null hypothesis rejected, Hφ1: Perceived Desirability is not associated with the formation of entrepreneurial intentions. 71 Hypothesis 2: The Breadth and Positiveness of Past Entrepreneurial Experience is positively associated with Perceived Desirability Table 4.14: Correlation Analysis between Breadth and Positiveness of Past Entrepreneurial Experience towards Perceived Desirability Perceived Desirability (Correlation value) Breadth And Positiveness Of Past 0.42** Entrepreneurial Experience p=0.001 **Significant at confidence level p<0.01 *Significant at confidence level p<0.05 Table 4.14 shows the correlation between breadth and positiveness of past entrepreneurial experience and perceived desirability. From this table, it is shown that the association between breadth and positiveness of past entrepreneurial experience towards perceived desirability are positive and moderate with a correlation value of 0.42 and significant at level 0.01. Hypothesis 2 accepted for this analysis. Therefore the following null hypothesis rejected, Hφ2: The Breadth and Positiveness of Past Entrepreneurial experience is not associated with perceived desirability. 72 Hypothesis 3: The Propensity for Proactive Behaviour is positively associated with the formation of Entrepreneurial Intentions Table 4.15: Correlation Analysis between Propensity for Proactive Behaviour and Entrepreneurial Intentions Entrepreneurial Intentions (Correlation value) Propensity for Proactive Behaviour 0.21* p=0.03 **Significant at confidence level p<0.01 *Significant at confidence level p<0.05 Table 4.15 shows the correlation between propensity for proactive behaviour and entrepreneurial intentions. From this table, it is shown that the association between propensity for proactive behaviour and entrepreneurial intentions are positive, low with a correlation value of 0.21, and significant at level 0.05. Hypothesis 3 accepted for this analysis. Therefore the following null hypothesis rejected, Hφ3: The Propensity for Proactive Behaviour is not associated with the formation of entrepreneurial intentions. 4.2 Inferential Analysis – ii) Comparison Here are the results of mean score analysis, one-way ANOVA and t-test to view the difference of respondents’ perception on propensity for proactive behaviour, perceived desirability and breadth and positiveness of past entrepreneurial experience according to their demographic data (race, education and age). 73 Hypothesis 4: There is a difference on respondents’ perception towards Perceived Desirability related to Race. Table 4.16: Mean Score Analysis and One-Way ANOVA as a comparison of respondents’ perception towards Perceived Desirability related to Race Race Frequency Mean SD Malay 43 3.61 0.64 Chinese 46 3.85 0.76 Indian 37 4.01 0.74 Total 126 3.82 0.73 One-way ANOVA Sum of Mean Squares Square 2 3.21 1.60 Within groups 123 62.60 0.51 Total 125 65.81 df Between groups f F prob. 3.15 0.05* Significant at confidence level f<0.05 Table 4.16 shows the comparison on the respondents’ perception towards perceived desirability related to race. From this table, the mean score is ranging from 3.61 to 4.01. Based on One-Way ANOVA, analysis showed significant difference on the respondents’ perception towards perceived desirability related to race. The ‘f’ value calculated is 0.05, whereas the fixed significant level is 0.05 (5%). The low value of ‘f’ showed significance. This indicated that there is a significant difference on the respondents’ perception towards perceived desirability related to race. 74 Least Significant Difference (LSD) test applied to acquire the mean of groups that are significantly different. Table 4.17: LSD test Analysis for comparison of respondents’ perception towards Perceived Desirability related to Race Group Mean Malay Chinese Malay 3.61 - Chinese 3.85 ns - Indian 4.01 * ns Indian - * Significant at level 0.05; ns – not significant Table 4.17 shows the results of LSD test analysis for comparison of respondents’ perception towards perceived desirability related to race. Based in the LSD test analysis, it is found that there are significant differences between groups mean Malay and Indian. Hypothesis 4 accepted for this analysis. Therefore the following null hypothesis rejected, Hφ4: There is no difference on respondents’ perception towards Perceived Desirability related to Race. 75 Hypothesis 5: There is a difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. Table 4.18: Mean Score Analysis and One-Way ANOVA as a comparison of respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race Race Frequency Mean SD Malay 44 1.29 1.08 Chinese 47 1.19 1.01 Indian 36 1.29 0.98 Total 127 1.25 1.02 One-way ANOVA Sum of Mean Df Squares Square 2 0.30 0.15 Within groups 124 130.90 1.06 Total 126 131.20 Between groups f F prob. 0.14 0.87 Significant at confidence level f<0.05 Table 4.18 shows the comparison on the respondents’ perception towards breadth and positiveness of past entrepreneurial experience related to race. From this table, the mean score is ranging from 1.19 to 1.29. Based on One-Way ANOVA, analysis showed no significant difference on the respondents’ perception towards breadth and positiveness of past entrepreneurial experience related to race. The ‘f’ value calculated is 0.87, whereas the fixed 76 significant level is 0.05 (5%). The extremely high value of ‘f’ showed no significance. This indicated that there is no significant difference on the respondents’ perception towards