Journal of Business Research: Florian B. Zapkau, Christian Schwens, Holger Steinmetz, Rüdiger Kabst

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Journal of Business Research xxx (2014) xxx–xxx

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Journal of Business Research

Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention


Florian B. Zapkau a,⁎, Christian Schwens a, Holger Steinmetz b, Rüdiger Kabst b
a
University of Düsseldorf, Faculty of Business Administration and Economics, Universitätsstr. 1, 40225 Düsseldorf, Germany
b
University of Paderborn, Faculty of Business Administration and Economics, Warburger Str. 100, 33098 Paderborn, Germany

a r t i c l e i n f o a b s t r a c t

Article history: The present paper disentangles the effect of prior entrepreneurial exposure on entrepreneurial intention in terms
Received 4 April 2013 of different types of exposure and their perceived quality. Drawing on the theory of planned behavior, the paper
Received in revised form 13 August 2014 analyzes whether attitude, subjective norm, and perceived behavioral control mediate the influence of
Accepted 21 August 2014
entrepreneurial role models and work experience in small or newly founded firms on entrepreneurial intention.
Available online xxxx
Testing our hypotheses on data from 374 individuals, the study provides differentiated support for our theoretical
Keywords:
predictions. The results contribute to resolving previously inconclusive findings by offering a differentiated
Prior entrepreneurial exposure understanding of how different types and the perceived quality of prior entrepreneurial exposure influence
Role models individuals' entrepreneurial intention.
Work experience © 2014 Elsevier Inc. All rights reserved.
Entrepreneurial intention
Theory of planned behavior

1. Introduction (e.g., Autio, Keeley, Klofsten, Parker, & Hay, 2001; Kautonen, Luoto, &
Tornikoski, 2010; Matthews & Moser, 1995).
Entrepreneurial intention represents the commitment of individuals The reasons for these inconclusive findings can be twofold: First,
to start a new business (Krueger & Carsrud, 1993). Several scholars prior entrepreneurship literature does not sufficiently account for the
emphasize the importance of entrepreneurial intentions as a first step fact that starting a business is intentional (Bird, 1988; Krueger &
towards entrepreneurial behavior (i.e., starting a business) (Bird, Carsrud, 1993). In this regard, models with direct predictors inade-
1988; Krueger & Carsrud, 1993). In fact, prior research suggests that quately reflect that the influence of exogenous variables (such as prior
intentions are the single best predictor for planned behaviors, such as entrepreneurial exposure) on entrepreneurial intention occurs through
starting a business (Bagozzi, Baumgartner, & Yi, 1989; Kim & Hunter, attitudinal variables (such as attitude, subjective norm, and perceived
1993). Analyzing entrepreneurial intentions is of particular importance behavioral control in the case of Ajzen's (1991) theory of planned
as new firms facilitate the transfer from innovations to marketable behavior). Second, differentiated views accounting for different types
products and services, mitigate inefficiencies within an economy, and of prior entrepreneurial exposure are limited. Most studies analyze
create new jobs (Zhao, Seibert, & Hills, 2005). the effects of parental role models and neglect to account for other
Prior entrepreneurial exposure encompasses an individual's person- types of prior entrepreneurial exposure such as work experience in
al history related to entrepreneurship such as entrepreneurial parents small or newly founded firms (Matthews & Moser, 1996). This approach
or prior work experience in a small or newly founded firm (Krueger, is problematic as both types of exposure may provide individuals with
1993; Peterman & Kennedy, 2003). Previous research investigating the different learning experiences (Chlosta et al., 2012; Fairlie & Robb,
direct impact of prior entrepreneurial exposure on entrepreneurial 2007). Moreover, extant studies also largely neglect to account for the
intention displays inconclusive findings (Chlosta, Patzelt, Klein, & qualitative dimension of prior entrepreneurial exposure (Carr &
Dormann, 2012; Shook, Priem, & McGee, 2003). Some authors find Sequeira, 2007; Kim, Aldrich, & Keister, 2006). Hence, inconclusive results
entrepreneurial parents to stimulate children's entrepreneurial inten- may stem from the fact that exposure perceived as positive may differ-
tion (e.g., Crant, 1996; Matthews & Moser, 1995), while others do not ently affect individuals' entrepreneurial intention compared to exposure
support this view (e.g., Gird & Bagraim, 2008; Kolvereid & Isaksen, perceived as negative (Krueger, 1993; van Auken, Fry, & Stephens, 2006).
2006; Tkachev & Kolvereid, 1999). Research on the influence of The aim of the present paper is twofold: First, we develop an
work experience in small or newly founded firms is comparatively intention-based framework and investigate the impact of prior entre-
scarce but nonetheless displays rather ambiguous findings as well preneurial exposure on entrepreneurial intention mediated by attitude,
subjective norm, and perceived behavioral control. In this regard, we
⁎ Corresponding author. Tel.: +49 2118102994; fax: +49 211 8114579. link prior entrepreneurial exposure (i.e., (1) observation of self-
E-mail addresses: florian.zapkau@hhu.de (F.B. Zapkau), christian.schwens@hhu.de employed parents and (2) prior work experience in a small or newly
(C. Schwens), holger.steinmetz@upb.de (H. Steinmetz), kabst@upb.de (R. Kabst). founded firm) with the three attitudinal variables proposed by Ajzen's

http://dx.doi.org/10.1016/j.jbusres.2014.08.007
0148-2963/© 2014 Elsevier Inc. All rights reserved.

