To identify and foster potential international entrepreneurs are important goals for entrepreneurship education. Based on the theory of planned behavior (TPB), we argue that International entrepreneurial intention (IEI) is a predictor of international entrepreneurship (IE). In addition, cross-cultural competences are hypothesized as antecedents to IEI and moderators of the relationship between TPB elements and IEI. We integrate two elements of cross-cultural competences (global mindset and cultural intelligence) in a TPB-framework to identify the drivers of students’ IEI. We analyze a sample of 84 students with OLS regression and moderation analysis. OLS regression results reveal no significant direct effects from cultural intelligence and global mindset on IEI. Moderation analyses suggest a negative, significant moderating effect of cultural intelligence on the relationship between personal attitude and IEI and on subjective norms and IEI. Therefore, simply enhancing global mindset and cultural intelligence does not contribute to students’ IEI. More is required from entrepreneurship education, such as improving the perception of international entrepreneurship as a valuable career choice.
Entrepreneurship education has been acknowledged as an effective way to develop students’ entrepreneurial intention [
The theory of planned behavior (TPB) [
Previous research has shown that international entrepreneurs need to deal with numerous cross-cultural issues [
CQ is person’s “capability for successful adaptation to new cultural settings, that is, for unfamiliar settings attributable to cultural contexts” [
We believe that TPB-based models on IEI can profit from an integration of the cultural competence literature [
This study integrates CQ, GM, and the standard TPB model to identify the drivers of students’ IEI. The study’s objectives are (1) identify whether GM and CQ could lead to IEI directly; (2) evaluate the possible moderating influence of GM and CQ on TPB elements to IEI; and (3) assess the effect of the same factors on EI (instead of IEI) to show whether the effects of CQ and GM are unique for IEI rather than both IEI and EI. Doing so contributes to the international entrepreneurship literature by exploring drivers of IEI. In addition, this study provides indications for universities’ entrepreneurship education programs on how to strengthen students’ IEI.
TPB postulates three conceptually independent determinants of entrepreneurial intention, the “self-acknowledged conviction by a person that they intend to set up a new business venture and consciously plan to do so at some point in the future” [
We expect that individuals with a positive personal attitude, subjective norms, and perceived behavioral control would be more likely to have intentions to engage in international entrepreneurship. Formally, (H1) (H2) (H3)
CQ is defined as “a person’s capability for successful adaptation to new cultural settings, that is, for unfamiliar settings attributable to cultural contexts” [
The cognitive facet of CQ is embodied in one’s own personality, social identity, and social roles. It refers to an individual’s capability to adapt effectively to new cultural contexts. The cognitive facet contains three critical elements. First is the cognitive flexibility, which means a constant reshaping and adaptation of the self when operating within a new cultural setting. Second is the reorganization capability to reformulate one’s self-concept in new situations. Third are strong reasoning skills, which help to understand reasons behind phenomena in new cultures. In the global market, high CQ individuals find it easier to understand the foreign environment, acquire market knowledge, reshape their own cognitions, and recognize opportunities. All these allow an entrepreneur to choose an effective product-market fit [
The motivational facet of CQ focusses on a person’s self-efficacy and personal motives. Perceived self-efficacy is a positive judgement of one’s capability [
The behavioral facet of CQ suggests that international activities need actual implementation. A high CQ not only is composed of knowledge but requires action in specific situations. People with high CQ are better able to behave appropriately in different cross-cultural situations. For example, this could mean the selection of an appropriate strategy. In addition, individuals with high CQ are talented mimics [
From the process perspective of CQ, a person with high level of CQ has a greater capacity to store and categorize new experiences. This may decrease the uncertainty of conducting international entrepreneurial activities and thus increase the intention to engage. For example, international experience has a significant positive influence on IEI [
From our discussion of the four facets of CQ, we hypothesize that individuals with a higher level of CQ would have greater knowledge, more motivation, better executive efficiency, and more experience with regard to international entrepreneurial activities. Formally, (H4)
CQ moderates the TPB-IEI relationship as well. CQ enables individuals with a better understanding of foreign cultures. As a consequence, uncertainty with regard to the international environment will be lower, and the international environment will be regarded as more friendly. For example, Nyaupane et al. [ (H4a)
Similarly, based on the cognitive facet of CQ we argue that individuals with high CQ have more knowledge of foreign cultures. With more knowledge, they are more confident in their judgement and therefore develop a distance to others’ opinions [ (H4b)
In addition, the behavioral aspect of CQ suggests that adaptation is not only thinking about what to do but also taking actions in specific situations. This indicates that an entrepreneur with a high level of CQ is able to determine when and how to perform activities related to international entrepreneurship. Such a behavioral control ability reduces the risk and thus increases the willingness to conduct IE. Therefore, a higher degree of CQ could enhance the effect of PBC on IEI. We assume that (H4c)
GM is defined as a mindset “that combines an openness to and awareness of diversity across cultures and markets with a propensity and ability to synthesize across this diversity” [
The personal attributes of GM refer to a state of mind that is characterized by an orientation towards the outside and openness and willingness to learn from alternative systems of meaning held by others [
The cognitive perspective of GM refers to a combination of openness and awareness of diversity across cultures and markets and a propensity and ability to synthesize across this diversity [
The motivational facet of GM addresses the willingness to engage in global activities. The motivational facet of GM indicates that individuals with a strong GM are more willing to learn from others and adjust themselves to dynamic global environments. With a strong GM, entrepreneurs are more motivated to seek rather than reject globally oriented behavior, such as international entrepreneurship activities.
