Relationship between the three dimensions of institutes required for entrepreneurship development

https://doi.org/10.35912/joste.v2i1.577
Published: Sep 25, 2020

Abstract:

Purpose: The study was conducted to formulate the relationship between the three dimensions of institutes, namely cognitive, regulative and, normative dimensions of institutes. The model was formulated using SmartPLS 3.

Research Methodology: In this study, the Five-point Likert scale was used and the data were collected from postgraduate students in two states of Uttar Pradesh and Jharkhand. SmartPLS 3 was used to formulate the model and establish the relationship between the three dimensions of institutes.

Results: There exists a positive relationship between "Cognitive dimension and normative dimension"; "Regulative dimensions and Cognitive dimensions; and between Regulative dimensions and Normative dimensions" respectively of institutes.

Limitations: Study is conducted on a small sample of 100 postgraduate students from two states of India namely Jharkhand and Uttar Pradesh which may decrease the reliability of the study.

Contribution: In this study, a relationship is established by using smart PLS 3 between the three dimensions of institutes required for entrepreneurship development with the help of Likert scale developed based on previous studies which can help in measuring the country institutional profile and provide the base for studying the role of these dimension of the institute in entrepreneurial intention growth among the postgraduate students in states of India.

Keywords:
1. Regulative Dimensions
2. Normative Dimension
3. Cognitive Dimension
4. Entrepreneurship
5. Institutes
Authors:
1 . Saurabh Sonkar
School of Management Sciences, Central University of Jharkhand, Ranchi, India
2 . Ashoke Kumar Sarkar
School of Management Sciences, Central University of Jharkhand, Ranchi, India
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Sonkar, S., & Sarkar, A. K. (2020). Relationship between the three dimensions of institutes required for entrepreneurship development. Journal of Sustainable Tourism and Entrepreneurship, 2(2), 53–68. https://doi.org/10.35912/joste.v2i1.577
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Vol. 2 No. 2 (2020): December
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  3. Adenutsi, D. E. (2009). Entrepreneurship, job creation, income empowerment and poverty reduction in low-income economies. MPRA Paper, (29569). Retrieved from http://ideas.repec.org/p/pra/mprapa/29569.html
  4. Arasti, Z., Pasvishe, F. A., & Motavaseli, M. (2012). Normative Institutional Factors Affecting Entrepreneurial Intention in Iranian Information Technology Sector. Journal of Management and Strategy, 3(2), 10. https://doi.org/10.5430/jms.v3n2p16
  5. Baptista, R., Escária, V., & Madruga, P. (2008). Entrepreneurship, regional development and job creation: The case of Portugal. Small Business Economics, 30(1), 49–58. https://doi.org/10.1007/s11187-007-9055-0
  6. Baumol, W. J. (1990). Entrepreneurship?: Productive , Unproductive , and Destructive. Journal of Political Economy, 98(5), 893–921. https://doi.org/141.218.001.105
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  11. Bruton, G. D., Ahlstrom, D., & Li, H. L. (2010). Institutional theory and entrepreneurship: Where are we now and where do we need to move in the future? Entrepreneurship: Theory and Practice, 34(3), 421–440. https://doi.org/10.1111/j.1540-6520.2010.00390.x
  12. Busenitz, L. W., Gómez, C., & Spencer, J. W. (2000). Country institutional profiles: Unlocking entrepreneurial phenomena. Academy of Management Journal, 43(5), 994–1003. https://doi.org/10.2307/1556423
