CC BY
6
DOI https://doi.org/10.18551/rjoas.2020-11.01
CAREER ADAPTABILITY MEDIATING THE EFFECT OF SELF-EFFICACY ON ENTREPRENEURIAL INTENTION
Putra I Putu Suardana, Riana I Gede*, Dewi Sagung Kartika
Faculty of Economics and Business, University of Udayana, Bali, Indonesia *E-mail: [email protected]
ABSTRACT
Entrepreneurial intention is a possibility for someone to create something new by using some available resources and opportunities that exist without ignoring the risks faced. The research objective is to analyze the mediating role of career adaptability on the effect of self-efficacy on entrepreneurial intentions. The research was conducted at the Faculty of Economics and Business, University of Udayana, by taking a sample of 136 respondents from the Faculty of Economics and Business majoring in Management. The data of this study was collected by distributing a number of questionnaires. The collected data was analyzed by using path analysis technique. The results of the analysis show that self-efficacy has a positive and significant effect on entrepreneurial intentions. Furthermore, self-efficacy has a positive and significant effect on career adaptability. Career adaptability has a positive and significant effect on purchase intention. Career adaptability significantly mediates the relationship between self-efficacy and entrepreneurial intention.
KEY WORDS
Self-efficacy, entrepreneurial intention, career, adaptability.
Indonesia is one of the developing countries in Southeast Asia with a population of 265,518,300 people (BPS, 2019). Currently, Indonesia is in the fourth position as a densely populated country in the world (worldometers.info, 2020). The increase in population has an effect on increasing the number of poverty and unemployment. The high rates of poverty and unemployment are caused by the availability of job opportunities that are not proportional to the number of existing workers. The phenomenon that occurs every year is that millions of job applicants compete to find jobs in the formal sector and only a few of them think of creating their own jobs. This has resulted in low economic growth, especially in the entrepreneurship field. The entrepreneurship sector can be used as one of the drivers of economic growth in Indonesia. Entrepreneurship (Xiaoping and Jian-Hao, 2019) can be used to promote national innovation and economic growth, accelerate economic restructuring, narrow the wealth gap between regions, solve problems related to employment, ethnicity and poverty, and promote sustainable business development. Entrepreneurship can be the main key to reduce unemployment, increase economic stability and modernize technology (Wibowo, 2017).
The data from the Global Entrepreneurship Index (2018) shows that Indonesia is in the 94th position out of 137 countries, which indicates that, the entrepreneurship sector in Indonesia is less attractive or can be said to be low. Central Bureau of Statistics of Indonesia (BPS, 2019) shows that the number of entrepreneurs in Indonesia only reaches 3.1 percent of the total population which is currently around 265,518,300 people. The government seeks to foster an entrepreneurial spirit in students as an alternative to reduce the unemployment rate which is expected to become educated young entrepreneurs (Anggraeni, 2016). The government has launched the Student Entrepreneurship Program which provides students with knowledge, skills and entrepreneurial attitudes with science and technology so as to change the mindset of job seekers to become job creators in the face of global competition (Kemendikbud, 2015). Udayana University is one of the universities that develops an entrepreneurial culture by supporting the implementation of programs fostered through the Entrepreneurship Development Center (EDC) work unit. EDC is able to increase student
confidence in determining actions that must be taken to achieve goals in starting entrepreneurship or as a way of increasing student entrepreneurial intentions.
Entrepreneurial intention is a reflection of a commitment to starting a new business activity. A number of researchers (Sharahiley, 2020; Lingappa et al., 2020; Vuong et al., 2020) state that entrepreneurial intentions play a role in guiding individuals in focusing attention, experiences, and actions on certain things with entrepreneurial goals. The intention to entrepreneurship has increased where there were 213 new entrepreneurial student groups in 2018 who came from 13 different faculties. Students who have the highest entrepreneurial intentions are students from the Faculty of Economics and Business. The Faculty of Economics and Business (in 2019) managed to score a total of 44 entrepreneurial students. The high intention to entrepreneurship reflects an awareness of the importance of entrepreneurial intentions. One way to increase entrepreneurial intentions is through developing self-efficacy.