The behavioral facet of GM makes entrepreneurs not only think globally but also act locally. Kefalas [
In summary, we expect that people with a strong GM would have personal attributes that are more positive towards international activities, more cognitive knowledge and skills, more motivation, and better behavioral capabilities, which leads to international entrepreneurial intention. Formally (H5)
We propose no interactions between GM and TPB-antecedents because the GM constructs tap less into behavioral components than CQ. For example, Andresen and Bergdolt [
Only few studies focus on the relationship between CQ and GM. Drawing on Earley and Mosakowski [
Based on the arguments above, we suppose an interaction between CQ and GM. CQ reflects the ability for effective interpersonal behavior in the global context. GM reflects the ability to recognize and synthesize information from foreign cultures. Persons who are able to reflect and synthesize this information (GM) and use this perspective in their personal interactions (CQ) would be more effective than those that would lack one of these elements. We propose that a combination of GM and CQ would make an entrepreneur more aware and able to be inclined towards international entrepreneurship. Formally (H6)
Figure
The conceptual model of this study.
This study is based on undergraduate university business students enrolled in an entrepreneurship course (
Data was collected through a self-report survey. A randomly selected group received a questionnaire that focusses on IEI (
Chi-square tests show that there are no significant differences between these two groups on students’ age (
Descriptive statistics of the sample characteristics.
Item | Category | International | National | Group difference | |||||
---|---|---|---|---|---|---|---|---|---|
Count | Percent (%) | Cum. percent (%) | Count | Percent (%) | Cum. percent (%) | Pearson Chi-square | Asymptotic significance (2-sided) | ||
Age | 19 | 11 |
|
26.8 | 12 |
|
24.9 | 9.122 |
|
20 | 13 |
|
58.5 | 10 |
|
51.2 | |||
21 | 6 |
|
73.2 | 8 |
|
69.8 | |||
Others | 11 |
|
100 | 13 |
|
100 | |||
|
|||||||||
Gender | Male | 23 |
|
56.1 | 24 |
|
55.8 | .001 |
|
Female | 18 |
|
100 | 19 |
|
100 | |||
|
|||||||||
Years of abroad experience | 0 | 11 |
|
26.8 | 14 |
|
32.6 | 18.421 |
|
1.5 | 13 |
|
58.5 | 4 |
|
41.9 | |||
2.0 | 6 |
|
73.2 | 10 |
|
65.1 | |||
Others | 11 |
|
100 | 13 |
|
100 | |||
|
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Number of foreign languages | 1 | 11 |
|
26.8 | 7 |
|
16.3 | 3.430 |
|
2 | 17 |
|
68.3 | 17 |
|
55.8 | |||
3 | 9 |
|
90.2 | 14 |
|
88.4 | |||
Others | 4 |
|
100 | 5 |
|
100 | |||
|
|||||||||
Country of birth | Netherlands | 20 |
|
48.8 | 24 |
|
55.8 | 8.854 |
|
Germany | 17 |
|
90.2 | 13 |
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86.0 | |||
Others | 4 |
|
100 | 6 |
|
100 | |||
|
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Self-entrepreneurial experience | Yes | 12 |
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29.3 | 13 |
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30.2 | .009 |
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No | 29 |
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100 | 30 |
|
100 | |||
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Parents’ entrepreneurial experience | Yes | 15 |
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36.6 | 12 |
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27.9 | .607 |
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No | 26 |
|
100 | 30 |
|
100 |
All items were measured using 7-point rating scales. In the final analysis, the value for each scale is represented by the unweighted mean of its items. The items for the dependent variables, IEI and EI, were taken from Kautonen et al. [
We add students’ gender as the control variable. Prior literature has identified gender as an important factor for entrepreneurial intention [
The scales are reliable (Cronbach’s
Reliability statistics of the scales.