breadth and positiveness of past entrepreneurial experience related to race. Hypothesis 5 rejected for this analysis. Therefore the following null hypothesis accepted, Hφ5: There is no difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. Hypothesis 6: There is a difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. Table 4.19: Mean Score Analysis and One-Way ANOVA Comparison of Respondents’ perception towards Propensity for Proactive Behaviour related to Race Race Frequency Mean SD Malay 43 3.87 0.53 Chinese 45 3.96 0.64 Indian 36 4.13 0.47 Total 129 3.98 0.56 One-way ANOVA Sum of Mean df Squares Square 2 1.35 0.67 Within groups 121 37.71 0.31 Total 123 39.06 Between groups Significant at confidence level f<0.05 f F prob. 2.16 0.12 77 Table 4.19 displays the comparison on the respondents’ perception towards propensity for proactive behaviour related to race. From this table, the mean score is from 3.87 to 4.13. Based on to One-Way ANOVA, the analysis showed no significant difference on the respondents’ perception towards propensity for proactive behaviour related to race. The ‘f’ value calculated is 0.12, where as the fixed significant level is 0.05 (5%). The extremely high value of ‘f’ doesn’t show any significance. This indicated that there are no significant differences on the perception of propensity for proactive behaviour related to race. Hypothesis 6 rejected for this analysis. Therefore the following null hypothesis accepted, Hφ6: There is no difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. 4.3 Chapter Summary This chapter presented the analysis for the current study. It covers the results that are branched in two subsections that are I) Results on Descriptive survey and II) Inferential Analysis. The descriptive survey, the percentage, mean, standard deviation and level analysis on respondents’ perception towards perceived desirability, breadth and positiveness of past entrepreneurial experience, propensity for proactive behaviour and entrepreneurial intentions are analyzed. In the subject inferential analysis, correlation that associates the variables tested is shown. This follows the mean score results and one-way ANOVA to view the respondents’ perception towards perceived desirability, breadth and positiveness 78 of past entrepreneurial experience, propensity for proactive behaviour and entrepreneurial intentions in relation to their race. CHAPTER V DISCUSSION 5.0 Introduction This chapter presents an in-depth discussion of the results and implications of the current study. First, the findings for each of the hypothesis are reviewed with possible explanations why some of the expected relationships were not found. Next, implications of the findings for the research model are discussed. The theoretical and practical implications of the study were then examined. Next, the limitations of the study are reviewed. Finally, directions for future research conclude this chapter. 5.1 Hypothesized Relationships- Hypothesis 1 Based on hypothesis 1, it is expected that the perceived desirability of starting a business would be positively associated with the formation of entrepreneurial intentions. That is people who have a positive attitude toward starting a business and thinks that starting a business is a desirable behaviour will likely form entrepreneurial intentions to do so. This relationship is supported in the study. The results of this study were consistent with prior research that investigated attitude toward a behaviour and the formation of intentions (e.g., Ajzen, 1991). The support 80 for hypothesis 1 indicates that perceived desirability of entrepreneurship has a significant and positive relationship to the formation of entrepreneurial intentions. Hypothesis 1 accepted; Perceived Desirability is positively associated with the formation of Entrepreneurial Intentions. Therefore the following null hypothesis rejected, Hφ1: Perceived Desirability is not associated with the formation of entrepreneurial intentions. Race (Ethnic Group) H5 H4 H6 Social Support Trigger Event H2 0.42** Breadth & Positiveness of Past Entrepreneurial Experience Perceived Desirability Propensity for Proactive Behaviour H1 0.49** H3 0.21* Entrepreneurial Intentions Perceived Feasibility **Significant at confidence level p<0.01 *Significant at confidence level p<0.05 Figure 5.1: Shapero’s (1982) Model of Entrepreneurial Event with Hypothesis and Correlation Magnitude for Hypothesis 1 through 3 81 5.2 Hypothesized Relationships- Hypothesis 2 Another area of investigation of the current study was examination of the factors that may relate to the formation of perceived desirability. Hypothesis 2 proposed that the breadth and positiveness of past entrepreneurial experience would be positively related to the formation of favourable perceptions of perceived desirability. The results, did confirm that breadth and positiveness relation between perceived desirability and positiveness of past entrepreneurial experience. Specifically, perceived desirability was not related to the quantity of experience appeared to be. The results of the current study concerning breadth and positiveness of past entrepreneurial experience were consistent with findings of Krueger (1993). Hypothesis 2 accepted; The Breadth and Positiveness of Past Entrepreneurial Experience is positively associated with Perceived Desirability. Therefore the following null hypothesis rejected, Hφ2: The Breadth and Positiveness of Past Entrepreneurial experience is not associated with perceived desirability. 