EFFECTS OF THE PLANNED BEHAVIOR ON ENTREPRENEURIAL INTENTION OF UNDERGRADUATE STUDENTS IN TURKEY

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1 EFFECTS OF THE PLANNED BEHAVIOR ON ENTREPRENEURIAL INTENTION OF UNDERGRADUATE STUDENTS IN TURKEY Ahu Tuğba Karabulut, Faculty of Business, Istanbul Commerce University, Imrahor Cad. No:90 Sütlüce Beyoğlu Istanbul Turkey, , Carl M. Rebman Jr., University of San Diego, School of Business, 5998 Alcala Park, Coronado 212, San Diego, CA 92110, , ABSTRACT The main aim of this study is to examine the effects of the Ajzen s (1991) theory of planned behavior on the entrepreneurial intention of Turkish undergraduate students. Linan and Chen s (2009) Entrepreneurial Intention Questionnaire (EIQ) was applied to 126 undergraduate students in a foundation university in Istanbul in this research. Frequency distribution analyses, factor analyses, reliability analyses, correlation analysis, and multiple regression analysis were conducted to the data. Results indicate that the planned entrepreneurial behavior has a positive effect on the entrepreneurial intention and with personal attitude haivng the highest effect. INTRODUCTION An entrepreneur is a person who has entrepreneurial intention to establish his own venture. He decides and chooses entrepreneurship as a career among alternative career options. Entrepreneurship is considered as a catalyst for growth of national economies. Undergraduate students are encouraged to be entrepreneurs when they graduate during their education. Many undergraduate students take entrepreneurship courses that help them to understand entrepreneurship, evaluate pros and cons of being entrepreneurs, and lead them for starting their own businesses. Ajzen (1991) developed the theory of planned behavior (TPB) to find out factors that affected intentions. It has three dimensions namely; personal attitude, subjective norm and perceived behavioral control. It is a detailed model to evaluate behavioral dimensions of entrepreneurial intention. The TPB has been used to figure out entrepreneurial intention of students in the literature. Previous researches reveal that its dimensions affect entrepreneurial intention. This paper focuses on the effects of the planned behavior of Ajzen (1991) on the entrepreneurial intention of Turkish undergraduate students. First of all, literature review will be explained, then research methodology and findings will be presented. Finally, the paper will be wrapped up with conclusion. LITERATURE REVIEW Intention is defined as an immediate antecedent of a behavior. Ajzen (1991) believes that behaviors that are diffucult to execute can limit volitional control so perceived behavioral control needs to be considered with intention. He (1991) adds that when people are realistic that a behavior is difficult, a measure of perceived behavioral control can be used for actual control to predict the behavior (Hrubes et al., 2011, p. 167). Entrepreneurial intention reveals the readiness level of a person to act entrepreneurially. It is an indicator showing how much effort a person will commit to conduct an entrepreneurial behavior. Intentions can be planned behavior s predictor (Bagozzi et al., 1989). There are entrepreneurial intentions behind entrepreneurial actions (Debarliev et al., 2015, pp ). -21-