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
2 F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx

(1991) theory of planned behavior (TPB) (i.e., attitude, subjective norm, In general, the more favorable the attitude and subjective norm in re-
and perceived behavioral control) to explain entrepreneurial intention. gard to the behavior and the greater the perceived behavioral control
Second, we separately account for the perceived quality of prior entre- over the behavior, the stronger the individual's intention to perform
preneurial exposure as a determinant of entrepreneurial intention. the focal behavior (Armitage & Conner, 2001).
We seek to contribute to extant literature by providing a more differ- In addition to Ajzen's (1991) TPB, other empirical researches on
entiated understanding of the relation between prior entrepreneurial individuals' entrepreneurial intention ground on Shapero's “model of
exposure and entrepreneurial intention. In this regard, our first contri- the entrepreneurial event” (SEE) (Shapero & Sokol, 1982). The SEE
bution is on the link between different types of prior entrepreneurial ex- specifically aims at explaining entrepreneurial intentions, which derive
posure and the three attitudinal variables of the TPB (i.e., attitude, from individuals' perceived desirability as well as perceived feasibility of
subjective norm, and perceived behavioral control) explaining entre- starting a business. Additionally, the SEE includes a third predictor
preneurial intention. We demonstrate how observational exposure labeled propensity to act, which reflects individuals' willingness to act
(by means of entrepreneurial role models) and direct exposure (by on one's decisions (Krueger et al., 2000; Shapero & Sokol, 1982).
means of work experience in small or newly founded firms) affect Both the TPB and the SEE find broad acceptance in the present study's
entrepreneurial intention differently. As a second contribution, we research domain (Schlaegel & Koenig, 2014) and are complementary
account for the perceived quality of prior entrepreneurial exposure. By theoretical approaches to explain individuals' entrepreneurial intention.
this means, we demonstrate how prior entrepreneurial exposure To this end, the TPB and the SEE share a considerable conceptual overlap
perceived as positive differently affects entrepreneurial intention (Krueger, 2009; Krueger & Carsrud, 1993). In particular, both models use
compared to exposure perceived as negative. In sum, disentangling a predictor representing the “willingness” (attitude in the TPB, perceived
prior entrepreneurial exposure (in terms of type and perceived quality) desirability in the SEE) stemming from individuals' outcome expecta-
and linking it with the TPB offers a more detailed understanding of the tions resulting from the behavior (i.e., starting a business) as well as a
formation of entrepreneurial intention and contributes to resolving predictor representing individuals' perceived “capability” to successfully
heterogeneous prior findings regarding the prior entrepreneurial perform the focal behavior (perceived behavioral control in the TPB,
exposure and entrepreneurial intention relation. perceived feasibility in the SEE) (van Gelderen et al., 2008).
The next section presents the background literature. We then However, both models also display differences, which have to be
develop hypotheses, which we test on a dataset consisting of students taken into consideration when deciding upon which of the theories
and professionals. The paper closes with a discussion of our findings best applies to a study's goals and research design. From a conceptual
and by pointing out implications and limitations. stance, the TPB includes a specific predictor (subjective norm) accounting
for social influences (e.g., from role models) on entrepreneurial intention,
2. Background Literature whereas the SEE integrates such influences in the perceived desirability
predictor (Nabi, Holden, & Walmsley, 2006; van Gelderen et al., 2008).
The majority of earlier literature employs direct effect models to in- Moreover, Krueger et al. (2000) assert that a theory-consistent integra-
vestigate how prior entrepreneurial exposure affects entrepreneurial tion of the “propensity to act” component in the SEE requires a longitudi-
intention. However, such studies display inconclusive results (Chlosta nal research design as triggering events (such as spotting a business