  13. Carree, M. A., & Thurik, A. R. (2010). The Impact of Entrepreneurship on Economic Growth. In Handbook of Entrepreneurship Research (pp. 557–594). https://doi.org/10.1007/978-1-4419-1191-9
  14. Chin, W. W. (1998). The partial least squares approach for structural equation modeling. Modern Methods for Business Research, (January 1998), 295–336.
  15. CLAES FORNELL AND DAVID F. LARCKE. (1981). Evaluating Stractural Equation Models with Unobservable Variables and Measurement. American Marketing Association, 18(1), 39–50. Retrieved from http://www.jstor.org/stable/3151312 .
  16. Cohen, J. (1992). A power primer. Psychological Bulletin, 112(1), 155–159. https://doi.org/10.1037/0033-2909.112.1.155
  17. Daneil Erian Armanies;Charles E.Eesley. (2021). How Do Institutional Carriers Alleviate Normative and Cognitive Barriers to Regulatory Change? Organization Science, 91. https://doi.org/https://doi.org/10.1287/orsc.2021.1434
  18. Dickson, P. H., & Weaver, K. M. (2008). The role of the institutional environment in determining firm orientations towards entrepreneurial behavior. International Entrepreneurship and Management Journal, 4, 467–483. https://doi.org/https://doi.org/10.1007/s11365-008-0088-x
  19. Duygulu, E. (2008). Institutional profiles and entrepreneurship orientation: A case of Turkish graduate students. Munich Personal RePEc Archive, (7247), 1–18. Retrieved from http://mpra.ub.uni-muenchen.de/7247/
  20. Dwivedi, S. S. P. B. A. K. (2021). Global Entrepreneurship Monitor India Report 2019/20 A national study on Entrepreneurship. New York.
  21. Eesley, C., Roberts, E. B., Tian, X., & Yang, D. (2014). Institutional Flexibility and Entrepreneurship (No. 543). Retrieved from http://ssrn.com/abstract=1884493
  22. El-Namaki, M. S. S. (1988). Encouraging entrepreneurs in developing countries. Long Range Planning, 21(4), 98–106. https://doi.org/10.1016/0024-6301(88)90014-3
  23. Gupta, V. K., Guo, C., & Canever, M. (2012). Institutional environment for entrepreneurship in rapidly emerging major economies?: the case of Brazil, China, India, and Korea. International Entrepreneurship Management Journal, 10, 18. https://doi.org/10.1007/s11365-012-0221-8
  24. Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
  25. Hair Jr, J. F., William C, B., Barry J., B., & Rolph E., A. (2017). Multivariate Data Analysis (MVDA). In Pharmaceutical Quality by Design: A Practical Approach. https://doi.org/10.1002/9781118895238.ch8
  26. Hayton, J. C., George, G., & Zahra, S. A. (1979). National Culture and Entrepreneurship:Areview of Behaviooral Research. Group & Organization Studies, 4(4), 509–512. https://doi.org/10.1177/105960117900400419
  27. Henseler, J., Ringle, C. M., & Sarstedt, M. (2014). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
  28. J.Strom, W. J. B. R. (2007). Moderator Comments Entrepreneurship and Economic Growth. Strategic Entrepreneurship Journal, 306(2007), 285–306. https://doi.org/10.1002/sej
  29. Jeraj, Mitja; Mari?, M. (2013). Entrepreneurial Curiosity – The New Construct. High Potentials, Lean Organiza- Tion, Internet of Things: Proceedings of the 32nd Inter National Conference on Organizational Science Devel- Opment, (1), 289–298. Retrieved from ttps://www.researchgate.net/publication/273137840%0AEntrepreneurial
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  31. Katz, J. A., & Shepherd, D. A. (2003). COGNITIVE APPROACHES TO ENTREPRENEURSHIP RESEARCH. Advances in Entrepreneurship, Firm Emergence and Growth, Vol. 6, pp. 1–10. https://doi.org/10.1016/S1074-7540(03)06001-X
  32. Kock, N. (2015). Common Method Bias in PLS-SEM: A full collinearity assessment approach. International Journal of E-Collaboration, 11(4), 1–10. https://doi.org/10.4018/ijec.2015100101
