Factors affecting national economics university’s student start-up intentions in the context of digital business

Nội dung text: Factors affecting national economics university’s student start-up intentions in the context of digital business

1. FACTORS AFFECTING NATIONAL ECONOMICS UNIVERSITY’S STUDENT START-UP INTENTIONS IN THE CONTEXT OF DIGITAL BUSINESS Ph.D Do Anh Duc1 Abstract: Students with innovative abilities and a strong entrepreneurial spirit have created waves of start-up and entrepreneurship, contributing to the overall development of restructuring and growth of the national economy. In the context of Vietnam's increasingly deep integration, digital business is an inevitable trend and is a transformation goal in most businesses today. This article clarifies the rationale of students' intention to start up. Through studying the research models of entrepreneurial intentions, a research model of entrepreneurial intentions of students at the National Economics University has been proposed as a basis for research to suggest solutions for driving startups in the digital business context. Keywords: start-up intentions; students; digital business 1. INTRODUCTION Start-ups are seen as the driving force behind economic development in many countries around the world, with many newly established businesses, together with new jobs have been created and people’s living and income are getting better and better (Drucker, 1999; Gorman et al., 1997). Ajzen (1985) found that one of the most important factors influencing behavior is individual intentions. A strong intention will always lead to the attempt to start a new business, although starting a business can be fast or slow due to environmental conditions (Ajzen, 1991). Therefore, entrepreneurship intentions are capable of accurately predicting future entrepreneurship behaviors. Research on entrepreneurial intentions that can reflect entrepreneurial behavior. In the context of Vietnam's increasingly deep integration, digital business is an inevitable trend and is a transformation goal in most businesses today. The foundations of the digital business create new values in business models, customer experience and internal capabilities through technology applications. The young generation is experiencing digital business models through personal electronic devices such as smartphones, laptops, along with Facebook or Grab, Foody, Delivery Now, Tripadvisor, Airbnb, these not only brings convenience to users but also a way for young people to express their modern and dynamic lifestyle in the industrial 4.0. All human needs from shopping, payment, travel, exploring the world around, eating, entertaining, health care, can be done with a few simple operation on a smartphone or computer connected to the Internet. New technology has narrowed all distances, allowing people to come together, the whole world seems to be connected, shrinking on each person's hand. However, the fact that high unemployment rate of young graduates from colleges and universities (49% in 2018 in Vietnam) demonstrate a mismatch in skills and knowledge between the training offered at the tertiary level and what firms require (Do & Dinh, 2020). The National Economics University is a national key university, the leading university in the block of economics, management and business administration universitise in Vietnam. The University has 50 specialization at undergraduate level and more than 20 specialization at master's and doctoral level, 1 School of Trade and International Economics, National Economics University, Vietnam. Email: ducda@neu.edu.vn. 614
2. with a training scale of about 50,000 students. Over the past sixty years of establishment and development, the National Economics University has always maintained its position as the largest center of training and retraining for economic managers and business administrators in Vietnam, every year. The university creates more than 5,000 qualified employees in training systems and these are mostly young people with dreams, ambitions, creativity are able to intent to start-up. The problem posed to students of the National Economics University in particular and university students in Vietnam in general is how to promote innovative start-ups in the digital business context? This article clarifies the theoretical basis of the students' entrepreneurial intentions, the research models of entrepreneurial intentions have proposed a research model of start-up intentions of students at the National Economics University as a basis for empirical research to assess the influence of factors affecting the start-up intentions of the National Economics University’s students. Then propose solutions to promote start-ups. 2. LITERATURE REVIEW Innovation plays a very important role in improving business efficiency, sustainable business development and is an important premise for creating competitiveness (Đức, 2020). Accordingly, entrepreneurship needs to be based on innovation with new technologies to be compatible with a highly competitive intellectual economy (Đức and Huệ, 2018). Start-up is process based on technical solutions, technology, and management solutions to improve productivity, quality, value–added of products and goods and ability to grow fast. According to this understanding, a start-up must ensure two factors: "start" and "up". "Start" means "to begin", "to start", "up" means "to increase, to go up". So, a start-up is starting, begin with a new idea, or if the idea is not new, the way to do it must be breakthrough and often associated with the application of technology. The past decade has witnessed the blossoming of entrepreneurial theory studies with many different perspectives, including research on the factors that affect students' start-ups. Bills (2015) with the topic "Education and Entrepreneurship in Amman, Jordan" at the University of South Carolina – Columbia conducted in–depth interviews with professors at the university, entrepreneurs and other individuals involved to start-up issues to ask them about the opportunities and challenges of starting a business in Jordan and Nicole Bills (2015) surveyed 229 students at private business and commerce universities. Jacobus meergenaamd