Home Business & Economics The Impact of University Support on the Creation of Student Entrepreneurs: Evidence from South Korea
Article
Licensed
Unlicensed Requires Authentication

The Impact of University Support on the Creation of Student Entrepreneurs: Evidence from South Korea

  • Kyungmin Choi , Jongwon Park , Daegon Cho EMAIL logo and Hyo-Youn Chu
Published/Copyright: September 6, 2017

Abstract

This study examines the effect of investment by universities on student entrepreneurial activities, with an emphasis on the mediating effect of educational support. The effectiveness of university support on students’ entrepreneurial aspirations and motivations has long been of interest to researchers; however, the outcomes of previous studies are inconclusive. These studies mostly used survey data from a fraction of universities in a given country. To treat this topic more comprehensively, we empirically analyze how university support of entrepreneurial activities affects the number of student founders using a nationwide panel data set annually collected by a government agency in South Korea. Our findings suggest a significant and positive effect of university investment in entrepreneurship on the number of student founders. Differential mediating effects are observed according to the type of educational support. The results of this study may provide guidance in policy development for university and college educators in the form of a few recommendations for policymakers based on an understanding of the effectiveness of investments related to entrepreneurial activities.

Funding statement: This work was supported by Korea Small and Medium Business Administration (Grant/Award Number: ‘10016911’).

Acknowledgements

This work was supported by the POSTECH Entrepreneurship Center (PEC) (Grant No.10016911), funded by the Korea Small and Medium Business Administration. This work was also supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2016S1A5A8019917). We also thank Woo-sung Jung at POSTECH for providing generous support and helpful comments for this study.

References

Ajzen, I 1991. “The Theory of Planned Behaviour.” Organizational Behavior and Human Decision Processes 50 (2): 179–211.10.1016/0749-5978(91)90020-TSearch in Google Scholar

Alvarez, S.A., and L.W. Busenitz. 2001. “The Entrepreneurship of Resource-Based Theory.” Journal of Management 27 (6): 755–775.10.1177/014920630102700609Search in Google Scholar

Audretsch, D.B., E.E. Lehmann, and S. Warning. 2005. “University Spillovers and New Firm Location.” Research Policy 34 (7): 1113–1122.10.1016/j.respol.2005.05.009Search in Google Scholar

Barney, J.B. 2001. “Is the Resource-Based View a Useful Perspective for Strategic Management Research? Yes.” Academy of Management Review 26 (1): 41–56.10.5465/amr.2001.4011938Search in Google Scholar

Baron, R.M., and D.A. Kenny. 1986. “The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations.” Journal of Personality and Social Psychology 51 (6): 1173–1182.10.1037/0022-3514.51.6.1173Search in Google Scholar

Blanchflower, D.G 2000. “Self-Employment in OECD Countries.” Labour Economics 7 (5): 471–505.10.1016/S0927-5371(00)00011-7Search in Google Scholar

Boyd, N.G., and G.S. Vozikis. 1994. “The Influence of Self-Efficacy on the Development of Entrepreneurial Intentions and Actions.” Entrepreneurship Theory and Practice 18: 63–63.10.1177/104225879401800404Search in Google Scholar

Brush, C.G., P.G. Greene, and M.M. Hart. 2001. “From Initial Idea to Unique Advantage: The Entrepreneurial Challenge of Constructing a Resource Base.” The Academy of Management Executive 15 (1): 64–78.10.5465/AME.2001.4251394Search in Google Scholar

Carayannis, E.G., D. Evans, and M. Hanson. 2003. “A Cross-Cultural Learning Strategy for Entrepreneurship Education: Outline of Key Concepts and Lessons Learned from A Comparative Study of Entrepreneurship Students in France and the US.” Technovation 23 (9): 757–771.10.1016/S0166-4972(02)00030-5Search in Google Scholar

Conner, K.R 1991. “A Historical Comparison of Resource-Based Theory and Five Schools of Thought within Industrial Organization Economics: Do We Have A New Theory of the Firm?” Journal of Management 17 (1): 121–154.10.1177/014920639101700109Search in Google Scholar

Cope, J 2005. “Toward a Dynamic Learning Perspective of Entrepreneurship.” Entrepreneurship Theory and Practice 29 (4): 373–397.10.1111/j.1540-6520.2005.00090.xSearch in Google Scholar

Davidsson, P 1995. “Culture, Structure and Regional Levels of Entrepreneurship.” Entrepreneurship and Regional Development 7 (1): 41–62.10.1080/08985629500000003Search in Google Scholar

