The sub-segment chapter describes the overall process regarding the research framework, the proposed hypotheses, the selected sample, and the respective research instruments. The implemented procedure for data collection and data analysis were also described.
Research Framework
The research framework is congruent with the literature stated in the previous chapters and was developed to sustain the arguments of this study. First, there were two discussed independent variables, Long-Term Orientation (LTO) and Uncertainty Avoidance (UA) which were measured respectively by a scale adapted from Bearden et al. (2006) and a scale adapted from Hofstede (1980) but modified by Jung (2002). Likewise, the instrument used to measure Locus of Control was an instrument from Lumpkin (1985), which was an adaption of Levenson (1974). Finally, Entrepreneurial Intentions was measured by the EIQ suggested in Liñán and Chen (2009).
The study intended to determine and comprehend a potential relationship between the mentioned independent variables, Long-Term Orientation, and Uncertainty Avoidance, with the dependent variable, Entrepreneurial Intention. Likewise, the moderating effect on the relationship among the independent and dependent variables was determined by the personality trait of Locus of Control (LOC). Figure 3.1 described the mentioned associations:
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Figure 3.1. Theoretical framework. Long-Term Orientation and Uncertainty Avoidance are the cultural values defined as the independent variables. Entrepreneurial Intention is the dependent variable. The moderator in the relationship between independent and dependent variables is the personality trait denominated Locus of Control.
Research Procedure
The following segment includes the taken steps and the description for the development of this study.
Determine the Research Topic
After considering trending topics and the author's interests, the research of the literature review regarding the selected variables was made. The main ideas were discussed with the advisor, and the variables of the study were established.
Establishment of the Research Introduction
The scrutiny on different academic articles was a crucial element in this study, especially in this phase. After reviewing relevant literature regarding the variables, the research background, problem statement, the purpose, significance, delimitations, and questions of the study were determined.
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Review of Literature
This phase consisted of an exhaustive review of literature related to the selected variables.
The variables background were deeply explained, and the study variables definitions were established.
Select Measurement Tools
The utilized scales were carefully reviewed and congruent with de definitions stated in the literature review. Also, the validity and reliability of each scale were attentively revised.
Data Collection
The author conducted a quantitative study. The participants were reached by convenience and snowball sampling. The questionnaire consisted of the introducing paragraph, the queries regarding the demographic information and the questions for each variable.
Analyze the Data
The statistical software SPSS was utilized to analyze the collected data; descriptive data, correlation, and hierarchical regression analysis were used in this study.
Results Interpretation
After finalizing the previous steps, the results and the literature review were discussed to state the findings and finally conclude the study.
Figure 3.2. Research procedure
Results Interpretation Analyze the Data
Data Collection Select Measurement Tools
Review Literature
Establishment of the Research Introduction Determine the Research Topic
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Research Hypotheses
The development of the hypotheses was based on the relevant literature presented in the previous chapters; it was also based on the research questions. The following hypothesis examined the relationship of Long-Term Orientation and Uncertainty Avoidance with Entrepreneurial Intention. In addition, the moderating effect of Locus of Control on the relationship between Long-Term Orientation and Uncertainty Avoidance with Entrepreneurial Intention in Honduran students was investigated.
Hypothesis 1
Long-Term Orientation positively relates to Entrepreneurial Intention.
Hypothesis 2
Uncertainty Avoidance negatively relates to Entrepreneurial Intention.
Hypothesis 3
Internal Locus of Control strengthens the positive relationship between high Long-Term Orientation and Entrepreneurial Intention.
Hypothesis 4
External Locus of Control weakens the negative relationship between high Uncertainty Avoidance and Entrepreneurial Intention.
Research Sample
The selected sample of the present study were Hondurans within an age of 18-49 years, students and workers who lived in their native country for at least 15 years. This requirement was established since the author is testing LTO and UA at an individual level, meaning that is necessary the reach of a population raised in Honduras or that has been a resident for the set period. The sample utilized for the pilot test was of 50 participants and the total population of the main study were 170 participants.
