The Impact of Entrepreneurship Knowledge on students' e-Entrepreneurial Intention formation and the moderating role of Technological Innovativeness

Case Study on a Research Paper

Abstract

In the context of Industry 4.0, online entrepreneurship is increasingly recognized as crucial for driving innovation and development within a country. This study investigates how students' knowledge and technological innovativeness influence their motivation to pursue e-entrepreneurship, particularly considering high failure rates of new businesses due to a lack of human capital.

Entrepreneurial education and prior experiences serve as foundational elements for enhancing students' perceptions of the feasibility and usefulness of entrepreneurship, thereby fueling their entrepreneurial motivation.

This motivation, in turn, plays a significant role in shaping students' intentions to engage in entrepreneurship, particularly in the digital realm.

Moreover, the study reveals that students' technological innovativeness acts as a moderator in the relationship between their entrepreneurial motivation and their intention to establish digital businesses.

Introduction

Starting a business is increasingly essential in modern life, contributing to job creation and personal fulfilment. Small and medium-sized enterprises (SMEs) play a significant role in the economy, with government support.

Students are seen as a potential force for e-entrepreneurship, supported by universities and government initiatives to foster entrepreneurship skills. However, challenges such as lack of human and financial resources hinder potential student entrepreneurs, emphasizing the importance of entrepreneurship knowledge.

Entrepreneurship education and prior experiences provide students with essential skills and mindset for entrepreneurship, shaping their entrepreneurial intentions.

Motivation, influenced by perceived feasibility and usefulness, is crucial for entrepreneurial pursuits.

The study aims to enhance understanding of e-entrepreneurial intention formation by considering technological factors, such as perceived usefulness and individual innovativeness. It explores the moderating role of technological innovativeness and suggests policies to support future e-entrepreneurs, ensuring equal learning opportunities and nurturing entrepreneurial spirit.

Theoretical framework and hypotheses

E-Entrepreneurial Intention

E-entrepreneurial intention (EEI) refers to the subjective inclination towards establishing and owning a new business using electronic devices and the Internet. It serves as a crucial predictor of individuals' actual entrepreneurial behaviour. Contrary to spontaneous decisions, becoming an entrepreneur is viewed as a planned behaviour involving organizing resources, securing startup capital, and developing products or services.

However, some studies suggest that the connection between intention and behaviour may not always be strong. Various factors, including education, financial support, and perceived feasibility, can influence the translation of intention into action.

Entrepreneurial education plays a significant role in shaping individuals' attitudes towards entrepreneurship and facilitating the transition from intention to behaviour.

By providing essential knowledge and experiential learning opportunities, entrepreneurial education enhances students' competence, confidence, and positive perceptions of entrepreneurship.

Entrepreneurial Knowledge

Entrepreneurial knowledge encompasses individuals' understanding of online business concepts and their application in product development, business building, sales, and market evaluation, facilitated by modern technology. This knowledge serves as a foundation for entrepreneurs to interpret and utilize information effectively, leading to favourable business outcomes. Entrepreneurial knowledge is reflected through dimensions such as formal education, work experience, functional skills, and self-confidence, all of which positively impact business success.

External environmental factors, including culture, society, and educational programs, play a significant role in shaping entrepreneurial intention. Entrepreneurship courses within educational programs contribute to fostering a positive attitude towards self-employment. Individuals acquire entrepreneurial knowledge through interactions with their environment, education, and practical experiences, which reduces fear of failure and enhances attitudes and perceptions towards entrepreneurship. This knowledge acts as essential human capital, providing individuals with the confidence and belief in their entrepreneurial abilities.

Entrepreneurial Education

Entrepreneurial education involves short-term teaching and training delivered through various formats, including university courses, mentoring programs, and online courses, aimed at equipping students with the knowledge and skills necessary for establishing successful technology-based businesses. It provides opportunities for students to engage in simulated or real-life small business operations, fostering problem-solving skills and business development projects.

Studies indicate that entrepreneurial education positively influences individuals' likelihood of becoming entrepreneurs by enhancing their awareness and orientation towards entrepreneurship. Properly organized entrepreneurial education fosters a positive attitude towards business establishment among students. Moreover, education and training in basic technology knowledge are considered essential for expanding students' understanding of applying technological advancements to business activities.

