Entrepreneurship in Africa

Opportunities for both Africa and Entrepreneurship Research

Bruce T. Lamont, Hermann A. Ndofor

• Publisher: Routledge
• Year: 2019
• Print ISBN:
  9780815359227
• eBook ISBN:
  9781351121163
• Topic: Business
• Subtopic: Business General
• Index: Business

This book presents current research by leading experts from around the globe on entrepreneurship in Africa, focusing on how entrepreneurship is central to the economic development of many of the economies on the African continent. Collectively, the contributors identify the frontier of impactful research on entrepreneurship, and provide a glimpse into both the opportunities and the challenges for entrepreneurship in Africa. This book was originally published as a special issue of the Africa Journal of Management.

ENTREPRENEURIAL INTENTIONS: A CULTURAL PERSPECTIVE

Ian K. Alexander

and Benson Honig

The theory of planned behaviour is widely used to measure entrepreneurial intentions. Thus, we investigate the possible moderating role of indigenous ethnic culture on the attitude-intention, subjective norm-intention and perceived behavioural control-intention relationships. In support of the theory of planned behaviour, attitude and perceived behavioural control have a positive influence on the odds of becoming a nascent entrepreneur. However, subjective norm was not a significant predictor. The inclusion of ethnicity significantly improved the predictability of entrepreneurial intentions. We found that, in comparison with students from the Kikuyu tribe, students from the Luhya and Luo tribes are less likely to have intentions becoming nascent entrepreneurs. Finally, our findings confirm significant moderating effects of ethnicity. We draw a number of implications for the theory and practice of entrepreneurship education.

INTRODUCTION

Prior research has demonstrated that entrepreneurship is influenced by contextual factors (e.g., Manolova, Eunni, & Gyoshev, 2008; Noorderhaven, Thurik, Wennekers, & Stel, 2004; Valdez & Richardson, 2013). Among these factors the role of culture has received much attention. According to Krueger, Liñán, and Nabi (2013: 703), ‘a greater understanding of the relationship between cultural issues and entrepreneurial activity is important because of its implication for national and regional development and growth.’ Research has shown that members of different cultures vary systematically in aspects of their interpretation of entrepreneurship, the importance they place on entrepreneurship, as well as their entrepreneurial behaviour (e.g., Hansen, Deitz, Tokman, Marino, & Weaver, 2011; Mueller & Thomas, 2001; Schlaegel, He, & Engle, 2013). It is assumed that persons are drawn toward entrepreneurship because it is compatible with values to which the individual was previously conditioned (Dana, 1995).

While past studies have provided evidence of the interplay between culture and entrepreneurship, there are still some noticeable gaps in the extant literature. For instance, Liñán, Urbano, & Guerrero (2011) note that cognitive models wishing to explain variations in entrepreneurial intentions among regions do not usually include environmental cognitive elements. Moreover, although the culture–entrepreneurial intentions relationship has been discussed previously (e.g., Liñán & Chen, 2009; Pruett, Shinnar, Toney, Llopis, & Fox, 2009), the issue of tribal and indigenous tribal identity has not been studied. Yet national culture is not the only type of culture that influences entrepreneurship. Instead, entrepreneurial behaviour is influenced by different levels of culture including religion, family and ethnic cultures, among others. For example, (Mungai, 2013) argues that in culturally heterogeneous societies, indigenous ethnic cultures play a more dominant role in moulding the values and perceptions of its citizens than national cultures. However, there is limited empirical research focusing on the influence of ethnic culture on entrepreneurship and even less examining its impact on entrepreneurial intention.

In this study, the influence of culture on entrepreneurial intentions is examined at the indigenous ethnic-group level within the domestic Kenyan context. Kenya is multi-ethnic and therefore multi-cultural and thus, a single national culture to represent a culturally heterogeneous society is likely to be inappropriate (Bochner & Hesketh, 1994). Moreover, given that indigenous ethnic groups can be considered as subcultures within a country, the study of culture by ethnicity within a domestic context is feasible and appropriate since each ethnic group will have its own unique set of cultural values (Kwok & Uncles, 2005). The central question underlying this research is: How and to what extent does indigenous ethnic culture influence entrepreneurial intentions models? To answer this question we utilize the theory of planned behaviour to measure entrepreneurial intentions among students. More specifically, we examine the differences, if any, in entrepreneurial intentions among four major ethnic groups, namely the Luo, Kikuyu, Kamba and Luhya. We also investigate whether the effects of attitude, subjective norm and perceived behavioural control are the same or different among the four ethnic groups.

