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

PhD ThesisThe 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

Linking young individuals' capital to investment intentions: Comparing two cultural backgrounds

By integrating the Entrepreneurial Intentionality Model and the Theory of Planned Behaviour, we explored the effects of human, social and financial capital on young individuals' investment intentions in two groups (97 English and 97 Greeks). Results indicated that human capital is directly and indirectly related to investment intentions via, first, subjective norms and, consequently, personal attitudes and perceived behavioural control, while social capital is only indirectly related to investment intentions via perceived behavioural control. In the individualistic group (English), human capital related directly and positively with investment intentions while social capital related indirectly to investment intentions via its positive relationship to subjective norms. With regard to participants from a collectivistic background (Greeks), human capital related indirectly to investment intentions via, first, subjective norms and, consequently, personal attitudes and perceived behavioural control, while social capital related directly and indirectly to investment intentions via perceived behavioural control. Financial capital was only negatively related to investment intentions in the total and Greek sample

Exploring intentions towards human, social and financial capital investments in a turbulent economic environment

This article applies the theory of planned behaviour in order to understand intentions to create new ventures or participate in existing ones, by investing human, social and financial capital in a turbulent economic environment, such as the one in Greece. We hypothesize that subjective norms relate to investment intentions (IIs) and that individual attitudes and perceived behavioural control over the investment mediate this relationship. We also propose that norms, attitudes and control interact in explaining IIs in such a way that intentions are stronger when positive norms and attitudes coexist with high levels of control. Hypotheses are tested by means of a cross-sectional quantitative study that was conducted in Greece (N = 203). Bootstrap analyses support our mediation hypotheses by showing that norms relate positively to IIs via their associations with positive attitudes and high control. In addition, regression analyses show that norms, attitudes and control interact in explaining intentions. However, contrary to expectations, results show that positive attitudes towards investment boost IIs, in conditions where norms are positive but control is low

Capital, Motives, and Their Link to Investment Intentions: The Moderating Role of the Financial Crisis in Greece

This research examined the moderating role of the financial crisis on the relationship between capital/motives and investment intentions. Human and social capital, nonfinancial resources, and all motives except financial success related positively to investment intention. Social capital and the motive for financial success related positively to investment intention only for those affected by the crisis in a negative way. The motives for independence and recognition related positively to investment intention only for those affected by the crisis in a positive way, while the motive of self-realization related positively to investment intentions particularly for those affected by the crisis in a positive way