5.3 Hypothesized Relationships- Hypothesis 3 Shapero’s (1982) model of the entrepreneurial event suggested that it would be difficult to form intentions to start a business without a strong desire to take action on the intentions. In the current study, hypothesis 3 predicted that a person with a proactive personality (i.e., a propensity for proactive behaviour) would likely to develop intentions to engage in entrepreneurship. That is, a person who feels 82 unconstrained by situational and environmental forces and who is willing to seek opportunity, show initiative, take action, and persevere until closure, is likely to form intentions to start a business. The findings of the current study support this hypothesis. These findings are consistent with results from another recent entrepreneurial studies. Crant (1996) found a positive relationship between a person with a proactive personality and his or her success as an entrepreneur. Hypothesis 3 accepted; The Propensity for Proactive Behaviour is positively associated with the formation of Entrepreneurial Intentions. Therefore the following null hypothesis rejected, Hφ3: The Propensity for Proactive Behaviour is not associated with the formation of entrepreneurial intentions. 83 H5 0.87 Race (Ethnic Group) H4 0.05* H6 0.12 Social Support Trigger Event H2 Breadth & Positiveness of Past Entrepreneurial Experience Perceived Desirability Propensity for Proactive Behaviour H1 H3 Entrepreneurial Intentions Perceived Feasibility *Significant at confidence level f<0.05 Figure 5.2: Shapero’s (1982) Model of Entrepreneurial Event with ‘f’ value based on ANOVA for Hypothesis 4 through 6 84 5.4 Hypothesized Relationships- Hypothesis 4 Table 5.1: Summary for comparison of respondents’ perception towards Perceived Desirability related to Race Group Mean Malay Chinese Malay 3.61 - Chinese 3.85 ns - Indian 4.01 * ns Indian - * Significant at confidence level f<0.05; ns – not significant The table above shows that there is a significant difference on the respondents’ perception towards perceived desirability in relation to race. Based on the test, it was found that there is significant differences between groups mean Malay and Indian. As for the relationship mentioned, perceive achievements are very important to Indians. This affected their desire that starting a business to be very attractive. According to Charles (1990), Indian is the highest among other ethnic groups that 82.3% agreed values of perceive achievement in education as important to one’s future. The magnitude of education contributes to entrepreneurship endeavour. A literature suggests that a relationship exists between entrepreneurship education and business venturing. Graduates who are exposed to entrepreneurship concepts and the practical ff of preparing a business plan during their study were found to enter business ownership at a noticeably higher rate than their peers of similar age (Wilberforce, 2001). 85 According to a survey done in 1990 by Charles, Indians rate “decisiveness” as the number 1 strongest value compared to Malays that rated the same value as number 2. The decisiveness provides determination and desire to start a business venture. Hypothesis 4 accepted; There is a difference on respondents’ perception towards Perceived Desirability related to Race. Therefore the following null hypothesis rejected, Hφ4: There is no difference on respondents’ perception towards Perceived Desirability related to Race. 5.5 Hypothesized Relationships- Hypothesis 5 Based on the analysis, it was found that there is no significant difference on the respondents’ perception towards breadth and positiveness of past entrepreneurial experience related to race. Hypothesis 5 rejected; There is a difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. Therefore the following null hypothesis accepted, Hφ5: There is no difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. 5.6 Hypothesized Relationships- Hypothesis 6 Based on the analysis, it is found that there is no significant difference on the respondents’ perception towards propensity for proactive behaviour related to race. 86 Hypothesis 6 rejected; There is a difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. Therefore the following null hypothesis accepted, Hφ6: There is no difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. Table 5.2 : Summary of Hypotheses Tested Summary of Hypotheses Tested Hypotheses Accepted/ H1: Perceived Desirability is positively associated with the formation of entrepreneurial intentions. H2: The Breadth and Positiveness of Past Entrepreneurial experience is positively associated with perceived desirability. H3: The Propensity for Proactive Behaviour is positively associated with the formation of entrepreneurial intentions. H4: There is a difference on respondents’ perception towards Perceived Desirability related to Race. Rejected A A A A H5: There is a difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related R to Race. H6: There is a difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. A = statistically accepted R = statistically rejected 5.7 Implications of the Study R This study provided the comparison for the three major ethnic groups in relation to their entrepreneurial intention. The Shapero’s (1982) model of 87 entrepreneurial event was modified to combine with race as the theoretical foundation for the study. By analyzing intention-based models with relation to ethnic identification, the study provided greater understanding of the birth of a new firm. Because entrepreneurial activity is such a significant part of today’s economy (Zainab Ahmad, et al., 1997), a better understanding of the birth of business provided by the current study has important implications for theoretical investigations by researchers as well as a practical application by entrepreneurs, entrepreneurship educators, and policy makers. Based on the study, there was no difference between the three ethnic groups in relation to their breadth and positiveness of past entrepreneurial experience and propensity for proactive behaviour. This represents the strength of their values are similar and leads more to a common cultural understanding. 