The Role of Entrepreneurial Self-Efficacy and Entrepreneurial Passion in Firm Performance

Abstract

Objective - This research clarifies how entrepreneurial self-efficacy (ESE) affects performance, and entrepreneurial passion (EP) may vary the ESE- firm performance relationship as a mediator. Methodology/Technique – The data was collected using a questionnaire distributed to 400 entrepreneurs in Sakon Nakhon, Nakhon Phanom, and Mukdahan Province, Thailand. All measures had acceptable Cronbach’s alpha reliabilities. Descriptive statistics, mean, and standard deviation were used to analyze the data. The conceptual model and hypotheses were tested by using linear regression analysis. Confirmatory factor analysis was used to test construct validity. Finding – The results show that the entrepreneurial self-efficacy had no effect of multicollinearity in the independent variables (Hair et. al., 2014). Therefore, it was possible to test the equation analysis based on the hypothesis using linear regression. In terms of direct relationship testing, entrepreneurial self-efficacy directly had a significant positive impact on firm performance and passion. In addition, entrepreneurial passion directly influenced firm performance. In terms of indirect relationship testing, entrepreneurial passion is a partial mediation for entrepreneurial self-efficacy and firm performance. Novelty – This paper examines how self-efficacy (ESE) affects firm performance and how self-efficacy (ESE) affects firm performance when mediated by passion. This study may provide for higher accomplishment and greater performance. Type of Paper: Empirical. JEL Classification: M10, M12. Keywords: Entrepreneurial Self-Efficacy; Entrepreneurial Passion; Firm Performance Reference to this paper should be made as follows: Saksamrit, N; Sripongpun, K. (2021). The Role of Entrepreneurial Self-Efficacy and Entrepreneurial Passion in Firm Performance, GATR Global J. Bus. Soc. Sci. Review, 9(1): 33 – 40. https://doi.org/10.35609/gjbssr.2021.9.1(4)