This study makes several important contributions to theory and practice. Firstly, although intentions is becoming ubiquitous, the influences of culture has not been widely explored. Thus, by adopting a cultural perspective on entrepreneurial intention, this study addresses one of the limitations of previous studies and helps shed light on the utility of intention models in culturally heterogeneous settings. Secondly, this study is one of the few pieces of research on intentions that empirically measures culture at an indigenous ethnic group level. It aims to provide evidence for the assumption that cultural differences at this level could directly influence intention and/or mediate or moderate the relationships within the model. Thirdly, in terms of the practical utility of this study, few studies have examined entrepreneurial intention in the East African setting; consequently, there is limited empirical evidence to guide decision-makers looking to develop entrepreneurship programs. Most notably, the lack of understanding of motivational factors and barriers to entrepreneurship hinders the development of adequate intervention programs. Authors such as Liñán and Chen (2009) and Kibler (2013) believe that an understanding of the formation of entrepreneurial behaviour before there is any observable action is important, especially when trying to encourage enterprising activity. Thus, our study will contribute to this approach by examining factors that might be relevant in explaining the variance in entrepreneurial intention. Finally, the African continent is under renewed and widespread interest because of its relatively rapid development. In this setting, there is still a great need for research to shed further light on the dynamics and effects of entrepreneurship. We aim to contribute to this area.

THEORY DEVELOPMENT

Theory of Planned Behaviour

Intention models are commonly used to predict behaviour, especially as they are considered to offer a coherent, parsimonious, highly-generalizable, and robust theoretical framework for understanding and predicting behaviour (Krueger, Reilly, & Carsrud, 2000).Among these models, the theory of planned behaviour is one of the most widely cited (Krueger et al., 2000). The theory helps examine and interpret, from a social cognition perspective, key antecedents to performing behaviour. It is based on the premise that intention can be an effective predictor of actual behaviour and that behaviour is intentionally planned (Ajzen, 1991). The theory of planned behaviour is increasingly used in entrepreneurship research to predict entrepreneurial intention (e.g., Engle et al., 2010; Lüthje & Franke, 2003) and to explore the antecedents to entrepreneurial behaviour (e.g., Carr & Sequeira, 2007; Díaz-García & Jiménez-Moreno, 2010; Zhao, Seibert, & Hills, 2005). More so, entrepreneurial intention has been considered as the first step to entrepreneurship development (Krueger & Carsrud, 1993).

Given that the theory has been widely discussed in the extant literature, we only present a brief summary of its underlying constructs. The central construct of the theory of planned behaviour is the individual’s intention to perform a certain behaviour (Autio, Keeley, Klofsten, Parker, & Hay, 2001). Ajzen (1991) contends that intentions capture the motivational factors that influence a behaviour; they are indications of how hard people are willing to try, of how much of an effort they are planning to exert, in order to perform the behaviour. The theory views the intention to start a new venture as being dependent on three contextual elements: (1) personal attitude toward outcomes of the behaviour; (2) perceived social norms; (3) perceived behavioural control. The first two constructs (attitude and subjective norms) reflect the perceived desirability of intentions and the third (perceived behavioural control) reflects perceived feasibility of intentions (Urban, Van Vuuren, & Owen, 2008).

Personal attitude towards outcomes of the behaviour is similar to expectancy and refers to the attractiveness of performing the behaviour (Krueger et al., 2000). Attitudes refer to ‘the degree to which a person has a favourable or unfavourable evaluation or appraisal of the behaviour in question’ (Ajzen, 1991: 188). As a general rule, the more favourable the attitude towards a behaviour, the greater the intention to perform that behaviour.

