Comparison of Entrepreneurial Intention Level between Overseas Scholarship Recipients and Local Students in Taiwan National Chiao-Tung University Marketing Research Prof. Charles Trappey Fall 2007 Karen Ochaeta 9573601

Outline Introduction Literature Review Research Questions Hypotheses Methodology Results Analysis and Discussion Limitations Conclusion Future Research References

Introduction Based on previous studies about entrepreneurial intention models, the present research aims to establish the entrepreneurial intention level of two samples: overseas students under a scholarship programme in Taiwan and local students, both on the second year of Master degree (students facing career decisions). The purpose of this research it to find out if there is a direct relationship between the entrepreneurial intention level and the situation under individuals study their graduate career (i.e. overseas or locally) and at which degree it affects its decision to start a new business in the future.

Literature Review Entrepreneurship is a way of thinking that emphasizes opportunities over threats. Intentions are valid predictors of entrepreneurial behavior. Attitudes influence behavior by their impact on intentions. Intentions and attitudes depend on the situation and person. Intention models will predict behavior better than individual (personality) variables (Krueger, 2000).

Literature Review According to Segal (2005), the motivation to become an entrepreneur follows the pattern shown in the Figure below: Personal Background Attitude Conviction Intention Situation

Literature Review Other researchers have established a similar pattern, although with small variances (Liñan, 2005) Perceived Desirability Propensity to act Intention Perceived Feasibility

Research Questions Question No.1: The difference between the level of entrepreneurial intention of two groups of students –local and overseas- can be used to determine the influence of international education experience on entrepreneurial behavior? Question No. 2: Are the entrepreneurial attitude and intentions among overseas scholarship recipients in Taiwan influenced by the experience gained during the programme? Question No. 3: Are the entrepreneurial attitude and intentions among overseas scholarship recipients in Taiwan influenced by the knowledge acquired during the programme?

Hypotheses Hypothesis 1: The entrepreneurial intention level between local and overseas students is different Hypothesis 2: The perceived influence that the experience of graduate education has over entrepreneurial intention is different between local and overseas students Hypothesis 3: There is a direct relationship between the experience of graduate education and the entrepreneurial intention level

Methodology Sample Questionnaire – Likert Scale 28 overseas students under a Scholarship Programme, coming from developing countries from 2 different universities in Taiwan 28 local students from 1 university Questionnaire – Likert Scale Second year of Master degree Technology Management, Computer Science, and Industrial Engineering Management 1 Professional Attraction Local students 2 Entrepreneurial Capacity Graduate Education 3 Entrepreneurial Intention 4 Education Experience International Education overseas

Methodology Data Analysis Correlation T-test analysis Comparison of sections (1), (2), and (3) of both samples, local and overseas students to test hypothesis 1 and 2 Establish the strength of relationship among Graduate/International education experience and level of entrepreneurial intention to test hypothesis 3

Results Hypothesis 1: The professional attraction toward entrepreneurship is different between local and overseas students (not supported) Hypothesis 2: The entrepreneurial intention level between local and overseas students is different (supported) Hypothesis 3: The perceived influence that the experience of graduate education has over entrepreneurial intention is different between local and overseas students (supported) Local Students Overseas Students Pr > t Null Hypothesis Hypothesis Supported? Professional Attraction 4.61 5.37 0.0056 n/a Entrepreneurial Intention 4.13 5.42 0.0003 Rejected YES Perceived Influence of graduate education experience 3.43 5.20 <0.0001

Results Correlation analysis for overseas students x 0.63 0.50 0.86 Significant correlation Professional Attraction (Perceived Desirability) Weak association 0.63 Entrepreneurial Intention Conviction Entrepreneurial Capacity (perceived Feasibility) Weak association 0.50 Graduate Education Experience (situation) 0.86 x Strong association 0.33

Results Correlation analysis for local students 0.52 0.61 0.56 0.80 Professional Attraction (Perceived Desirability) Weak association 0.52 Entrepreneurial Intention Conviction Entrepreneurial Capacity (perceived Feasibility) Weak association 0.61 Graduate Education Experience (situation) 0.56 Weak association Strong association 0.80

Discussion Although the level of entrepreneurial intention between local and overseas students is significantly different, it is possible to establish a pattern of behavior based on the correlation analysis of the responses. For local students, the perceived feasibility (entrepreneurial capacity) of becoming entrepreneurs is strongly associated to the graduate education experience, nevertheless it does not affect positively the entrepreneurial intention level, since they perceive that their capacity is not enough to take the risk of running a business. The previous statement is the contrary for overseas students; they perceive that the graduate experience does not influence directly the entrepreneurial capacity –the knowledge associated with it- but it does influence the entrepreneurial intention level. In this case, this behavior can be related to the fact they are considering the graduate education experience as an incentive to become entrepreneurs based on the overall experience of studying abroad.

Limitations Availability of overseas students under different graduate programmes. Difficulties to do sample segmentation in order to eliminate the personal background factor and its influence over the entrepreneurial intention level.

Conclusion The present research has addressed a situational factor that can affect the entrepreneurial intention level of a sample of graduate students that are about to face career decisions. The cultural background clearly influences the decision making, nevertheless the results show how the experience of studying abroad is directly related to the intention level of becoming an entrepreneur in the future, and how different cultures perceive the influence that academic education has on entrepreneurial capacity.

Future Research Test the difference between overseas students before and after the graduate programme to eliminate the cultural factor during the comparison of two samples. Establish the specific experiences and situations (e.g. internship, career design) that might have influence over entrepreneurial intention for overseas students.

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