ASERS
Volume VII, Issue 1(13), Summer 2016
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Volume VII
Issue 1(13)
Summer 2016
ISSN 2068-7532
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Winter 2016
Volume VII Issue 1(13) Summer 2016
Volume VII, Issue 1(13), Summer 2016
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ASERS Publishing
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ISSN 2068-7532
Journal's Issue DOI:
http://dx.doi.org/10.14505/jarm.v7.1(13).00
Contents:
1 Theoretical Perspectives for Employer Branding
Rita BENDARAVIČIENĖ
2 Mediating Effects of Motivation on the Factors
Affecting Hawker Food Entrepreneurs Intention: A
Study among University Hospitality Chinese Students
…5
…29
Tan Poh LEONG, Laily Hj PAIM
3 The Concept of Performance in Determining Annual
Financial Result
…43
Silvia SIMIONESCU
4 Depreciation of Non-Current Assets: Harmonization of
International Practices and Regulatory in Ukraine
Zenoviy-Mikhailo ZADOROZHNII
Sofiia KAFKA
5 Non Financial Reporting between Necessity and
Obligation
...50
...58
Liana GÂDĂU
6 The Effect of Training Strategies on the Performance
of Trainees in the Kingdom of Saudi Arabia
Omar Saeed ALFAQEIN, Abdelnaser OMRAN,
Ummalzayn Hussain BADAWI
7 The Application of Information Technologies in the
Tourist Industry
Marlena WILK
…63
...68
Volume VII, Issue 1(13), Summer 2016
DOI: http://dx.doi.org/10.14505/jarm.v7.1(13).02
Mediating Effects of Motivation on the Factors Affecting Hawker Food Entrepreneurs
Intention: A Study among University Hospitality Chinese Students
Tan Poh LEONG
Faculty of Social Science, Arts and Humanities
Tunku Abdul Rahman University College4, Malaysia
[email protected]
Laily Hj PAIM
Faculty of Human Ecology, University Putra Malaysia, Malaysia
[email protected]
Suggested Citation:
Leong, T.P., Paim, L.H. (2016). Mediating effects of motivation on the factors affecting Hawker food entrpreneurs intention: A study
among university hospitality Chinese students, Journal of Advanced Research in Management, (Volume VII, Summer), 1(13): 29 42. DOI:10.14505/jarm.v7.1(13).02.
Article’s History:
Received May, 2016; Accepted June 2016, Published August 2016
2016. ASERS Publishing. All rights reserved.
Abstract:
Past scholars have focused on mostly business and entrepreneurial undergraduate students. There is a poor understanding
of motivation (MA) factor as mediating variable explaining the relationships among various factors such as subjective norms (SN),
barriers (BA), and hawker entrepreneurial intention among young Chinese hospitality undergraduate students. Therefore, this paper
explores the relationships between motivation variables and the variables of Theory Reason Action (TRA) associated with Chinese
university hospitality students’ intention to become hawker food entrepreneurs.
The research model reflects the effects of MA, SN and BA on TRA constructs have been proposed. In total, 141 cases
were gathered from the survey. Structural equation modelling was used to measure the proposed theoretical research model. The
result concluded that motivation discovered significantly support of this study but not subjective norm and barriers factor. The
limitations in this study might have faults in responding as some respondents may have interest to work in a hotel rather than setting
up as a hawker entrepreneur. Future research may investigate on those hospitality graduates that have already set up hawker
entrepreneur this may prevent any mistake. The results of the study have contributed to the entrepreneurship body of new
knowledge, especially in the Theory Reasoned Action, particularly in terms of hawker food entrepreneurial intention.
Keywords: Barriers, entrepreneur, family business, hawker food, hospitality, small business, subjective norms, theory reason
action.
JEL Classification: M10.
1. Introduction
The Malaysia food sector includes cafes, coffee shop, and hawker food centres. Among them, hawker food
centre is the biggest and offering local delight with a good tasting meal that suitable for local consumers (Euromonitor
International 2011). Malaysia’s history of hawker food culture begins in the early 1900s during the British colonial period.
4
Kampar, 31900, Malaysia
29
Journal of Advanced Research in Management
Hawker food centre operates variety of foods. Some are halal and some are non-halal, and there is a variety of food
prepared from ethnicities, Malays, Indian and Chinese. Each hawker food stall in the hawker food centre is generally
small in size and requires simple skills, basic facilities and small amounts of capital (Muzaffar, Huq, and Malik 2009).
2. Problem statement
In Malaysia, the majority of Chinese hawker food stalls are managed by their family (Foo, Norkhirul and Wong
2013, Stantons, Emms and Sia 2010). However, currently the Chinese hawker food stall in the hawker food centre is
truly distinguished from the past. First-generation Chinese hawkers’ owners are retiring. There is a possibility that
Malaysia may one day lose its rich Chinese hawker heritage. There are similar issues in Singapore as the present
generation in Singapore is reluctant to take over hawker food stalls (Foo, Norkhairul, and Wing 2013). As a result, many
foreign workers are employed to manage Chinese hawker food stalls in Singapore. Nevertheless, in order to maintain
and preserve the original uniqueness of local Malaysian Chinese hawker culture, Penang states in Malaysia took the
first move not allow foreign workers to cook at a Chinese hawker food stall in Malaysia (The Straits Times 2014). Thus,
numerous questions remain about the future of Chinese hawker business in Malaysia. The situation had drawn the
attention of Malaysia government to introduce the one family, one entrepreneur concept to encourage the young
generation to become an entrepreneur (Bernama 2015).
A review of literature on entrepreneurship discovered that most scholars have focused on business and
entrepreneurial undergraduate students (Tung, Tong, and Loy 2011, Ooi and Shuhymce 2012, Amran, Saif, Shagayengl
and Sumrera 2013). There is a comparatively poor understands of motivation factor as mediating variable that explains
the relationship between various factors such as subjective norms, barriers, and hawker entrepreneurial intention
among young Chinese hospitality undergraduate students. On top of that, to the best of the authors’ knowledge, there
is a limited of literature reviews published on motivation as mediating variable to measure hospitality university Chinese
students’ intention to be hawker food entrepreneurs. This gap needs to be addressed and it hoped that the discovery
of motivation factor may clarify the future Chinese hawker food entrepreneurs issue.
At the university stage, advocates believe colleges need to incorporate entrepreneurship into curricula, for
students majoring in business management included hospitality degree program. This is to verify that their engagement
in the related degree program is guided in the right manner. All the practices and training in hospitality degree program
foster them to be an entrepreneur. A hospitality student after graduation can work for some years to obtain experience
later able to begin their own eatery or set up a small business similar to a hawker stall. Obviously, almost every
hospitality graduate presently desires to be somebody on top of the hospitality industry, but among young Chinese
hospitality students few understands or prefer being a hawker food entrepreneur. Therefore, this study proposed five
objectives:
1) To determine the direct effect between motivation factor and entrepreneurial intention among Chinese
university hospitality students.
2) To determine the direct effect between subjective norms and entrepreneurial intention among Chinese
university hospitality students.
3) To explore the mediating effects of motivation on the relationship between subjective norms and hawker
entrepreneur intention among Chinese university hospitality students.
4) To determine the direct effect between barriers and entrepreneurial intention among Chinese university
hospitality students.
5) To explore the mediating effects of motivation on the relationship between barriers and hawker entrepreneur
intention among Chinese university hospitality students.
This study is significant for the reason that it considers hawker entrepreneurship. Hawker entrepreneurial
intention in this study is crucial because it provides researchers with a result contributing on discovering prospective
Chinese hawker entrepreneurs in the future in Malaysia. This study is possible as there is a need to understand the
context that encourages Chinese hawker entrepreneurial so that the study of entrepreneurship is able to continue. It is
expected that the discoveries of the research may have several significant results for the educators, and policy makers
in terms of practical implication.
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Volume VII, Issue 1(13), Summer 2016
3. Literature review and theoretical background
Entrepreneurship is the practice of creating a new business. Intention to set up hawker food stall is equivalent
to intention starting a new small business. Theory Reasoned Action (TRA) is considered as the most potential
framework for the prediction of human intention behaviour (Ajzen 2012). The TRA has been empirically validated in
research into the intention to begin set up businesses, the decision to grow a venture, and evaluate of the impact of
entrepreneurship education (Engle et al. 2010, Gird and Bargraim 2008, Moufhe and Du Toit 2011, and Otuya and
Kibas 2013).
TRA in this study offers a closer and applicable theoretical framework that allows us to understand and predict
more exact entrepreneurial intentions by focusing not only on hospitality students’ subjective norms factors and barriers,
but also a motivation factor as mediating variable to discovery between various factors and intentions in order to
contribute new knowledge to the entrepreneurial literature.
4. Motivation
Motivation is intention by someone to do something. Appropriate motivation is vital for the young entrepreneurs
to involved in business. The motive-acquisition theory suggests that mentality of human being is not naturally gifted, so
people can be motivated towards a goal by changing thinking, mentality, attitude, and perception (Uddin and Bose
2012). Understand what factors compel a person to begin a business and an individual’s motivation to set up a business
will assist a person to make the right decision about beginning a business (Foo, Norkhirul and Wong 2013).
In fact, motivation may be classified into intrinsic and extrinsic motivation. The intrinsic motivation reflects a
personal desire to perform something simply due to enjoys performing. There are few of personal factors that are
intrinsic motivators for an individual’s decision to become an entrepreneur, such as being their own boss or being more
in control of their fortune (Ashey-Cotleur, King and Solomon 2009).
Extrinsic motivation reflects the desire to perform something cause by external advantages such as payment or
honours. A person with intrinsic motivations has more pleasure and stronger feelings to begin a business compared to
a person that is extrinsically motivated (Simola 2011).
It was found that the desire to earn more money and the lack of appropriate job opportunities are the key
motivators to start-up a business (Perri and Chu 2012). Benzing, Chu and McGee (2009) point out motivating factors
may differ across countries due to differences in income levels and employment opportunities. Studies in Vietnam have
found that challenge and achievement were more important motivators than necessity and security (Swierczek and Ha
2003).
On top of that past studies also evaluated motivation into the pull and push factors (Eijdenberg and Masurel
2013). Pull factors, or factors that attract people to become self-employed, include which positive motivations such as
being hawker food boss or being able to obtain wealth and earn a reasonable living while enjoying a quality life (Shamim
2008).
There have been several studies on the motivational background of the entrepreneurs (Ashey et al. 2009, Foo,
Norkhirul and Wong 2013, Kuratko and Hogetts 2007, Liang and Dunn 2012, Perri and Chu 2012), however, at this
juncture, few studies have looked into motivation factors that influence Chinese university hospitality students’ intention
to become hawker food entrepreneurs.
Having said that, this research developed the following hypothesis is to evaluate the effect of the motivation
factor influence Chinese university hospitality students’ intention to be hawker food entrepreneurs.
Hypothesis 1: There is a significant relationship between motivation and hawker entrepreneurial intention among
Chinese hospitality students.
5. Subjective norms
As mention earlier, in Malaysia most Chinese hawker food stalls are managed by family members. Family
business possession influences the future generation in various directions. Family background can be a strong and vital
factor. Information sharing among family members is very crucial to ensure the carryover of business to the next
generation (Foo, Norkhirul and Wong 2013). Furthermore, they also require transferable skills to enable the transfer
31
Journal of Advanced Research in Management
their family business to the young generation (Mandl 2008). The sustainability of the hawker food sector requires next
generations who are able to administer their hawker food sectors.
Westhead (2003) discovered that being growth up in a family in business has a significant impact on a person’s
intention to begin their own entrepreneur, as there is a transfer of business skills from parents who expect their children
to finally adopt the family business. This mean that support from family and friends is crucial because graduates setting
up a business need family financial support (Vasiliadis and Poulios 2007).
However, interestingly, this is contrary to a study conducted by Franco, Haase, and Lautenschlager (2010) who
discovered that students’ influence of family and friend has no significant impact on the entrepreneurial intention of
students. Others studies found that similar venues such as local coffee shops are facing a lack of younger generations
to remain in their family business or run their father’s coffee shop (Foo, Norkhirul and Wong 2013). Since, there is no
consistency result, further examination of this issue is required. On top of that, there is also an absence of
comprehension in the area of mediating effect of motivation on the relationship between subjective norms and hawker
entrepreneurial intention among Chinese hospitality students, therefore, this study has developed the following two
hypotheses.
Hypothesis 2a: There is a significant relationship between subjective norms and hawker entrepreneurial intention
among Chinese hospitality students.
Hypothesis 2b: There is no mediating effect of motivation on the relationship between subjective norms and
Hawker entrepreneurial intention among Chinese hospitality students.
6. Barriers
The food preparation profession is known for its long hours, hot working conditions, environment, and sometimes
confrontation with demanding customers. Young generation perceived those works are hard work and a laborious way
of making a living (Jacquline 2012). The nature of food preparation sector is the main challenge and barriers for the
younger generations who venture into food sectors (Sabrina 2013).
Other researchers found that food vendor and coffee shop owners have experience in offering local taste cuisine,
but lacking administrative skills and planning and less desire on the owner’s part to transfer the business to the next
generation (Papulova and Makros 2007, Wee 2004). Similarly, Fatoki and Olufunso (2010) found that lack of business
skills is attributed to unsuccessful business possessed by young entrepreneur. In addition, Maas and Herrington (2006)
indicated that lack of financing is common to every person (Casson 2003, Maas and Herrington 2006). This is consistent
with the study done by Ooi and Ahmad (2012) which collected the barriers of entrepreneurial intention into various
factors, such as lack of government support, strong competition, high labour costs, high taxes and high interest rate,
stress, fear of failure, lack of business skill, lack of planning and lack of working capital.
Wang and Wong’s (2004) investigated the entrepreneurial intention among undergraduate students in Singapore
discovered the barriers of entrepreneurial intention to be inadequate of business knowledge and perceived risk. A
similar study done by Venesaar, Kolbre and Piliste (2006) founded that factors such as a lack of business ideas,
insufficient knowledge and skills and fear of business failure are the factors that limit beginning a business at the Tallin
University of Technology in Estonia. Other research found that factors that hinder graduate career choices and
entrepreneurship at the University of Darby are lack of awareness, financial uncertainty, lack of relevant working
experience, and limited entrepreneurship guidance and knowledge to set up a proper business (Rae and Woodier
2006).
Although various barriers have been found in other countries, in terms of barriers and the mediating effect of
motivation influence to be hawkers, Chinese students are less mention in the literature. Therefore, this study has
developed the following hypotheses.
Hypothesis 3a: There is a significant relationship between barriers and hawker entrepreneurial intention among
Chinese hospitality students.
Hypothesis 3b: There is no mediating effect of motivation on the relationship between barriers and Hawker
entrepreneurial intention among Chinese hospitality students.
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Volume VII, Issue 1(13), Summer 2016
7. Entrepreneurial intention
Entrepreneurship developments are large field, and are motivated by a variety of factors influence a person
intention. Intention is a person’s distinct tendency to perform an activity (Azjen and Fishnein 2005). Lorz (2011)
demonstrated that intention is a strong predictor of actual behaviour. The Theory Reasoned Action suggests that the
intentions are the most important immediate determinants of behaviour (Ajzen 2012). Entrepreneurial intention as a
self-acknowledged conviction by a person that they intend to set up a new business venture and consciously plan to do
so in the near future (Thompson 2009).
Research has found that whenever a university prepares students with sufficient ability and skill for
entrepreneurship, the possibility of entrepreneurial intention among university students may increase (Turker and
Selcuk 2009). University programs on various business management practices, including hospitality management,
seem to be primary factor that influences student enthusiasm for entrepreneurship (Schwarz, Wdowiak, and AlmerJarze 2009). In fact, in some cases, the decision to start a new venture is generally considered for some time and then
followed by the intention to really accomplish it (Fatoki 2010, Neneh 2014).
However, in other cases, the intention is organised only presently before the real decision, while in some cases
the intention does not contribute to the actual behaviour (Keong 2008). Since there are many researchers discussed
related to entrepreneurial intention about business other than hawker food trades, this study set up to determine the
mediating effects of motivation on the various factors (e.g. subjective norms and barriers) on Chinese hospitality
students’ intention towards to be hawker food entrepreneurs.
8. Theoretical framework
The research model includes the exogenous variables (subjective norm, and barriers), motivation as the
mediator, and hawker entrepreneurial intention as endogenous variables.
Figure 1 - Research model.
9. Methodology
The focus of this study is to evaluate the mediating effects of motivation related to various factors (e.g.: subjective
norms and barriers) on Chinese hospitality students’ intention towards to be hawker food entrepreneurs. The research
design in this study was employed a non-experiment research design and the study applied survey method.
9.1 Population and sampling
The target of population for this study was 200 Chinese hospitality students in university. To determine the
sample size, this study referred to Krejcie and Morgan’s table (1970), with a population size, N = 200, and sample size
(n) =132. The samples were selected based on random sampling method. Since this study applied random sampling,
names of the students were gained from the faculty of the universities. The random sampling was carried out to choose
the name of 200 hospitality students to be committed as respondent in this research. The researchers select a little
33
Journal of Advanced Research in Management
more as the researcher considered some of the selected respondents may absent. Obviously, random sampling was
utilised to gather the participants with equal opportunity to participate in this study.
A total of 200 hospitality respondents where invited to participate in this research. Respondents were from three
hospitality universities students of different field of hospitality studies, making up from hospitality catering, hospitality
management, and food service programs.
9.2. Measurement of instrument
The tool employed to collect the data is adopted and adapted questionnaires (Fatoki 2010, Foo, Norkhirul and
Wong 2013, Shamim 2008, Yeboah, Kumi, and Awuah 2013). The questionnaires comprised of 33 items: Demographic
questions (6 items), subjective norms (5 items), barriers (6 items), motivation (6), and entrepreneur intention (5 items).
Closed ended questions were employed in the whole extent of the questionnaires. The questionnaires predominantly
use five Likert scale questions to evaluate subjective norm, barriers, motivation and entrepreneurial intention. The five
point Likert scale is employed to measure exogenous variables, namely subjective norm, barriers, motivation and
entrepreneurial intention, with 1 meaning strongly disagree to 5 meaning strongly agree. The questionnaire was pretested utilising convenient sampling from the university of 40 final-year hospitality management students.
The pre-test result proved the respondents understood the survey instruments. A total of 200 questionnaires
were distributed to the selected respondents, and 141 (71%) were returned. The collected data hired goodness of fit to
examine the reliability, unidimensionality and validity of the scales employed in the measurement research model. Later
on, Structural Equation Modelling (SEM) was imposed to evaluate the fit of the theoretical research model and the
hypotheses.
Table 1 - Measures used for Subjective norms, Barriers and Motivation to Hawker Entrepreneurial Intention
Studies adopted and
adapted from
Measurement of constructs
Entrepreneurial Intention (Endogenous variable)
§ I prefer to be a hawker entrepreneur rather than to be an employee in a hotel industry;
§ I am willing to take over my family business if my family has a hawker food stall;
§ I’ll work hard to start and run my own hawker food business;
§ I want to be my own hawker food stall because I have a strong desire;
§ I have a strong intention to start a business in the future.
Subjective Norms (Exogenous variable)
§ Mother wants me to open my own hawker food business;
§ Father encourages me to open my own hawker food business;
§ My brother influences me to invest in hawker business;
§ My sister wants me to open my hawker food business;
§ My best friend encourages me to open hawker food business;
§ My classmate encourages me to open my hawker food business.
Barriers (Exogenous variable)
§ I did not have the finances to start with;
§ I want to open my hawker food stall, but people thinking of low income earners;
§ I want to open my own hawker food stall but it is difficult to find the right place;
§ I fear of failure;
§ I lack of skill to start with.
Motivation (Mediating variable)
§ To be my own boss;
To realize my dream;
Neneh (2014), Yeboah,
Kumi and Awuah (2013)
Foo, Norkhirul and Wong
(2013); Vasiliadis and
Poulios (2007)
Fatoki (2010); Foo,
Norkhairul, and Wing
(2013); Yaboah, Kumi
and Awuah (2013)
Shamim (2008); Yeboah,
Kumi and Awuah (2013);
Wilson, Kickul and
Marlino (2007)
§ To provide job protection;
§ To acquire personal wealth;
§ To prove I can do it;
§ To build my business.
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Volume VII, Issue 1(13), Summer 2016
9.3 Research results
A total of 141 useful surveys were collected out of 200, leading to a response rate of 71%. The samples
consisted of 97 males (31.2%) and 44 females (68.8%). The age group of 19 to 21 years constituted the largest
proportion of the sample with 110 respondents (78%), while items 22 to 23 had the smallest number with 31 respondents
(22%). The biggest number received was parent financial support at 105 (74.5%). In terms of financial support 29
(20.5%) respondents received the biggest financial assistance from the government special fund. The scholarship was
smaller number with 7 (5%) respondents.
SEM was employed to evaluate the suggested research model and the hypotheses. The benefit of SEM is the
sufficiency of its estimated coefficients for the hypothesised relationships in the research model which proposed two
alternatives between the constructs that appear to agree with the goodness of fit (Byrne 2001).
This study has offered a good fit of the research model to the data. The ratio x²/df was 2.436, slightly lower
than the value of 3.0 as recommended by Byrne (2001). Incremental fit indexes were higher than 0.90, and with CFI of
0.90, and TLI of 0.85 indicates an acceptable fit (Hu and Bentler 1999). In terms of the absolute fit indexes, they were
close to the 0.08 as a rule of thumb. Absolute fit indexes identify in the research model also presented the reasonable
fit of the model, as the RMSEA was 0.08, and the RMR was 0.07. Group with these indexes, it is confirmed that the
research model was an appropriate fit (Hair et al. 2010, Hu and Bentler 1999). Subsequently, the fit of the research
model and estimated path coefficients were derived for the determined relationships. In addition, the research
hypotheses were articulated as well. Table 2 shows the findings of the goodness of fit indexes.
Table 2 - Presented the valid standard of the goodness of fit indexes
Standard Measures
Unidimensionality
Characteristics
§ When factor loading is more than 0.5
§ Internal reliability; Cronbach's alpha >0.7; Construct reliability; CR
Reliability
value > 0.6; Average Variance Extracted; AVE > 0.4 above.
§ Convergent validity; AVE value is more than 0.5; Construct
validity; Fitness index; Chisq p>0.05; RMSEA<0.80; GFI>0.90;
AGFI> 0.90; CFI>0.90; TLI<0.90; Chisq/df <5.0; Discriminant
validity; Correlation between variables
Validity
Reliability and factor loadings are shown in Table 3. A few of the items in each of the construct were erased as
they were detected to be organised in an inappropriate manner. The factor loading of each item in the four constructs
were all above 0.60. On top of that, there were some valid standards to be achieved to analyse the SEM path structure,
for instance reliability, unidimensionality, and validity.
Table 3 - Factor loading and reliability
Constructs
Subjective
norms
Barriers
Items
Sub C2
Sub C4
Sub C4
Sub C5
Barr D1
Barr D2
Barr D3
Barr D5
Barr D6
Factor
Loading
.55
.83
.62
.65
.85
.79
.74
.74
.67
KMO
C.R
AVE
C. Alpha
KMO: 0.700
X²: 149.106
Sig: 0.000
0.76
0.50
0.70
KMO: 0.774
X²: 294.311
Sig: 0.000
0.84
0.51
0.81
35
Journal of Advanced Research in Management
.77
.81
.96
.91
.90
KMO:0.794
X²: 548.827
Sig: 0.000
0.94
0.76
0.89
Motivation
Moti E1
Moti E2
Moti E3
Moti E4
Moti E5
Entrepreneurial
Intention
EI F2
EI F3
EI F4
EI F5
.79
.85
.71
.65
KMO:0.770
X²: 251.272
Sig: 0.000
0.84
0.57
0.85
Table 4: Discriminant validity correlation between variables
Subjective Norm
Subjective
Norm
Barriers
Motivation
Entrepreneuria
l intention
Barriers
Motivation
Entrepreneurial
Pearson Correlation
1.000
-
Sig.(2-tailed)
N
141
Pearson Correlation
-.005
Sig.(2tailed)
N
.953
141
Pearson Correlation
-.005
1.000**
Sig. (2-tailed)
N
.953
141
.000
141
Pearson Correlation
.045
.334**
.334**
.000
141
.000
141
Sig. (2-tailed)
.597
N
141
Note: **. Correlation is significant at the 0.01 level (2-tailed).
141
The discriminant validity correlation between the variables is presented in Table 4. Figure 2 presents the final
structural model and Table 5 shows the proven fitness index measurements and the results of the relationship between
the exogenous variables (subjective norms, barriers) motivation as mediating and the endogenous variable
(entrepreneurial intention).
Figure 2 - SEM Measurement model
36
Volume VII, Issue 1(13), Summer 2016
Table 5 - Fitness Index Measurement
Goodness-of-fit Indices
χ²(CMIN)
CMIN/DF
GFI
IFI
RMSEA
CFI
TLI
RMR
Desirable Range
NIL
≤5
≥ 0.80
≥ 0.80
≤ 0.08
≥ 0.90
≥ 0.80
≤ 0.08
Structural Model
297.252
2.436
0.900
0.900
0.080
0.900
0.850
0.070
Results
Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
Table 6 present summaries of research hypotheses result and Table 7 shows the result of the influence of
integrity as mediator on the relationship between exogenous and endogenous variables.
Table 6 - Summary of research hypotheses result
Path
Constructs
Estimate
S.E
C.R
P Value
Result
H1a. Entrepreneurial Intention
Motivation
0.537
0.140
3.824
***
H2a. Entrepreneurial Intention
Subjective norms
0.093
0.096
0.970
0.332
Not Supported
H3a. Entrepreneurial Intention
Barriers
0.029
0.044
0.649
0.517
Not Supported
Supported
Table 7 - Results of the influence of integrity as mediator on the relationship between exogenous variables and endogenous variable
CONSTRUCTS
Baron and Kenny
(1986) Test Statistic
IV--DV(c)
Structural Research
Model 1
(IV→Mediato(a)
Structural Research
Model 2(M → DV) (b)
Structure
Research Model
3(IV → DV) (c’)
H2b. Subjective
Norm
0.492
0.383
0.000***
0.332
H3b. Barriers
0.444
0.315
0.000***
0.517
Mediation
Result
No
Mediation
No
Mediation
The aim of employed Structural Equation Modelling in this study was to assess the mediating variable results of
motivation, in order to contribute an excellent method in evaluating the research model. Besides that, it also to provides
significant multiple fit indices to explain the outcome of the hypothesised research model.
This is an important, since the simultaneous measurement of the various factors. The motivation and
entrepreneurial intention behaviour will discover crucial concern of the interrelationship of various factors, motivation
and entrepreneurial intention in the research model.
To determine the mediation, there should be three regressions (Baron and Kenny 1986). The first step is the
mediator is regressed on the exogenous variable located on path a. The second step is the endogenous variable is
regressed on the independent variable to demonstrate path c. lastly, the endogenous variable is regressed on both the
exogenous variables and mediators to prove Path c’. In order to confirm mediation, the exogenous variable should
indicate a significant relationship with the mediator at the first part of the equation (Baron and Kenny 1986). This fits the
exogenous variable, which is a requirement to show the result of the endogenous variable in the second equation.
Eventually, the mediator variable shows significance with the endogenous variable in the last equation.
Whatever the assessment outcome indicator in the predicted direction, the consequence of the exogenous
variable on the endogenous variable must be a smaller number in the final equation than in the second stage equation.
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The full mediation model indicates that the relationship between the exogenous variable and the endogenous variable
controlling the mediator is zero.
When the partial mediation model is discovered, whenever the relationship between the exogenous variable and
the endogenous variable is smaller but higher than zero when the mediator is in the equation at (Path c’) than that of
when the mediator is not enclosed in the equation (Path c).
The mediation identified is rejected when the relationship between the exogenous variable and the endogenous
variable remains significant when the mediator is admitted to the model. Figure 3 discusses the mediating model.
Figure 3 - Mediating model
9.4 Result data analysis and discussion
This study supplies, general support to the relationship motivation as mediating variable between the subjective
norm, barriers and entrepreneurship intention. For H1a, the hypothesis find that the motivation factor is a significant
predictor of the entrepreneurial intention (Motivation: β =0.537, C.R. = 3.824, p = 0.000 ˂ 0.05); therefore, this
hypothesis is supported.
The findings discovered motivation is significantly predicted entrepreneurship intention. The finding is consistent
with previous literature (e.g., Ashley, King, and Solomon 2009, Eijdenberg and Masurel 2013, Foo, Norkhirul and Wong
2013, Shamim 2008, Simola 2011). Motivation factor appeared to be the most powerful ingredient influence hawker
food entrepreneurship intention in this study. It may be generalized that motivational factors of entrepreneurs are
generic worldwide (e.g. intrinsic factor and extrinsic factor). Entrepreneurs that are motivated to set up their own venture
eventually may constantly supply finances for themselves (Perri and Chu 2012).
Since motivation was found to be significant predictor in this study, Chinese hospitality students to be
approached early, in order to build up their self-confidence in hawker trade. This form of motivation activities may
prepare either by universities through teaching and learning from a textbook or and workshops to improve skilful young
hawker entrepreneurship. Besides that, local government agencies will create more awareness, such as promoting
“one family one entrepreneur” effectively (Bernama 2015).
H2a hypothesis explains that the subjective norm exogenous variable (β = 0.093, C.R. = 0.970, p = 0.332 >
0.05) is proven to be an insignificant predictor of the entrepreneurial intention variable in this study. As a result, the
hypothesis is not supported.
Although the previous review literature pointed out that family influence can be crucial factor effect future
generation entrepreneurial, however, the previous result did not support current finding. The subjective norms did not
significantly predict hawker entrepreneurship intention is consistent with previous literature found that family and friend
have no significant effect on the entrepreneurial intention (Franco et al. 2010).
In order to improve the situation, it hawkers’ entrepreneurial associations should cooperate with government
authority to increase more awareness. Work together with the proper agencies, media and conference encourage family
to participate for the reasons to improve young hawker entrepreneurial.
According to Table 7, H2b shown equation a” indicates that subjective norms no significantly influenced
entrepreneurial intention (equation a: β= -0.057, C.R = -0.872, p > 0.383). Equation b” tells us that motivation was
significantly influenced by the entrepreneurial intention (equation b: β=0.537, C.R = 3.824, p ˂ .000). However,
subjective norms did not show significant influence over entrepreneurial intention (equation c’: β= 0.093, C.R = 0.970,
p > 0.332), and furthermore, the output shows equations c and c’ (β was not reduced, but increased from 0.007 to
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Volume VII, Issue 1(13), Summer 2016
0.093) when the mediator (Intention) entered the model. Therefore, it could be concluded there was no full mediating
between subjective norms and entrepreneurial intention. Thus, the H2b the hypothesis was supported.
The finding has supported the previous result that students influenced by parents and close friends show no
significant effect on the entrepreneurial intention (Franc et al. 2010).
The findings of this study should be considered with precaution that local hawkers in the future may face a lack
of younger generations to remain in their family business. As a result, further efforts should be taken to develop hawker
training program campaigns to adjust the present finding to positive reality. In addition, a hawker training program
should include brief training on food safety, business management, an elementary illustration of the industry, and
extensive on apprenticeship. The hawker food entrepreneur skills carry over to on the job training.
H3a provides that the barriers construct has been indicated as an insignificant predictor of the entrepreneurial
intention (Barriers: β = 0.029, C.R. = 0.649, p = 0.517 p ˃ .05). The present finding confirms that the barriers have an
insignificant relationship with hawker entrepreneurial intention. Therefore, the hypothesis is not supported.
The Chinese hospitality students select hospitality courses may not be discouraged by the barriers; in fact, in
the hospitality courses have constantly developed internship program which offer a great change for hospitality students
to practice in real working environment. The results of this study not only show crucial important impact of surveyed
factors on Chinese hospitality students’ hawker entrepreneurial intention, but also have significant implication for
educators and policy makers, in order to develop better hawker entrepreneurship in the future.
Subsequently, H3b barriers equation a tells us that barriers did not significantly influenced entrepreneurial
intention (equation a: β= 0.046, C.R = 1.005, p > 0.315). Equation b tells us that motivation was significantly influenced
entrepreneurial intention (equation b: β=0.537, C.R =3.824, p < .000). However, the barriers did show significant
influence over entrepreneurial intention (equation c’: β= 0.029, C.R = 0.649, p > 0.517), furthermore, the output shows
equations c and c’ (β was not reduced but increased from 0.005 to 0.029) when the mediator (motivation) entered the
model. Hence, it may be concluded that the motivation is not a full or a complete mediator between barriers and
entrepreneurial intention. Consequently, there is no mediating effect of motivation. The result shows that motivation has
no full mediating effect on the relationship between barriers and entrepreneurial intention. Thus, the H3b the hypothesis
is supported.
The motivation did not act as mediator in this study that mediate between barriers and hawker entrepreneurial
intention. There are many schools of thought that can be explained in this situation. It is obvious that the hawker
entrepreneurship is not an easy trade as it requires long hours of work. Workers prepare every dish by themselves in
hot working condition, and this is perceived by the young generation (Sabrina 2013). On top of that, lack of government
support, fear of failure, lack of business operation skills, and lack of working capital may affect them to take over the
trade (Ooi and Ahmand 2012, Rae and Woodier 2006, Venesaar, Kolbre and Piliste 2006, Wang and Wong 2004).
Motivation did not mediate between barriers, subjective norms and entrepreneur intention. Such problems can
be solved by students’ adaptation through hospitality program. Furthermore, universities can offer full hawker
entrepreneurial courses, and permit university hospitality students to have the chance to learn to cook, organise the
kitchen, and operating system before start the business. This strategy might dilute the students’ fear of failure.
Conclusion. Limitation and future study
The objective of this study is to explore the possibility of Chinese hospitality students to become involved in the
hawker trade to take over for the current retiring generation. Chinese hawker entrepreneurship may be an alternative
for young Chinese hospitality graduates. It is important to motivate the young hospitality Chinese students to adapt the
challenge to be a hawker entrepreneur in the future. This will allow the small hawker business sectors to further increase
Malaysia country’s gross national income, create job opportunity, and improve living standard of the graduates.
Recognising the crucial nature of the hawker future entrepreneurs for community, career, tourism, and national
economic growth, this study has considered exploratory factors that affect younger generation venture in the hawker
trade. The result show that motivation found significantly support this study; however, motivation as a mediator variable
did not support both subjective norm and barriers in this study.
The result of the study has contributed to the Malaysia entrepreneurship body of new knowledge, particularly in
hawker food entrepreneurial intention in the Theory Reasoned Action model. The discovery of this analysis may have
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Journal of Advanced Research in Management
policy implications, particularly for government providing various assistances to small entrepreneurs such as set up
training hawker food centre and encourage more family participate in hawker food entrepreneur in this country.
There are several limitations in this study. This study field might have faults in responding, as some respondents
may have keen to become hotelier or chef rather than considered beginning as a hawker entrepreneur. Future studies
may consider hospitality graduates that have already considered setting out hawker entrepreneurs.
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