Perceived social norms taps perceptions of what important people in respondents’ lives think about performing a particular behaviour (Krueger et al., 2000). Social norms refer to the perceived social pressure to perform or avoid a behaviour (Iakovleva, Kolvereid, & Stephan, 2011). Along this line of reasoning, social encouragement and support for entrepreneurship is an essential part of the relevant social capital necessary for graduates to become self-employed.

Perceived behavioural control captures the ability and feasibility to execute a target behaviour (Ajzen, 1991). It stems from one’s belief in one’s own ability (self-efficacy) and implies the belief that a task is achievable (confidence), due to one’s own competences. Therefore, the belief in one’s ability to leverage resources (human, social, financial, and other physical resources) to create a venture (controllability) is a key factor in determining whether one views self-employment as feasible or not.

Hypothesis 1a: The higher the attitude with respect to self-employment, the stronger is the students’ intention to become self-employed.

Hypothesis 1b: The higher the subjective norm with respect to self-employment, the stronger is the students’ intention to become self-employed.

Hypothesis 1c: The higher the perceived behavioural control with respect to self-employment, the stronger is the students’ intention to become self-employed.

Ethnicity and intentions

According to Mungai & Ogot (2012) cultural/ethnic values can play a critical role in determining who gets into entrepreneurship and what functional role individuals plays in this activity. Portes & Rumbaut (2006) suggest that ethnic group membership can help to explain entrepreneurial outcomes, including values, skills, social capital and resource mobilization. Likewise, Hirschman (1982) argues that an ethnic group’s socioeconomic achievements are partly a function of the human capital of individuals in that group, and the motives and ambition they derive from being part of that group. Further, institutional completeness and internal solidarity give members of some ethnic groups an advantage in mobilizing resources (Aldrich & Waldinger, 1990).

In terms of entrepreneurial intentions, given the relationship between ethnicity and entrepreneurship, it seems reasonable to assume that ethnicity also affects entrepreneurial intentions. Research by Wilson, Marlino, & Kickul (2004) shows that significant differences in the self-efficacy and entrepreneurial intentions exist among teen girls of different racial and ethnic identities. Moreover, globally there have been an increasing number of studies that report self-employment intention differences among ethnic groups; however, most of these studies have adopted conducted comparisons national ethnic groupings (e.g., Kristiansen & Indarti, 2004; Liñán & Chen, 2009; Pruett et al., 2009). However, we assume that there will also be differences in entrepreneurial intentions between indigenous ethnic groups, and that national cultural classifications may mask important intra-cultural diversity within the study population (Bandura, 2001).

Aharonovitz & Nyaga (2008) compare seven major tribes in Kenya: Kikuyu, Luo, Luhya, Kamba, Kalenjin, Kisii, and Meru, and find that the Kikuyu show the highest level of risk taking and education, factors that are closely related to entrepreneurial intent. Further, they found that the Luhya and Luo tribes rated high on altruism and cooperation. Given that entrepreneurial talent is generally selfish (Baumol, 1996), it could be expected that tribes like the Luhya and Luo that rate high in altruism would have lower entrepreneurial intentions than those with a low rating on the altruism/compassion scale (e.g., the Kikuyu tribe). Being disinclined to compete, having consensual decision making, and putting family first are complex issues that do not necessarily sit easy with modern entrepreneurship (Lindsay, 2005). Further, Marris (1968) argues that many of the characteristics and values held by the Kikuyu tribes facilitate entrepreneurship, stimulating the need for it and weakening the inhibitions. These include their adaptability, openness to change and individualism. LeVine, Strangman, & Unterberger (1966) suggest that ethnic groups like the Kikuyu in Kenya are responsive to the economic incentives around them and are likely to retain...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• Citation Information
• Notes on Contributors
• 1 Entrepreneurial Intentions: A Cultural Perspective
• 2 Entrepreneurial Opportunities and Poverty in Sub-Saharan Africa: A Review & Agenda for the Future
• 3 Leaving a Social Venture: Social Entrepreneurial Exit among the Maasai in Northern Tanzania
• 4 Network Bricolage as the Reconciliation of Indigenous and Transplanted Institutions in Africa
• 5 Positive Impact of Entrepreneurship Training on Entrepreneurial Behavior in a Vocational Training Setting
• 6 Entrepreneurship in Africa: Identifying the Frontier of Impactful Research
• Index