et al., 2012; Shook et al., 2003). Studying the impact of role models, opportunity), which force individuals to act, precede individuals' desir-
some studies suggest that children with entrepreneurial parents display ability and feasibility perceptions. From a methodological stance, it is
higher levels of entrepreneurial intention (e.g., Crant, 1996; Matthews & important to compare both models' explanatory power when deciding
Moser, 1995). However, other studies do not support this view upon which of the theories to choose for a study. A recent meta-
(e.g., Gird & Bagraim, 2008; Kolvereid & Isaksen, 2006; Tkachev & analysis drawing on broad empirical evidence (123 independent sam-
Kolvereid, 1999). Studies analyzing the effect of prior work experience ples, n = 114,007 individuals) by Schlaegel and Koenig (2014) finds
in small or newly founded firms display ambiguous results as well. that the TPB explains a larger proportion of variance in entrepreneurial
Some studies (e.g., Kautonen et al., 2010; Matthews & Moser, 1995) intention compared to the SEE (SEE: R2 = .21; TPB: R2 = .28). Analyzing
find no significant effect of such exposure on individuals' entrepreneur- the influence of each model's attitudinal variables on entrepreneurial in-
ial intention, whereas other studies report a positive effect (e.g., Autio tention, the meta-analysis by Schlaegel and Koenig (2014) finds that all
et al., 2001; Mueller, 2006). attitudinal variables (attitude, subjective norm, perceived behavioral
However, these ambiguous results are not surprising, as prior control) of the TPB positively influence entrepreneurial intention. In con-
meta-analyses suggest that exogenous influences such as prior entre- trast, results for SEE's attitudinal variables are mixed. While perceived de-
preneurial exposure are only weak direct predictors for behaviors sirability and perceived feasibility positively impact individuals'
such as starting a business (e.g., Sheppard, Hartwick, & Warshaw, entrepreneurial intention, propensity to act has no significant influence.
1988). In contrast, intentions are the best predictor for planned Finally, the TPB also displays high explanatory power in other research
behaviors (Bagozzi et al., 1989; Kim & Hunter, 1993). However, fields than entrepreneurship (Ajzen, 1991; Armitage & Conner, 2001;
intentions derive from attitudinal variables, which are influenced by Sutton, 1998) while comparatively fewer studies employ the SEE in
exogenous factors such as prior entrepreneurial exposure (Krueger, multivariate empirical studies in entrepreneurship research (Guerrero,
Reilly, & Carsrud, 2000). That is, prior entrepreneurial exposure Rialp, & Urbano, 2008; Solesvik, Westhead, Kolvereid, & Matlay, 2012).
indirectly influences entrepreneurial intention mediated through Acknowledging the important contributions made by studies draw-
attitudinal variables (rather than having a direct impact). ing on the SEE to explain entrepreneurial intentions and considering the
The TPB (Ajzen, 1991) is one of the predominant theoretical frame- two frameworks as complementary (rather than contradictory), the
works to analyze the formation of intentions in various fields (Armitage present study draws on TPB rationale as the above conceptual and
& Conner, 2001). The TPB claims that three conceptually distinct attitu- methodological issues are particularly pertinent for the present study's
dinal variables determine intention: attitude towards the behavior, goals and research design.
subjective norm, and perceived behavioral control in regard to the In an effort to overcome previously inconclusive findings from direct
behavior. Attitudes refer to the degree to which an individual evaluates effect models, some authors employ intention-based frameworks
a specific behavior as favorable or unfavorable (Ajzen, 1988). Subjective assuming indirect influences of exogenous factors on entrepreneurial in-
norm mirrors individuals' perceived social pressure by attachment tention. For example, Krueger (1993) tests the effect of breadth of prior
figures to perform or not to perform a specific behavior (Ajzen, 1988). entrepreneurial exposure (an aggregated sum score consisting of several
Perceived behavioral control contains perceptions of the ability to suc- types of prior exposure) on entrepreneurial intention mediated by per-
cessfully execute and control the focal behavior (Ajzen, 1991, 2002). ceived desirability and perceived feasibility of starting a business. While