2 Entrepreneurial intention may lead to get the advantage of opportunities. Several authors have mentioned that establishing a new venture is related to entrepreneurial intentions. Thus, entrepreneurial intention is the major determinant of an entrepreneurship behavior. It is an intellectual process for developing and implementing a business plan of an entrepreneur. Intention models have been used to explain how entrepreneurs act and make decisions in the literature. Entrepreneurship is intented and planned action. Developing intention models proposed researchers comprehensive frameworks to explain and predict entrepreneurial behaviors. Several intention models were developed in 1980s and 1990s (Doğan, 2013, pp ). The theory of planned behavior (TPB) is an extension of the theory of reasoned action (Fishbein and Ajzen, 1975; Randall, 1994, p. 370). Several authors believe that TPB has been popular in the literature to predict behaviors in an attitude-behavior relationships expectancy value model. The TPB can be used to identify behavioral determinants (Ajzen, 1988, 1991, 1996; Godin and Kok, 1996; Conner and Sparks, 1996; Armitage and Conner, 2001; Cheng et al., 2005; Tolma et al., 2006) (Cheng and Chu, 2014, p. 37). TPB (Ajzen, 1991; Ajzen and Fishbein, 1980) is used in behavioral sciences to understand behavior and is an accepted model of social psychology focuses on consciously intended behaviors determinants (Damron-Martinez et al., 2013, pp ). TPB also proposes that the social-cognitive constructs of TPB mediate the relation between behavior and personality. Courneya et al. (1999) conducted a study to figure out whether TPB mediated the relation between personality and exercise behavior (Courneya et al., 1999, p. 317). Huang (2011) conducted a study that illustrated that attitude, subject norms, and perceived behavioral control are linked to an intention. Picket et, al (2012) conducted another study which revealed thatattitudes, subjective norms, perceived behavioral control, and intentions can predict behavior. Three considerations can guide action: beliefs about behavior s consequences (behavioral beliefs), beliefs about others normative expectations (normative beliefs), and beliefs about factors presence hindering or furthering behavioral performance (control beliefs). Behavioral beliefs cause attitude toward the behavior, normative beliefs cause perceived social pressure (subjective norm); and control beliefs enhance perceived behavioral control (Bamberg et al., 2003, pp ). Attitude toward performing a behavior is personal judgement whether a behavior is bad or good or a performing person is against or in favor a behavior. Performing the behavior causes consequences and personal evaluation about them. Subjective norms reveal whether important people believe a person should perform the behavior and motivation of a person for complying with them. Perceived behavioral control that shows a personal perception of personal control over the behavior is a function of personal control beliefs whether performing the behavior is easy or difficult and perception of resources and opportunities for performing the behavior (Randall, 1994, p. 370). Attitude is a function of products of behavioral beliefs and outcome evaluations. Subjective norms are determined by a person s perceived expectation of referent individuals or groups multiplied by his or her motivation to comply with these expectations. Perceived behavioral control depends on control belief multiplied by perceived facilitation. When the attitude and subjective norm related to a behavior are more favorable and the perceived behavioral control is greater, intention of a person to perform the behavior becomes stronger (Damron-Martinez et al., 2013, p. 110). -22-

3 TPB has the following two propositions: (1) a person will perform a behavior when he has resources and opportunities and intends to do so and (2) a person will perform a behavior when he can control it, it is a positive behavior based on his evaluation, and other people believe he should perform it (Ajzen, 1988, 1991) (Courneya et al., 1999, p. 317). TPB (Ajzen, 1985, 1987, 1991) has been used in several studies combining attitudes and behaviors (Sutton, 1998; Conner and Armitage, 1998). According to TPB, when perceived behavioral control increases, an intention for performing a behavior increases (Cordano and Frieze, 2000, p. 628). Caska (1998) showed that the attitude, subjective norms, and perceived behavioral control explained job-seeking of undergraduate students. Wanberg et al. (2005) revealed that subjective norms and job search self-efficacy disclosed job search intention. Van Hooft and De Jong (2009) showed that attitudes and subjective norms predicted job seeking intentions for temporary jobs (Huang, 2011, pp ). Robledo et al. (2015) found that perceived behavioral control and attitudes affected the entrepreneurial intentions of Spanish undergraduate students whereas subjective norms did not affect entrepreneurial intentions of them. Tegtmeier (2012) conducted a study to German undergraduate students and found that attitude, social norm, and perceived behavioral control affected entrepreneurial intention. On the other hand, the International Survey of Collegiate Entrepreneurship showed that entrepreneurial intentions of German students were the lowest among 14 other countries (Fueglistaller et al., 2006) (Tegtmeier, 2012, p. 152). Debarliev et al. (2015) conducted a research to Macedonian undergraduate students and found that personal attitude, subjective norm and perceived behavioral control had positive effects on entrepreneurial intention. METHODOLOGY The main aim of this study is to examine the effects of Ajzen (1991) theory of planned behavior on the entrepreneurial intention of Turkish undergraduate students. Sample and Data Collection Method This research was conducted on senior undergraduate students in the foundation university in Istanbul in Turkey. There were 270 senior undergraduate students who have business administration, international commerce and economics majors in the faculty of business in this university. Questionnaires were given to and collected back from 135 students in classes. 126 usable questionnaires were collected. Frequency distribution analyses, factor analyses, reliability analyses, correlation analysis, multiple regression analysis were conducted to the data. -23-