International | National | |||||
---|---|---|---|---|---|---|
Cronbach’s |
Cronbach’s |
Dropped item | Cronbach’s |
Cronbach’s |
Dropped item | |
Total | 0.895 | — | — | 0.869 | — | — |
IEI/EI | 0.971 | — | — | 0.957 | — | — |
PA | 0.896 | — | — | 0.916 | — | — |
SN | 0.804 | — | — | 0.649 | 0.665 | — (no improvement) |
PBC | 0.716 | — | — | 0.788 | — | — |
CQ | 0.776 | — | — | 0.734 | — | — |
GM | 0.559 | 0.648 | Item 1 | 0.715 | — | — |
Sampling adequacy.
KMO and Bartlett’s test | International | National |
---|---|---|
Kaiser-Meyer-Olkin measure of sampling adequacy | .485 | .597 |
Bartlett’s test of sphericity | ||
|
1183.980 | 1107.208 |
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528 | 561 |
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.000 | .000 |
Due to the low sample size, we were restricted in the use of methods of analysis and used OLS regression to test the relationship between personal attitude, subjective norms, perceived behavioral control, cultural intelligence, and global mindset on (international) entrepreneurial intention. To test the moderation effects, we use moderated multiple regression [
Table
Correlation table.
International | National | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
IEI/EI | 1 | 1 | ||||||||||||
Gender | −.046 | 1 | −.264 | 1 | ||||||||||
PA | .726 |
.105 | 1 | .907 |
−.246 | 1 | ||||||||
SN | .546 |
.180 | .563 |
1 | .356 |
−.038 | .270 | 1 | ||||||
PBC | .499 |
.130 | .456 |
.437 |
1 | .302 |
−.007 | .320 |
.362 |
1 | ||||
GM | .167 | .272 | .379 |
.228 | .267 | 1 | .082 | .154 | .145 | .186 | .290 | 1 | ||
CQ | .065 | .061 | .088 | .029 | .291 | .660 |
1 | .015 | −.150 | −.038 | .209 | .206 | .477 |
1 |
Direct effects on (international) entrepreneurial intention.
Variables | International | National |
---|---|---|
(Constant) | ||
Gender (female = 1) | −.125 (.279) | −.014 (.848) |
Personal attitude | .611 (.000) |
.892 (.000) |
Subjective norms | .181 (.188) | .123 (.099) |
Perceived behavioral control | .182 (.173) | −.014 (.848) |
Cultural intelligence | .069 (.658) | .072 (.381) |
Global mindset | −.166 (.324) | −.098 (.234) |
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In addition, the results indicate no significant findings on other direct relationships for either the international or national entrepreneurial intention.
To test the moderation hypotheses, a series of moderated regression analyses was run. In models 1a–e, moderations of CQ on the relationship between TBP-antecedents (PA, SN, and PBC) and IEI were analyzed. The results in Table
In models 2a–e, moderations of CQ on the relationships between PA, SN, and PBC and EI were tested. The results in Table
Moderated regression analyses.
Variables | International entrepreneurial intention | Entrepreneurial intention | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
1a | 1b | 1c | 1d | 1e | 1f | 2a | 2b | 2c | 2d | 2e | 2f | |
(Constant) | ||||||||||||
Gender | −.161 | −.159 | −.196 |
−.157 | −.172 | −.122 | −.046 | −.041 | −.038 | −.039 | −.035 | −.041 |
Personal attitude | .556 |
.556 |
.544 |
.603 |
.533 |
.610 |
.869 |
.873 |
.873 |
.863 |
.847 |
.885 |
Subjective norms | .180 | .175 | .280 |
.224 |
.191 | .203 | .128 |
.124 |
.126 |
.140 |
.138 |
.132 |
Perceived behavioral control | .188 | .201 | .086 | .103 | .140 | .162 | −.023 | −.027 | −.025 | −.026 | −.018 | −.009 |
Cultural intelligence | −.039 | −.012 | .025 | −.051 | .023 | .031 | .018 | .019 | ||||
CQ |
−.296 |
.032 | ||||||||||
CQ |
−.244 |
−.035 | ||||||||||
CQ |
−.176 | −.110 | ||||||||||
Global mindset | −.144 | −.059 | ||||||||||
GM |
−.102 | .051 | ||||||||||
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To illustrate the significant interactions regarding hypotheses 4a and 4b, we plot the moderation effects of CQ from models 1c and 1d. As shown in Figure
The interaction effect of CQ and PA on IEI.