van de Zande (2012) with the paper “Fostering entrepreneurship at colleges” explained three main ideas: idea support, idea importance, and business incubator. The interview was divided into 3 universities, each university interviewed a main idea as above. Interview 6–9 leaders at universities on entrepreneurial issues and focus on their experiences. Survey faculty and staff at the university through questionnaires. Survey of business leaders in relation to firm performance through face–to–face interviews. Data from the faculty and staff investigations were analyzed quantitatively and the theoretical framework based on the intentional behavioral theory of Ajzen (2009) and developed into the 2011 GUESS project by Sieger et al. (2011) to compare the intentions of starting businesses from 26 countries. Souitaris et al. (2007) argued that entrepreneurship inspiration creates feelings of such a lifestyle, a love for an entrepreneurial career that increases the entrepreneurial potential of college students. Although the results of the quantitative study by Souitaris et al. (2007) on students currently enrolled in a startup training program following the TPB model have not shown a relationship between inspiration and attitude on the ability to control startup behavior. The above study is carried out in the context of studying the impact of a startup course on engineering students in the UK. There are many other researchers who share similar views with Souitaris et al. Qualitative research by Florin et al. (2007) 615
3. also argued that the central task of universities in general and entrepreneurship in particular is to create a positive attitude about entrepreneurship and business ownership through ideological propagation, education awareness. Gnyawali and Fogel (1994) also pointed out that students' career preferences are susceptible to university environmental factors because they are young and are in the process of searching for the right path and thus their orientation, cognitive education activities is very important for students while in the university. Alsos and Kolvereid (1998), Krueger et al. (2000) argued that inspiration and passion for business have a great influence on deciding to start a business by themselves and are a part of success in business. Kolvereid and Isaksen (2006) found that people who are inspired to start a business have higher intention to start a business than those who feel risk when starting a business. Research by Autio et al. (2001) on engineering students in four countries, the impact of the cognitive environment is the most influential factor in student attitudes about entrepreneurship than the supporting by resources and institutions. According to Bae et al. (2014), activities of narrating enrichment anecdotes, successful business examples, career–oriented advice of teachers make students aspire to do business and open businesses and increase students' perception of entrepreneurship confidence. 3. THE MODEL EVALUATES THE FACTORS AFFECTING THE INTENTION OF UNIVERSITY STUDENTS TO START-UP Researching the entrepreneurial intentions of university students is being approached according to the following theories and models: 3.1. Theory of reasoned action Theory of reasoned action (TRA) is developed by Fishbein and Ajzen. Fishbein et al. (1980) argues that the nature of an individual's action is often based on reason or motivation, so that each individual often systematically use the information available to them and take into consideration their behavior before they decide to do something or not. In other words, before deciding to implement a certain behavior, a person will often consider the possible results or consequences if performing those behaviors. And from there, that person will choose to perform behaviors that are likely to bring the desired results. The Theory of reasoned action is modeled in Figure 1 as follows: Figure 1. Theory of Reasoned Action Behavioral beliefs Attitude toward behavior Behavioral Behavior Intentions Normative beliefs Subjective norms Theory of Reasoned Action holds that "attitude" is a fundamental conceptual concern of social psychology throughout the industry's history, unable to consider the fully available literature. Such endeavors are tasked with providing an important service by choosing from the theoretical aggregate and studying the publications with meaningful contributions. Many sociologists will conclude that the selection process in this case introduces a disciplinary bias including the work of psychologists with empirically oriented over the work of alternative methodology oriented. Such fees can be credited, but criticism is overshadowed by what is achieved. Fishbein has seriously evaluated the work they weighed on, clearly identifying both the conceptual and methodological limitations of previous research, 616
4. including their own. Their criticism of the Dissonance Theory was particularly severe and significant. In addition, the aim of reviewing relevant literature has been accomplished to a commendable level, however, social psychologists are working from the point of view of the Dissonance Theory, the interpersonal attraction model, or the theory of integration would certainly oppose some criticism and interpretation. 3.2. The entrepreneurial event model The entrepreneurial event model (EEM) by Shapero and Sokol (1982) is purely an intentional model, specific to the start-up sector. This paradigm sees a startup as an event that can be explained with the interactions between innovations, capabilities, management, relative autonomy and risk. In this model, entrepreneurial intentions stem from the perception of feasibility as well as the tendency to act on opportunity. Figure 2. The Entrepreneurial Event model Specific desirabilities Perceived Deriability Entreprenerial Propensity to act Intentions Perceived Self-Efficacy Perceived Feasibility The entrepreneurial event model (Figure 2) assumes that inertia guides human behavior until something interrupts or "replaces" that inertia. The replacement is usually negative, such as losing a job or getting a divorce, but it can be easily positive, such as getting an inheritance or winning a lottery. Substitution leads to a change in behavior in which decision–makers seek the best available opportunity from a wide range of alternatives (Katz, 1995). The choice of behavior depends on the relative "confidence" of the substitution acts (in this situation for this decision–maker) plus some "tendency to act" (if there is no important action can not be done). "Credibility" requires an behavior that is considered desirable and possible. As a result, startup events require the potential to start a business (credibility and action trend) that exists before the change and action trend thereafter (Shapero, 1982). 