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Data Collection
The process of data collection in this study was through an online survey. The complete questionnaire can be found in the Appendix. The mentioned questionnaire consisted of scales that measured the four selected variables, plus the added demographic information questions. At the beginning of the survey, a comprehensible and brief description of the study purpose and criterion of the participants was established. As mentioned before, the targeted population for this study were Honduran students and workers who have been raised in their native country or have lived in Honduras for at least 15 years. Also, a convenience and snowball sampling were utilized for this process. Convenience Sampling is a nonrandom sampling where members of the target population that meet specific criteria, such as easy accessibility to the researcher or the willingness to participate, are included in the study (Etikan, Abubakar, & Sunusi, 2016).
Consequently, snowball sampling is also a nonprobability sampling were the author must identify members of the targeted population and consult them to name other members of the same community to contact more individuals and so forth (Lavrakas, 2008). Therefore, the author posted the questionnaire on Facebook, a social media platform accessible to the targeted population, where it was personally asked to the Hondurans population to fill the questionnaire and forward it.
The utilization of a personal network was a crucial instrument to reach participants who were asked to distribute the online questionnaire to other Hondurans residents. It is essential to mention that the criterion and requirements to participate in the study were established at the beginning of the survey. After finalizing the data collection process, the responses were analyzed. The mentioned process is described in the following section.
Measurement
The measurement phase in this study was divided into five parts: Long-Term Orientation, Uncertainty Avoidance, Entrepreneurial Intention, and Locus of Control. In addition, demographic information, such as age, gender, education level, current job tenure, and the period lived in Honduras was also collected. The four main variables consisted of 27 items, plus the demographic questions. The data of the utilized scales and the results of the reliability test are described below.
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Long-Term Orientation
The first section included a scale of LTO adopted from Bearden et al. (2006), which included eight items. This variable was measured using a 5-point Likert Scale, where participants responded from 1 (strongly disagree) to 5 (strongly agree). (α= 0.72) (See Table 3.1).
Table 3.1.
Long-Term Orientation Measurement
Element Code Questionnaire Component Cronbach
Alpha α Author
Long-Term Orientation
LTO1 Respect for tradition is important to me. LTO2 Family heritage is important to me.
LTO3 I value a strong link to my past.
LTO4 Traditional values are important to me.
LTO5 I plan for the long term.
LTO6 I work hard for success in the future.
LTO7 I do not mind giving up today’s fun for success in the future.
LTO8 Persistence is important to me.
Note. Adapted from “The End of Religion? Examining the Role of Religiousness, Materialism, and Long-Term Orientation on Consumer Ethics in Indonesia,” by D. Arli and F. Tjiptono. 2013, Journal of Business Ethics, 123(3), p. 385-400. doi:10.1007/s10551-013-1846-4
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Uncertainty Avoidance
The implemented scale to measure Uncertainty Avoidance consisted of seven items of 7-point Likert scale (7 = strongly agree; 1 = strongly disagree). These items were based on Hofstede’s (1980) Uncertainty Avoidance definition. However, the instrument was slightly modified by Jung (2002). The reliability was of 0.77 (See Table 3.2).
Table 3.2.
Uncertainty Avoidance Measurement
Element Code Questionnaire Component
Cronbach
UA1 I prefer structured situations to unstructured situations.
0.77 Hofstede (1980) UA2 I prefer specific instructions to broad
guidelines.
UA3 I tend to get anxious easily when I do not know an outcome.
UA4 I feel stressful when I cannot predict consequences.
UA5 I would not take risks when an outcome cannot be predicted.
UA6 I believe that rules should not be broken for mere pragmatic reasons.
UA7 I don’t like ambiguous situations.
Note. This scale was adapted from “Cross-national Differences in Proneness to Scarcity Effects:
The Moderating Roles of Familiarity, Uncertainty Avoidance, and Need for Cognitive Closure,”
by J. Jung and J. Kellaris. 2004, Psychology and Marketing, 21(9), p. 739-753.
