The Reasoned Action Approach to Growth Intention to Increase Small And Medium Enterprises: A Conceptual Framework

Annuridya Rosyidta Pratiwi Octasylva,Agus W Soehadi,Yuliati Lilik Noor,Hartoyo Hartoyo

doi:10.17358/ijbe.7.3.282

Abstract

Entrepreneurship plays an important role in the economy, among others, in reducing the unemployment rate and improving the economy of a country. However, this was not accompanied by the interest of entrepreneurs in increasing their business. Even though interest is the main predictor in shaping the behaviour and performance of a business. This article aimed to provide literature on what factors can shape an entrepreneur's interest in developing his business. In answering the objectives of this study, a literature study was carried out on the articles about interest in developing a business published in the 2010-2021 period and contained in a bibliographic database. Based on the results of the study, four factors could strengthen the interest in entrepreneurs developing their business, namely: attitude, descriptive norms, injunctive norms and perceived behavioural control with the theoretical approach of reasoned action approach, which are known to be better at predicting behavioural interest because the variables used are more detailed. This research is not only useful for entrepreneurs to increase their demand to develop their business but also useful for related stakeholders to support the increase in-class promotion of MSME actors. Keywords: attitude, descriptive norm, MSME, injunctive norm, perceived behavioural control

Highlights

Entrepreneurship plays a role in improving the economy around the world
This theory is a development of Theory of Planned Behavior (TPB) where in Reasoned Action Approach (RAA), three determinants of intention are labelled attitudes toward behaviour, perceived norms, and perceived behavioural control (PBC), each represented by a different pair of subcomponents—but related
In the injunctive norm, which is a perception of what must or should be done, this is used in TPB as Subjective norm, and Descriptive norm is the perception that other people can or do not perform the intended behaviour

Summary

Introduction

Entrepreneurship plays a role in improving the economy around the world. This statement is confirmed by Mahfud et al (2020), which stated that entrepreneurship plays a vital role in economic prosperity, social stability in developing countries. Entrepreneurship is an innovative and creative process, which plays a potential role in creating new and added value for products/ services, increasing productivity, creating new job opportunities, revitalizing and diversifying markets, increasing social welfare, and developing the national economy. According to Guerrero et al (2008), with its role so crucial, it makes research about entrepreneurship an advanced research issue in the last few years. Entrepreneurship is considered to identify, evaluate, develop, and utilize opportunities and the resources and conditioners that influence the entrepreneurial process (Sanchez 2014). Dong et al (2020) the need for an increase in the number of entrepreneurs to accelerate the economy and create ideas to become a profitable business is crucial for entrepreneurship (Turker & Selcuk 2009)

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Conclusion