3.3. Theory of planned behavior Theory of planned behavior (TPB) with the premise that any act requires a certain amount of planning and can be foreseen by the intention to apply that act (Ajzen, 1991). Social psychologists and marketing researchers have had great success using content–based models in real–world applications and basic research. Such consistently robust and reproducible patterns have been widely applied in practical situations such as career premise, weight loss, seat belts and coupon use (Ajzen, 1987; Kim and Hunter, 1993). There have been a number of evolving intent models and constant advances in intent pre–modeling have led to the present state of mind – Ajzen's Theory of Planned Behavior (see Figure 3). The theory of planned behavior defines the three longitudinal premises of intent. Two reflect the perceived desire to be perceived about behavioral performance: individual attitudes toward behavior outcomes and perceived social norms. Third, controlling cognitive behavior, which reflects the perception that the behavior can be controlled by the individual. Cognitive behavioral control reflects the perceived feasibility of performing the behavior and is therefore related to perceptions of situational capacity (self–efficacy). The TPB further specifies the premise of each of these attitudes. 617
5. Figure 3. Theory of planned behavior Attitude toward the Expected values act Intentions Normative beliefs Subjective norms Perceived Self- Perceived feasibility Efficacy Behavior–oriented Attitude: This structure (similar to life expectancy) exploits the perception of the individual's desire to form the behavior. As a test of structural validity, this attitude depends on expectations and beliefs about the individual impact on the outcome caused by the behavior. Essentially, we attract the critical outcomes of behaviors from a focus group, expert or organizational pattern. We then measure the subjects' outcome expectations and their probability of occurrence. A quick scan of past jobs on business intent has found important testable results such as personal wealth, stress, autonomy and community benefits (Shapero, 1982). Perceived social norms: The second main structure from the TPB explores the perceptions of what the key people in the respondents' life think about performing a particular behavior. Include personal family expectations about the possibility of becoming an attorney, physician or entrepreneur. These normative beliefs are judged by the strength of the incentive to abide by them. To test structure validity, these subjective social norms need to be subject to the expected support of others. Interestingly, social norms are less predictive of intent in subjects with a high degree of intrinsic control (Ajzen 1987) or a strong propensity to act (Bagozzi et al., 1992). From experience, we must identify the most important social influences (eg parents, other important people, friends) including any “role models” or “mentors”. Research into the personal networks of entrepreneurs often focuses on the flows of resources and information. Very few studies have mentioned the social norms and values provided by network members (Shapero, 1982). Cognitive Behavior Control and Cognitive Self Efficiency: A major improvement over the more widely disseminated intent models is the addition of a third predictive component, controlling cognitive behavior. Cognitive behavioral control overlaps with Bandura (1986) on self–awareness effectiveness, perceived ability to perform a target behavior (Ajzen, 1987). As an allocation of personal control in a given situation, the effectiveness of the self conceptually and empirically connected to the theory of allocation, has been successfully applied to initiation of the association new business (Meyer et al., 1993). The attribute of high self–efficacy becomes "learning experience", not individual "failure" (Bandura, 1986). Bandura (1986) notes that mechanisms influencing performance assessments include 'self–enactment' (hands–on experience), indirect learning, and physiological/emotional stimulation. 4. PROPOSING A RESEARCH MODEL OF START-UP INTENTIONS OF STUDENTS AT THE NATIONAL ECONOMICS UNIVERSITY In recent years, there has been an increasing number of studies using the theory of planned behavior as a theoretical framework when studying entrepreneurial intentions and career choices (Shapero, 1982; Bird, 1988; Krueger, 1993; Krueger & Carsrud, 1993; Davidsson, 1995; Kolvereid & Moen, 1997). Such studies emphasize the intentional, expectant, and situational nature of the business decision, thus supplementing a more definite perspective on the characteristics and demographics of startup research. 618