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Entrepreneurial Intention
The utilized instrument to measure Entrepreneurial Intention was created by Liñán and Chen (2009), which was based in the TPB. The Likert scale consists of six items of 7-points (7 = strongly agree; 1 = strongly disagree. The Cronbach's alpha to test reliability was of 0.95 (See Table 3.3)
Table 3.3.
Entrepreneurial Intention Measurement
Element Code Questionnaire Component Cronbach Alpha
α Author EI2 My professional goal is to
become an entrepreneur.
EI3 I will make every effort to start and run my own firm.
EI4 I am determined to create a firm in the future.
EI5 I have very seriously thought of starting a firm.
EI6 I have the firm intention to start a firm someday.
Note. Adapted from “Development and Cross-Cultural Application of a Specific Instrument to Measure Entrepreneurial Intentions,” By F. Liñán and Y. Chen 2009, Entrepreneurship Theory and Practice, 33(3), p. 593-617.
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Locus of Control
Locus of Control was measured by a 6-point Likert scale from Lumpkin (1985), which was an adaption of a 5-point Likert scale suggested by Levenson (1974), and improved by Rotter (1966).
The Lumpkin scale consists of 3 items that measure "internal" Locus of Control, and the other three items were implemented to measure "external" Locus of Control. The instrument used a 5-point Likert Scale in which 1 means the participants strongly disagree, and 5 states the participant strongly agree. Regarding the reliability of the instrument, the Cronbach's alpha coefficient of internal consistency was 0.70 (see Table 3.4).
Table 3.4.
Locus of Control Measurement
Element Code Questionnaire Component
Cronbach
LOC1 When I make plans, I am almost certain that I can make them work.
0.70 Levenson (1974) LOC2
Getting people to do the right thing depend upon ability; luck has nothing to
do with It.
LOC3 What happens to me is my own doing.
LOC4 Many of the unhappy things in people's lives are partly due to bad luck.
LOC5 Getting a good job depends mainly on being in the right place at the right time.
LOC6
Many times, I feel that I have little influence over the things that happen to
me.
Note. Adapted from “Validity of a brief Locus of Control scale for Survey Research,” By J.
Lumpkin.1985, Psychological Reports, 57, p. 655-659.
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Control Variables
Age. Entrepreneurial Intention is likely to increase with age (Phuong & Hieu, 2015). Age and work experience could shape the way an individual think about creating a new venture, especially, taking in consideration that there have been enormous changes in business and labor markets over the years (Kautonen, Luoto, & Tornikoski, 2010). This variable was categorized into four groups 1 = 18-25, 2 = 26-33, 3 = 34-41, and 4 = 42-49.
Gender. Previous studies have established a relationship between gender and Entrepreneurial Behavior and that there is a broad representation of males among business founders in most of the countries around the world (Davidsson, 1995). Some researches like Mazzarol, Volery, Doss, and Thein (1999) stated that females are less likely to adopt entrepreneurial behaviors. Also, Reynolds Carter, Gartner, Greene, and Cox (2002) established that “adult men in the United States are twice as likely as women to be in the process of starting a new business” (Phuong & Hieu, 2015, p. 48).
The mentioned demographic variable was categorized as 1 = male, 2 = female.
Education Level. Several studies have related Education with Entrepreneurial Intentions;
some results show that “groups with lower education show less of an interest in an entrepreneurial career” (p. 9). On the counterpart, recent studies have shown that current entrepreneurs have only had an average education (Davidsson, 1995). Also, the inclusion of skills and values linked to entrepreneurship could increase the attractiveness of adopting the behavior (Liñán & Rodríguez, 2015). This variable had four options High School Degree, Bachelor Degree, Master Degree, and Ph.D. Degree.
Job Tenure. Tenure is one of the measures of job stability. It captures a more permanent behavior, but that also relates to the business environment (Mumford & Smith, 2000). The personal desire for stability could affect Entrepreneurial Intentions. The mentioned variable was categorized into five groups, 1 = Unemployed, 2 = Less than one years, 3 = From 1-3 years, 4 = from 3-5 years, and 5 = More than 5 years.