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx 3

breadth of prior entrepreneurial exposure has no effect on the perceived observation of self-employed parents is referred to as entrepreneurial
desirability, it positively affects the perceived feasibility of starting a busi- role model exposure. Individuals may obtain direct entrepreneurial
ness. Accounting for the perceived quality of prior exposure (again, with experience by working in a small or newly founded firm (Kautonen
an aggregated sum score), the study reveals a positive impact on the et al., 2010; Krueger, 1993). Linking prior entrepreneurial exposure
perceived desirability of starting a business, whereas no such effect exists with Ajzen's (1991) TPB, the following sections develop a comprehen-
on the perceived feasibility of starting a business. Krueger's findings sive rationale how entrepreneurial role model exposure and prior
suggest that “more” and “more positive” exposure is not always sufficient work experience in a small or newly founded firm impact entrepreneur-
to increase individuals' perceived desirability or perceived feasibility of ial intention mediated by attitude, subjective norm, and perceived
starting a business and, in turn, their entrepreneurial intention. However, behavioral control. Fig. 1 depicts our research model.
the study does not answer which specific types of prior entrepreneurial
exposure (e.g., role model exposure vs. work experience) raise individ- 3.1. Entrepreneurial role model exposure
uals' desirability and feasibility perceptions. However, prior exposure
might not be additive (Peterman & Kennedy, 2003) and, hence, may We expect individuals with parents who have previously started a
not be adequately captured by aggregated sum scores. business to display higher levels of entrepreneurial intention. Moreover,
In a recent study, Liñán and Chen (2009) analyze the influence of ex- we expect this influence to be mediated by the three attitudinal
posure to entrepreneurial role models and previous self-employment variables of the TPB (Ajzen, 1991) (i.e., attitude, subjective norm, and
on entrepreneurial intention mediated by the attitudinal variables of perceived behavioral control). Generally, social learning theory
the TPB. The authors find that entrepreneurial role models positively (Bandura, 1977, 1986) emphasizes the effect of behavior acquisition
affect individuals' attitude towards starting a business, whereas no through the observation of others referred to as role models. Observa-
such influence exists on subjective norm or perceived behavioral con- tional learning from role models influences individuals' personality
trol. In contrast, prior founding experience positively affects only TPB's development and hence the formation of attitudes which in turn form
subjective norm component. While Liñán and Chen's study contributes intentions (Bandura, 1977). Naturally, children are especially exposed
to a more differentiated picture of how different types of prior entrepre- to their parents' behaviors. Thus, parental role models are of particular
neurial exposure affect attitudinal variables and in turn entrepreneurial importance for the development of children's attitudes as role model
intention, some issues remain unresolved. First, the study only vaguely effects are stronger the more relevance and credibility a role model
specifies exposure to entrepreneurial role models as “knowing an possesses (Scherer, Adams, Carley, & Wiebe, 1989; Shapero & Sokol,
entrepreneur personally”. Hence, the specific impact of entrepreneurial 1982). Children learn by observing their parents and internalize these
parents – the most influential role models on individuals' occupational triggers into their mental models. These in turn affect their decision
preferences (Pallone, Rickard, & Hurley, 1970) – remains unclear. policies, including employment decisions (Bandura, 1986; Schröder &
Second, the study neglects the qualitative dimension of prior entrepre- Schmitt-Rodermund, 2006).
neurial exposure. Hence, it remains unclear whether results may stem Social learning theory suggests the observation of entrepreneurial
from different effects of exposure perceived as positive or negative. role models to be influential on individuals' attitudes towards different
In sum, literature on the effects of prior entrepreneurial exposure on career alternatives. Individuals observe occupational behaviors of
entrepreneurial intention still displays a rather heterogeneous picture. valued role models and at the same time form cognitive evaluations of
Direct approaches are largely abandoned due to their limited explanato- their own actual or future capabilities and interests and, in turn, out-
ry power and predictive validity (Krueger et al., 2000). However, come expectations regarding the observed career field (Krumboltz,
indirect approaches have yet only partly disentangled the prior entre- Mitchell, & Jones, 1976; Scherer, Adams, & Wiebe, 1989). By creating
preneurial exposure construct (in terms of different types and perceived an environment strongly influencing the personal characteristics of
quality of exposure) and, hence, are not fully able to resolve conflicting their children, entrepreneurial parents convey the desirability of an
results. In sum, there is still need for a more differentiated understand- entrepreneurial career to their offspring (Matthews & Moser, 1995;
ing of the relationship between prior entrepreneurial exposure and Shapero & Sokol, 1982). Thus, being exposed to entrepreneurial parents
entrepreneurial intention. shapes children's attitude in regard to self-employment (Carr &
Sequeira, 2007).
3. Hypotheses development Parental role models may also affect offspring's subjective norm in
regard to starting a business. Role model influence may also occur
Prior exposure stems from two different means: observation and di- through social persuasion. Conversations and discussions with parental
rect experience (Bandura, 1977; Latham & Saari, 1979). Individuals' role models provide individuals with insights into career alternatives