A self-efficacy is one's self-confidence regarding to one's ability to organize, perform a task, achieve goals, produce and implement actions to achieve certain skills. The self-efficacy acts as a motivation that is able to internally mobilize an encouragement of self-confidence in increasing entrepreneurial intentions and career adaptability to adapt to various situations. The career adaptability is an adjustment to unpredictable situations and conditions due to changes and working conditions (Lodi et al., 2020). Xiaoping and Jian-Hao (2019) explain career adaptability as a tendency that affects how individuals perceive their ability to plan and adapt to changes in career plans, especially in dealing with unexpected future events; hence, they play a role in increasing entrepreneurial intentions. The career adaptability can foster thoughts with various situations faced while working, such as how to overcome problems and obstacles; moreover, it can encourage the staff to deal with some previous bad experiences that make a memory of bad trauma that often occurs during the transition in becoming an entrepreneur. Lodi et al, (2020) also define the career adaptability as the level of preparation and ability to deal with predictable career tasks, career roles, and unexpected career changes or career problems.
A number of studies (Zhao et al., 2005; Jaya, 2015; Anggraeni, 2016) state that self-efficacy has a positive and significant effect on entrepreneurial intentions. However, Wibowo (2017) states that self-efficacy does not have a significant effect on entrepreneurial intentions. It is only Gao et al. (2018) and Li et al. (2013) state that career adaptability has a mediating effect to foster the entrepreneurial intentions. Based on the previous research findings, it is concluded that career adaptability has a mediating effect on the relationship between self-efficacy and entrepreneurial intention. In responding to this, this study aims to analyze the effect of self-efficacy on students' entrepreneurial intentions with career adaptability as a mediating variable.
LITERATURE REVIEW
This research uses the Theory of Planned Behavior (TPB) which is a development and refinement of the Reason Action Theory (Fishbein and Ajzen, 1975). Ajzen and Fishbein (1991) describe intention as a dimension of individual subjective probability in the relationship between self and behavior. This theory explains that intention or intention of individuals takes certain actions or actors. The intention can be considered as motivational factors that can influence individual behavior. Besids, the intention is an indication of how much effort the individual puts into doing something. According to Ajzen (1991), the theory of planned behavior states that the intention is a function of three basic determining factors, namely: valid attitudes, subjective norms, and perceptions of behavior control. The planned behavior theory is perfect for explaining any behavior that requires planning, such as entrepreneurship. The entrepreneurship is clearly categorized into planned behavior because individuals form expectations and assessments of the behavior carried out on the results obtained (Autio et al., 2001). Amadea and Riana (2020) state that entrepreneurial intentions are the tendency of individuals to take entrepreneurial actions by creating new products through business opportunities and taking risks. According to Xiaoping and Jian-Hao (2019),
entrepreneurial intention can also be interpreted as the first step in a process of establishing a business that is generally long-term. Sukmaningrum and Rahardjo (2017) explain that entrepreneurial intention is the representation of planned actions to undertake entrepreneurship. The entrepreneurial intention can also be interpreted as a possibility or someone's intention to create something new using some available resources by looking at the opportunities without neglecting the risks will be faced in the future. Entrepreneurial spirit can be influenced by internal and external factors. The internal factors that come from the internal entrepreneur can be in a form of attitudes, willingness, and individual abilities. The external factors come from the outside of the self-entrepreneurship in the form of family environment, socio-economic environment, the environment of the business world, and others. Hadi Sumarsono (2013: 74) explains that there are a number of factors that influence entrepreneurial intentions, namely: personality factors in which there is a need for achievement and self-efficacy, contextual environmental factors, demographic factors which include educational background, gender, and family background.
Wibowo (2017) defines self-efficacy as someone's belief about his or her ability or competence to do some tasks, achieve goals, and overcome challenges. Alwisol (2014: 287) says that self-efficacy is one's own perception of how well oneself can function in certain situations. In addition, Robbins (2015: 139) says that the self-efficacy can create a positive enhancement, meaning that individuals who have a high self-efficacy are more involved in doing some tasks and the longer the results obtained are better and can certainly improve the working performance. The individuals with high self-efficacy will respond to negative feedback in the form of criticism or even lead to insults by doing more effort and giving motivation to make their performances better. On the other hand, the individuals who have low self-efficacy will respond to this with discouragement and tend to reduce their efforts to repeat the activity. The self-efficacy is also adopted from describing self-assessment statements for various abilities related to entrepreneurship, such as the ability to find new ideas, marketing planning, and so on. According to Xiaoping and Jian-Hao (2019), the self-efficacy in entrepreneurship is the level of individual beliefs and subjective assessments of individual beliefs in their ability to take on the role of entrepreneurs and successfully complete entrepreneurial tasks.