The interaction effect of CQ and SN on IEI.
The goal of this study was to identify the drivers of students’ IEI, by analyzing the effects of two cross-cultural competences, cultural intelligence and global mindset, in the context of the TPB framework. Our analyses reveal surprising findings (Table
Summary results of hypothesis tests.
Hypothesis | Expected | Result | |
---|---|---|---|
(H1) | PA → IEI | pos. | pos. |
(H2) | SN → IEI | pos. | n.s. |
(H3) | PBC → IEI | pos. | n.s. |
(H4) | CQ → IEI | pos. | n.s. |
(H4a) | CQ |
pos. | neg. |
(H4b) | CQ |
neg. | neg. |
(H4c) | CQ |
pos. | n.s. |
(H5) | GM → IEI | pos. | n.s. |
(H6) | GM |
pos. | n.s. |
pos.: positive; neg.: negative; n.s.: not significant.
Literature shows that personal attitude, subjective norms, and perceived behavioral control have a significant positive relationship with entrepreneurial intention [
Direct effects analyses show that neither global mindset nor cultural intelligence has a significant influence on IEI. These results are surprising, as we have provided strong arguments for such potential links. We suggest that GM may not be directly related to IEI because GM refers to a mindset rather than to intentions that lead to actions. With regard to the missing link between CQ and IEI, we can speculate that CQ as such is context-free and may be enacted in any other career choice, with an international entrepreneurial intention being only one possible career choice.
Moderation effects analyses show that only the interactions of CQ and PA as well as CQ and SN towards IEI are significant. From the discussion of the dimensions of CQ follows that a high degree of CQ implies a high degree of knowledge of and high adaptive capability of new cultural contexts. When individuals have enough knowledge of new cultural contexts and can adapt effectively to new cultures, they may not view conducting an international new business as challenging as without a high level of CQ. Also, students with a high level of CQ are more likely to see the difficulties in IE activities and hence are less likely to intend to act, even those that may initially value international entrepreneurship.
A similar moderation effect was found regarding the negative impact of CQ on SN-IEI relationship (Figure
Our study contributes to the literature by drawing upon the concepts of global mindset and cultural intelligence, to develop a framework that explains the antecedents of international entrepreneurial intention based on an addition to the TPB framework.
The significant moderation effects of CQ on the relationships between PA and IEI and SN and IEI show that it is useful to combine the literatures of cross-cultural competence and international entrepreneurship to move closer to a complete model. Future studies could follow this direction and explore the relationship between cross-cultural competence and other constructs from the international entrepreneurship domain, for example, the international performance of international new ventures. In addition, exploring the mechanisms behind the relations would contribute to a deeper understanding of IE(I). We suggest integrating other constructs such as firm-level capabilities as a theoretical foundation for an application to our findings to international new ventures rather than student entrepreneurs. Further, our results show no significant direct linear relationships between GM and CQ to IEI. In addition, there may be nonlinear relationships between these constructs. Future studies may identify those nonlinear relationships. Studies following this direction take a step further to explain the role of cross-cultural competences in the field of international entrepreneurship and international entrepreneurship education.
Prior studies confirmed the role of entrepreneurship education in enhancing students’ EI [
This study has taken a step in the direction of analyzing the relationship between GM, CQ, PA, SN, PBC, and IEI/EI on a student sample. However, it is possible that analyses of target groups with different working or entrepreneurial experience may result in different findings. Also, the small sample size limits the choice of methods of analysis as well as the power of our results. Future studies could extend the sample size to fulfill the criteria for using Structural Equation Modelling, to reap its advantages compared to OLS [
The authors declare that there are no conflicts of interest regarding the publication of this paper.
Shuijing Jie would like to acknowledge a scholarship from the China Scholarship Council (CSC), no. 201506420037.