5.8 Theoretical Implications A unique aspect of the current study was the use of a sample of individuals, which are IT Technopreneurs. Unlike prior research that investigated the formation of entrepreneurial intentions in a general sense, this study used specific entrepreneurial activity. As a result, the findings of this study, which support the positive association between entrepreneurial intentions and perceived desirability and propensity for proactive behaviour found in prior research (Crant, 1996), show that these relationship are significant for specific entrepreneurial activity (IT Technopreneur) as well as entrepreneurship in general. The findings suggest that perceived desirability and propensity for proactive behaviour are both useful for 88 research into general perceptions of entrepreneurial intentions and intentions to form specific business enterprises. Results of the current study may also provide additional insight into the formation of intention that is directly influenced by their ethnicity in Malaysia. It is found in this study that there is a significant difference on respondents’ perception towards perceived desirability related to race. This is due to the their perception of educational importance for life, and this has affected their desire that starting a business to be very attractive. Although, there were no other significant relationship between race and their breadth and positiveness of past entrepreneurial experience and propensity for proactive behaviour, this actually contributes to the oneness of three major ethnic groups in Malaysia. These three major ethnic groups have the proactive behaviour, perceived desirability and breadth and positiveness of past experience towards their intention for the formation of MSC Status Company. This contributes to the existence of common cultural attributes of Malaysian IT technopreneurs. Both the Ajzen (1991) model of planned behaviour and the Shapero (1982) model of entrepreneurial event suggest that past experience influence attitudes about specific behaviours. The current study provided support for the relationship between positiveness of past experience and perceived desirability. That is, people tend to focus on perceptions of how positive the experience was. Consequently, entrepreneurship researchers may be able to concentrate only on the positive perceptions of past experience to fully understand the entrepreneurial process. In summary, there are several benefits to entrepreneurial theory suggested by the current study. Because many of the respondents used in this study were in the process of choosing the specific entrepreneurial activity of IT Technopreneur, the 89 positive relationship between the formation of intentions and perceived desirability and propensity for proactive behaviour that were found in prior generic entrepreneurial intentions research were supported for specific entrepreneurial activity (i.e., IT business). Perceptions of the desirability of entrepreneurship were positively related to the degree of the evaluation of past entrepreneurial experience. 5.9 Practical Implications Entrepreneurship is essential to the health of Malaysia’s economy because small firms accounts of the gross domestic product and provide higher percent of all new jobs. Multimedia Development Corporation (MDC) has identified strategic thrust included in the second flagship aimed on the development of technopreneurs and small and medium-sized enterprises (SMEs)(Dr Mohamed Arif Nun, 2001Computimes). The results of the current study provide practitioners such as entrepreneurs, entrepreneurs’ educators, and policy makers with a variety of practical implications that may aid in the development of vital entrepreneurial activity. By understanding how entrepreneurial intentions were formed, practitioners may be able to take advantage of the strong intention-behaviour relationship to foster new firm creation. The results of the current study indicate that people who have a propensity for proactive behavior are more likely to form high entrepreneurial intentions that those who are not proactive. This would indicate that one way to detect potential entrepreneurs is to find individuals with a proactive personality. One may question the practical implications of a simple personality measure to select potential entrepreneurs. This is a reasonable concern considering that past 90 entrepreneurship research has concentrated primarily on traits (e.g., personality), and has had limited success in explaining entrepreneurship process (Gartner, 1988). Gartner (1988) posits that what entrepreneurs do may explain more of the entrepreneuship process than which may entrepreneurs