Davidsson, P., and B. Honig. 2003. “The Role of Social and Human Capital among Nascent Entrepreneurs.” Journal of Business Venturing 18 (3): 301–331.10.1016/S0883-9026(02)00097-6Search in Google Scholar

Dickson, P.H., G.T. Solomon, and K.M. Weaver. 2008. “Entrepreneurial Selection and Success: Does Education Matter?” Journal of Small Business and Enterprise Development 15 (2): 239–258.10.1108/14626000810871655Search in Google Scholar

Edelman, L., and H. Yli-Renko. 2010. “The Impact of Environment and Entrepreneurial Perceptions on Venture-Creation Efforts: Bridging the Discovery and Creation Views of Entrepreneurship.” Entrepreneurship Theory and Practice 34 (5): 833–856.10.1111/j.1540-6520.2010.00395.xSearch in Google Scholar

Fayolle, A 2005. “Evaluation of Entrepreneurship Education: Behaviour Performing or Intention Increasing?” International Journal of Entrepreneurship and Small Business 2 (1): 89–98.10.1504/IJESB.2005.006072Search in Google Scholar

Fayolle, A., and B. Gailly. 2015. “The Impact of Entrepreneurship Education on Entrepreneurial Attitudes and Intention: Hysteresis and Persistence.” Journal of Small Business Management 53 (1): 75–93.10.1111/jsbm.12065Search in Google Scholar

Fayolle, A., B. Gailly, and N. Lassas-Clerc. 2006. “Assessing the Impact of Entrepreneurship Education Programmes: A New Methodology.” Journal of European Industrial Training 30 (9): 701–720.10.1108/03090590610715022Search in Google Scholar

Fayolle, A., and D.T. Redford. 2014. Handbook on the Entrepreneurial University. Cheltenham: Edward Elgar Publishing Please provide missing Publisher location for the “Fayolle and Redford, 2014” references list entry.10.4337/9781781007020Search in Google Scholar

Gartner, W.B., and K.H. Vesper. 1994. “Experiments in Entrepreneurship Education: Successes and Failures.” Journal of Business Venturing 9 (3): 179–187.10.1016/0883-9026(94)90028-0Search in Google Scholar

Hills, G.E 1988. “Variations in University Entrepreneurship Education: An Empirical Study of an Evolving Field.” Journal of Business Venturing 3 (2): 109–122.10.1016/0883-9026(88)90021-3Search in Google Scholar

Jenkins Johnson, M 1997. “Entrepreneurial Intentions and Outcomes: A Comparative Causal Mapping Study.” Journal of Management Studies 34 (6): 895–920.10.1111/1467-6486.00077Search in Google Scholar

Katz, J.A. 2002. “The Chronology and Intellectual Trajectory of American Entrepreneurship Education.” Journal of Business Venturing 18 (2): 283–300.10.1016/S0883-9026(02)00098-8Search in Google Scholar

Kautonen, T., M. Van Gelderen, and E.T. Tornikoski. 2013. “Predicting Entrepreneurial Behaviour: A Test of the Theory of Planned Behaviour.” Applied Economics 45 (6): 697–707.10.1080/00036846.2011.610750Search in Google Scholar

Kim, P.H., H.E. Aldrich, and L.A. Keister. (2003).If I Were Rich? the Impact of Financial and Human Capital on Becoming a Nascent Entrepreneur. Annual Meeting of the American Sociological Association. Atlanta.Search in Google Scholar

Kolvereid, L., and E. Isaksen. 2006. “New Business Start-Up and Subsequent Entry into Self-Employment.” Journal of Business Venturing 21 (6): 866–885.10.1016/j.jbusvent.2005.06.008Search in Google Scholar

Kourilsky, M.L., and W.B. Walstad. 1998. “Entrepreneurship and Female Youth: Knowledge, Attitudes, Gender Differences, and Educational Practices.” Journal of Business Venturing 13 (1): 77–88.10.1016/S0883-9026(97)00032-3Search in Google Scholar

Krueger, N.F., M.D. Reilly, and A.L. Carsrud. 2000. “Competing Models of Entrepreneurial Intentions.” Journal of Business Venturing 15 (5): 411–432.10.1016/S0883-9026(98)00033-0Search in Google Scholar