According to Bandura (1991: 42), self-efficacy can be obtained, increased, or decreased through one or a combination of four sources, namely: mastery experiences, social modeling (vicarious experience), social persuasion, physical and emotional conditions. According to Feist, Jess & Feist, Gregory J, (2011: 214), the most influential source of self-efficacy is the experience of mastering something, namely past performance. The self-efficacy can also be obtained, strengthened or weakened through social persuasion. The impact of these sources is limited; however, under the right conditions, the persuasion of others can influence self-efficacy. A person who is experiencing a weak physical condition can affect the resulting performance. A strong emotion such as experiencing anxiety, fear, and high stress can also affect performance. The resulting performance tends to reduce one's self-efficacy. If there is emotional stability in a person, it can increase self-efficacy. Of the four sources, the factor that most influences self-efficacy is the past experience, while other sources only affect certain situations.
According to Lodi et al., (2020) a career adaptability is a person's readiness to cope with the existing tasks and a role to participate in the scope of work and adaptability to changes that will occur in working conditions and environment. A person who has a career adaptability will focus on the future, have a sense of self-control to achieve the future, have the curiosity to try their own abilities and seek social opportunities, and have the confidence to realize their future. Conversely, if someone lacks the career adaptability, that person will become apathetic, unable to decide, unrealistic, and hold back from achieving his career. It can be concluded that career adaptability is the readiness of a person / final year student to complete predictable tasks and participate in job roles, as well as being able to master unexpected situations that may occur due to changes in work and future working conditions.
A number of researchers (Xiaoping and Jian-Hao, 2019; Shinnar et al., 2014;, Agustin, et al., 2019; Wibowo. 2017; Anggraeni, 2016; Doanh and Bernat, 2019; Amadea & Riana,
2020) explain that the self-efficacy is positive and significantly affects the entrepreneurial intentions. On the other hand, the studies conducted by Xiaoping & Jian-Hao (2019), Tolentino et al., (2014), Yang et al., (2015), Atitsogbe et al., (2019) show that the self-efficacy can significantly influence the career adaptability. Furthermore, some other studies (De Guzman and Choi, 2013; Tolentino et al., 2014; Atitsogbe et al., 2019) explain that the career adaptability can directly influence the entrepreneurial intentions. The career adaptability is an important mediator of future work self-efficacy. Moreover, it is also found that the career adaptability can mediate some of the effects of the self-efficacy in decision-making difficulties (Xiaoping and Jian-Hao, 2019; Gao et al., 2018; Li, Hou, and Feng, 2013):
• H1: Self-efficacy has a positive and significant effect on entrepreneurial intentions;
• H2: Self efficacy and significant positive effect on career adaptability;
• H3: Career adaptability has a positive and significant effect on entrepreneurial intentions;
• H4: Career adaptability mediates the effect of self-efficacy on entrepreneurial intentions.
METHODS OF RESEARCH
This study is an associative quantitative research. The associative research was used to determine the cause and effect of the variables of the study (Sugiyono, 201 7: 11). The location of this research was at the Faculty of Economics and Business, Udayana University. This location was chosen because of the existence of some problems regarding to student entrepreneurial intentions in the Faculty of Economics and Business, Udayana University. The object of this study was the role of career adaptability to mediate the effect of self-efficacy on entrepreneurial intention of students of the Faculty of Economics and Business, majoring in Regular Management of 2017 Year who studies in Bukit Jimbaran. The exogenous variable of this study is self-efficacy (X) and the endogenous variables are career adaptability (M) and entrepreneurial intention (Y).
This study used qualitative data in the form of opinions from respondents as well as quantitative data in the form of numbers or data that can be calculated (Sugiyono, 2017: 23). Some primary data sources were obtained from respondents' answers who gave scores for the statements in the questionnaire and from observations or field surveys. Meanwhile, the secondary data was obtained from journals and company or agency documentations. The research instrument used in this study was a questionnaire directly distributed to students of the 2017 Year of Management Department, Faculty of Economics and Business. The number of population in this study is 136 students of the Faculty of Economics and Business majoring in Regular Management in Bukit Jimbaran. Some adopted career adaptability indicators (Savickas and Porfeli, 2012) are attention, control, curiosity, and self-confidence. Furthermore, the indicators that can be used to measure the level of self-efficacy (Adnyana, 2016) show that self-efficacy can be measured by a self-efficacy scale, namely: having confidence to manage a business, being able to lead human resources, having mental maturity in starting a business, and having confidence in business success. On the other hand, there are 4 indicators to measure student entrepreneurial intentions, namely: having high desire, having a tendency of being entrepreneurs, having a desire to have high income, and always seeking information about business. The data analysis technique used in this study was path analysis, which was used to analyze the pattern of relationships between variables in order to determine the direct or indirect effect of exogenous variables on endogenous variables. The bases for calculating the path coefficient were correlation and regression analysis. The calculations were conducted by using software with the SPSS for Windows program.
