The Impact of Entrepreneur’s Motivation and Competencies: An Exploratory Study of E-Commerce New Venture Creations in Malaysia

Abstract

Over the past three decades, studies on entrepreneurship reveal that its main components, particularly for new venture creation processes, have been widely highlighted by researchers. An entrepreneur is regarded as the main actor in entrepreneurship who is responsible for a new ventures creation and it involves motivation and competencies in establishing new ventures. Most previous researchers studying on aspects of entrepreneurial motivation have approached the process of new ventures creation in general, but overlooked e-commerce ventures. Previous studies also paid least focus on entrepreneurial competencies which lead to e-commerce new venture creations. In order to fill the lacunae, the aim of this study is to identify the role of entrepreneurial motivation and competencies that contribute to the creation of e-commerce new ventures in Malaysia. This research used a case study approach in which data was collected by interviewing a total of twelve e-commerce entrepreneurs from May 2013 until December 2014. As entrepreneurs are motivated internally and externally, findings from this study identified two types entrepreneurial motivation which are related to internal motivation; (i) need for achievement and (ii) interest. Need for achievement is triggered by two elements; either by push factors such as personal background, or pull factors – the desire for greater income, which has inspired most entrepreneurs to succeed. The other internal motivation, interest is one of the important elements that cause entrepreneur to initiate start-up e-commerce new ventures di Malaysia. Based on this study, entrepreneurs have high interest in business and in information technology such as computers, internet and others. On the other hand, external motivation as a result of interactions with conducive environment such as customers, family members and industries have increased entrepreneur’s motivation that gives impact to business success. Research findings also have found that entrepreneurial competencies in both computer and communication skills largely contribute to the creation of new ventures. These skills are essential as it facilitates entrepreneurs in expediting the creation of new ventures. Therefore, the government plays a role in encouraging entrepreneurial activities in the country where there is a need to encourage entrepreneurs’ cognitive ability and improve their entrepreneurial competencies in order to boost economic development of the country through the emergence of new ventures in the future.