The Effect of Human Capital on Social Entrepreneurial Orientation among Undergraduates Students in Malaysia

Author(s)

Abdullah Ali Sallam , Shuhairimi Bin Abdullah , Abeer Mohammed Ghamdhan , Mohd Zukime Bin Mat Junoh ,

Download Full PDF Pages: 01-15 | Views: 734 | Downloads: 178 | DOI: 10.5281/zenodo.3456962

Volume 8 - August 2019 (08)

Abstract

In an era of entrepreneurship popularity, a growing need exists for scholars and practitioners to develop beyond the mere perceptions or templates regarding the social entrepreneurial orientation among university students and instead have scientific data and scientific results about the impact of human capital on the social entrepreneurial orientation of students.  The aim of this research is to study the effect of human capital on social entrepreneurial orientation among undergraduate students in Malaysia. The survey was conducted on 600 students who are social science, and business administration from six universities in Malaysia but only 514 questionnaires were obtained.  The study combined exploratory factor analysis with structural equation modeling (SEM) to develop the research model. The findings of this study have theoretical and practical implications for academics and organization practitioners. The results indicated that a direct positive and significant effect of human capital on social entrepreneurial orientation. It was suggested that future research might widen the scope by considering social entrepreneurship-related studies in other categories, such as women, adult or general youth. Also, invite researchers focused on the legal role to support entrepreneurship based on social effect.

Keywords

Human capital, social entrepreneurial orientation

References

i.        Abu-Saifan, S. (2012). Social entrepreneurship: definition and boundaries. Technology Innovation Management Review, 2(2).

ii.      Alam, S. S., Mohd, R., Kamaruddin, B. H., & Nor, N. G. M. (2015). Personal values and entrepreneurial orientations in Malay entrepreneurs in Malaysia: Mediating role of self-efficacy. International Journal of Commerce and Management, 25(4), 385-401.

iii.    Ambad, S. N. A., & Abdul Wahab, K. (2016). A review of the entrepreneurial orientation construct in entrepreneurship research. Borneo Akademika, 1(1), 41-51.

iv.     Arbaugh, J. B., Cox, L. W., & Camp, S. M. (2009). Is entrepreneurial orientation a global construct? A multi-country study of entrepreneurial orientation, growth strategy, and performance. The Journal of Business Inquiry, 8(1), 12-25.

v.       Arenius, P., & Minniti, M. (2005). Perceptual variables and nascent entrepreneurship. Small business economics, 24(3), 233-247.

vi.     Arham, A. (2014). The relationship between leadership behaviour, entrepreneurial orientation and organizational performance in Malaysian small and medium enterprises.

vii.   Ariff, M., & Abubakar, S. Y. (2003). Strengthening entrepreneurship in Malaysia. Malaysian Institute of Economic Research, Kuala Lumpur, 1-22.

viii. Awang, A. B., b Ahmad, Z. A., & b Subari, K. A. (2010). Entrepreneurial orientation among Bumiputera small and medium agro-based enterprises (BSMAEs) in West Malaysia: Policy implication in Malaysia. international Journal of Business and Management, 5(5), 130.

ix.     Awang, A., Ibrahim, I. I., & Ayub, S. A. (2014). De-terminants of entreprneurial career: Experience of polytechnic students. Journal of Entrepreneurship, Business and Economics, 2(1), 21-40.

x.       Awang, A., Khalid, S. A., Kassim, K. M., Ismail, M., Zain, R. S., & Madar, A. R. S. (2009). Entrepreneurial orientation and performance relations of Malaysian Bumiputera SMEs: The impact of some perceived environmental factors. International Journal of Business and Management, 4(9), 84.

xi.     Bacq, S., & Janssen, F. (2011). The multiple faces of social entrepreneurship: A review of definitional issues based on geographical and thematic criteria. Entrepreneurship & Regional Development, 23(5-6), 373-403.

xii.   Becker, G. S. (1994). Human capital revisited. In Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition) (pp. 15-28). The University of Chicago Press.

xiii. Beek, R. C. (2017). The influence of personality on entrepreneurial performance. An investigation of the effects of the big five personality factors and entrepreneurial learning on the subjective performance of start-up entrepreneurs (Master's thesis, University of Twente).

xiv. Bosma, N., Schøtt, T., Terjesen, S. A., & Kew, P. (2016). Global Entrepreneurship Monitor 2015 to 2016: Special Topic Report on Social Entrepreneurship.

xv.   Burge, W. D. (2017). The Relationship Between the Human and Social Capital Characteristics of Nascent Entrepreneurs and Expected Job Growth in the United States (Doctoral dissertation, The University of Southern Mississippi).

xvi. Choi, N., & Majumdar, S. (2014). Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of business venturing, 29(3), 363-376.