Entrepreneurial education significantly inspires students' entrepreneurial spirit, boosts confidence in their abilities, and prepares them to overcome future challenges, influencing their perceived feasibility. Consequently, hypotheses are proposed, suggesting that entrepreneurial education positively affects students' perceived usefulness and feasibility.

Entrepreneurial Motivation

Entrepreneurial motivation refers to the desired outcomes individuals strive to achieve when starting an online business. It encompasses both pull motivations, which are positive internal desires driving individuals towards entrepreneurship, and push motivations, which are external factors prompting individuals to pursue entrepreneurship to avoid negative circumstances.

Research indicates that individuals, particularly students, are more interested and enthusiastic about running their businesses when motivated by internal motivations rather than external rewards. Entrepreneurial motivation not only supports students mentally but also drives them to act aggressively, exhibit creativity, and overcome barriers in ideating and implementing their business models. Students with stronger entrepreneurial motivation tend to expend more effort to achieve their business goals, increasing the likelihood of realizing their business development ideas and plans.

Based on these premises, it is hypothesized that entrepreneurial motivation positively affects students' e-entrepreneurial intention, emphasizing the importance of internal drive and determination in influencing individuals' intentions to pursue online entrepreneurship.

Prior experience

Prior experience in an entrepreneurial context refers to previous work experiences at SMEs or engagement in business activities. It involves hands-on learning outside formal education, contributing to individuals' knowledge base and mindset enhancement, thus positively influencing their perceptions and propensity towards entrepreneurship. Individuals with more experience tend to exhibit a more positive attitude towards facing and solving difficulties in various areas.

Research indicates that students with exposure to previous entrepreneurial activities demonstrate higher entrepreneurial intentions compared to those without such experiences.

Lack of experience can make it challenging for individuals to start and sustain a business independently, potentially impacting their career choices. Participation in actual entrepreneurial activities has a more significant favourable influence on students' perception of their ability to plan and execute entrepreneurial actions compared to other types of experiences, such as having family entrepreneurs.

Based on these findings, the article hypothesizes that prior experience positively affects students' perceived usefulness and feasibility, suggesting a significant impact of prior entrepreneurial experiences on students' perceptions of entrepreneurship.

Perceived usefulness

Perceived usefulness, as defined by Davis (1989), refers to the extent to which potential users believe that using a particular application system will enhance their job performance. In the context of this study, perceived usefulness is defined as the degree to which potential entrepreneurs believe that utilizing new technologies to initiate an online business will lead to improved business outcomes. Previous research, such as studies by Ilyas et al. (2023) and Zamzami (2021), has established perceived usefulness as a significant factor influencing individuals' engagement in e-entrepreneurship.

Venkatesh (1999) and Davis (1989) have both highlighted perceived usefulness as a form of extrinsic motivation, driving users to adopt new technologies to enhance work efficiency and attain external rewards.

Individual motivation, is influenced by one's perception of the behaviour being driven.

Consequently, in the realm of e-entrepreneurship, a positive perception of the usefulness of modern technologies motivates students to pursue online entrepreneurial endeavours with the aim of achieving desired outcomes.

Evidence from Huang (2020) supports the notion that students' awareness of the benefits of online tools correlates with stronger motivation, attitudes, and satisfaction towards their adoption. Thus, based on these premises, it is hypothesized that perceived usefulness positively affects students' entrepreneurial motivation.

Perceived Feasibility

Perceived feasibility refers to individuals' perception of their ability to successfully carry out business activities, from establishing to operating and maintaining a new business on a digital platform. This perception is crucial as it shapes individuals' attitudes and motivations towards accomplishing their goals, particularly in pursuing independence in their careers.

Motivation to pursue or engage in a particular behaviour is influenced by individuals' perceptions of their capability to perform it. Similarly, perceptions of environmental support can impact entrepreneurial motivation. Motivation, as emphasized by Delmar and Wiklund (2008), plays a significant role in a firm's growth by influencing its persistence in goal achievement. Therefore, students who perceive a high likelihood of success in their entrepreneurial endeavours are more likely to develop needs and desires for positive entrepreneurial outcomes, thereby motivating themselves to devise and execute business plans meticulously.

Based on these premises, it is hypothesized that perceived feasibility positively affects students' entrepreneurial motivation.

