Determinants of entrepreneurial intentions : the interrelated role of background, situational and psychological factors

Abstract

The role of entrepreneurial intentions in explaining entrepreneurial behaviours is well-established on a theoretical basis but there is still a need to examine the diverse and interrelated factors that jointly lead to the formation of entrepreneurial intentions and behaviours. Based on a systematic literature review of entrepreneurial intentions three main research questions emerged related to the applicability of psychological models that determine entrepreneurial intentions and, consequently, behaviours. Following these, this thesis undertakes four empirical studies to address the identified questions. Each study is based on a conceptual model that is examined by implementing appropriate quantitative research methods and reflects on the investment context. The first empirical study examines whether the availability of capital and entrepreneurial motivation impact on entrepreneurial intentions at challenging times such as those encountered during the economic recession in Greece. The study provides insights regarding how the environmental factors interact with background and psychological factors in determining entrepreneurial intentions. In doing so, it extends and tests the ecological validity of Bird’s Entrepreneurial Intentionality Model in the investment context. The second empirical study addresses the motivations and the conditions under which the Theory of Planned Behaviour (TPB) psychological constructs relate and interact. It goes beyond the applicability and ecological validity of the TPB by showing the presence of mediating and moderation effects between and among the psychological constructs in the Greek investment context. The third empirical study examines whether background factors indirectly influence entrepreneurial intentions via psychological constructs and whether the relationships differentiate between cultural backgrounds. The study extends Bird’s Entrepreneurial Intentionality Model using the TPB, and the role of culture, by showing that the availability of capital determines intentions differently when it comes to young individuals from a collectivistic culture (Greece) and individualistic culture (England). ii The objective of the above empirical studies was to advance the understanding of entrepreneurial intentions by approaching intentions as a dependent construct. Under each study the contributions to theory and practice are discussed in detail. Overall, this research concludes that entrepreneurial intentions are formed based on i) background factors concerning individuals’ availability of capital and cultural orientation ii) situational/environmental factors related to the recent economic crisis and iii) psychological factors such as motives, personal attitudes, subjective norms and perceived behavioural control. The extension of existing psychological models and theories with the incorporation of additional theoretical lenses provides valuable practical implications and recommendations for policy makers in order to boost venture creation and growth activities on a national or international basis.