xvii.                       Cong, C., Dempsey, M., & Xie, H. M. (2017). Political skill, entrepreneurial orientation and organizational justice: A study of entrepreneurial enterprise in China. International Journal of Entrepreneurial Behavior & Research, 23(1), 20-34.

xviii.                     Covin, J. G., & Lumpkin, G. T. (2011). Entrepreneurial orientation theory and research: Reflections on a needed construct. Entrepreneurship Theory and Practice, 35(5), 855-872.

xix. Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic management journal, 10(1), 75-87.

xx.   Criado-Gomis, A., Cervera-Taulet, A., & Iniesta-Bonillo, M. A. (2017). Sustainable Entrepreneurial Orientation: A Business Strategic Approach for Sustainable Development. Sustainability, 9(9), 1667.

xxi. Cunha, J., & Benneworth, P. (2014). Social entrepreneurship and social innovation: are both the same?. In ICOPEV-2nd International Conference on Project Evaluation (pp. 75-84). Universidade do Minho.

xxii.                       Darnihamedani, P., & Hessels, J. (2016). Human Capital as a Driver of Innovation Among Necessity-Based Entrepreneurs. International Review of Entrepreneurship, 14(1).

xxiii.                     Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of business venturing, 18(3), 301-331.

xxiv.                      Deb, P., & Wiklund, J. (2017). The Effects of CEO Founder Status and Stock Ownership on Entrepreneurial Orientation in Small Firms. Journal of Small Business Management, 55(1), 32-55.

xxv.                        Delmar, F., & Davidsson, P. (2000). Where do they come from? Prevalence and characteristics of nascent entrepreneurs. Entrepreneurship & regional development, 12(1), 1-23.

xxvi.                      Economic Planning Unit. (2010). Ringkasan Eksekutif Rancangan Malaysia Kesepuluh 2011- 2015. Putrajaya: Jabatan Perdana Menteri.

xxvii.                    Erbasi, A. (2016). Indicator Problem in Measuring Social Capital: the Relationship between Human Capital Indicators and Social Capital. Journal of Advanced Management Science Vol, 4(5).

xxviii.                  Florin, J., Lubatkin, M., & Schulze, W. (2003). A social capital model of high-growth ventures. Academy of Management Journal, 46(3), 374-384.

xxix.                      Floyd, S. W., & Wooldridge, B. (1999). Knowledge creation and social networks in corporate entrepreneurship: The renewal of organizational capability. Entrepreneurship theory and practice, 23(3), 123-144.

xxx.                        Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.

xxxi.                      Gimeno, J., Folta, T. B., Cooper, A. C., & Woo, C. Y. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative science quarterly, 750-783.

xxxii.                    Grichnik, D., Brinckmann, J., Singh, L., & Manigart, S. (2014). Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities. Journal of Business Venturing, 29(2), 310-326.

xxxiii.                  Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2013). Multivariate data analysis: Pearson new international edition. Pearson Higher Ed.

xxxiv.                  Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (Vol. 6).

xxxv.                    Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., & Thiele, K. O. (2017). Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods. Journal of the Academy of Marketing Science, 45(5), 616-632.

xxxvi.                  Hamid, Z., Hengchao, Z., & Mhd-Sarif, S. (2017). ECONOMIC THEORIES OF SOCIAL ENTREPRENEURSHIP. International Journal of Accounting, 2(6), 110-122.

xxxvii.                Harding, R., & Cowling, M. (2006). Social entrepreneurship monitor. London: Global Entrepreneurship Monitor.

xxxviii.              Harpan, I., & Draghici, A. (2014). Debate on the multilevel model of the human capital measurement. Procedia-Social and Behavioral Sciences, 124, 170-177.

xxxix.                  Hassan, N. F. N., Daud, W. N. W., Zainol, F. A., Rashid, N., & Afthanorhan, A. (2018). The Shared Value Concept in Social Business Model: Promoting Social Enterprise in Malaysia. INTERNATIONAL JOURNAL OF ACADEMIC RESEARCH IN BUSINESS AND SOCIAL SCIENCES, 8(11).

xl.     Hoogendoorn, B., van der Zwan, P., & Thurik, R. (2011). Social Entrepreneurship and Performance: The Role of Perceived Barriers and Risk (No. ERS-2011-016-ORG).

xli.   Ibrahim, D. H. M., & Mahyuddin, M. Z.(2017). Youth Unemployment in Malaysia: Developments and Policy Considerations. Annual Report 2016.

xlii. Information Resources Management Association (IRMA) (2017). Entrepreneurship: Concepts, Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and Applications. IGI Global, 2017, ISBN 1522519246, 9781522519249. 2128 p

xliii.                       Iyigun, M. F., & Owen, A. L. (1998). Risk, entrepreneurship, and human-capital accumulation. The American Economic Review, 88(2), 454-457.