Technological innovativeness

Technological innovativeness refers to individuals' willingness to adopt and apply new scientific and technical achievements in their entrepreneurial activities.

Technological innovativeness plays a moderating role in this relationship. Individuals who possess a high degree of technological innovativeness are more inclined to adopt new technologies and are open to experimentation. They are more likely to see the long-term benefits that new technologies bring to their entrepreneurial endeavours. Moreover, they tend to exhibit higher entrepreneurial motivation as they seek to leverage technology to achieve their desired outcomes and enjoy the excitement of problem-solving in their entrepreneurial ventures.

Conversely, individuals with lower technological innovativeness may be less inclined to adopt new technologies and may exhibit lower entrepreneurial motivation as a result. Thus, technological innovativeness enhances the relationship between entrepreneurial motivation and EEI, indicating that individuals with higher levels of technological innovativeness are more likely to translate their entrepreneurial motivation into intentions to pursue online entrepreneurship.

Overall, hypothesis H6 underscores the importance of technological innovativeness in facilitating the translation of entrepreneurial motivation into concrete intentions to engage in e-entrepreneurship.

Conclusions

Theoretical contributions

1. Integration of Theoretical Models: The study enriches the theoretical understanding of entrepreneurial intention by integrating the Technology Acceptance Model (TAM) with the Entrepreneurial Event Model (EEM) . This integration allows for a comprehensive examination of the impact of external stimuli, such as education and experience, on e-entrepreneurial intention (EEI).
2. Focus on Entrepreneurial Motivation: The research underscores the significance of entrepreneurial motivation, emphasizing the role of the need for achievement and the desire for recognition as key motivating factors shaping EEI. This draws attention to the importance of theories related to entrepreneurial motivation in understanding how it influences EEI.
3. Moderating Role of Technological Innovativeness: A critical finding is the demonstration of the moderating role of individual technological innovativeness in the relationship between entrepreneurial motivation and EEI. This sheds light on the nuanced interplay between motivational factors, technology adoption, and intention formation.

Practical contributions

1. Educational Environment Enhancement: Universities are encouraged to go beyond designing curricula and create dynamic educational environments fostering creativity. Extracurricular activities, practical experiences, and technology-supported learning should be promoted to enhance students' knowledge, skills, confidence, and openness, crucial for e-entrepreneurship.
2. Technology Exposure and Seminars: Universities can organize visits to technology exhibitions, online business seminars, and invite successful entrepreneurs to share insights. Exposure to modern scientific and technological achievements enhances students' perceived usefulness of technology in business, motivating them to pursue entrepreneurial endeavours.
3. Financial and Material Support: Universities should consider providing financial and material support for student start-up projects. Capital funding, low-interest loans, and rewards for successful projects contribute to strengthening the entrepreneurial spirit and increasing the likelihood of project success.

Limitations and future research

1. Sampling Method Consideration: The use of convenience sampling may limit the representativeness of the sample. Future studies are encouraged to employ more representative and robust data collection methods for accurate and reliable results.
2. Exploring Variations in Factors: Future research could delve into variations in factors such as gender, internet usage patterns, and entrepreneurial education backgrounds. Understanding these differences may provide additional empirical evidence and insights into the proposed model.
3. Longitudinal Data and Causality: Utilizing longitudinal data can enable a more in-depth examination of cause-and-effect relationships. Long-term effects and the causality of the impact should be explored to enhance the robustness of the study's findings.
4. Common Method Bias: The study acknowledges the potential impact of common method bias on empirical results. Future researchers should consider strategies to mitigate common method bias and validate the study's conclusions.

The study explores the formation of e-entrepreneurial intention (EEI) by integrating theoretical models and examining the role of factors like perceived feasibility, perceived usefulness, and entrepreneurial motivation. It highlights the importance of technology acceptance, entrepreneurial motivation, and technological innovativeness in shaping EEI.

Practical implications include enhancing the educational environment, promoting technology exposure, and providing financial support for student start-ups. Limitations include the need for diverse samples and longitudinal data to validate findings and mitigate common method bias. Overall, the study contributes to understanding the complex dynamics influencing EEI and offers practical insights for fostering entrepreneurial spirit among students.

References -

1. J ournal of Innovation and Entrepreneurship
2. Employee Experience Management (EEM)
3. Technology Acceptance Model (TAM)