Contingency Elements of Entrepreneurial Intention: Study of Business Students in Indonesia

Posted: 6 Jun 2015 Last revised: 9 Jul 2015

See all articles by Muhammad Sahban

Muhammad Sahban

STIM Lasharan Jaya Makassar

Prof. Dr. Dileep Mohanachandran

Universiti Utara Malaysia

Date Written: June 5, 2015

Abstract

Purpose – The purpose of this paper is to review the relationship between entrepreneurial orientations, social factors and internship program toward entrepreneurial intentions of students from different business school/universities in Indonesia.

Design/Methodology/Approach – Primarily, a critical review of a range of published literature in the period of 1983-2013 addressing the theoretical and practical aspects of entrepreneurial orientations, social factors, internship program and entrepreneurial intention of the university student in Indonesia. Extent literature on the relationship among them is also reviewed to show whether there is a lack of research adopting the perspective of entrepreneurial orientations, social factors, internship program and entrepreneurial intention.

Findings – The outcomes of this paper indicate that the supporting theories relating to entrepreneurial orientation in Indonesia are considered very less. It is due to the fact that only a few studies in Indonesia adopt this theory. Generally, the related studies about entrepreneurial intention of university student does not refer to the aspect of capability, willingness or braveness in taking a risk, whereas, the willingness to take the risk is a substantial capability to be an entrepreneur. Besides, the implementation of internship program in Indonesia is considered not effective in shaping entrepreneurial spirit among university student. It can be seen from the fact that from a hundred of businesses funded by internship program, there are only 2 % of businesses are able to survive until now. While, others become discouraged and do not want to continue. The low level of entrepreneurial intention in Indonesia is also due to a large number of business graduate students tends to be a job seeker instead of job creator. It is also revealed that there is a lack of empirical studies focusing on the influence of internship program toward student's intention to become an entrepreneur, even though most of internship studies regularly discuss about the weakness of this program itself.

Research limitation – This paper only review the relationship between entrepreneurial orientation, social support, internship program and entrepreneurial intention of Indonesian university students, majoring in business management.

Practical Implication – The finding of this paper suggests that there is a need for the Indonesian government, universities as well as policy makers to formulate strategic plan relating to the development of internship program itself in term of providing better program, human resource and facilities. In addition, there is a need to conduct a further research to provide an empirical relationship between the above variables.

Originality/value – This paper measures entrepreneurial orientation, social support and internship program toward the entrepreneurial intention of university students in Indonesia where the previous researches mostly used the self-efficacy factor for the antecedent variable.

Keywords: entrepreneurial orientation, business students, social support, internship program, entrepreneurial intention

Suggested Citation

Sahban, Muhammad and Mohanachandran, Prof. Dr. Dileep, Contingency Elements of Entrepreneurial Intention: Study of Business Students in Indonesia (June 5, 2015). Available at SSRN: https://ssrn.com/abstract=2614990 or http://dx.doi.org/10.2139/ssrn.2614990

Muhammad Sahban (Contact Author)

STIM Lasharan Jaya Makassar ( email )

Jl. Abd. Daeng Sirua No. 106
Makassar, South Sulawesi 90231
Indonesia
+6281284486450 (Phone)
+62411441195 (Fax)

HOME PAGE: http://www.stimlasharanjaya.ac.id

Prof. Dr. Dileep Mohanachandran

Universiti Utara Malaysia ( email )

Sintok
COLGIS, UUM
Sintok, KY KEDAH DARUL 06010
Malaysia

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