RESULTS OF STUDY
Table 1 presents each question item on the variable indicator having a person correlation value greater than 0.30. This indicates that all statements in the research instrument are valid and reasonably used as a research instrument.
Table 1 - Instrument Validity Test Results
No. Variable Indicator Coefficient Information
_Correlation_
X 1 0. 796 Valid
X 2 0. 791 Valid
X 3 0. 851 Valid
X 4 0. 841 Valid
M 1 0. 662 Valid
M 2 0. 739 Valid
M 3 0. 689 Valid
M 4 0. 726 Valid
M 5 0. 677 Valid
M 6 0.699 Valid
M 7 0.582 Valid
M 8 0.619 Valid
M 9 0.681 Valid
M 10 0.753 Valid
M 11 0.737 Valid
M 1 2 0.637 Valid
Y 1 0. 835 Valid
Y 2 0. 879 Valid
Y 3 0. 801 Vali d
Y 4 0.688 Valid
Meanwhile, Table 2 desplayed that the Cronbach's Alpha value for each variable is> 0.60. Therefore, it can be said that each variable of the questionnaire is reliable. Hence, each indicator is suitably used as a measuring tool.
Table 2 - Instrument Reliability Test Results
Variable Cronbach Alpha Information
X (Self Efficacy) 0. 837 Reliable
M (Career Adaptability) 0. 896 Reliable
Y (Entrepreneurial Intentions) 0. 816 Reliable
Furthermore, the results of the path analysis aim to test the hypothesis of direct and indirect effects of self-efficacy, career adaptaptation and entrepreneurial intentions desplayed in Table 3.
Table 3 - Path Coefficient I
Coefficients a
Unstandardized Coefficients Standardized Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) 21.554 2.403 8.971 0.000
Self Efficacy 1.728 0.148 0.709 11.645 0.000
a. Dependent Variable: career Adaptability R Square: 0. 503 F Statistic: 135.615
Sig. F: 0.000
The result of sig. F test is 0.000 which is smaller than the significant value 0.05 (0.000 <0.05). This indicates that the self-efficacy simultaneously affects career adaptability. The sig. t value of 0.000 is less than the significant value used (0.000 <0.05). This shows that the self-efficacy has a positive and significant effect on career adaptability. The R square value in model I is 0.503, meaning that the effect of self-efficacy on career adaptability is 50.3 percent, while the rest is influenced by other factors outside the model.
The Sig. F test in model II shows the value of 0.000 which is smaller than the significant value of 0.05. It indicates that the self-efficacy and career adaptability simultaneously influence entrepreneurial intentions. The R square value in model II is 0.441, which means that the effect of self-efficacy and career adaptability on entrepreneurial intentions is 44.1 percent, while the rest is influenced by other factors outside the model. From the results of the SPSS calculation, the comparison of the sig.t value of 0.011 is less
1 Self Efficacy (X)
2 Career Adaptability (M)
3 Entrepreneurial Intention (Y)
than the significant value used (0.011 <0.05), and the beta value of the standardized coefficients is 0.236 which indicates a positive direction. This shows that self-efficacy has a positive and significant effect on entrepreneurial intentions. Also, from the results of the SPSS calculation, the comparison of the sig.t value of 0,000 is less than the significant value used (0,000 <0.05), and the beta value of standardized coefficients is 0.476 which indicates a positive direction. This shows that career adaptability has a positive and significant effect on entrepreneurial intentions.
Table 4 - Path Coefficient II
Coefficients a
Unstandardized Coefficients Standardized Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) 3.990 1.270 3.141 0.002
Self Efficacy 0.225 0.088 0.236 2.563 0.011
Career Adaptabilities 0.187 0.036 0.476 5.170 0.000
a. Dependent Variable: entrepreneurial Intention.
R Square: 0. 441. F Statistic: 52,401, Sig. F: 0.000.
