The present segment demonstrates the results of the analysis regarding the relationship among Long-Term Orientation (LTO), Uncertainty Avoidance (UA), Entrepreneurial Intention (EI), and the moderating effect of Locus of Control (LOC).
The hypotheses in this study examined (1) if Hondurans Long-Term Orientation is positively related to their Entrepreneurial Intentions. (2) If Hondurans Uncertainty Avoidance negatively related to their Entrepreneurial Intention. (3) If the moderating effect of Locus of Control has a positive relationship between Long-Term Orientation and Entrepreneurial Intention. (4) If the moderating effect of Locus of Control has a negative relationship between Uncertainty Avoidance and Entrepreneurial Intention. A correlation analysis was utilized to examine the relationship among all the variables, and a hierarchical regression analysis was conducted to examine a further relationship.
Reliability
The Cronbach Alpha test was done at the beginning to ensure the reliability of the utilized questionnaire. Eight items were measured for Long-Term Orientation; the Cronbach Alpha was of 0.72; for the other independent variable, Uncertainty Avoidance, there were seven items, and the Cronbach alpha was of 0.77. The moderator Locus of Control contained six items the reliability was of 0.70; finally, the measured items for Entrepreneurial Intention were 6 with a reliability of 0.95. Table 4.1 represents the Cronbach Alpha of each variable.
Table 4.1.
Reliability for Each Variable (N=170)
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
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Descriptive Analysis
The following segment describes the demographic information of 170 participants of this study. The questionnaire included four questions regarding demographic information: age, gender, education level, and current job tenure.
These 170 participants were all Hondurans that have to live in their native country for at least 15 years. The 55.9% were represented by males, and 44.1% were represented by females. There were four categories regarding the age; the first category was from 18-25, it represented the 41.8%, from 26-33 was 46.5%. Hence, these two groups represented the majority of the participants. In the category from 34-41, the percentage was of 4.1% and in the category of 42-49 years 7.6%.
Furthermore, regarding the analysis of the education level, 16.5% represented the participants with a High School Degree, 45.9% represented the Bachelor Degree, being this one the majority of the sample. The category of Master Degree was represented by 34.7% of the participants, and the Ph.D. represented 2.9% of the sample.
Moreover, the current job tenure variable was divided into five categories included unemployment; it goes as follows: unemployed participants represent the10.6%; participants that have worked in the same organization for less than one year represents the 42.4%, being the majority of the sample. The category from 1-3 years represented 27.6%, the category from 3-5 years represented 8.8%; finally, the category of more than five years represented 10.6%. Table 4.2 shows detailed information regarding demographic information.
37 Table 4.2.
Participants Demographic Statistics (N=170)
Variable Category Frequency Percentage
(%)
Gender Male 95 55.9
Female 75 44.1
Age 18-25 years old 71 41.8
26-33 years old 79 46.5
34-41 years old 7 4.1
42-49 years old 13 7.6
Education High School Degree 28 16.5
Bachelor Degree 78 45.9
Master Degree 59 34.7
PhD Degree 5 2.9
Tenure Unemployed 18 10.6
Less than 1 year 72 42.4
From 1-3 years 47 27.6
From 3-5 years 15 8.8
More than 5 years 18 10.6
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Correlation Analysis
To examine the relationship between all the utilized variables, a correlation analysis was conducted. Table 4.3 shows the mean, standard deviation, correlations, and the reliability of the selected variables.
Regarding the independent variables, it is shown that Long-Term Orientation is significantly and positively related to the dependent variable, Entrepreneurial Intention (r = 0.357, p <0.01).
Now, the other independent variable, Uncertainty Avoidance is significantly and negatively related to Entrepreneurial Intention (r = -0.172, p<0.05). The moderator Locus of control showed non-significant relation with two of the variables except with Uncertainty Avoidance; it showed a significant and negative relationship (r = -0.167, p< 0.05).
In summary, the higher Hondurans Long-Term Orientation, the higher their Entrepreneurial Intentions. On the other hand, The higher Hondurans Uncertainty Avoidance, the lower their Entrepreneurial Intentions. Through the correlation analysis, two hypotheses of the study were supported, Long-Term Orientation positively influences Entrepreneurial Intention, and Uncertainty Avoidance negatively influences Entrepreneurial Intention.
Table 4.3.
Mean, Standard Deviation, Correlations, and Reliability Coefficients among Variables (N=170)
Variables Mean SD 1 2 3 4
Long-Term
Orientation 3.967 0.548 (0.72) Uncertainty
Avoidance 4.604 1.00 0.033 (0.77)
Locus of Control 3.790 0.590 0.110 -0.167* (0.70) Entrepreneurial
Intention 5.113 1.625 -0.357** -0.172 0.117 (0.95) Note. Number in parenthesis represents Cronbach’s Alpha Value. *p < 0.05. **p < 0.01.