  33. Lawrence, B. S., & Tolbert, P. S. (2007). Organizational demography and individual careers: Structure, norms, and outcomes. In Handbook of Career Studies (pp. 399–421). https://doi.org/10.4135/9781412976107.n20
  34. Lim, D. S. K., Hoon, C., & Clercq, D. De. (2015). Engagement in entrepreneurship in emerging economies?: Interactive effects of individual-level factors and institutional conditions. International Business Review, 13. https://doi.org/10.1016/j.ibusrev.2015.12.001
  35. Manolova, T. S., Eunni, R. V, & Gyoshev, B. S. (2008). Institutional environments for entrepreneurship: Evidence from emerging economies in Eastern Europe. Entrepreneurship: Theory and Practice, 32(1), 203–218. https://doi.org/10.1111/j.1540-6520.2007.00222.x
  36. Minniti, M. (2008). The Role of Government Policy on Entrepreneurial Activity: Productive, Unproductive, or Destructive? Entrepreneurship Theory and Practice, (1), 176. https://doi.org/10.1111/j.1540-6520.2008.00255.x
  37. Nafukho, F. M., & Muyia, M. A. H. (2010). Entrepreneurship and socioeconomic development in Africa: A reality or myth? Journal of European Industrial Training, 34(2), 96–109. https://doi.org/10.1108/03090591011023961
  38. Petrovskaya, I. A., Zaverskiy, S. M., & Kiseleva, E. S. (2017). Attitude to entrepreneurship in Russia: Three-dimensional institutional approach. Advances in Systems Science and Applications, 17(2), 29–42. https://doi.org/10.25728/assa.2017.17.2.483
  39. Reynolds, P. D. (2013). Who Starts New Firms?? of Preliminary Explorations. 9(5), 449–462. https://doi.org/https://doi.org/10.1023/A:1007935726528
  40. Sánchez, J. C., Carballo, T., & Gutiérrez, A. (2011). The entrepreneur from a cognitive approach. Psicothema, 23(3), 433–438. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/21774897
  41. Scott, W. R., Smith, K. G., & Hitt, M. A. (2005). Institutional Theory?: Contributing to a Theoretical Research Program. Great Minds in Management?: The Process of Theory Development, (January 2005), 460–485. https://doi.org/0-19-927681-1. - 2005, p. 460-484
  42. Sine, W. D., & David, R. J. (2010). Institute and Entrepreneurship. Research in Sociology of Work, 21, 1–26. https://doi.org/10.1108/S0277-2833(2010)0000021005
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  44. Somjai, S., Chandarasorn, V., & Vasuvanich, S. (2019). The impact of supply chain and supplier evaluation related practices on the performance of automotive industry in Thailand. International Journal of Supply Chain Management, 8(4), 455–466.
  45. Spencer, J. W., & Gómez, C. (2003). The relationship among national institutional structures, economic factors, and domestic entrepreneurial activity: A multicountry study. Journal of Business Research, 57(10), 1098–1107. https://doi.org/10.1016/S0148-2963(03)00040-7
  46. Stenholm, P., Acs, Z. J., & Wuebker, R. (2013). Exploring Country-level Institutional Arrangements on the Rate and Type of Entrepreneurial Activity. Journal of Business Venturing, 28(1), 1–50. https://doi.org/https://doi.org/10.1016/j.jbusvent.2011.11.002
  47. SusanBartholome. (1997). National Systems of Biotechbology Innovation:Complex Interdepencence in the Global System. Journal of International Business Studies,Second Quarter, (January), 241–266.
  48. Turulja, L., Veselinovic, L., Agic, E., & Pasic-Mesihovic, A. (2020). Entrepreneurial intention of students in Bosnia and Herzegovina: what type of support matters? Economic Research-Ekonomska Istrazivanja , 33(1), 2713–2732. https://doi.org/10.1080/1331677X.2020.1730216
  49. Urban, B. (2013). Influence of the institutional environment on entrepreneurial intentions in an emerging economy. International Journal of Entrepreneurship and Innovation, 14(3), 179–191. https://doi.org/10.5367/ijei.2013.0122
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