Institutional Environment and Entrepreneurial Cognitive Antecedents in Shaping New Venture Start-Up Intention

Table of Contents

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study

1.2 Purpose of the Study

1.3 Research Questions

1.4 Definitions of Important Terms

1.5 Significance of the Study

1.6 Outline of the Dissertations

CHAPTER TWO: INSTITUTIONAL AND ENTREPRENUERSHIP CONTEXT OF ETHIOPIA

2.1 Introduction

2.2 Background about Ethiopia

2.3 Institutional Arrangements in Ethiopia

2.3.1 Regulatory Institutions

2.3.1.1 Entrepreneurship Support Policy in Ethiopia

2.3.1.2 Legislations and Regulations

2.3.1.4 Key Institutional Actors for Entrepreneurship Development in Ethiopia

2.3.2 Normative Institution

2.3.3 Cognitive Institution

2.4 Entrepreneurship Context in Ethiopia

CHAPTER THREE: CONCEPTUAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT

3.1 Introduction

3.2 Conceptual Framework

3.3 Hypotheses Development

3.3.1 Institutional Environment, Entrepreneurial Cognitive factors and EI

3.3.1.1 Regulatory Institution, Entrepreneurial Cognitive factors and EI

3.3.1.2 Cognitive Institution, Entrepreneurial Cognitive factors and EI

3.3.1.3 Normative Institution, Entrepreneurial Cognitive factors and EI

3.3.2 Entrepreneurial Intention

3.3.2.1 Shapiro and Sokol (1982), Theory of Entrepreneurial Event (EEM)

3.3.2.2 Krueger and Brazeal (1994), Entrepreneurial Potential Model

3.3.2.3 Ajzen (1991), Theory of Planned Behavior (TPB)

3.3.2.3.1 Attitude Toward Behavior as Antecedent of EI

3.3.2.3.2 Perceived Behavioral Control as Antecedent of EI

3.3.3 Mediating effect of PA and PBC on the relationship between Institutions and EI

3.4. Demographic Variables Influence Entrepreneurial Intention

3.4.1 Age

3.4.2 Gender

3.4.3 Previous Entrepreneurship Experience

3.4.4 Family Entrepreneurial Background

CHAPTER FOUR: METHODOLOGY OF THE STUDY

4.1 Introduction

4.2 Research Philosophy

4.3 Methods of Previous Studies in Institutions and Entrepreneurship

4.4 Mixed Method Approach

4.5 Design of the Study

4.6 Quantitative Method

4.6.1 Population and Sample

4.6.1.1 Population of the study

4.6.1.2 Sample and Methods

4.6.1.3 Sample Size Determination

4.6.2 Measurement of the Study

4.6.2.1 Measuring Institutional Environment Dimensions

4.6.2.2 Measuring Entrepreneurial Intention

4.6.2.3 Measuring Entrepreneurial Cognitive Factors

4.6.2.4 Measuring Control Variables

4.6.3 Data Collection Instruments and Procedure

4.6.4 Pre-Testing of Instruments

4.6.5 Analysis of the Study

4.6.6 Reliability and Validity Test of Measurement Instruments

4.6.6.1 Validity

4.6.6.2 Measurement Validity

4.6.6.3 External Validity

4.6.6.4 Internal Validity

4.6.7 Reliability

4.7 Qualitative Method

4.7.1 Participants Selection Criteria

4.7.2 Qualitative Data Collection Techniques

4.7.3 Qualitative Data Analysis

CHAPTER 5: DATA ANALYSIS

5.1 Introduction

5.2 Quantitative Data Analysis

5.2.1 Examination of Data

5.2.1.1 Screening of Data

5.2.1.2 Identifying Missing Data and Remedies

5.2.1.3 Detecting and Handling Outliners

5.2.1.4 Statistical Testing of Normality

5.2.1.5 Test for Multicollinearity

5.2.1.6 Test for Common Method Bias

5.2.2 Biographic Information of Respondents

5.2.3 Descriptive Statistics of Data

5.2.4 Validity and Reliability Assessment of Constructs

5.2.4.1 Content Validity of Study

5.2.4.2 Exploratory Factor Analysis

5.2.4.2.1 Exploratory Factor Analysis on Institutional Pillars

5.2.4.2.2 Exploratory Factor Analysis on Theory of planned Behavior

5.2.4.2.3 Exploratory Factor Analysis on Entrepreneurial Intention

5.2.5 Structural Equation Modeling (SEM)

5.2.6 Confirmatory Factor Analysis (CFA)

5.2.6.1 Confirmatory Factor Analysis of Regulatory Construct

5.2.6.2 Confirmatory Factor Analysis of Cognitive Construct

5.2.6.3 Confirmatory Factor Analysis of Normative Construct

5.2.6.4 Confirmatory Factor Analysis for Full Institutional Constructs

5.2.6.5 Confirmatory Factor Analysis of Personal Attitude Construct

5.2.6.6 Confirmatory Factor Analysis of Perceived Behavioral Control Construct

5.2.6.7 Confirmatory Factor Analysis of Entrepreneurial Intention Construct

5.2.6.8 Confirmatory Factor Analysis for Pooled Construct

5.2.7 The Structural Model of Study

5.2.8 Multiple Regression

5.2.9 Results and Interpretation Pertaining to Hypotheses

5.2.10 Mediation Effect of PA and PBC

5.2.11 Control Variables and Entrepreneurial Intention

5.2.11.1 Gender and Entrepreneurial Intention

5.2.11.2 Prior Experience and Entrepreneurial Intention

5.2.11.3 Family Entrepreneurial Background and Entrepreneurial Intention

5.3 Qualitative Data Analysis

5.3.1 Demographic characteristics of Respondent

5.3.2 Qualitative Study Findings

5.3.3 Institutional Environment Elements Affecting Entrepreneurship in Ethiopia

CHAPTER 6: DISCUSSION

6.1 Introduction

6.2 Institutional Environment Perceptions and Entrepreneurial Intention

6.3 Institutional Environment Perceptions Effect on Personal Attitude Toward Entrepreneurship and Perceived Behavioral Control