xliv.                       James, C. D., & Schmitz, C. L. (2011). Transforming sustainability education: Ethics, leadership, community engagement, and social entrepreneurship. International Journal of Business and Social Science, 2(5), 1-7.

xlv. Jiménez, A., Palmero-Cámara, C., González-Santos, M. J., Gonzalez-Bernal, J., & Jiménez-Eguizábal, J. A. (2015). The impact of educational levels on formal and informal entrepreneurship. BRQ Business Research Quarterly, 18(3), 204-212.

xlvi.                       Kachlami, H. M. (2014). The likely determinants of social entrepreneurship and policy implications. In social entrepreneurship (pp. 293-307). Springer International Publishing.

xlvii.                     Kunnas, J. (2016). Human capital in Britain, 1760–2009. Scandinavian Economic History Review, 64(3), 219-242.

xlviii.                   Kwon, D. B. (2009). Human capital and its measurement. In The 3rd OECD World Forum on “Statistics, Knowledge and Policy” Charting Progress, Building Visions, Improving Life (pp. 27-30).

xlix.                       Lumpkin, G. T., Brigham, K. H., & Moss, T. W. (2010). Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses. Entrepreneurship and Regional Development, 22(3-4), 241-264.

l.        Mamabolo, M. A., Kerrin, M., & Kele, T. (2017). Human capital investments as sources of skills: An analysis at different entrepreneurship phases. The Southern African Journal of Entrepreneurship and Small Business Management, 9(1), 12.

li.      Martens, C. D. P., Lacerda, F. M., Belfort, A. C., & Freitas, H. M. R. D. (2016). Research on entrepreneurial orientation: current status and future agenda. International Journal of Entrepreneurial Behavior & Research, 22(4), 556-583.

lii.    Martin, B. C., McNally, J. J., & Kay, M. J. (2013). Examining the formation of human capital in entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of Business Venturing, 28(2), 211-224.

liii.  McDowall, H., & Micinski, N. (2010). Young social entrepreneurs: learning by doing. UnLtd: London.

liv.   Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management science, 29(7), 770-791.

lv.     Mohd, R. (2015). Entrepreneurial orientation and personal values of Malay entrepreneurs: The mediation of self-efficacy and the moderation of business environment. GRIN Verlag.

lvi.   Morgan, T., Anokhin, S., & Wincent, J. (2016). Entrepreneurial orientation, firm market power and opportunism in networks. Journal of Business & Industrial Marketing, 31(1), 99-111.

lvii. Nicolopoulou, K. (2014). Social entrepreneurship between cross‐currents: toward a framework for theoretical restructuring of the field. Journal of Small Business Management, 52(4), 678-702.

lviii.                       Nor, N. A. A. M. (2015). Entrepreneurship development policy in Malaysia. Economic and Social Science Research Centre, MARDI, Persiaran MARDI-UPM, http://ap. fftc. agnet. org/ap_db. php.

lix.   Norasmah, O., & Faridah, K. (2010). Entrepreneurship Behaviour amongst Malaysian University Students. Pertanika Journal of Social Sciences & Humanities, 18(1).

lx.     Nordin, N. (2015). Examining The Relationship Between Innovation Orientation And Its Enablers Among Undergraduate Students In Malaysian Higher Education Institutions (Doctoral dissertation, Universiti Sains Malaysia).

lxi.   Nunnally, J. (1978). Psychometric methods.

lxii. Patricia, O. (2012). Business, Technology, and Knowledge Management in Asia: Trends and Innovations: Trends and Innovations. IGI Global, 2017, ISBN 1466626836, 9781466626836. 355 p

lxiii.                       Păunescu, C., Drăgan, D., Cantaragiu, R., & Filculescu, A. (2013). Towards a conceptualization of social entrepreneurship in higher education. The International Journal of Management Science and Information Technology (IJMSIT), (10-(Dec)), 51-69.

lxiv.                       Rainwater, C. A. (2016). The impact of business curriculum on a student's entrepreneurial orientation (Doctoral dissertation, Capella University).

lxv. Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), 761-787.

lxvi.                       Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), 761-787.

lxvii.                     Rocha, V., Carneiro, A., & Varum, C. A. (2015). Entry and exit dynamics of nascent business owners. Small Business Economics, 45(1), 63-84.

lxviii.                   Rosenbusch, N., Rauch, A., Parker, S. C., & Unger, J. M. (2009). Human capital, gender and entrepreneurial success: Empirical evidence from China and Germany. In World Bank Conference Female Entrepreneurship: Constraints and Opportunities.