4 Research Model of the Study The research model is presented as follows: Personal Attitude Subjective Norm Entrepreneurial Intention Perceived Behavorial Control The hypotheses of this research are as follows: H1: Planned Entrepreneurial Behavior Positively Affects Entrepreneurial Intention H1a: Personal Attitude Positively Affects Entrepreneurial Intention H1b: Subjective Norm Positively Affects Entrepreneurial Intention H1c: Perceived Behavioral Control Positively Affects Entrepreneurial Intention Measures of the Study Linan and Chen s (2009) Entrepreneurial Intention Questionnaire (EIQ) was applied in this research and is shown in table 1. The Turkish version of EIQ translated for and used in Karabulut (2016) was given to Turkish students to be answered. Table 1. Research Questions Variable Personal Attitude Indicate your level of agreement with the following statements from 1 (total disagreement) to 7 (total agreement) Subjective Norm If you decided to create a firm, would people in your close environment approve of that decision? Indicate from 1 (total disapproval) to 7 (total approval) Perceived Behavioral Control To what extend do you agree with the following statements regarding your entrepreneurial capacity? Value themm from 1 (total disagreement) to 7 (total agreement) Entrepreneurial Intention Indicate your level of agreement with the following statements from 1 (total disagreement) to 7 (total agreement) Statement Being an entrepreneur implies more advantages than disadvantages to me A career as entrepreneur is attractive for me If I had the opportunity and resources, I d like to start a firm Being an entrepreneur would entail great satisfactions for me Among various options, I would rather be an entrepreneur Your close family Your friends Your colleagues To start a firm and keep it working would be easy for me I am prepared to start a viable firm I can control the creation process of a new firm I know the necessary practical details to start a firm I know how to develop an entrepreneurial project If I tried to start a firm, I would have a high probability of succeeding I am ready to do anything to be an entrepreneur My professional goal is to become an entrepreneur I will make every effort to start and run my own firm I have very seriously thought of starting a firm I have the firm intention to start a firm one day. -24-

5 Analysis The cronbach alpha values of variables were calculated to figure out reliability. Factor analyses highlighted factor loadings of variables. Multiple regression analysis revealed effects of independent variables (personal attitude, subjective norm and perceived behavioral control) on the dependent variable (entrepreneurial intention). Findings Table 2. Frequency Distribution Analyses N % Mean St. Deviation Age Female Gender Male Business Degree Studied International Trade Economics Yes Work Experience No Yes Know Entrepreneur (As a Family Member) No Yes Know Entrepreneur (As a Friend) No Yes Know Entrepreneur (As a Boss) No The cronbach s alpha of all statements (dependent and independent variables) is that shows high reliability of this research. The cronbach s alpha of Planned Entrepreneurial Behavior is whereas the cronbach s alpha of Entrepreneurial Intention is These values show high reliability as well. Table 3. KMO and Bartlett Test Results KMO and Bartlett s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx. Chi-Square Bartlett's Test of Sphericity df 781 Sig A KMO value that is points out that the data is appropriate to investigate and reveals the perfect correlation among variables. It is decided that the factor analysis can beconducted. The Bartlett s test result that is confirms that variables are suitable to conduct factor analysis. The cronbach alpha values of an independent variable are acceptable for testing scale reliability % of variance is explained. It is good for validation. -25-

6 Table 4. Factor Analysis Results % Factor Variance Cronbach Loading Explained ɑ Factor 1: Entrepreneurial Intention I have very seriously thought of starting a firm I am determined to create a firm in the future I have the firm intention to start a firm some day I will make every effort to start and run my own firm My professional goal is to become an entrepreneur I am ready to do anything to be an entrepreneur Factor 2: Personal Attitude If I had the opportunity and resources, I d like to start a firm Among various options, I would rather be an entrepreneur Being an entrepreneur implies more advantages than disadvantages to me A career as entrepreneur is attractive for me Being an entrepreneur would entail great satisfactions for me Factor 3: Subjective Norm Your friends Your colleagues Your close family Factor 4: Perceived Behavioral Control I can control the creation process of a new firm To start a firm and keep it working would be easy for me I know the necessary practical details to start a firm If I tried to start a firm, I would have a high probability of succeeding I know how to develop an entrepreneurial project I am prepared to start a viable firm KMO= 0, P= Extraction Method: Principal Component Analysis. Rotation Method: Oblimin with Kaiser Normalization Table 5. Correlation Analysies between Entrepreneurial Intention and Dimensions of Planned Entrepreneurial Behavior Entrepreneurial Personal Subjective Perceived Total Intention Attitude Norm Behavioral Control Entrepreneurial Intention 1 Personal Attitude 0.114* 1 Subjective Norm Perceived Behavioral 0.201* 0.202* Control Total * Correlation is significant at the 0.05 level (2-tailed). There is a significant relationship between entrepreneurial intention and personal attitude at the 0.05 level. There is also a significant relationship between entrepreneurial intention and perceived behavioral control at the 0.05 level. However, these relationships are quite low. -26-

