Multigroup Higher Order Mediator On Entrepreneurial Intention Using Structural Equation Modeling

Abstract

Nowadays, serious concern has been raised by governments and also academicians for the unemployment issues among graduates. As becoming entrepreneur can be one of the options, their intention on becoming self-employed had encouraged researcher to investigate particularly on the influence of entrepreneurial intention among university students. The main purpose of this study was to identify whether second order mediator entrepreneurial motivation mediates the relationship between independent variables (attitude toward behavior, subjective norm, perceived behavioral control) and dependent variable (entrepreneurial intention). Besides that, this study was conducted to know the type of mediation involved in the study. A structured questionnaire was then distributed to 380 students. A survey methodology using cluster sampling was carried out, covering 380 university students from east coast region which are Kelantan, Terengganu and Pahang. This study is analyzed using structural equation modeling (SEM). The finding shows that the entrepreneurial motivation mediates the relationship between independent variables (attitude toward behavior and subjective norm) and entrepreneurial intention. The type of mediation occur are partial mediation and complete mediation.