The effect of intrinsic and extrinsic factors on entrepreneurial intentions: The moderating role of collectivist orientation

Mar 11, 2019


Published in: Management Decision

Publisher: Emerald

/ Mariam Farooq

Purpose – The purpose of this paper is to investigate how and when intrinsic (personal growth, affiliation, community contribution, health) and extrinsic (financial success, fame, physical appearance) goals affect individuals’ entrepreneurial intentions (EIs). The study uses goal contents theory to propose that intrinsic and extrinsic goals positively influence individuals’ EIs. The authors further argue that the collectivism moderates the effect of intrinsic and extrinsic goals on individuals EIs. Design/methodology/approach – A survey was designed to collect data from business graduates at a university in Pakistan. The measurement model and the hypothesized model were tested using the structural equation modeling technique in MPlus 7.0. Findings – The results suggest that all four intrinsic goals and three extrinsic goals positively affect individuals’ EIs. However, financial success and fame appear to be the most prominent determinants of EIs. Similarly, personal growth and contribution to community are strong predictors of individuals’ EIs. Conversely, health, physical appearance and affiliation motives were found to have a weaker effect on individuals’ EIs. Moreover, the results show that collectivist orientation negatively moderates the effect of intrinsic goals on individuals’ EIs, but positively moderates the effect of extrinsic goals. These results suggest that the EIs of individuals with high collectivist orientation are mainly induced by extrinsic goals, whereas intrinsic factors play a greater role in stimulating the EIs of individuals with low collectivism. Originality/value – Extant research has paid little attention to intrinsic and extrinsic goals as determinants of individuals’ EIs. Thus, this study explores how and when intrinsic and extrinsic goals develop individuals’ EIs. This study is the first of its kind to highlight the importance of individuals’ cultural orientation (collectivism) to determine the alternative role of intrinsic and extrinsic goals in developing individuals’ EIs. In addition, this study was conducted in a different cultural setting (i.e. South Asia), which provides an opportunity to expand the boundary conditions of the phenomenon by offering an alternative perspective on this issue.

Other Researches

The Multiple Pathways through which Internal and External Corporate Social Responsibility Influence Organizational Identification and Multifoci Outcomes: The Moderating Role of Cultural and Social Orientations.

In this paper, we use a social identity theory perspective to study the mechanisms through which internal and external corporate social responsibility (CSR) influence employee identification and its subsequent outcomes, as well as the boundary con...

Employees response to corporate social responsibility: Exploring the role of employees’ collectivist orientation

Since the extant literature largely ignores the conditions that moderate the impact of CSR on employees’ related outcomes, we examine the moderating effect of employees’ collectivist orientation on the relationship of CSR. Most specifically, this s...