Impact of effectuation based interventions on the intentions to start a business

Authors

Muhammad Shahid Qureshi, Institute of Business Administration, Karachi, Pakistan
Fawad Mahdi, Institute of Business Administration, Karachi, Pakistan

Abstract

Intention plays a very important role to measure one’s willingness to pursue entrepreneurship as a career. Previous researchers have differed about various antecedents that impact the entrepreneurial intention to start a business. Entrepreneurship education (EE) assumes to play an important role in shaping traits and attitudes of an entrepreneur, contrary to the “entrepreneurs are born” school of thought. We use the Individual entrepreneurship orientation (IEO) construct as developed by Boltan and Lane (2011) to measure its impact on the intention levels of students. The use of Effectuation (Sarasvathy, 2001)as a pedagogical tool is used as a mediating variable between IEO and intentions. In a leading business school, a group of 63 business graduates were taught entrepreneurship based on effectual principles as proposed by Sarasvathy(2001).The empirical findings suggest an insignificant impact of IEO on student’s intention levels; however the impact is significant when effectuation is used as a mediating variable between IEO and entrepreneurial intentions. The paper discusses the theoretical foundations of individual entrepreneurial orientation, effectuation and intention, and then empirically tests the proposed model, followed by findings and recommendations. The findings of this research empirically established that the elements of IEO (i.e. risk taking, pro activeness, and innovation) independently do not increase students intentions to start a business, however when mediated by effectuation approach the intention levels of students were positively affected.

Keywords

Entrepreneurship, Education, Effectuation, Entrepreneurial Intentions, Individual entrepreneurial orientation

DOI

https://doi.org/10.54784/1990-6587.1277

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Recommended Citation

Qureshi, M. S., & Mahdi, F. (2014). Impact of effectuation based interventions on the intentions to start a business. Business Review, 9(2), 143-157. Retrieved from https://doi.org/10.54784/1990-6587.1277