The magnitude of the effect of self-efficacy (X) on entrepreneurial intention (Y) is 0.236 with a sig.t value ratio of 0.011 less than the significant value used (0.011 <0.05). This figure shows that self-efficacy has a positive and significant effect on entrepreneurial intentions by 23.6 percent, while the remaining 76.4 percent is influenced by other factors outside the model. The magnitude of the effect of self-efficacy (X) on career adaptability (M) is 0.709 with a sig.t value ratio of 0.000 less than the significant value used (0.000 <0.05). This figure also shows that self-efficacy has a positive and significant effect on career adaptability by 70.9 percent, while the remaining 29.1 percent is influenced by other factors outside the model. The magnitude of the influence of career adaptability (M) on entrepreneurial intention (Y) is 0.476 with a sig.t value ratio of 0.000 less than the significant value used (0.000 <0.05). This figure shows that career adaptability has a positive and significant effect on entrepreneurial intentions by 47.6 percent, while the remaining 52.4 percent is influenced by other factors outside the model.
DISCUSSION OF RESUTS
Tladinyane (2016) explains that the desire to achieve something depends on a career adaptability. The career adaptability is defined as a combination of behaviors, competencies, and attitudes involved in a person's efforts to match oneself to a job he considers appropriate. The ability to adapt to a career makes a person able to deal with conditions that are unusual, complex, unpleasant, changing roles, and trauma at work (Savickas & Porfeli, 2012). The career adaptability is also highly dependent on a self-efficacy, so that the higher self-efficacy, the higher career adaptability will be (Xiaoping & Huang, 2019). The results of the first hypothesis test stated that the self-efficacy has a positive and significant effect on entrepreneurial intentions by 23.6 percent. This means that self-efficacy plays a role in growing the intention to engage in some entrepreneurial activities. These results support previous research ( Doanh and Bernat, 2019; Wibowo, 2017) which shows that the self-efficacy positively and significantly affects entrepreneurial intentions. The result of the second hypothesis test shows that the self-efficacy has a positive and significant effect on career adaptability by 70.9 percent. This means that the higher a person's self-efficacy, the higher their curiosity about their career, exploration career, career confidence, and career control. These results support the previous studies conducted by Xiaoping and Jian-Hao (2019), Atitsogbe et al. (2019) and Yang et al. (2015) that show that the self-efficacy significantly affects career adaptability. The results of the third hypothesis test show that the career adaptability has a positive and significant effect on entrepreneurial intentions by 47.6 percent. This means that career adaptability is a psychological resource that influences the formation and development of the student entrepreneurial intentions. These results support the previous research ( De Guzman and Choi, 2013) which states that a person's career
adaptaptation and work ability are significant and positively correlated so that career adaptability can be used to predict individual subjective career success. These results are also higher career adaptability can higher intention entrepreneur (Tolentino et al., 2014).
The Sobel test results show of Z = 5.349> 1.96, which means that the career adaptability variable significantly mediates the relationship between self-efficacy and entrepreneurial intentions. Moreover, fourth hypothesis are accepted. This means that when individuals have a sufficient self-efficacy to start a business, it means that an individual's career adaptability will most likely be applied through the process of starting a business. These results support the previous research conducted by Gao et al. (2018) which shows that the career adaptability is an important mediator of future work self-efficacy and verify that career adaptability can partially mediate the effect of self-efficacy in decision-making difficulties. These results also provide information that the self-efficacy can increase career adaptability and entrepreneurial intentions (Xiaoping and Jian-Hao, 2019; Shinnar et al., 2014). This study also informs that the self-efficacy has an indirect effect on entrepreneurial intentions through career customization.
CONCLUSION
Based on the results of the analysis, it can be concluded that a self-efficacy has a positive and significant effect on entrepreneurial intentions. This shows that the higher a person's self-efficacy, the higher the intention to engage in entrepreneurial activities. The self-efficacy also has a positive and significant effect on career adaptability. This means that the higher a person's self-efficacy, the higher their curiosity about their career, exploration career, career confidence, and career control. The career adaptability has a positive and significant effect on entrepreneurial intention. This means that the career adaptability is a psychological resource that influences the formation and development of student entrepreneurial intentions. Furthermore, the career adaptability significantly mediates the relationship between self-efficacy and entrepreneurial intentions. This means that when individuals have a sufficient self-efficacy to start a business, their career adaptability will most likely be applied through the process of starting a business. The implication of this research indicates that the students should always provide full support for the other students to increase the self-efficacy and understand career adaptabilities in entrepreneurship so that students have mental maturity in starting a business. For the next researcher, it is necessary to consider examining other variables beside self-efficacy and career adaptability to determine entrepreneurial intentions, because there are still many things beyond that which can affect the entrepreneurial intentions.
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