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Local Institutional Profile and the Antecedents of Entrepreneurial Intention

  • Guilherme Fowler A. Monteiro ORCID logo EMAIL logo , Tatiana Iwai ORCID logo and Adriana Bruscato Bortoluzzo ORCID logo
Published/Copyright: February 22, 2021

Abstract

We investigate the effects of the local institutional profile on the antecedents of entrepreneurial intention. First, we advance a conceptual model based on the theory of planned behavior and on institutional theory. In our model, local government policies, regional shared social knowledge and local value systems affect cognition of individuals with regard to entrepreneurial intention. We then test our model using structural equation modeling (SEM) based on a survey of 2150 respondents in Brazil. The country is particularly interesting for the analysis since it presents a continental dimension, being formed by five regions with different geographic, economic, and social characteristics. Our regression models corroborate our hypotheses. Perceived behavior control is a function of both the local cognitive dimension and the local regulatory dimension. The personal attitude is determined by all the local institutional dimensions (cognitive, regulatory, and normative dimensions). Subjective norms, in turn, are a function of the local normative dimension. This effect is interesting because it points to regional variability in the way individuals appreciate entrepreneurial activity and how this translates into a statistically significant difference in entrepreneurial intention among the country’s regions.


Corresponding author: Prof. Guilherme Fowler A. Monteiro, Insper Institute of Education and Research, Rua Quata, 300, Sao Paulo, SP, Brazil, E-mail:

Appendix 1

Measures of Theory of Planned Behavior

Entrepreneurial intention

E1. I am ready to do anything to be an entrepreneur.

E2. My professional goal is to become an entrepreneur.

E3. I will make every effort to start and run my own firm.

E4. I am determined to create a firm in the future.

E5. I have very seriously thought of starting a firm.

E6. I have the firm intention to start a firm some day.

Personal attitude

PA1. Being an entrepreneur implies more advantages than disadvantages to me.

PA2. A career as entrepreneur is attractive to me.

PA3. If I had the opportunity and resources, I’d like to start a firm.

PA4. Being an entrepreneur would entail great satisfactions for me.

PA5. Among various options, I would rather be an entrepreneur.

Subjective norm

If you decided to create a firm, would the people who are close to you approve that decision?

SN1. Your immediate family.

SN2. Your friends.

SN3. Your colleagues.

Perceived behavioral control

PBC1. To start a firm and keep it working would be easy for me.

PBC2. I am prepared to start a viable firm.

PBC3. I can control the creation process of a new firm.

PBC4. I know the necessary practical details to start a firm.

PBC5. I know how to develop an entrepreneurial project.

PBC6. If I tried to start a firm, I would have a high probability of success.

Appendix 2

Measures of Local Institutional Profile

Regulatory dimension

LR1. In my region, local government assists individuals interested in starting their own business.

LR2. In my region, local government sets aside government contracts for new and small businesses.

LR3. In my region, local government has special support available for individuals who want to start a new business.

LR4. In my region, local government sponsors organizations that help new businesses develop.

LR5. Even after failing in an earlier business, local government assists entrepreneurs in starting again.

Cognitive dimension

LC1. Individuals know how to legally protect a new business.

LC2. Those who start new businesses know how to deal with a great deal of risk.

LC3. Those who start new businesses know how to manage risk.

LC4. Most people know where to find information about markets for their products.

Normative dimension

LN1. Turning new ideas into businesses is an admired career path in my region.

LN2. In my region, innovative and creative thinking is viewed as a route to success.

LN3. Entrepreneurs are admired in my region.

LN4. People in my region tend to greatly admire those who start their own business.

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Received: 2020-07-10
Accepted: 2021-02-02
Published Online: 2021-02-22

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