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Regression Analysis
The previous segment presented the correlation between every variable. The results showed that both Independent Variables, Long-Term Orientation, and Uncertainty Avoidance are significantly related to the Dependent Variable, Entrepreneurial Intention. Hence, the present segment is going to present the hierarchical regression analysis results to examine the moderating effect of Locus of Control in the relationship between LTO and EI and the relationship between UA and EI.
Referring to Table 4.4, the results of the hierarchical regression analysis showed that 15.5%
of the total variance of Locus of Control was explained by Long-Term Orientation and Entrepreneurial Intention (F = 4.965, p< 0.001). Long-Term Orientation was found to be positively related to Entrepreneurial Intention (β= 0.332, p< 0.001). Therefore, H1 was supported, suggesting Long-Term Orientation positively influences Entrepreneurial Intention.
However, Locus of Control did not add a significant incremental variance for model 3 (ΔR2= 0.012, p> 0.05). Therefore, H3 was not supported. Internal Locus of Control does not strengthen the positive relationship between Long-Term Orientation and Entrepreneurial Intention.
40 Table 4.4.
Result of Hierarchical Regression Analysis for Moderating Effect of Internal Locus of Control on the Relationship between Long-Term Orientation and Entrepreneurial Intention (N=170)
β
Model 1 2 3
(Step 1)
Gender
-0.026 -0.054 -0.066
Age 0.111 0.104 0.106
Education 0.059 0.060 0.061
Tenure 0.056 -0.007 -0.011
(Step 2)
Long-Term Orientation 0.332*** 0.344***
Locus of Control 0.102 0.123
(Step 3)
Long-Term Orientation x Internal Locus of Control
-0.111
F 1.328 4.965*** 4.611***
R2 0.031 0.155*** 0.166
Adj. R2 .0.008 0.123*** 0.130
ΔR2 0.031 0.123*** 0.012
ΔF 1.328 11.890*** 2.255
Note. Dependent variable = Entrepreneurial Intention; ***p <.001.
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Referring to Table 4.5, the results of the hierarchical regression analysis showed that 6.7% of the total variance of Uncertainty Avoidance was explained by Long-Term Orientation and Entrepreneurial Intention (F = 1.9959, p> 0.05). Uncertainty Avoidance was found negatively related to Entrepreneurial Intention (β= -0.139, p< 0.05). Therefore, H2 was supported, suggesting Uncertainty Avoidance negatively related to Entrepreneurial Intention.
However, Locus of Control did not add a significant incremental variance for model 3 (ΔR2= 0.004, p< 0.05). Therefore, H4 was not supported. Locus of Control does not weaken the negative relationship between Uncertainty Avoidance and Entrepreneurial Intention.
Table 4.5.
Result of Hierarchical Regression Analysis of Uncertainty Avoidance and Entrepreneurial Intention, External Locus of Control as Moderator (N=170).
β
Model 1 2 3
(Step 1)
Gender -0.026 -0.043 -0.038
Age 0.111 0.127 0.138
Education 0.059 0.064 0.061
Tenure 0.056 0.014 0.003
(Step 2)
Uncertainty Avoidance -0.139* -0.133
Locus of Control 0.115 0.116
(Step 3)
(continued)
42 Table 4.5. (continued)
β
Model 1 2 3
Long-Term Orientation x
External Locus of Control -0.063
F 1.328 1.959 1.772
R2 0.031 0.067* 0.071
Adj. R2 .0.008 0.033* 0.031
ΔR2 0.031 0.036* 0.004
ΔR2 1.328 3.154* 0.670
Note. Dependent variable = Entrepreneurial Intention; *p <.05.
Summary and Discussion
The present study was conducted to examine the relationship between Long-Term Orientation, Uncertainty Avoidance, Locus of Control, and Entrepreneurial Intention. After conducting the Pearson’s Correlation Analysis and the Hierarchical Regression Analysis, first, it was found that Long-Term Orientation is positively related to Entrepreneurial Intention. Second, Uncertainty Avoidance is negatively related to Entrepreneurial Intention. In other words, individuals with high Long-Term Orientation tend to have higher Entrepreneurial Intentions. On the other hand, Individuals with high Uncertainty Avoidance tend to avoid their Entrepreneurial Intentions. Alves et al. (2006) explained the fact that individuals that are not driven by Long-Term Orientation tend to focus on short-term results. Also. According to Wennekers et al. (2007), a low level of Uncertainty Avoidance is an important characteristic that Entrepreneurs most have to establish a new venture.
Also, this study did not find a moderating significant variance relationship between the independent variables and the dependent variable. It must be said that the results of this study
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showed inconsistency with different researches that stated Locus of Control as a related characteristic with Entrepreneurial Intention since Internal Locus of Control is defined as someone who believes in having control in its actions and not external forces (Naushad & Malik, 2018;
Luthans & Ibrayeva, 2006). According to Contreras et al. (2017), Entrepreneurial Intention is related to the belief in the ability to exert control in their social context, which is the definition of Internal Locus of Control.
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