Abstract

The development of entrepreneurial activities helps in realization of multiple goals of sustainable development. This study aims to inspect the applicability of the entrepreneurial intention model (EIM) to explain entrepreneurial intention in different cultural contexts. A survey was conducted using the Entrepreneurial Intention Questionnaire. Based on 535 valid responses received from business students in India (N = 285) and Saudi Arabia (N = 250), the model was analyzed using the partial least square regression method. The results show that the EIM is validated for the combined sample (R2combined = 0.522) as well as for the individual samples (R2India = 0.644; R2Saudi = 0.412). Demographic variables and human capital variables were found to impact the entrepreneurial intention differently in the combined sample and the individual samples of the two countries. Multigroup analysis was performed to test if the country variable influences the hypothesized paths in the model. The results of the multigroup analysis show that many of the hypothesized relationships (gender-personal attitude; gender-subjective norm; gender-perceived behavioral control, role model-subjective norm, role model-perceived behavioral control, subjective norm-personal attitude, and subjective norm-entrepreneurial intention) are significantly different in the two countries. This study addresses the gap in comparative international entrepreneurship (CIE) research by testing the applicability of EIM in two different cultures. The findings are also significant for policymakers at both national and international levels for facilitating entrepreneurship.

Highlights

  • Economic development and entrepreneurship have been considered to be closely related to each other [1,2]

  • Considering university student populations in two developing countries namely Saudi Arabia and India, the present study addresses the need for more cross-cultural research on entrepreneurial intention

  • There were two main objectives of this study—first, to test if the entrepreneurial intention model (EIM) can predict the entrepreneurial intention (EI) in a sample from two different countries; second, to test if the country variable makes a significant difference to any of the hypothesized paths in the model

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Summary

Introduction

Economic development and entrepreneurship have been considered to be closely related to each other [1,2]. The entrepreneurial activities may help in realization of multiple sustainable development goals such as alleviate poverty, gender equality, bridge inequality among countries. It has been targeted under the goals of equitable education and equitable work environment [5]. The role of entrepreneurship in the socio-economic development of developing countries is well supported in research [6,7]. A popular strand of entrepreneurship research has been the understanding of reasons why an individual decides to become an Sustainability 2021, 13, 13369.

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