6.4 Direct Effect of Personal Attitude and Perceived Behavioral Control on Entrepreneurial Intention

6.5 The Mediation Role of PA and PBC on the Relation Between Institutions and EI

6.6 Institutional Arrangements of Ethiopia and Student Perceptions

6.7 Demographic Factors and Entrepreneurial Intention

CHAPTER 7: CONCLUSIONS

7.1 Introduction

7.2 Contribution of the study

7.3 Limitation of the study

7.4 Directions for Future Research

Research Objectives and Core Themes

This dissertation analyzes the impact of perceived institutional environments (regulatory, cognitive, and normative) and entrepreneurial cognitive factors (personal attitude and perceived behavioral control) on the entrepreneurial intention of higher education students in Ethiopia, utilizing a mixed-method approach.

• Investigation of institutional environment perceptions and their influence on entrepreneurial intention.
• Application of Institutional Theory and the Theory of Planned Behavior (TPB) in a developing economy context.
• Examination of the mediating role of personal attitude and perceived behavioral control between institutions and entrepreneurial intention.
• Utilization of a concurrent triangulation mixed-method design combining structural equation modeling (SEM) and qualitative thematic analysis.
• Assessment of unique institutional fabrics and student perceptions within higher education institutions in Ethiopia.

Excerpt from the Book

Chapter Summary

CHAPTER ONE: INTRODUCTION: Provides an introduction to the research background, purpose, research questions, definitions, significance, and dissertation outline.

CHAPTER TWO: INSTITUTIONAL AND ENTREPRENEURSHIP CONTEXT OF ETHIOPIA: Reviews the background of Ethiopia, institutional arrangements, government policies, regulatory frameworks, key actors, and socio-cultural dimensions.

CHAPTER THREE: CONCEPTUAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT: Establishes the theoretical foundation integrating Institutional Theory and the Theory of Planned Behavior, leading to the development of the study's hypotheses.

CHAPTER FOUR: METHODOLOGY OF THE STUDY: Details the research philosophy, mixed-method design, population and sample selection, instrument measurement, data collection procedures, and validation techniques.

CHAPTER 5: DATA ANALYSIS: Presents comprehensive quantitative results via structural equation modeling and exploratory factor analysis, alongside qualitative interview findings.

CHAPTER 6: DISCUSSION: Evaluates and interprets the findings regarding institutional environment perceptions, cognitive factors, control variables, and hypotheses outcomes.

CHAPTER 7: CONCLUSIONS: Summarizes key findings, theoretical and methodological contributions, study limitations, and directions for future research.

Keywords

Institutional Environment, Entrepreneurial Intention, Theory of Planned Behavior, Institutional Theory, Ethiopia, Higher Education Students, Regulatory Institution, Cognitive Institution, Normative Institution, Personal Attitude, Perceived Behavioral Control, Mixed-Method Design, Structural Equation Modeling, Entrepreneurship Context

Frequently Asked Questions

What is the primary focus of this dissertation?

The dissertation investigates how the institutional environment—specifically regulatory, cognitive, and normative dimensions—influences the entrepreneurial intentions of higher education students in Ethiopia, using cognitive factors as mediators.

What are the core theoretical frameworks utilized in the study?

The study relies on Institutional Theory (Scott, 1995) to categorize institutional environments and the Theory of Planned Behavior (Ajzen, 1991) to explain entrepreneurial intention through personal attitude and perceived behavioral control.

What is the main research objective regarding developing economies?

The research aims to fill a gap in literature by analyzing institutional effects within a developing country context (Ethiopia), where traditional informal institutions often carry greater weight than formal regulations.

What research methodology was employed for the study?

A concurrent triangulation mixed-method design was used, combining quantitative survey data from 431 university students analyzed via structural equation modeling (SEM) with qualitative semi-structured interviews from 15 students.

What topics are covered in the main body chapters?

The main body covers the contextual background of Ethiopia, conceptual framework and hypothesis development, research methodology, extensive quantitative and qualitative data analysis, and detailed discussion of findings.

Which keywords best characterize the publication?

Key terms include Entrepreneurial Intention, Institutional Theory, Theory of Planned Behavior, Ethiopia, Regulatory Institution, Cognitive Institution, Normative Institution, and Structural Equation Modeling.

How does the normative institutional pillar affect student intentions in Ethiopia?

Unlike regulatory and cognitive institutions, the normative pillar—including traditional financial systems like Iqub and societal respect for successful entrepreneurs—demonstrated a direct positive and significant effect on entrepreneurial intention.

Why were regulatory and cognitive institutions found to have an insignificant direct effect?

Qualitative findings revealed that political instability, high taxation, corruption, lack of access to finance, and inadequate business skills among existing entrepreneurs created a hostile and complex environment that hindered student startup intentions.

What role do personal attitude and perceived behavioral control play in the model?

Both personal attitude and perceived behavioral control serve as cognitive antecedents and partial mediators connecting supportive institutional environments (specifically normative factors) to entrepreneurial intention.

What practical recommendations does the author suggest for policymakers?

The author recommends that policymakers reduce regulatory complexities, combat corruption, facilitate easier access to debt financing, improve business education, and establish a more stable political and economic environment.