Kuratko, D.F 2005. “The Emergence of Entrepreneurship Education: Development, Trends, and Challenges.” Entrepreneurship Theory and Practice 29 (5): 577–598.10.1111/j.1540-6520.2005.00099.xSearch in Google Scholar

Lanero, A., J.L. Vázquez, P. Gutiérrez, and M.P. García. 2011. “The Impact of Entrepreneurship Education in European Universities: An Intention-Based Approach Analyzed in the Spanish Area.” International Review on Public and Nonprofit Marketing 8 (2): 111–130.10.1007/s12208-011-0067-8Search in Google Scholar

Lüthje, C., and N. Franke. 2003. “The ‘Making’ of an Entrepreneur: Testing a Model of Entrepreneurial Intent among Engineering Students at MIT.” RandD Management 33 (2): 135–147.10.1111/1467-9310.00288Search in Google Scholar

Marlow, S., and D. Patton. 2005. “All Credit to Men? Entrepreneurship, Finance, and Gender.” Entrepreneurship Theory and Practice 29 (6): 717–735.10.1111/j.1540-6520.2005.00105.xSearch in Google Scholar

Martinez-Granado, M. 2002. “Self-Employment and Labour Market Transitions: A Multiple State Model.”.CEPR discussion paper 3661.Search in Google Scholar

McMullan, W.E., and W.A. Long. 1987. “Entrepreneurship Education in the Nineties.” Journal of Business Venturing 2 (3): 261–275.10.1016/0883-9026(87)90013-9Search in Google Scholar

Mueller, P 2006. “Exploring the Knowledge Filter: How Entrepreneurship and University–Industry Relationships Drive Economic Growth.” Research Policy 35 (10): 1499–1508.10.1016/j.respol.2006.09.023Search in Google Scholar

Oosterbeek, H., M. Van Praag, and A. Ijsselstein. 2010. “The Impact of Entrepreneurship Education on Entrepreneurship Skills and Motivation.” European Economic Review 54 (3): 442–454.10.1016/j.euroecorev.2009.08.002Search in Google Scholar

Peterman, N.E., and J. Kennedy. 2003. “Enterprise Education: Influencing Students’ Perceptions of Entrepreneurship.” Entrepreneurship Theory and Practice 28 (2): 129–144.10.1046/j.1540-6520.2003.00035.xSearch in Google Scholar

Pittaway, L., E. Rodriguez-Falcon, O. Aiyegbayo, and A. King. 2011. “The Role of Entrepreneurship Clubs and Societies in Entrepreneurial Learning.” International Small Business Journal 29 (1): 37–57.10.1177/0266242610369876Search in Google Scholar

Porter, M.E., J. Sachs, and J. McArthur. (2001).The Global Competitiveness Report 16–25 Executive Summary: Competitiveness and Stages of Economic Development2002.Search in Google Scholar

Powers, J.B., and P.P. McDougall. 2005. “University Start-Up Formation and Technology Licensing with Firms that Go Public: A Resource-Based View of Academic Entrepreneurship.” Journal of Business Venturing 20 (3): 291–311.10.1016/j.jbusvent.2003.12.008Search in Google Scholar

Schlaegel, C., and M. Koenig. 2014. “Determinants of Entrepreneurial Intent: A Meta‐Analytic Test and Integration of Competing Models.” Entrepreneurship Theory and Practice 38 (2): 291–332.10.1111/etap.12087Search in Google Scholar

Schuetze, H.J 2000. “Taxes, Economic Conditions and Recent Trends in Male Self-Employment: A Canada–US Comparison.” Labour Economics 7 (5): 507–544.10.1016/S0927-5371(00)00012-9Search in Google Scholar

Shapero, A 1975. “The Displaced, Uncomfortable Entrepreneur.” Psychology Today 9 (6): 83–88.Search in Google Scholar

Shapero, A., and L. Sokol. 1982. “The Social Dimensions of Entrepreneurship.”.Encyclopedia of Entrepreneurship, 72–90.Search in Google Scholar

Shinnar, R.S., O. Giacomin, and F. Janssen. 2012. “Entrepreneurial Perceptions and Intentions: The Role of Gender and Culture.” Entrepreneurship Theory and Practice 36 (3): 465–493.10.1111/j.1540-6520.2012.00509.xSearch in Google Scholar

Shook, C.L., R.L. Priem, and J.E. McGee. 2003. “Venture Creation and the Enterprising Individual: A Review and Synthesis.” Journal of Management 29 (3): 379–399.10.1016/S0149-2063(03)00016-3Search in Google Scholar

