Abstract

This study aims to examine the role of entrepreneurial competency in mediating the influence of personality traits on entrepreneurial intention. Data were collected using a questionnaire sent to medium-sized business managers in the province of Bali, Indonesia; the sample size is 385 people. Assuming a response rate of 85%, 453 questionnaires were sent. Of these, 142 returned and a usable response rate of 30.37% was achieved. Data were analyzed using SEM-PLS with WarpsPLS 7.0. The findings show that personality traits have a significant effect on entrepreneurial competency (β = 0.513; p < 0.001), personality traits significantly affect entrepreneurial intention (β = 0.266; p < 0.001). Furthermore, this study proves that entrepreneurial competency significantly affects entrepreneurial intention (β = 0.436; p < 0.001). This study also found the Sobel test value of 5.770, which means that entrepreneurial competency can influence personality traits and entrepreneurial intention as a partial mediator. There is a comprehensive view of the relationship between personality traits, entrepreneurial competency, and entrepreneurial intention. This study not only provides an understanding of the relationship between personality traits and entrepreneurial intention, but also provides evidence on the mechanism by which entrepreneurial competency mediates the relationship between personality traits and entrepreneurial intention.

Highlights

  • The intention in entrepreneurship is very important because it contributes to the behavior of individual activities to become an entrepreneur

  • The findings show that personality traits have a significant effect on entrepreneurial competency (β = 0.513; p < 0.001), personality traits significantly affect entrepreneurial intention (β = 0.266; p < 0.001)

  • The results of this study indicate that personality traits have a significant relationship with entrepreneurial competency

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Summary

Introduction

The intention in entrepreneurship is very important because it contributes to the behavior of individual activities to become an entrepreneur. Entrepreneurial intention relates to individual behavior related to entrepreneurship (Yatribi, 2016; Park, 2017). Personality traits are a unique characteristic of individuals shown by the internal locus of control, need for achievement, risk tolerance, and entrepreneurial alertness realizing entrepreneurial intention (Karabulut, 2016). The findings of Dinis et al (2013) mentioned that personality traits i.e. tolerance, ambiguity, locus of control, and innovativeness, have no statistical significance and propensity comparing to risk that negatively influences entrepreneurial intention. This difference shows the gap in the relationship between personality traits and entrepreneurial intention.

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