are. Because propensity for proactive behaviour links personality to potential behaviour, it may provide the bridge between the two streams of research and thus, provide a useful predictive tool. A major practical implication of the current study is that by knowing how intentions are formed, it may be possible to manipulate the process to encourage entrepreneurial behaviour. For example, with the potential to influence intentions is the perceived desirability of entrepreneurship. The current study suggests that positiveness of past entrepreneurial experience relate to the formation of perceptions of desirability. For example, by educating family and friends of potential entrepreneurs about the value of entrepreneurship, perceptions of desirability could be positively influenced. Establishing mentor or incubator programs would be an additional method for enhancing perceptions of desirability through positive social support. The positiveness of past experience could be enhanced by providing positive exposure to entrepreneurship through either observation or direct contact. For example, individuals could be introduced to successful entrepreneurs who share their positive experiences. Providing intern programs so they could work directly with successful business people could encourage potential entrepreneurs. These kinds of actions could enhance perceptions of desirability leading to the formation of entrepreneurial intentions. Overall, the potential to take advantage of the relationship that was supported in this study are many. Understanding how entrepreneurial intentions were formed 91 could allow practitioners a vast array of opportunity to encourage entrepreneurial activity. 5.10 Limitations of the Study Because all the information in the current study was collected from selfreports questionnaire, the potential for common methods variance was great. Arlene Fink (1995) suggests this is particularly true when two or more measures are taken from the same respondent (same source bias), as was the case in the current study. Because of the nature of the current research study, data for the variables can only be obtained by the use of self-reports. All the variables in the study are measuring individual perceptions; therefore, the only way to collect the information is to ask the respondents. The current study is similar to other studies that have had to rely completely on self-reports for data collection (i.e., Crant, 1996) A procedural techniques suggested by Fink (1995) were employed to help minimize the impact of common methods variance. First, measures contained in the questionnaire were constructed using different scaling techniques such as 5 point scale (ordinals), “yes”/”no” responses (nominally), and open-ended responses (i.e., numerically)(see Appendix B). In addition, the scales were not arranged in any particular order. For example, the dependent variable (entrepreneurial intentions) is not the first variable, but is located in the middle of the questionnaire. Two observations, however, may help provide more confidence in the study’s results. First, some of the findings of the current study are consistent with past research. The significant positive relationship between propensity for proactive behaviour and entrepreneurial intentions was consistent with research by Krueger, 92 (1993) and Crant (1996) that used similar constructs. The significant positive relationships found in the current study between perceived desirability and intentions and between positiveness of past entrepreneurial experience and perceived desirability were consistent with research by Krueger (1993). The second observation is that people in the sample were consistent in their perceptions. That is, people in the IT business answered consistently. Those who were not interested in venturing, as a MSC status company was consistent in their negative responses about becoming a MSC status company just as those subjects who wanted to be honored the MSC status were consistent in their positive responses. This indicates that people were answering according to their perceptions and not because of social desirability. It should be noted, however, that one of the primary strengths of the current study is that it does focus on individuals who are in the process of making a specific entrepreneurial decision. As mentioned previously, this addresses the problem in previous entrepreneurial research of including individuals in the sample who are not engaged in making an entrepreneurial decision. This approach to sampling brings the validity of the findings into question (Gartner, 1989). 5.11 Direction for Future Research Future research could be directed down to four different paths. First, there is opportunity to improve the current study and refine the research model especially related to cultural differences. Second, additional research should be conducted that is directed at assessing the effect of manipulating the various variables that relates to the formation of intentions to either encourage or discourage entrepreneurial 93 behaviour. Third, the value of the current research depends on the strength of the intention-behaviour relationship. This relationship needs further study. Finally, research linking the research model to ultimate success of the business would be a long-term goal. Several avenues of research could be employed to improve the current study and better improve the research model. A larger sample could be used to detect