PEX: parental H1 (a) (+)


Attitude (+)
role models

(b) (+) Subjective (+) Entrepreneurial


norm intention

(+)
PEX: work (c) (+)
H2 Perceived
experience in small /
behavioral control
newly founded firms

Fig. 1. Research Model.

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
4 F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx

and, hence, exert a strong influence on individuals' career intentions work experience provides potential entrepreneurs with the opportunity
(van Auken et al., 2006). Moreover, children are likely to become a to obtain job- or industry-specific business human capital, which allows
part of their entrepreneurial parents' social networks exerting further identifying potential customers and competitors. Moreover, potential
social pressure on them to start a business (Kim et al., 2006). entrepreneurs gain access to social networks for market information,
Parental role models may also affect offspring's perceived behavioral capital, or hiring employees. In addition, they develop supplier and
control in regard to starting a business. Individuals may learn certain customer relationships (Fairlie & Robb, 2007; Kim et al., 2006). Lastly,
skills and behaviors necessary for starting a business by observing role individuals with work experience in small or newly founded firms are
models (Scherer, Adams, & Wiebe, 1989). Children receive an informal more likely to be generalists rather suited to start their own business
transfer of business knowledge and methods from their entrepreneurial compared to specialists better suited for specific tasks in larger firms
parents. This human capital strengthens the offspring's conviction to (Gibb, 2002). In sum, we hypothesize:
successfully execute the tasks related to starting a business (Dunn &
Holtz-Eakin, 2000; Scherer, Brodzinski, & Wiebe, 1991) and, thus, Hypothesis 2. Prior work experience in a small or newly founded firm
leads to a higher perceived behavioral control. In sum, we hypothesize: positively influences entrepreneurial intention. This influence is mediated
by (a) attitude, (b) subjective norm, and (c) perceived behavioral control.
Hypothesis 1. Exposure to entrepreneurial role models positively
influences entrepreneurial intention. This influence is mediated by
3.3. Perceived quality of prior entrepreneurial exposure
(a) attitude, (b) subjective norm, and (c) perceived behavioral control.
We expect prior entrepreneurial exposure perceived as positive to
positively influence individuals' entrepreneurial intention. More specif-
3.2. Prior work experience in a small or newly founded firm ic, we expect the influence of entrepreneurial role models and prior
work experience in a small or newly founded firm perceived as positive
We expect individuals with prior work experience in a small or newly on entrepreneurial intention to be mediated by the three attitudinal
founded firm to display higher levels of entrepreneurial intention. More- variables of the TPB (Ajzen, 1991) (i.e., attitude, subjective norm, and
over, we expect this influence to be mediated by the three attitudinal perceived behavioral control).
variables of the TPB (Ajzen, 1991) (i.e., attitude, subjective norm, and per- We expect entrepreneurial role model exposure perceived as positive
ceived behavioral control). Prior to employment decisions between paid to have a more positive influence on the attitudes in regard to starting a
employment and self-employment, individuals draw decision-relevant business opposed to exposure perceived as negative (Krueger, 1993;
information in particular from their own memory. Availability and con- Matthews & Moser, 1996). Based on prior observational learning from
tent of such information largely depends on individuals' prior exposure. role models, individuals form cognitive evaluations of career alternatives
Besides drawing from similar experiences (such as actual prior self- which can either encourage or discourage them from choosing a specific
employment), individuals are also able to utilize comparable experiences career path (Krumboltz et al., 1976; Mitchell & Krumboltz, 1984). This ra-
(such as prior work experience in a small or newly founded firm) in the tionale is supported by prior research (e.g., Barling, Dupre, & Hepburn,
cognitive decision-making process (Katz, 1992). Previous research 1998), which found children's perceptions of parental work experiences
shows that prior work experience is an important component of human influential on their own work attitudes. Hence, role model exposure
capital for potential entrepreneurs (Kim et al., 2006). Small and newly perceived as negative may foster the development of negative attitudes
founded firms provide a work environment ideally suited for sharing, towards self-employment and, in turn, discourage individuals from
experiencing, and learning the skills beneficial for starting a business following the role models' behavior (Mungai & Velamuri, 2011).
(Rotefoss & Kolvereid, 2005; Stuart & Abetti, 1990). We expect that work experience in small or newly founded firms
Work experience in small or newly founded firms is likely to influ- perceived as positive has a more positive influence on individuals'
ence individuals' attitude in regard to starting a business. The work attitudes in regard to starting a business opposed to exposure perceived
environment in small or newly founded firms is different in terms of as negative. By providing a work environment closely related to an entre-
flexibility, possibilities to participate, working hours, or job security preneurial career, work experience in small or newly founded firms influ-
compared to large firms. Hence, such particular experience is likely to ences individuals' attitudes in regard to starting a business (Dyer, 1994;
foster the development of entrepreneurial work attitudes (Kautonen Kautonen et al., 2010). Prior research analyzing individuals' exposure to
et al., 2010; Parker, 2004). This rationale is consistent with Dyer entrepreneurship education programs (which are rather similar to small
(1994) who suggests that individuals who previously worked for an or newly founded firm work experience (Fayolle, 2005)) supports this
entrepreneur prefer an entrepreneurial lifestyle. Moreover, such rationale. Entrepreneurship education perceived as positive has a positive
experience allows individuals to accurately evaluate the personal impact on individuals' attitudes in regard to starting a business (opposed
consequences of starting a business (Scherer, Adams, & Wiebe, 1989). to entrepreneurship education perceived as negative) (Peterman &
Prior work experience in a small or newly founded firm is also likely Kennedy, 2003; Wilson, Kickul, & Marlino, 2007).
to positively influence individuals' subjective norm in regard to starting In contrast to prior studies (e.g., Scherer, Adams, Carley, et al., 1989;
a business. First, it seems rather likely that reference people encourage Scherer et al., 1991), we argue that not the role model's or small/newly
individuals to engage in vocational activities in which they already founded firm's objective success (e.g., in terms of profitability)
have gathered human and social capital giving them the opportunity influences individuals' attitudes, but whether the individual him- or
to realize greater utility from this capital compared to other vocational herself perceived prior exposure as positive or negative. Even objective-
opportunities (Douglas & Shepherd, 2000). Second, it is even possible ly negative experiences (e.g., bankruptcy) from which the individual
that reference people approach individuals with business opportunities learns how to avoid errors in the start-up process might be considered
because they perceive the individual competent enough to execute as positive (Krueger, 1993). In contrast, objectively successful exposure
these opportunities as they have acquired the necessary skills in the could be considered as negative by an individual, due to parents' long
course of their work experience (MacMillan, 1986). working hours or economic uncertainties (Kim et al., 2006; van Auken
Prior work experience in a small or newly founded firm also posi- et al., 2006). In sum, we hypothesize:
tively influences the perceived behavioral control over the process of
starting a business (Scherer, Adams, & Wiebe, 1989). Work experience Hypothesis 3. Exposure to entrepreneurial role models perceived as
allows potential entrepreneurs to gain experience and to obtain neces- positive positively influences entrepreneurial intention. This influence
sary skills relevant for starting their own business (Brenner, Pringle, & is mediated by (a) attitude, (b) subjective norm, and (c) perceived
Greenhaus, 1991). Despite acquiring general business human capital, behavioral control.