7 Significant and the highest correlation is observed between entrepreneurial intention and perceived behavioral control (0.201). TABLE 6. Multiple Regresssion Analysis Model Summary of Planned Entreprenerial Behavior and Entrepreneruial Intention Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson a. Predictors: (Constant), Personal Attitude, Subjective Norm, Perceived Behavioral Control b. Dependent Variable: Entrepreneurial Intention The dimensions of the planned entrepreneurial behavior explain 42.2% of entrepreneurial intention. Personal Attitude has the highest increasing effect on entrepreneurial intention. TABLE 7. Multiple Regression Analysis Coefficients of Planned Entrepreneurial Behavior and Entrepreneurial Intention Unstandardized Standardized Collinearity Model Coefficients Coefficients t Sig. Statistics B Std.Error Beta Tolerance VIF (Constant) Personal Attitude * Subjective Norm * Perceived Behavioral Control * F: (p: 0.000) (p<0.05) Dependent Variable: Entrepreneurial Intention H0a: Personal Attitude Does Not Positively Affect Entrepreneurial Intention H1a: Personal Attitude Positively Affects Entrepreneurial Intention p = 0,010 < 0.05 H0a is rejected. H1a is accepted at 0.05 significance level. Thus, Personal Attitude Positively Affects Entrepreneurial Intention. H0b: Subjective Norm Does Not Positively Affect Entrepreneurial Intention H1b: Subjective Norm Positively Affects Entrepreneurial Intention p= 0,045 < 0.05 H0b is rejected. H1b is accepted at 0.05 significance level. Thus, Subjective Norm Positively Affects Entrepreneurial Intention. H0c: Perceived Behavioral Control Does Not Positively Affect Entrepreneurial Intention H1c: Perceived Behavioral Control Positively Affects Entrepreneurial Intention p = 0,013 < 0.05 H0c is rejected. H1c is accepted at 0.05 significance level. Thus, Perceived Behavioral Control Positively Affects Entrepreneurial Intention. H1 is accepted. Planned Entrepreneurial Behavior Affects Entrepreneurial Intention. Planned Entrepreneurial Behavior has a positive effect on Entrepreneurial Intention. -27-

8 CONCLUSION Personal attitute, subjective norm and perceived behavioral control positively affect entrepreneurial intention. It can be concluded that the planned entrepreneurial behavior positively affects entrepreneurial intention. It is found that undergraduate students plan to be entrepreneurs and have entrepreneurial intentions. Personal Attitude has the highest increasing effect on entrepreneurial intention. Undergraduate students would prefer to be entrepreneurs. Most of them have work experience, know entrepreneurs as their family members or friends. Many of them know entrepreneurs as their bosses. They are aware of advantages and disadvantages of being an entrepreneur. They might choose entrepreneurship as their career paths and dedicate themselves for becoming successful entrepreneurs. These three factors lead undergraduate students to start their own ventures and become entrepreneurs as career choices. If a person has beliefs about the consequences of his behavior, normative expectations of other people who are important for him and factors that affect his performance, he can intend to act entrepreneurially. This research showed findings that supported theory of planned behavior on entrepreneurial intention. It is believed that this research will contribute to further studies to explore factors affecting entrepreneurial intention. There are limited number of studies about the effect of the TPB on entrepreneurial intentions of Turkish undergraduate students. Thus, this research is expected to lead Turkish researchers to conduct studies in this field in the future. REFERENCES Ajzen, I. (1991) The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes, 50(2), Bamberg, S., Ajzen, I. and Schmidt, P. (2003) Choice of Travel Mode in the Theory of Planned Behavior: The Roles of Past Behavior, Habit, and Reasoned Action. Basic and Applied Social Psychology, 25(3), Cheng, P-Y. and Chu, M-C. (2014) Behavioral Factors Affecting Students Intentions to Enroll in Business Ethics Courses: A Comparison of the Theory of Planned Behavior and Social Cognitive Theory Using Self-Identity as a Moderator. Journal of Business Ethics, 124, DOI /s Cordano, M. and Frieze, I.H. (2000) Pollution Reduction Preferences of U.S. Environmental Managers: Applying Ajzen's Theory of Planned Behavior. Academy of Management Journal, 43(4), Courneya, K.S., Bobick, T.M. and Schinke, R.J. (1999) Does the Theory of Planned Behavior Mediate the Relation Between Personality and Exercise Behavior? Basic and Applied Social Psychology, 2(4), Damron-Martinez, D., Presley, A. and Zhang, L. (2013) A Study of Undergraduate Student Intent to Minor in Business: A Test of the Theory of Planned Behavior. Journal of Education for Business, 88, DOI: / Debarliev, S., Janeska-Iliev, A., Bozhinovska, T. and Ilieva, V. (2015) Antecedents of Entrepreneurial Intention: Evidence from Republic of Macedonia. Business and Economic Horizons, 11(3), DOI:

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