smaller effect sizes in some of the hypothesized relationship. Some of the concepts and measures could be refined to provide information that is more specific. For example, future research could focus on developing a self-efficacy assessment that could identify the specific skills, abilities, and resources that have most impact on the formation of intentions. Opportunity search also should be taken into account as a powerful contribution of entrepreneurial intention. A more finely defined measure of the impact of the positiveness of past experience should be developed that would enable researchers to identify what kind of experience have the greatest relationship to perceived desirability. A persistent weakness of past entrepreneurship research has been the inability to select a sample of individuals serious about entrepreneurial activity who are in the process of making a decision about starting a business (Gartner, 1989). This study attempted to solve this weakness by selecting a sample in which some were actually in the process of making entrepreneurial decision concerning becoming a MSC status company. Future research, however, needs to expand this type of study to include individuals considering entrepreneurial activity that requires constant innovation in areas such as decision support system, artificial intelligence and expert systems processes. Such innovations were often considered necessary for entrepreneurship. 94 Future researchers should investigate how the manipulation of the variables in the research model would influence the formation of entrepreneurial intentions. Researchers could determine if exposure to successful entrepreneurs, basic skills training, or development of social networks aids in raising the intentions to form a new business. In addition, researchers could determine if one type of manipulation has more impact than other types (e.g., Does skill training have more influence than cultural values?). The research opportunities along this avenue are almost limitless. The value of the current research model is dependent on the strength of the intention-behaviour relationship. Entrepreneurial intentions have little use if they are not acted upon. Therefore, future research should more fully investigate this relationship. If a sample was used that contained individuals serious about entrepreneurship, then the subjects could be included in a longitudinal study to see whether they actually started the business they intended to start. A strong intentionbehaviour relationship would help bridge the gap between the pre start-up phase and start-up phase in the business life cycle. Further researches are essential to find out the new attributes for the three major ethnic groups in Malaysia. As for this millennium, the differences among these races are getting minimal. They tend to share and accommodate their cultural values and harness them as Malaysian values. The effect of globalization also plays a vital role in transforming the conventional Malaysian culture to a new millennium culture. The borderless world changed the way people work, thinks, acts and behave. We still have to look for the answer for question such as “Do we still have strong cultural values among us?” or “How does globalization change our entrepreneurs?” or “Does the entrepreneur still 95 stick to their own cultural values for decision making in this fast paced borderless world?” Finally, future research should investigate the relationship between the initial pre start-up conditions described in the research model and long-term firm success. For example, research questions such as, “Do individuals with a proactive personality have a better chance of success than others?” or “Does strong initial social support lead to firm success?” or “Do people who have a high self efficacy assessment produce better long-term results?” Questions similar to “Does culture plays an important role for success?” or “Does the definition of success are similar to every culture?” would be important questions for further research. Again, the opportunity for future research along these lines is great and almost limitless. 5.12 Chapter Summary The primary purpose of the study was to be an exploratory effort where the relationships among personal traits and characteristics of the entrepreneur along with predisposing events relate to the formation of entrepreneurial intentions. A research model based on Shapero’s (1982) model of entrepreneurial event was expanded with six hypothesized relationship. This chapter begins with a discussion of the results of the six proposed relationship. Four of the six relationships supported. Perceived desirability is positively related to entrepreneurial intentions. Positiveness of past entrepreneurial experience is positively related to the perceived desirability. A propensity for proactive behaviour is related to the formation of entrepreneurial intentions. There are differences on respondents’ perception towards Perceived Desirability related to Race. 96 Two of the six relationships rejected. There is difference on respondents’ perception towards Breadth and Positiveness of Past Entrepreneurial Experience related to Race. There is difference on respondents’ perception towards Propensity for Proactive Behaviour related to Race. The discussion of the hypotheses was followed by implications for the research model. Next, the chapter presented both theoretical and practical implications of the study. The following section discussed the limitations of the study with particular attention to the potential threat of common methods variance. The chapter concludes with a proposed research agenda to improve the current study and expand the scope of the current study to answer a variety of other research questions. 