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx 5

Hypothesis 4. Prior work experience in a small or newly founded firm construct (Ajzen, 1991, 2006). To this end, we employ a multi-item
perceived as positive positively influences entrepreneurial intention. measure consisting of desires (“I want to perform the behavior”), inten-
This influence is mediated by (a) attitude, (b) subjective norm, and tions (“I intend to perform the behavior”), and self-predictions (“I will
(c) perceived behavioral control. perform the behavior” or “How likely is it that you perform the behav-
ior”). Using such a mixed measure of intention is widespread in general
intention-based research (see Armitage & Conner 2001 for examples) as
4. Data and methods well as in research on entrepreneurial intentions (e.g., Chen, Greene, &
Crick, 1998; Davidsson, 1995). Furthermore, we follow Ajzen's (1991)
4.1. Data recommendations for measuring intentions that accurately predict the
focal behavior. First, intention measures must accurately correspond
Following TPB reasoning, entrepreneurial intention needs to be to the focal behavior (i.e., starting a business and not, for example, trying
studied prospectively rather than retrospectively (Krueger & Carsrud, to start a business). Second, intention measures must include a foresee-
1993). In other words, entrepreneurial phenomena need to be studied able time span (here: two years) during which the focal behavior should
before they occur (Davidsson & Honig, 2003). Previous entrepreneur- occur. In other words, the link between intention and behavior needs to
ship research often grounds on samples consisting of existing founders. be clear and salient to individuals (Sheppard et al., 1988). This specifica-
However, this research suffers from selection bias resulting from tion is necessary, as intentions need to remain stable in the interval be-
sampling only existent and, hence, successful founders neglecting tween their measurement and the occurrence of the focal behavior.
individuals who aborted their startup-attempt as well as hindsight Otherwise intervening events (that potentially change individual's in-
bias and memory decay from surveying start-up attempts retrospec- tention) may markedly reduce the predictive validity of the intention
tively (Davidsson & Honig, 2003; Krueger & Carsrud, 1993). In contrast, measure (Ajzen, 1991; Krueger & Carsrud, 1993).
analyzing entrepreneurial intentions requires samples, which include Based on these considerations, we measured entrepreneurial inten-
individuals who may or may not intend to start a business (Krueger tion by asking respondents whether they (1) intend, (2) expect,
et al., 2000). We test our hypotheses on a dataset of individuals (n = (3) want to start a business within the next two years, and (4) how
421) consisting of students (n = 245) and professionals (n = 176) they rate the likelihood of starting a business within the next two
from Germany. years. Each item representing entrepreneurial intention was measured
Data collection took place between June and December 2009. Data on a Likert scale ranging from “1” to “7”.
were gathered by respondents filling out either a paper-based or an on- In sum, our way of measuring entrepreneurial intention is also con-
line questionnaire. Due to missing data, we had to eliminate 47 cases sistent with recent recommendations by Thompson (2009) regarding
from the sample. Thus, the final sample consists of 374 cases (students: the measurement approach. That is, we measure entrepreneurial inten-
n = 227; professionals: n = 147). Consistent with numerous researches tion on a continuous (7-point Likert) scale as opposed to a categorical
on entrepreneurial intention (e.g., Krueger et al., 2000; Liñán & Chen, measurement approach as categorical measures tend to oversimplify
2009), we collected data from students, who – due to their age and the distinction between individuals who display / do not display entre-
educational status – face the decision between paid-employment and preneurial intention and are unable to express individual's level of in-
self-employment in the immediate future (Matthews & Moser, 1995; tention. Moreover, we use reflective rather than formative indicators
Scherer, Adams, Carley, et al., 1989). However, previous research indi- as also recommended by Diamantopoulos and Siguaw (2006).
cates that student entrepreneurs differ from non-student entrepreneurs, Additionally, we use multi-item measurement to assess individuals' en-
which means that findings may not be universally applicable (Robinson, trepreneurial intention. Multi-item measurement allows for assessing
Huefner, & Hunt, 1991; Shook et al., 2003). Hence, following Chlosta et al. the reliability and validity of latent constructs such as entrepreneurial
(2012), we also included individuals who already started their profes- intention. In this regard, our four-item measure of entrepreneurial in-
sional career in our sample (professionals). This approach allows tention displays high internal consistency (Cronbachs α = .965), as
sampling individuals who are older on average and have a wider range well as sufficient convergent and discriminant validity (see Table 1 for
of prior work and founding experience (Autio et al., 2001). As the TPB detailed results). Lastly, we report the wording of each of the four
aims at explaining behavior intended in the foreseeable future (Ajzen & items measuring entrepreneurial intention ensuring full replicability
Madden, 1986) and the link between intention and subsequent behavior of our approach.
needs to be clear and salient to individuals (Sheppard et al., 1988), we Despite several similarities, our measurement of entrepreneurial
collected data from individuals facing career decisions in the near future intention differs from the one by Thompson (2009) by including a
(Krueger, 1993). The students in our sample were in their final year at time span of two years until the focal behavior (starting a business)
university, the professionals were employed in an IT firm currently should occur. In contrast, Thompson states that the “point in the fu-
undergoing restructuring. Thus, starting a business within the next two ture might be imminent or indeterminate (…)” (Thompson, 2009,
years was a career option for all individuals in our sample. p. 676). To account for whether the time span is problematic, we
conduct a robustness check by calculating the correlation of our
4.2. Measures four-item entrepreneurial intention measure with an item (mea-
sured on a 7-point Likert scale) from Kolvereid (1996) (“If you
This section describes the measurement of the constructs in our could choose between being self-employed and being an employee
research model. To obtain reliable and valid measures, we draw on in an organization, what would you prefer?”), which does not in-
established measurement scales from prior literature as improper clude such a finite time span. The correlation between both measures
measurement leads to questionable findings and potentially unsound is significantly positive (r = .45; p ≤ .001). Additionally, we examine
conclusions (Crook, Shook, Morris, & Madden, 2010; Short, Ketchen, the robustness of our entrepreneurial intention measure in compar-
Combs, & Ireland, 2010). ison to the measure developed by Liñán and Chen (2009) in an entre-
preneurial context. To this end, we collected additional data from
4.2.1. Entrepreneurial intention n = 136 German students. After verifying the reliability and validity
Consistent with the TPB as our theoretical underpinning, our of both scales with satisfying results, we computed the bivariate cor-
measurement approach follows Ajzen's (1991, p. 181) definition of relation between both measures. The correlation coefficient amounts
intention (“indications of how hard people are willing to try, of how to r = .64 (p ≤ .001) indicating a high positive correlation between
much of an effort they are planning to exert, in order to perform the our entrepreneurial intention measure and the one established by
behavior”) and his recommendations on how to measure this latent Liñán and Chen (2009).

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
6 F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx

4.2.2. Attitude Table 1


To measure the attitude towards starting a business we employ a di- Convergent validity.