Sobel, M.E 1982. “Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models.” Sociological Methodology 13: 290–312.10.2307/270723Search in Google Scholar

Souitaris, V., S. Zerbinati, and A. Al-Laham. 2007. “Do Entrepreneurship Programmes Raise Entrepreneurial Intention of Science and Engineering Students? the Effect of Learning, Inspiration and Resources.” Journal of Business Venturing 22 (4): 566–591.10.1016/j.jbusvent.2006.05.002Search in Google Scholar

Storey, D.J., and S. Johnson. 1987. “Regional Variations in Entrepreneurship in the UK.” Scottish Journal of Political Economy 34 (2): 161–173.10.1111/j.1467-9485.1987.tb00276.xSearch in Google Scholar

Thurik, A.R., M.A. Carree, A. Van Stel, and D.B. Audretsch. 2008. “Does Self-Employment Reduce Unemployment?” Journal of Business Venturing 23 (6): 673–686.10.1016/j.jbusvent.2008.01.007Search in Google Scholar

Turker, D., and S. Sonmez Selçuk. 2009. “Which Factors Affect Entrepreneurial Intention of University Students?” Journal of European Industrial Training 33 (2): 142–159.10.1108/03090590910939049Search in Google Scholar

Van Praag, C.M., and P.H. Versloot. 2007. “What Is the Value of Entrepreneurship? A Review of Recent Research.” Small Business Economics 29 (4): 351–382.10.1007/s11187-007-9074-xSearch in Google Scholar

Vesper, K.H., and W.B. Gartner. 1997. “Measuring Progress in Entrepreneurship Education.” Journal of Business Venturing 12 (5): 403–421.10.1016/S0883-9026(97)00009-8Search in Google Scholar

Walter, S.G., K.P. Parboteeah, and A. Walter. 2013. “University Departments and Self‐Employment Intentions of Business Students: A Cross-Level Analysis.” Entrepreneurship Theory and Practice 37 (2): 175–200.10.1111/j.1540-6520.2011.00460.xSearch in Google Scholar

Welter, F 2004. “The Environment for Female Entrepreneurship in Germany.” Journal of Small Business and Enterprise Development 11 (2): 212–221.10.1108/14626000410537155Search in Google Scholar

Wennekers, S., A. Van Wennekers, R. Thurik, and P. Reynolds. 2005. “Nascent Entrepreneurship and the Level of Economic Development.” Small Business Economics 24 (3): 293–309.10.1007/s11187-005-1994-8Search in Google Scholar

Westhead, P., M. Wright, and D. Ucbasaran. 2001. “The Internationalization of New and Small Firms: A Resource-Based View.” Journal of Business Venturing 16 (4): 333–358.10.1016/S0883-9026(99)00063-4Search in Google Scholar

Wilson, F., J. Kickul, and D. Marlino. 2007. “Gender, Entrepreneurial Self-Efficacy, and Entrepreneurial Career Intentions: Implications for Entrepreneurship Education.” Entrepreneurship Theory and Practice 31 (3): 387–406.10.1111/j.1540-6520.2007.00179.xSearch in Google Scholar

Wilson, K.E. (2008).European Foundation for Entrepreneurship Research, Chapter 5 Paris: Entrepreneurship and Higher Education, OECD 1–20 Entrepreneurship Education in Europe.Search in Google Scholar

Wright, M., R.E. Hoskisson, L.W. Busenitz, and J. Dial. 2000. “Entrepreneurial Growth through Privatization: The Upside of Management Buyouts.” Academy of Management Review 25 (3): 591–601.10.2307/259312Search in Google Scholar

Zhang, G., X. Peng, and J. Li. 2008. “Technological Entrepreneurship and Policy Environment: A Case of China.” Journal of Small Business and Enterprise Development 15 (4): 733–751.10.1108/14626000810917834Search in Google Scholar

Zhao, H., S.E. Seibert, and G.E. Hills. 2005. “The Mediating Role of Self-Efficacy in the Development of Entrepreneurial Intentions.” Journal of Applied Psychology 90 (6): 1265–1272.10.1037/0021-9010.90.6.1265Search in Google Scholar

Published Online: 2017-9-6

© 2017 Walter de Gruyter GmbH, Berlin/Boston

Downloaded on 31.12.2025 from https://www.degruyterbrill.com/document/doi/10.1515/erj-2017-0010/pdf
Scroll to top button