6. There is a relationship between Theory of Planned Behavior and The Theory of Reasoned Action. Then comes the theory of the relationship between attitudes and behaviors, linking attitudes, subjective norms, behavioral intentions and behaviors in a causal sequence (Fishbein et al., 1980). Behavior is a direct function of intention, in turn it is a function of attitudes and subjective norms. Attitudes are also seen as the product of individuals' beliefs and their appreciation of those beliefs. Subjective perception of normative influences is seen as "the product of personal beliefs that important people to them think they should or should not perform the behavior and their motives to adhere to the others” (Shaw and Shiu, 2003). Ajzen then extended the model to add a measure of "cognitive behavioral control" to form the theory of Planned Behavior. This concept is a direct measure of a predecessor's result in the form of controlling belief. Theory of Planned Behavior (Ajzen's, 1991) is considered to be a suitable tool for modeling the development of entrepreneurial intentions through pedagogical processes and learning contexts (Fayolle et al., 2006). Ajzen (1991) argues that the intention towards the target behavior depends on a set of fundamental attitudes. In particular, the intention to take a certain action depends on the participants' perceptions of the participants' personal and social desires about the behavior and the participants' perceptions of how successful they can perform act. The theory of Planned Behavior belongs to a larger set of international models that has been used to explain the behavior of entrepreneurship and to assume that human social behavior is rationalized, controlled, or planning as it takes into account the probable consequences of the behavior under consideration (Ajzen, 1991). According to the theory of Planned Behavior, the behavior that requires planning can be predicted by the intention to adopt the behavior. The theory of Planned Behavior consists of three components that predict behavioral intent (Miller et al., 2009): (1) Desire or attitudes toward the proposed behavior, as well as positive or negative global assessments of the performance of a particular act; (2) Social and subjective norms that take into account people's opinions about proposed behavior; (3) The ability to control or feasibility of the proposed behavior. Schwarz et al. (2009) added that according to the theory of Planned Behavior, individual attitudes influence behavior through intent. These authors specifically identify the three basic premises of intent: (1) Personal attitudes toward the outcome of the behavior; (2) perceived social norms; (3) Control cognitive behavior (self–efficacy). According to Segal et al. (2005), this theory has been widely accepted in many disciplines of behavioral sciences and has been used empirically in many different contexts to predict and understand behavioral intentions. It provides a significant opportunity to enhance our capacity to understand and predict business operations. Furthermore, understanding intent also helps researchers and policymakers understand startup–related phenomena (Bakotić & Kružić, 2010). For Liđán and Chen (2009), it can be argued that social perceptions in general and external values influence the motivational factors that determine the intention to star–up. On the basis of the above analysis, the study selected the theory of Planned Behavior to study the factors that influence the intention of students to start a business in universities (Fishbein et al., 1980; Ajzen, 1985; Ajzen, 1991), in addition, the theory of Planned Behavior has been used by some researchers as a framework to explore attitudes toward entrepreneurship intentions (Liđán and Chen 2009; Kirby, 2006; Miller et al., 2009; Schwarz et al., 2009; Turker and Selcuk, 2009). The research model of factors influencing the start-up intentions of students at the National Economics University is proposed as follows: 619
7. Figure 4. Model of factors affecting the start-up intentions of students at the National Economics University Attitude to start-up Social norms to start-up Intentions to start-up Perceive feasibility to start-up In the above research model, there are research hypotheses (see Table 1), as follows: Table 1. Synthesis of research hypotheses Hypothesis Content H1 The student's entrepreneurship attitude factor is positively related to the intention to start-up The student's entrepreneurship social norms factor is positively related to the intention to H 2 start-up The student's entrepreneurship perceive feasibility factor is positively related to the H 3 intention to start-up 5. CONCLUSION In recent years, the concept of start-up is a topic that is being interested in the whole country. With many startup programs and contests of organizations have been implemented to encourage start-up of students and entrepreneurship spirit to establish business of young students. On July 30th, 2017, the Prime Minister issued Decision No.1665/QD–TTg approving the project "Support students to start a business until 2025" with the aim of promoting entrepreneurship spirit of students and equip students with knowledge and skills on entrepreneurship while they studying at schools; to create a favorable environment to support students to formulate and actualization start-up ideas and projects, contributing to creating jobs for students after graduation. In order to promote start-ups, the People's Committee of Hanoi has issued the project "Support for start-ups in Hanoi until 2025, with a vision to 2045" on the basis of the implementation of Decision No.844/QD–TTg dated 18/5/2016 of the Government approving the project "Supporting the national start-up ecosystem to 2025". The project has set a target to support the development of 500 start-up projects by 2025, and 150 start-up businesses to commercialize their products. Vietnam is witnessing the rise of an increasingly younger generation of entrepreneurs, especially a generation of students with innovative abilities and strong entrepreneurial spirit that have created waves of start-up and business establishment, contributing to the overall development of the country's restructuring and economic growth. This trend is also consistent with research of Liđán and Chen (2009) on developing economies "young people often have a desire to build their future careers to be entrepreneurs more than countries have developed even though the entrepreneurial motivation is the same". Industry 4.0 has posed challenges for a number of specific industries and fields such as technological innovation requirements in the IT field; management model, production, business model optimization; new intellectual property management system; ensuring cyber information security and safety Revolutionary changes in science and technology lead to drastic changes in economic structure, economic model, state management system, society as well as mode of operation of businesses. This study will propose a research model of factors affecting the intentions to start-up of 620
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