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Validity and Reliability
The following section contains three main parts, the pilot test section, the Confirmatory Factor Analysis, and the summary of the validity and reliability section.
Pilot Test
The pilot test was applied to 50 Hondurans student and workers that passed the criteria of being raised in their native country for at least 15 years and were in age within 18-49 years. The total scale contained 27 items plus the demographic questions regarding age, gender, education level, and current job tenure. The questionnaire contained eight items for Long-Term Orientation, seven items that measured Uncertainty Avoidance, six items for Locus of Control, and six items for Entrepreneurial Intention. The Cronbach alpha was tested to assess the reliability of each measurement, an Alpha score from .5 to .75 indicates a moderately reliable scale and an Alpha above .75 means high reliability (Hinton, McMurray, & Brownlow, 2014). Table 3.5 demonstrates the reliability of each variable, the Cronbach Alpha of Long-Term Orientation was of 0.72, Uncertainty Avoidance was 0.77, Locus of control was 0.70, and for Entrepreneurial Intention was 0.95. Therefore, no change was made in this stage.
Table 3.5.
Reliability for Each Variable in the Present Study (N=50)
Variable Number of Items Cronbach Alpha
Long-Term Orientation 8 0.72
Uncertainty Avoidance 7 0.77
Locus of Control 6 0.70
Entrepreneurial Intention 6 0.95
Confirmatory Factor Analysis
Before testing the hypotheses, the Confirmatory Factor Analysis (CFA) was applied to ensure the items construct validity. The items of each variable in this study were run through CFA using AMOS to check if the data fit the theoretical model. The fit between the measurement model was assessed by the following indices: Comparative Fit Index (CFI) = 0.943; Tucker-Lewis Index (TLI)
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= 0.930; Normed-Fit Index (NFI) = 0.863; Incremental Fit Index (IFI) = 0.944; Goodness-Fit Index (GFI) = 0.897. The indicators of residuals are Standardized Root Mean Square Residual (SRMR)
= 0.0707, and Root Mean Square Error of Approximation (RMSEA) = 0.059.
In the first process, the CFA results showed a poor model fit to the theoretical model due to many questions of each variable. According to Bandalos (2002), item parcel is a way to correct a poor model fit when a variable has many observed questions. There are eight questions for Long-Term Orientation Construct; the measurement was modified according to item parcel method by grouping the original eight items into four items. The same was done for the rest of the variables.
The original items of Uncertainty Avoidance are seven and were grouped into three. The original items for Locus of Control and Entrepreneurial Intentions were six respectively and were grouped into six different items, three for LOC and three for EI. Table 3.6 represents that the measurement model fit and the overall fit are appropriate.
Table 3.6.
Four Factor Measurement Model Fit Summary (N=170)
𝝌𝟐 df 𝝌𝟐∕df CFI NFI IFI TLI GFI RMSEA SRMR
155.728 98 1.589 0.943 0.863 0.944 0.930 0.897 0.059 0.0707
33 Figure 3.3. Four factor measurement model
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Data Analysis
The statistic software IBM SPSS 23 was utilized to perform the process of data analysis. The statistical techniques such as Descriptive Analysis, Pearson´s Correlation Analysis, and Hierarchical Regression Analysis assisted the process of hypotheses testing.
Descriptive Analysis
This technique provided an overview of the percentage and frequency of the participant's demographic data. The descriptive statistics in this study included demographic information such as gender, age, nationality, education level, current job tenure, and the amount of time lived in the native country.
Pearson´s Correlation Analysis
To acquire a better understanding of the relationship between the independent variables, Long-Term Orientation, and Uncertainty Avoidance with the dependent variable, Entrepreneurial Intention, a correlation analysis was conducted.
Hierarchical Regression Analysis
The three steps of this technique were adopted in this study to determine the potential relationship between the independent and dependent variable. Also, this type of analysis assisted with the examination of the moderating effect of Locus of Control in the relationship between the Long-Term Orientation, Uncertainty Avoidance, and Entrepreneurial Intention.
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