97 REFERENCES Ajzen, I. (1991). The theory of planned behavior. 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International Conference for Entrepreneurship Education and Training, 2nd to 4th July, 2001. South Africa: Not Published. Zainab Ahmad, et al. (1997). Keusahawanan. Terbitan MEDEC: Kuala Lumpur. APPENDIX B QUESTIONNAIRE Introduction: I would appreciate your cooperation in a research project I am conducting about becoming an Information Communication Technology Entrepreneur (IT Technopreneur). Please take your time to fill out this questionnaire as accurately as possible. All responses will be on strictest confidence. SECTION 1 To what extent do you agree with the following statement? Please circle the appropriate number. Neutral Strongly Strongly 1. I am constantly on the lookout for new ways to improve my life. 2. I feel driven to make a difference in my community, and maybe the world. 3. I tend to let others take the initiative to start new projects. 4. Wherever I have been, I have been a powerful force for constructive change. 5. I enjoy facing and overcoming obstacles to my ideas. 6. Nothing is more exciting than seeing my ideas turn into reality. 7. If I see something I don’t like, I fix it. 8. No matter what the odds, if I believe in something I will make it happen 9. I love being a champion for my ideas, even against others’ opinions. 10. I excel at identifying opportunities. 11. I am always looking for better ways to do things. 12. If I believe in an idea, no obstacle will prevent me from making it happen. 13. When I have a problem, I tackle it head-on. 14. I am great at turning problems into opportunities. 15. I can spot a good opportunity long before others can. (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) Next page please… 16. If someone is in trouble, I help out in any way I can. (1) (2) (3) (4) (5) SECTION 2 Please circle the appropriate number. 1. How would you feel if you become an IT Technopreneur? I’d hate doing it (1) (2) (3) (4) (5) I’d love doing it 2. How stressful would it be as an IT Technopreneur? Very stressful (1) (2) (3) (4) (5) Not stressful at all 3. How enthusiastic would you be as an IT Technopreneur? Not enthusiastic at all (1) (2) (3) (4) (5) Very enthusiastic 4. How much personal independence would you feel as an IT Technopreneur? Not independent at all (1) (2) (3) (4) (5) Very independent 5. How much personal satisfaction would you get as an IT Technopreneur? Not much at all (1) (2) (3) (4) (5) A great deal SECTION 3 Please answer the following by circling either “yes” or “no” and, “if yes”, using your best judgment, circle how “positive” or “negative” the experience was in the question that follows. Be sure to circle “1=very negative”, “2=negative”, “3=Neutral”, “4=positive”, or “5= very positive” if your first answer is “yes”. Very Neutral Very Negative Positive 1. Have your parents ever been an IT Technopreneur? Yes No (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) If yes, was your experience? (Circle one) (1) (2) (3) (4) (5) 4. Have you ever done any IT activity (i.e., software development, (1) (2) (3) (4) (5) If yes, was their experience? (Circle one) 2. Do you know anyone else who is or has been an IT Technopreneur? Yes No If yes, was his or her experience? (Circle one) 3. Have you worked for any IT Technopreneur company or firm? Yes No web page authoring, e-commerce application, etc)? Yes No If yes, was your experience? (Circle one) 5. Have your parents started a business other than IT? Yes No If yes, was their experience? (Circle one) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) 6. Do you know anyone else who has started a business other than IT? Yes No If yes, was his or her experience? (Circle one) 7. Have you ever worked for a small business other than IT? Yes No If yes, was your experience? (Circle one) 8. Have you ever started your own business other than IT? Yes No If yes, was your experience? (Circle one) SECTION 4 On a scale of 0% to 100% there is a % chance that I will venture into IT Business to be honored the MSC Status Company in the near future. Note: If your business awarded the MSC Status at present, please write “A” at the space above. Please be sure you have marked the answers chosen. SECTION 5 Please provide information about yourself 1. Sex: (M)ale 2. Racial / Ethnic Identification (Please Circle) (F)emale 3. Age: (e) Bumiputera Sarawak (f) Others, please specify: (a) Malay (b) Chinese (c) Indian (d) Bumiputera Sabah 4. Education (Please Circle) (a) School Certificate (SRP/PMR, SPM or STPM) (e) Bachelors Degree (f) Masters Degree (b) Vocational/Technical School (g) PhD (c) Polytechnic (h) Others, please specify: (d) Diploma I would like to follow-up with you in the near future (1-2 months). This will permit me to provide you with the findings and statistics of this survey. If you volunteer for a follow up please provide the Next page please… following: Name : Address : Phone Number : E-Mail Address : I would like to convey my deepest gratitude for your precious time and effort to answer this questionnaire. Hope for the best in entrepreneurship endeavor. Best of Luck to you too. Thank You