rect overall measure of attitude consistent with TPB reasoning proposed Factor
by Ajzen (1991). To this end, we use a semantic differential with four Entrepreneurial Attitude Subjective Perceived behavioral
items tapping respondents' attitudes towards starting a business intention norm control
(Cronbachs α = .901). We asked respondents whether starting a busi-
EI 1 97
ness within the next two years would be foolish/smart, harmful/ EI 2 .99
beneficial, worthless/useful, bad/good for them. Each item was EI 3 .87
measured on a Likert scale ranging from “1” to “7”. EI 4 .91
Att. 1 .75
Att. 2 .93
4.2.3. Subjective norm Att. 3 .82
To measure subjective norm, Ajzen (1991) suggests obtaining an Att. 4 .83
overall measure by asking respondents to rate the extent to which at- SN 1 .79
tachment figures would approve or disapprove of them performing a SN 2 .79
PBC 1 .67
specific behavior. Our subjective norm scale consists of two items each
PBC 2 .50
ranging from “1” = strongly disagree to “7” = strongly agree. We PBC 3 .78
asked respondents whether people that are of importance to her/him
Note: Extraction method: principal axis factorization; Rotation method: Promax; Normal-
expect her/him to start a business within the next two years and wheth- ization with Kaiser; Rotation converged after six iterations; Loadings below .3 not shown.
er such people think that she/he should start a business within the next
two years (Cronbachs α = .787).
Second, we assess discriminant validity consistent with the criterion
4.2.4. Perceived behavioral control introduced by Fornell and Larcker (1981). Accordingly, discriminant va-
Measures of perceived behavioral control have to tap respondents' lidity exists whenever the average variance extracted (AVE) for each
confidence of being able to successfully perform a specific behavior. In construct is higher than the squared correlation between the constructs.
accordance with Ajzen (2002), we measure perceived behavioral con- Hence, we analyzed each pair of latent constructs and found them all to
trol as overall measure containing efficacy as well as controllability per- demonstrate sufficient discriminant validity.
ceptions. To this end, we used three Likert-scaled items (each ranging
from “1” to “7”) asking respondents to indicate whether starting a busi- 4.4. Assessing measurement invariance
ness within the next two years would be impossible/possible or easy/
difficult for them and whether starting a business within the next two As responses to certain measurement items may systematically vary
years would be beyond/within their control (Cronbachs α = .727). across different groups of individuals (such as students and profes-
sionals), conclusions based on non-invariant scales may be ambiguous
4.2.5. Prior entrepreneurial exposure or at worst erroneous (Adler, 1983; Steenkamp & Baumgartner, 1998).
We adapted our measures for the two types of prior entrepreneurial Hence, testing for measurement invariance is necessary to ensure that
exposure under investigation from Krueger (1993). We asked respon- scale items measure their underlying constructs equivalently across
dents to indicate whether (1) their parents had previously started a groups (Singh, 1995). Consistent with Steenkamp and Baumgartner
business and whether (2) they previously worked for a small or newly (1998), we apply a sequence of multigroup confirmatory factor analyses
founded firm (“0” = no; “1” = yes). to test for cross-group measurement invariance. First, we test for
configural invariance (i.e., equal factor structure across groups) finding
4.2.6. Perceived quality of prior entrepreneurial exposure the unconstrained baseline model to fit satisfactory (χ 2 = 225.21, dƒ =
Following each question asking respondents whether they had a 154, χ 2/dƒ = 1.46, IFI = .98, TLI = .98, CFI = .98, RMSEA = .04). Second,
specific type prior entrepreneurial exposure ((1) parental role models, we test for metric invariance (i.e., equal factor loadings across groups)
(2) work experience in a small or newly founded firm), respondents – by constraining the measurement weights across groups. Fit indices
who claimed prior exposure in a specific field – were asked to rate (χ 2 = 238.36, dƒ = 163, χ 2/dƒ = 1.46, IFI = .98, TLI = .98, CFI = .98,
whether they perceived this exposure as negative (coded “− 1”), nei- RMSEA = .04) and the insignificant increase in χ 2 between the
ther/nor (coded “0”), or positive (coded “1”). In contrast, respondents constrained and the unconstrained baseline model (Δ χ 2 = 13.15;
who had no exposure in a specific field were excluded from the p = .16) suggest metric invariance. Third, we test for scalar invariance
follow-up question. This way of measuring the perceived quality of (i.e., equal intercepts across groups) by constraining the measurement
prior entrepreneurial exposure grounds on Krueger (1993). intercepts across groups. Fit indices (χ 2 = 257.48, dƒ = 176, χ 2/
dƒ = 1.46, IFI = .98, TLI = .98, CFI = .98, RMSEA = .04) and the insignif-
4.3. Assessing reliability and validity icant increase in χ2 between the constrained and the unconstrained
baseline model (Δ χ2 = 32.27; p = .07) suggest scalar invariance.
To assess the reliability of our scales we calculate Cronbach's alpha.
The values ranging from .727 to .965 indicate high internal consistency 4.5. Assessing common method variance
(Nunnally, 1978). Next, we employ several procedures to assess the va-
lidity of our scales. First, we assess convergent validity by conducting a As we gathered data from a single respondent using a single meth-
principal axis factor analysis with the items measuring our four latent odology (paper-based- or online-questionnaire), it may be susceptive
variables (i.e., attitude, subjective norm, perceived behavioral control, to common method bias (CMB) (Podsakoff, MacKenzie, Lee, &
entrepreneurial intention). The Kaiser–Meyer–Olkin test (.910) and Podsakoff, 2003; Podsakoff & Organ, 1986). We employ two procedures
Bartlett's sphericity test (p b .001) both yield satisfying results, suggest- to evaluate the magnitude of CMB. First, we employ Harman's-One-
ing our data is well suited for conducting a factor analysis. Principal axis Factor-Test to assess the extent of CMB (Podsakoff & Organ, 1986;
factor analysis extracts three factors with eigenvalues greater than one, Podsakoff et al., 2003). Principal component factor analysis with six var-
whereas the fourth factor displays an eigenvalue of .93. Thus, we take iables extracts two factors with eigenvalues greater than 1 (first factor:
the scree plot into account, which suggests a four-factor solution. 42.4%, second factor: 17.7%). As no single factor emerges and none of the
Table 1 displays the rotated factor matrix with four factors illustrating factors accounts for most of the variance, CMB is not a concern. Second,
that all items load on their theoretically assigned factors only. following Podsakoff et al. (2003), we conduct a confirmatory factor