lxix.                       Sallam A.A., Abdullah S., Ghamdhan A.M., Mat Junoh M.  (2019). The Effect of Social Capital, Human Capital on Social Entrepreneurial Orientation among Undergraduate Students: Entrepreneurial Awareness as a Mediator, American Based Research Journal 03:01-26

lxx. Santos, F. M. (2012). A positive theory of social entrepreneurship. Journal of business ethics, 111(3), 335-351.

lxxi.                       SastreCastillo, M. A., PerisOrtiz, M., & Valle, D. D. (2015). What is different about the profile of the social entrepreneur?. Nonprofit Management and Leadership, 25(4), 349-369.

lxxii.                     SastreCastillo, M. A., PerisOrtiz, M., & Valle, D. D. (2015). What is different about the profile of the social entrepreneur?. Nonprofit Management and Leadership, 25(4), 349-369.

lxxiii.                   Schriver, J. M. (2017). Handbook of Human Behavior and the Social Environment: A Practice-Based Approach. Routledge.

lxxiv.                    Smith, J., & Muldrew, R. (2017). Understanding the Reconstructed Dimensions of Corporate Entrepreneurship. Canadian Journal of Applied Science and Technology, 5(2).

lxxv.                      Soriano, D. R., & Huarng, K. H. (2013). Innovation and entrepreneurship in knowledge industries. Journal of Business Research, 66(10), 1964-1969.

lxxvi.                    Tang, J. (2008). Exploring the antecedents of entrepreneurial alertness: Interactions between individual and environmental characteristics. In United States Association for Small Business and Entrepreneurship. Conference Proceedings (p. 1416). United States Association for Small Business and Entrepreneurship.

lxxvii.                  Tishler, B. (2019). Exploring Knowledge and Awareness of Social Entrepreneurship. ProQuest: 13426651

lxxviii.                Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of business venturing, 26(3), 341-358.

lxxix.                    United Nations Children’s Fund (UNICEF) Malaysia. (2014). EXPLORING THE DIGITAL LANDSCAPE IN MALAYSIA. ISBN 978-967-12284-4-9. Accessed on Nov. 2017 https://www.unicef.org/malaysia/UNICEF_Digital_Landscape_in_Malaysia-FINAL-lowres.pdf

lxxx.                      Urban, B., & Kongo, M. (2015). The relevance of human capital to firm performance: A focus on the retail industry in Kinshasa, Democratic Republic of Congo. Acta Commercii, 15(1), 1-9.

lxxxi.                    Van Ryzin, G. G., Grossman, S., DiPadova-Stocks, L., & Bergrud, E. (2009). Portrait of the social entrepreneur: Statistical evidence from a US panel. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 20(2), 129-140.

lxxxii.                  Veselinova, E., & Parleev, V. (2017). Assessing the Contribution of Human Capital on Business Performance with focus on the IT industry in the Republic of Macedonia. Journal of Research in Business, Economics and Management, 8(1), 1311-1317.

lxxxiii.                Wahid, H., Othman, N., Mansor, M, & Nasrudin,N. (2011). Social entrepreneurial personality traits among students in higher education institutions (HEIs). Proceeding Seminar 1st International Conference on World-Class Education 2011. Universiti Malaya, Kuala Lumpur. 5–6 December 2011.

lxxxiv.                Wales, W. J., Gupta, V. K., & Mousa, F. T. (2013). Empirical research on entrepreneurial orientation: An assessment and suggestions for future research. International Small Business Journal, 31(4), 357-383.

lxxxv.                  Wang, M. C., & Ke, Y. Z. (2016). Market turbulence, entrepreneurial orientation and explorative innovation: the role of organizational capabilities. Review of Integrative Business and Economics Research, 5(1), 94.

lxxxvi.                Williams, C. C., & Nadin, S. (2012). Beyond the commercial versus social entrepreneurship dichotomy: a case study of informal entrepreneurs. Journal of Developmental Entrepreneurship, 17(03), 1250018.

lxxxvii.              Yiu, D. W., Wan, W. P., Ng, F. W., Chen, X., & Su, J. (2014). Sentimental drivers of social entrepreneurship: A study of China's Guangcai (Glorious) Program. Management and Organization Review, 10(1), 55-80.

lxxxviii.            Zahra, S. A., & Covin, J. G. (1995). Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis. Journal of business venturing, 10(1), 43-58.

lxxxix.                Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of business venturing, 24(5), 519-532.

xc.   Zain, Z. M., Akram, A. M., & Ghani, E. K. (2010). Entrepreneurship Intention Among Malaysian Business Students/L'ESPRIT D'ENTREPRISE CHEZ LES ETUDIANTS EN COMMERCE MALAISIENS.Canadian social science,6(3), 34.

Cite this Article: