Beruflich Dokumente
Kultur Dokumente
Rahayu Tasnim
rahayu@nmit.edu.my or rahayu.tasnim@gmail.com
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“What, exactly, is Entrepreneurial Commitment?”
Modelling the Commitment of Successful Entrepreneurs
Abstract
This paper puts ‘commitment’ under the microscope, and intends to address the questions
Malaysia and data was analysed using the Component-Based Structural Equation
Modeling (CB-SEM). In doing so, the Partial Least Squares (PLS) methodology was
entrepreneur’s affective, normative and continuous components and is the force that
binds and directs the entrepreneur to perform entrepreneurially. More paramount is the
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INTRODUCTION
“If you deny yourself commitment, what can you do with your life?”
- Harvey Fierstein
and violent seas, on a seemingly endless journey to a land unknown and perhaps,
unimaginable of. Before take-off, this journey is often envisaged by the captain to be a
smooth sailing endeavor, with failures predictably ‘manageable’ along the way. More
often, though, it is not. The real test kicks off when the boat begins to leak, while the
journey is yet thousands of miles away. Self-assured, the entrepreneur plasters the leak,
and his journey recommences. But who would guarantee that his boat will never, again
leak? Or, that a bad storm would never take place? No one. It may leak more frequently
than expected, and storms may recur each day. Often the entrepreneur faces extreme
hardships along the way, frustratingly making him slow down. In reality, many of them
demanded for one to survive through the turbulent, dark seas, particularly in the first few
years of venture seafaring? How then does this mind-set influence entrepreneurial
behavior in the ensuing entrepreneurial phases? Does this psychological mindset impact
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We hear, quite often, people talking about ‘commitment’. It is a custom to hear,
preparing for the exams, to a marriage or relationship, and the list goes on. In other words,
in our daily activities, signifying that it is one of the most dominant psychological factors
commitment is, to this day, still debated across a myriad of research domains, including
entrepreneurship. Many have argued its significance in the entrepreneurial process and
that commitment is said to directly impact entrepreneurial performance. In short, the role
importantly, since commitment plays a key role in the entrepreneurship process, how
entrepreneurs? These are among the questions we responded to the quest to contribute to
the wealth of academic literature and practical managerial implications throughout this
research.
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In the following sections, we illumine the state of Malaysian entrepreneurial
activity and performance, and on how truly understanding the committed mindset would
LITERATURE REVIEW
referring to physical infrastructure, internal market dynamics, i.e. entry regulations, and
Yusoff, 2010; Deraman, Zainuddin, & Hamdan, 2005; GEM 2014, 2010a, 2012; Yusof,
funding to develop more young entrepreneurs (GEM 2014, 2010a; Ortmans, 2013) and
the motivation from other external drivers (GEM 2014; Omar & Sapuan, 2010). GEM’s
findings are supported by the World Bank which reported that in 2015, Malaysia ranked
17th out of 189 economies in “ease of doing business”, a 2-rank leap from 19th placing
in 2013 ("The Ease of Doing Business 2014: World Bank Data," 2013). In short,
entrepreneurial spirits have successfully been elevated following the continuous efforts
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by policy makers and non-governmental institutions. As aimed, more and more young
On the other side of the coin, however, when it comes to genuine entrepreneurial
orientation compared to other developing countries sharing the same political and
economic dynamics (GEM 2014, 2011, 2012) and that Malaysia’s overall entrepreneurial
impact has yet to be maximized (GEM 2014; GEM, 2010a; MIER, 2012; Ortmans, 2013).
At any national level, entrepreneurship success is measured by among others, the high
birth rate of start-ups and firms, high self-employment, as well as an increase in the
number of exports by new local firms (GEM, 2010a, 2011, 2014) and that “the true
measure of success of Malaysian entrepreneurs is the degree to which their products can
successfully compete in the global marketplace” (Annual Report, MECD, 2005; Ariff &
Abubakar, 2003; Chelliah, et al., 2010; Contractor, Kundu, & Chin, 2003). In an all-
inclusive National Expert Survey conducted by the GEM Malaysia team (GEM, 2010a),
behind as much by 20% as compared to countries that hold the highest percentage of
business. Also reported was that “growth expectation is relatively low, with less than 7%
of new businesses expecting to hire more than 20 workers…with close to 84% seeing
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One central measure introduced by the GEM is the Total Early-Stage
Entrepreneurial Activity (TEA) rate, which consists of the percentage of individuals aged
18 – 64 years in an economy who are in the process of starting or are already running
collectively representing all regions of the world within a broad spectrum of economic
development levels. Based on the survey, the GEM project “covered an estimated 72.4%
of the world’s population and 90% of the world’s total GDP” (GEM, 2012, p. 13),
various phases and types of entrepreneurial activity (GEM, 2014). Hence, GEM’s unique
context makes its data a necessary resource for any serious attempt to study and track
GEM’s data pinpoints to a daunting fact; that in regards to TEA, Malaysia (5.9%)
locates herself at the bottom five in its group (efficient-driven economies), faintly
overtaking Russia and Kosovo (GEM, 2015). Even Thailand, Malaysia’s modest
counterpart, secures an impressive 23.3% of TEA, Indonesia 14.2% and the Philippines
18.4%. Although not in the same economic grouping, Singapore, Malaysia’s dynamic
neighbor, scored an extraordinary 11% rate. Back in 2010, Malaysia stood as the third
lowest in TEA rate (4.96%) in its group, sharing the spot with Romania. Romania,
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however, gained notable momentum in 2014, securing an 11.4%. GEM (2012) illustrates
that 67% of Malaysians fail to realize their planned start-up, while more than half (50%)
of businesses fail in their first 4 years of operations. Thailand, on the other hand, only
records a 33% rate of business founding failure and a significant smaller rate (27%) of
venture discontinuance in the first 4 years of operations. Singapore records a 38% and
33% rate respectively. In another outlook, GEM reports that only 10% of Malaysian-
made produce are categorized as ‘innovative’, while Thailand records 24%, Romania
26%, China and Singapore both 18%. All in all, GEM’s data supports a few striking
business, and elevated motivational levels, Malaysian entrepreneurs are still left behind
failure rate, and the incapability to compete with innovative products and services (Ariff
& Abubakar, 2003; GEM, 2010a; MIER, 2012; Ong, Ismail, & Yeap, 2010). In other
words, Malaysia is still short of successful entrepreneurs, and that there exists an “urgent
But how are successful entrepreneurs developed in the first place? Entrepreneurial
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growth (Baum, Locke, & Smith, 2001; Low & McMillan, 1988; Murphy, Trailer, & Hill,
venture from a small one (Nieman & Bennett, 2002). Performance is often measured
through the growth of sales and profit for the past five years and through employee
by among others, the high birth rate of start-ups and firms, high self-employment, as well
as an increase in the number of exports by new local firms (GEM, 2010b, 2011, 2012;
MIER, 2012) Nonetheless, in the entrepreneur’s journey, the road towards growth and
performance is not always a smooth ride. Growth more often leads to the “growing pains”
(Flamholtz & Randle, 1990) caused by unwelcomed effects, challenges, and multiple
predicaments faced by the entrepreneur, in particular for small and medium sized
businesses that visualize positive performance to survive and grow in their early years
the answer to this question is complex and involves interrelations of numerous variables.
the argument on how OB is able “to answer questions long addressed by entrepreneurship
researchers such as why do some persons but not others choose to become entrepreneurs,
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what factors influence entrepreneurs' success, and why do some persons, but not others,
places the entrepreneur directly as the heart of the entire entrepreneurial process.
The notion of ‘commitment’ has received noteworthy attention in the OB literature owing
to the eminent works originated from Festinger (1957) and Kiesler (1971), followed by
the widely applied works of Mowday et al. and Meyer et al. (1991, 1997; 1979) in
ii) a willingness to disburse significant efforts for the organization, and iii) a powerful
intent or desire to remain employed by the organization. Soon after, this theory was
particular (Meyer & Allen, 1991; Meyer & Herscovitch, 2001). The TCM, widely used
by researchers up to today, argues that the ‘psychological state’ need not be limited to
value and goal congruence as explained by Mowday et al. (1982). Rather, Meyer and
Allen (1991) argue that it reflects a desire, a need, and / or an obligation to maintain
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components of affective, continuance and normative commitment, in view of
employee with the organization, and ii) has implications for the decision to stay employed
(or not) with the organization. ‘Affective commitment’ refers to the emotional
a high affective commitment will continue with employment because he/she wants to.
involved with leaving the organization. An employee whose primary link to the
behavioral concepts such as, among others, ‘endurance’ ‘perseverance’, ‘passion’ and
Kauanui, Thomas, Sherman, Waters, & Gilea, 2010; Sørensen & Phillips, 2011). Among
the approaches applied, the OB domain is, however, frequently revisited as the main
found that commitment positively impacts start-up and venture performance (e.g. (Abdul
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Halim, Wan Ab Aziz, & Zakaria, 2010; Basu, Osland, & Solt, 2009; Cohen, 2006; De
Clercq, Menzies, Diochon, & Gasse, 2009; Littunen, 2000; Muda, Halim, & Amin, 2011;
Simon, Elango, Houghton, & Savelli, 2002)), new venture establishments (Fayolle,
Shih, & Hsu, 2013; Schmidt & Calantone, 2002), and internalization (Sleuwaegen &
Onkelinx, 2013). An earlier study on the factors associated with entrepreneurial success
commitment to the success of their businesses (Gundry & Welsch, 2001) while the
and firm performance (Fang Wua & Cavusgil, 2006). More recently, a local study
(Tasnim, Yahya, & Zainuddin, 2013) and that affective commitment plays a vital role
Salleh, & Zainuddin, 2014). More researches are being conducted to elaborate on the
paving ways to decipher the distinctiveness of, and how both commitment and motivation
impact entrepreneurial behavior (Tasnim, Yahya, Mohd Nor, Said, & Zainuddin, 2013;
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PROBLEM STATEMENT
In retrospect, the recent GEM reports identify an eminent issue grappling the attention of
perceived high motivational levels and perceived easiness in doing business, Malaysian
entrepreneurs are still lagging behind their neighboring counterparts in terms of genuine
entrepreneurship framework conditions resulting in the ease of doing business, and that
entrepreneurs are highly motivated, could it be that there exist other behavioral dynamics
that we may have undervalued all this while? In other words, could it be that the powers
of motivation plus other related external factors are still inadequate to manipulate
is developed. Given this rationale, our study therefore aims to answer the following
entrepreneurial context?” Our study centralizes on one of the main issues surrounding
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Malaysian entrepreneurship: that commitment is an important mind-set that has to be
HYPOTHESIS DEVELOPMENT
The main aim of this study is to investigate what commitment means in an entrepreneurial
perspective. In doing so, the researcher seeks to find out what shapes commitment in an
Tasnim (2015), following the recent calls for more person-oriented and
Antecedents
Components of
Entrepreneurial
Entrepreneurial
Passion
Commitment
Values Affective
Commitment
Personality
Investments
Continuance
Commitment
Lack of Alternatives
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This study primarily aims to validate the antecedents and components of entrepreneurial
shaping the three components of commitment; passion, values and personality each
continuous commitment. A full detail of each construct is detailed in Tasnim (2015). This
study picks up from where Tasnim (2015) left, by empirically authenticating the
performance (see also Tasnim, Yahya, Mohd Nor, et al., 2013). In short, the most recent
following; “That commitment exists and somehow impacts business start-up and
motivation are in some way associated with entrepreneurial performance”. It is with this
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Hypothesis Statements
Our study theorizes 12 hypothetical paths associating the antecedents to the components
Antecedents
Components
Entrepreneurial of
Passion Entrepreneurial
Commitment
Values Affective
Commitment
Personality H1 – H3
H8
Internalized Norms
H9
Behavioral Outcomes
Normative Entrepreneurial Motivation Entrepreneurial
Commitment Commitment Performance
Responsibility and
Righteousness H4 – H5 H11 H12
Investments H10
Continuance
Commitment
Lack of Alternatives
H6 – H7
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Table 1: Research Objectives and Hypothesis Statements
H1 1 Entrepreneurial Passion is the consciously accessible intense positive feeling experienced by engagement in
RO1: entrepreneurial activities. This feeling is positively related to Affective Commitment.
To find out what shapes
commitment in an
entrepreneurial context. Personal Values are the learned beliefs that serve as guiding principles about how an entrepreneur ought to
H1 2
behave. These beliefs positively develop the entrepreneur’s Affective Commitment.
H1 3 Personality is defined as the enduring dispositions that cause characteristic patterns of interaction with one’s
environment. These enduring dispositions positively shape the entrepreneur’s Affective Commitment.
H1 4 Internalized norms are the moral obligations which are important contributors to the entrepreneur’s behavior.
These norms positively shape the entrepreneur’s Normative Commitment.
H1 5 Responsibility and Righteousness infuses a sense of obligation to reciprocate (give back in return). Responsibility
and righteousness positively shape the entrepreneur’s Normative Commitment.
H1 6 The magnitude and number of investments (and side bets) made by the entrepreneur positively shape Continuous
Commitment.
H1 7 The perceived lack of alternatives faced by the entrepreneur positively affects Continuous Commitment.
H1 8 The mind-set of ‘desire’ (affective commitment) develops when an entrepreneur becomes involved in, recognizes
the value-relevance of, and/or derives his identity from his association with entrepreneurship, and during his
pursuit to perform entrepreneurially. This mind set positively affects entrepreneurial commitment.
H1 9 The mind-set of ‘obligation’ (normative commitment) develops as a result of the internalization of norms, the
receipt of benefits that induces a need to reciprocate, and/or stimulates the acceptance of responsibilities in the
entrepreneur. This mind-set positively affects entrepreneurial commitment.
H110 The mind-set of perceived cost (continuance commitment) develops when an entrepreneur recognizes that he/she
stands to lose investments, and/or perceives that there are no alternatives other than to pursue the course of action
relevance to a particular target (carrying on with his business). This mind set negatively affects entrepreneurial
commitment.
RO2: H111 Entrepreneurial Commitment is a force that binds the entrepreneur to a course of actions relevant to his
To investigate the behavioral entrepreneurial performance. Entrepreneurial commitment impacts the motivation to perform.
outcomes of entrepreneurial H112 The mindset reflecting the entrepreneur’s determination to reach a goal and perform entrepreneurially is reflected
commitment by the entrepreneur’s motivation. Motivation mediates the entrepreneur’s commitment towards entrepreneurial
performance
Along these paths, the hypotheses statements of H1 to H10 were tested according to the
2009) given that the antecedents and components linking to EC stand as a singular
hierarchical block of first to third-order constructs. This hierarchical block represents the
motivation and performance, and tested via H11 and H12. In doing so, a mediation
analysis was performed, depicting the direct, indirect and a no-mediation effect of
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METHODOLOGY
Meyer, & Luchak, 2006; Meyer & Allen, 1997; Meyer, Becker, & Vandenberghe, 2004;
Tasnim, 2014; Tasnim, et al., 2013), a survey was designed and forenamed the
that are meaningful and salient to the self-identity of the entrepreneur” (Cardon, Wincent,
Singh, & Drnovesk, 2009). The measurements used for EP were adapted from the
validated instrument for measuring EP across the domains of inventing, founding and
developing in the venture life cycle (Cardon, Gregoire, Stevens, & Patel, 2012). Alpha
2) Measuring Values
Values (VAL) is defined as the “enduring belief that a specific mode of conduct (or
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or converse mode of conduct or end-state of existence” (Rokeach, 1973) and are the
“learned beliefs that serve as guiding principles about how individuals ought to behave”
(Parks & Guay, 2009). Items from the Schwartz Value Scale, which is the most widely-
used and most well-developed value theory were adopted (Schwartz & Bilsky, 1987).
3) Measuring Personality
patterns of interaction with one’s environment (Goldberg, 1993; Olver & Mooradian,
2003). The widely applied Five Factor Model of Personality, often referred as the Big
Five, characterizes personality traits into five broad dimensions (Goldberg, 1992; Mount
& Barrick, 2002), and these dimensions were used to construct items. Each dimension
(in brackets) is represented by two separate items, with average mean alpha for the scale
Internalized norms (NM) is hypothesized as the moral obligations which are important
contributors to the entrepreneur’s behavior. All items were constructed based on the
give back in return. All items were constructed based on the IPA finding in (Rahayu
Tasnim, 2014).
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6) Measuring Investments
incurred inclusive of the side-bets and personal sacrifices. All items were adapted from
the Continuous Commitment Scale (J.P Meyer & Allen, 1997), with an average alpha of
0.73.
Like investment, the lack of alternatives (LA) also increases the perceived costs
still consider pursuing his/her entrepreneurial goals if he/she perceives that, for instance,
‘marketable’ in the industry. Items were constructed based from previous findings
(Tasnim, et al., 2014, 2013) and from the Continuous Commitment Scale (Meyer &
Allen, 1997).
8) Measuring Motivation
determination to reach a goal and perform entrepreneurially. Items were adapted from
the HWK Scale of Goal Commitment (Klein, Wesson, Hollenbeck, Wright, & DeShon,
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9) Measuring Entrepreneurial Performance
conceptualized based on the repeated use of manifest variables (indicators) of its lower-
order latent variables. As such, EC is represented by its components (AC, NC and CC)
as well as its antecedents (EP, VAL, PER, NM, RR, INV and LA). The reflective nature
3.
EP
EP: Entrepreneurial Passion
VAL: Values
PER: Personality
VAL AC NM: Internalized Norms
RR: Righteousness & Responsibility
INV: Investment
LA: Lack of Alternatives
PER AC: Affective Commitment
NC: Normative Commitment
CC: Continuous Commitment
EC: Entrepreneurial Commitment
NM
NC EC
RR
INV
CC
LA
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RESULTS
The ECM was firstly tested in context of its overall reliability, i.e. to ensure that all
“measures are free from the error and therefore yields consistent results” (Peter, 1979).
The ECM was personally distributed to 70 entrepreneurs with 45 completed sets returned
within three weeks. The Cronbach’s α test was applied to all the eight first-order
constructs. The ECM looked substantially reliable, with α = 0.9085, above the
recommended threshold of 0.7 (Nunnally & Bernstein, 1994). The α values of the
individual first-order constructs ranges from 0.831 to 0.97, all above the cut-off value of
0.6 to 0.7 (Cronbach, 1951). As such, all items were retained for the main study analysis.
Exploratory factor analysis (EFA) was then conducted to verify whether data fits the
scaling throughout the ECM. Based on the Kaiser-Mayer-Olkin (KMO) (Kaiser, 1974).
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statistics, EFA results indicate that the sampling accuracy was higher than the minimum
set value of 0.6 for all first order constructs, except INV. To add, the significance of
Bartlett’s test of sphericity in all constructs indicate that the correlation among the
measurement items was higher than 0.3 and were fit for EFA (Hair, Black, Babin,
Anderson, & Tatham, 2006). Total variance extracted by the items in each construct was
in answering questions towards the end of the survey. At this point, the effect of
questionnaire’s length on one’s attention and interest was taken into serious
consideration. In this light, the Mann-Whitney-U Test was applied to observe the
difference between first four and last four Likert-scale and interval questions in the ECM
detected (p > .05) indicating that respondents did not feel the increase / decrease in level
of difficulty, in interest / attention, and on the duration taken to answer questions to the
2
Table 4: Mann-Whitney-U test to observe the difference between first-four and final-four questions in the ECM.
The ECM was then distributed to 600 successful entrepreneurs throughout Malaysia.
Names and contact details were obtained from various data sets provided by established
(MDEC), Melaka Halal-Hub, and the Companies Commission of Malaysia, with 402
complete sets returned. Data analysis applied the Component-Based Structural Equation
Modeling technique (CB-SEM), i.e. the Partial Least Squares (PLS) methodology (Hair,
and homoscedasticity, evaluation on reliability and validity, and factor analysis. The
overall preliminary main study results confirmed that items loaded well onto their
hypothesized respective latent constructs and that all first-order constructs demonstrated
substantial reliability for further analysis. The measurement model evaluation was then
3
performed. Based on the EFA results, a CFA was conducted to affirm the validation of
the entire model at the item-construct and construct-construct level. The respective item
loadings and cross-loadings were carefully inspected and reported. Over all, items
validity.
The structural model assessment followed with the evaluation of the coefficient
of determination, R2 and all estimates of path coefficients onto, first, the hierarchical
block of EC, and subsequently to the entire model, embedding both the MOT and EPR
constructs into the initial hierarchical block of EC. The bootstrap technique was applied,
and as hypothesized, all paths including its algebraic signs accorded to the theorized
assumptions. With the exception of INV CC, the R2 values of all paths were reported
as substantial, i.e. above 0.67. INV CC on the other hand is considered a weak path,
yet is still significant at p<0.05. In regards to the mediating analysis, the model was
compared to two other competing models to investigate the direct, indirect and no-
mediation effects of MOT. It was confirmed that MOT acts as a direct mediator in the
ECEPR link, therefore affirming the hypothesized model of EC. The model was further
supported by predictive relevance tests’ results, which concludes the GoF value as at
0.70414, and that Q2 values gave evidence that all observed values were well
reconstructed. In other words, it was concluded that the EC model has a substantial and
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Table 5: Summary of results
Pilot Study
Analysis Results
Reliability Measures are free from errors, α for all items >0.8.
Questionnaire length bias ECM did not affect respondents’ attention to answer till the end of the survey; p>0.05 for male vs.
female.
Main study
Missing data analysis EM Little’s MCAR test; insignificant at each item (p-value 0.13) and construct level (p-value 0.32);
data is missing completely at random.
Homoscedasticity Only NM violated Levene’s test of equal variances; p-value 0.299.All other constructs did not
violate the assumption of homogeneity of variances.
Non-response biasness P-value of early vs. late respondents show no bias in non-response.
Factor analysis EFA; all items loaded well onto their latent constructs, except for EP8 and RR1
Measurement model evaluation After elimination of 14 items, all items show; α >0.8, composite reliability >0.8, AVE >0.5 &
loading >0.7.
Fornell-Larcker criterion; AVE of latent constructs higher than the latent construct’s R2 with any
other construct.
Cross-loadings; none
Hypotheses Results
PLS algorithms show that the AVE and composite reliability (CR) of each higher-order
latent construct (AC, NC, CC and EC) are above the cut off values of 0.5 and 0.7
respectively, indicating sufficient reliability and variance explained for each higher-level
constructs of EP, VAL, PER, NM and RR loaded well (at p<0.01) with their respective
5
variance, R2, no less than 90% (at p<0.01). For the first-order constructs INV and LA,
INV explains only a small variance, R2, of its second-order construct, CC, i.e. 5.4%, with
a loading, ß, of 0.272 (at p<0.05), while LA explains a variance of 99.2% of CC, with a
loading of 0.995 (at p<0.01). The assessment of the second-order constructs of AC, NC
and CC on EC followed with an AVE value of 0.6305 and CR of 0.93, also indicating
substantial reliability and variance explained for EC, the third-order construct of the
hierarchical block. AC loaded well, and the highest on EC, with a ß of 0.991 and an
explainable variance of 98% (at p<0.01). NC followed with a loading value of 0.98 and
0.893, 79.7% explaining the variance of EC (at p<0.01). Overall, all paths were
significant at p<0.01, except for the INVCC path which was at p<0.05. As
hypothesized, all paths including its algebraic signs accorded to the theorized
assumptions. With the exception of INV CC, the R2 values of all paths were recorded
as substantial, i.e. above 0.67. However, INV CC appeared as a “borderline significant
path” (ß = 0.054), being still significant at p<0.05. The significant loading of lower-order
constructs onto its relevant higher-order construct verifies the reliability and validity of
6
Table 6: Results of the hierarchical block assessment and baseline structural model
At this juncture, a valid and empirically tested structural model of EC was established
following the evaluations on the hierarchical block of EC, and the link between
ECMOTEPR. Seven antecedents are known to shape the three components of EC,
which then influence MOT and EPR. The mediation test performed on the construct
7
Antecedents Components of Behavioral Outcomes
Entrepreneurial Commitment
R2=0.91
EP
VAL AC
0.984, t=3.734
R2=0.946
0.972, t=9.182
0.991, t=4.159
PER
R2=0.931
31
NM R2=0.961 0.946, t=2.634 R2=0.895 R2=0.828
0.969, t=8.736
0.98, t=3.552
NC EC MOT EPR
R2=0.955
RR 0.977, t=3.658 0.686, t=2.064
R2=0.054
-0.893, t=6.703
INV R2=0.797
0.272, t=2.078
Model Fit Statistics
R2=0.992 CC H2 and F2 > 0
0.995, t=4.967 GoF: 0.70417
*significance at 0.01 level
LA **significance at 0.05 level
Hypotheses Results
H1 1 Entrepreneurial Passion is the consciously accessible intense positive feeling experienced by engagement
in entrepreneurial activities. This feeling is positively related to Affective Commitment. Supported*
H1 2 Personal Values are the learned beliefs that serve as guiding principles about how an entrepreneur ought to Supported*
behave. These beliefs positively develop the entrepreneur’s Affective Commitment.
H1 3 Personality is defined as the enduring dispositions that cause characteristic patterns of interaction with an Supported*
entrepreneurial environment. These enduring dispositions positively shape the entrepreneur’s Affective
Commitment.
H1 4 Internalized norms are the moral obligations which are important contributors to the entrepreneur’s Supported*
behavior. These norms positively shape the entrepreneur’s Normative Commitment.
H1 5 Responsibility and Righteousness infuses a sense of obligation to reciprocate (give back in return). Supported*
Responsibility and righteousness positively shape the entrepreneur’s Normative Commitment.
H1 6 The magnitude and number of investments (and side bets) made by the entrepreneur positively shape Supported*
Continuous Commitment.
H1 7 The perceived lack of alternatives faced by the entrepreneur positively affects Continuous Commitment. Supported**
H1 8 The mind-set of ‘desire’ (affective commitment) develops when an entrepreneur becomes involved in, Supported*
recognizes the value-relevance of, and/or derives his identity from his association with entrepreneurship,
and during his pursuit to perform entrepreneurially. This mind set positively affects entrepreneurial
commitment.
H1 9 The mind-set of ‘obligation’ (normative commitment) develops as a result of the internalization of norms, Supported*
the receipt of benefits that induces a need to reciprocate, and/or stimulates the acceptance of responsibilities
in the entrepreneur. This mind-set positively affects entrepreneurial commitment.
H110 The mind-set of perceived cost (continuance commitment) develops when an entrepreneur recognizes that Supported*
he/she stands to lose investments, and/or perceives that there are no alternatives other than to pursue the
course of action relevance to a particular target (carrying on with his business). This mind set positively
affects entrepreneurial commitment.
H111a Entrepreneurial Commitment is a force that binds the entrepreneur to a course of actions relevant to his Supported*
entrepreneurial performance. Entrepreneurial commitment impacts the motivation to perform.
a
H112 The mindset reflecting the entrepreneur’s determination to reach a goal and perform entrepreneurially is Supported**
reflected by the entrepreneur’s motivation. Motivation mediates the entrepreneur’s commitment towards
entrepreneurial performance
8
DISCUSSION
This study is about commitment in an entrepreneurial setting and is intended to address the
questions concerning entrepreneurs’ psychological relationships with their ventures and how
these relationships affect entrepreneurial performance. The main emphasis here is to explore
the antecedents and outcomes of entrepreneurial commitment. This study holds that an
continuous commitments that he/she feels, and that commitment is the magnetic force that
attachment’ and ‘desire’ to his/her venture will commit at much higher levels than those who
are not ‘emotionally attached’, or do not have the ‘desire’ to commit. In the same vein, it is
seen that AC is the most prominent factor contributing to commitment per se, and this may
be explained because the entrepreneur feels contented, comfortable, and most importantly,
happy to commit to his/her venture. As such, it is not hard to understand why many
entrepreneurs are willingly committed, in spite of the unpredictable journey ahead of them,
and after taking into consideration the high risks and sacrifices required to succeed. Their
willingness acts as the force that binds them to remain entrepreneurial, no matter what. In
short, these entrepreneurs will say “I want to” because they are emotionally attached to their
businesses. This is also in line with studies on the well-being of employees; that when AC is
9
dominant in employees, this makes them experience less job stress and perceive a better well-
being (Meyer & Maltin, 2010; Wasti, 2005). As such, the following deduction was affirmed;
becomes involved in, recognizes the value-relevance of, and/or derives his identity from his
association with entrepreneurship, and during his pursuit to perform entrepreneurially. This
Also in consistent with the TCM, NC loaded positively onto EC (ß = 0.98), with a
substantial explainable variance of 96%, slightly lower than AC, which recorded a variance
of 98%. In the literature, as with AC, NC is also expected to relate positively to in-role and
discretionary performance, but at a slightly lower impact (Meyer & Allen, 1997; Meyer &
Herscovitch, 2001). NC is also said to have a synergistic effect; it is said to have a positive
correlation with discretionary behavior when combined with a strong AC (Gellatly et al.,
2006). It is also said that organizational citizenship behavior was greatest in employees with
profiles (Wasti, 2005) and that job turnover rates are lower in employees with full
showed a strong AC/NC profile, where according to Gellatly et al. (2006), in an organizational
context, demonstrates a strong “moral imperative”, i.e. a desire to do the right thing. In this
associated to (and reflected in) AC and NC, and both combined, infuses a powerful force that
10
ignites, inspires and binds the entrepreneur to persevere. As such, in the context of normative
commitment, the following deduction was supported; “H9: The mind-set of ‘obligation’
commitment”.
Compared to NC and AC, CC, on the other hand, has been largely related to constraints
on behavior; that in the context of organizational behavior, it is found that a person with CC-
dominance is “expected to have a greater likelihood to remain with the organization, but are
not expected to do more than is required of them in terms of performance” (Meyer et al, 2012,
p.2). As such, CC is associated with a negative impact onto discretionary performance (Meyer
et al., 2004; Meyer & Herscovitch, 2001). In other words, although an employee feels
compelled to comply with a particular course of action, e.g. remaining with the organization,
they are usually portrayed as less willing to perform in discretionary actions than those with
strong AC or NC. Non-discretionary behaviors are behaviors specified or implied by the goal
itself (Meyer et al, 1997, 2001) e.g. make 10% more sales this week, conduct 20 phone calls
per hour, etc., while discretionary behaviors are behaviors that are unspecified, and may take
up various forms, e.g. voluntarily sharing knowledge and information with staffs to help them
achieve their goals, putting extraordinary effort into ensuring that the well-being of staffs are
taken care of, promoting corporate social responsibility. In the context of commitment per se,
11
it is thus the discretionary behaviors that counts, because these behaviors demonstrate the
extra effort and the willingness to perform, of which both criteria are the prerequisites for
entrepreneurial success in the long run. In this case, the path ECCC exhibited a substantial
negative correlation (-0.893), suggesting that entrepreneurs are less likely to commit to
with financial problems, e.g. large debts, especially in the his/her first few years in business,
this force which binds him/her to fully commit may decrease in magnitude when an
opportunity for other alternatives surfaces, e.g. returning to employment, etc. In this case,
he/she may still perform the entrepreneurial tasks required (e.g. the non-discretionary
actions), but is less likely willing to perform in discretionary actions. In other words, a strong
as at high levels, but given a “better” alternative, he/she would strongly consider leaving
entrepreneurship altogether. However, researchers argue that the role of CC must be viewed
in light of the strengths of AC and NC and the nature of the costs that is perceived to follow
from the discontinuance of a course of action (Gellatly et al., 2006; Meyer et al., 2012). In an
entrepreneurial context, this may also hold true as the nature of the costs associated with
leaving entrepreneurship varies, and is not only limited to financial terms per se since aborting
self-esteem, etc. This finding thus supports the following hypothesis; “H10: The mind-set of
12
he/she stands to lose investments, and/or perceives that there are no alternatives other than
to pursue the course of action relevance to a particular target (carrying on with his business).
Bridging the findings of H1 to H10, the hierarchical model of EC was affirmed. On the
whole, the hierarchical model of EC succeeded to realize the first research objective of this
continuous factors, and that each factor is shaped by the respective features; passion, values
commitment, while investment and the lack of alternatives negatively impacts continuous
commitment. Both affective commitment and normative commitment play a momentous role
In addition, this study deciphers the relationship between commitment and motivation,
and the roles played by both constructs leading to entrepreneurial performance. Commitment
boosts motivation, leading to behavioral acts that amplify performance. Recently, this
‘relationship’ was empirically tested and it was demonstrated that commitment’s facets are
related to the parallel dimensions of work motivation; that commitment and motivation are
13
the antecedents for working attitudes and behavior, and that self-motivation played a critical
2013). Commitment “is a force that binds an individual to a course of action that is of
relevance to a particular target” (Meyer & Herscovitch, 2001, p.301) while motivation is “a
set of energetic forces that originates both within as well as beyond an individual’s being, to
initiate work-related behavior, to determine its form, direction, intensity, and duration”
(Pinder, 1998, p. 11). This study therefore suggests; that entrepreneurial commitment enforces
motivation, which in turn reinforces entrepreneurial performance. That said, only with
CONCLUSION
necessitates a subtle understanding of what shapes ‘commitment’ in the first place, followed
affectionate with what he does, ii) needs to transform the perception of “obligations” to
genuine “sincerity” and affection, and iii) needs to rationally battle his/her perception that
aborting the venture is the best way out. The journey to become a successful entrepreneur
habitual one. This journey encapsulates the experiences of wholesomeness, more often
14
accompanied by failures along the way. Nonetheless, genuine successful entrepreneurs will
thrive and rebound after failures and transform into habitual ones, and learn from experience.
The critical review and synthesis of literatures, followed by the exploratory findings of
Tasnim et al (2015, 2014, 2013) and further quantitative analysis directed in this study
concludes: that commitment is the so called strength that fastens oneself to his/her targeted
goals and actions. Commitment is the force that manipulates the entrepreneur’s behavioral
mindset, directing him/her to remain with entrepreneurship and to perform the needed tasks
to succeed. So powerful is this force that the entrepreneur perseveres even during the hardest
of times. One can say that commitment is a highly philosophical concept; that it is much said
and uttered in daily communications, but with little understanding of what it truly is,
moreover, on how it may be used to steer ones’ mindset and behavior. It can be argued that
relying on ample and improved external and institutional support is not the panacea. There is
a force deep within the entrepreneur that needs to be developed and nurtured throughout. It is
thus about time potential entrepreneurs understand what this force really means and is highly
capable of. This force - is the committed-mindset. Now that we understand what commitment
means to the entrepreneur and how it is developed, the researcher proposes future studies to
work on this “committed-mindset” focusing on, among others, (i) cultural and social norms
(e.g. why are some cultures highly committed to business performance than others?) (ii)
15
transferred?), and iii) the entire entrepreneurship framework (e.g. how is the national
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