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx 7

analysis (CFA) testing three different models: (1) loading all of the items of prior entrepreneurial exposure and did not report any missing values
onto one common method factor (χ2 = 968.70, dƒ = 90, χ2/dƒ = 10.76, (n = 374).
IFI = .77, TLI = .74, CFI = .77, RMSEA = .16, AIC = 1028.70), (2) loading We follow recent recommendations by James, Mulaik, and Brett
all items onto their theoretically assigned and correlated variables (χ2 = (2006) to test our mediator Hypotheses 1a–c and 2a–c. To this end,
158.27, dƒ = 77, χ2/dƒ = 2.06, IFI = .98, TLI = .97, CFI = .98, RMSEA = two steps have to be completed. First, it is necessary to determine
.05, AIC = 244.27), and (3) loading the items onto their whether the hypothesized mediator relationships are full or partial.
latent correlated variables as well as onto an additional method factor Given that the TPB theoretically assumes sufficiency (i.e., TPB's attitudi-
(χ2 = 116.86, dƒ = 62, χ2/dƒ = 1.89, IFI = .99, TLI = .98, CFI = .99, nal variables fully mediate the influence of external factors on inten-
RMSEA = .05, AIC = 232.86). As models two and three fit similarly well tion) (Ajzen, 1991), we use a fully mediated model as baseline model
to the data (i.e., adding a common method factor does not significantly for subsequent model comparisons. Moreover, full mediation models
improve model fit), no severe threat of CMB exists. are the most parsimonious type of mediation models (in other words,
have more degrees of freedom) and, hence, are easier to reject
5. Results compared to partial mediation models. Thus, assuming full mediation
is consistent with the basic philosophy of science doctrine (Mulaik,
Table 2 displays the means, standard deviations, and correlations 2001). Second, we use SEM techniques to test our mediation
among the focal variables. As none of the correlations exceeds the hypotheses. To this end, we test paths from the predictor variables
threshold of .7, no serious risk of multicollinearity exists (Anderson, (i.e., entrepreneurial role model exposure, work experience in a small
Sweeney, & Williams, 2002). However, as the highest correlation is or newly founded firm) to the mediator variables (i.e., attitude, subjec-
.61, we additionally compute the variance inflation factor (VIF) for tive norm, perceived behavioral control) as well as a path from the
each independent variable. As the highest VIF is 1.39 and thus stays mediator variables to the dependent variable (i.e., entrepreneurial
well below the threshold of 2.5 (Allison, 1999), severe multicollinearity intention). In contrast, direct paths from the predictor variables to the
among the variables is absent. dependent variable are not included as such direct effects are not a
We apply structural equation modeling (SEM) to test our hypothe- necessary condition for establishing mediation (James et al., 2006;
ses. As recommended by Anderson and Gerbing (1988), we follow a Zhao, Lynch, & Chen, 2010).
two-step approach. First, we estimate the measurement model using The fit indices of our hypothesized full mediation model (model
CFA to assess the reliability and validity of our latent constructs. Second, A) suggest good model fit: The χ2/df ratio (2.01) is below the threshold
we estimate the hypothesized structural model. of 3.0 (Kline, 1998). The TLI (.97), the IFI (.98), and the CFI (.98) all
exceed the threshold of .95. The RMSEA (.05) stays below the cutoff
point of .06 (Hu & Bentler, 1999). Against our baseline model, we test
5.1. Measurement model three nested models (assuming partial mediation) and one alternative
non-mediated model assuming only direct effects. Compared to model
We assess the measurement model's fit by drawing on the Chi- A, model B includes a direct path from entrepreneurial role model expo-
square/df ratio, the Tucker Lewis Index (TLI), the Incremental Fit Index sure to entrepreneurial intention. Model C differs from model A by
(IFI), the Comparative Fit Index (CFI), and the Root Mean Square Error including a direct path from work experience in a small or newly
of Approximation (RMSEA). The Chi-square/df ratio (2.06) for the mea- founded firm to entrepreneurial intention. Model D adds two direct
surement model is below the threshold of 3.0 (Kline, 1998), whereas TLI paths from both predictor variables to entrepreneurial intention. Lastly,
(.97), IFI (.98), and CFI (.98) all exceed the threshold of .95. The RMSEA model E assumes only direct (non-mediated) effects from both predic-
(.05) stays below the cutoff point of .06 (Hu & Bentler, 1999). Hence, ac- tor variables on entrepreneurial intention. As Table 3 suggests, the
cording to all fit indices, our measurement model displays a good model differences between χ2 values are not significant for models B–E
fit. Moreover, the standardized factor loadings in the CFA are all above compared to model A. Model A displays the lowest value for the Akaike
.56 exceeding the recommended minimum of .4 (Ford, MacCallum, & Information Criterion (AIC). In sum, these results suggest that model A
Tait, 1986). has the best model fit. Hence, the attitudinal variables of the TPB fully
mediate the relationship between entrepreneurial role model exposure
5.2. Structural equation modeling as well as work experience in a small or newly founded firm on entre-
preneurial intention.
We test the influence of entrepreneurial role model exposure and Despite several similarities, the traditional test for mediation by
work experience in a small or newly founded firm on entrepreneurial Baron and Kenny (1986) differs from our approach by assuming partial
intention mediated through attitude, subjective norm, and perceived mediation as baseline model, which is inappropriate for the SEM ap-
behavioral control (model 1). To this end, we use the full sample proach (Wang, 2008). James et al. (2006) as well as Zhao et al. (2010)
consisting of individuals who claimed to have none, one, or both types provide a detailed discussion on the similarities and differences
between the traditional test for mediation and the more recent SEM
Table 2 approach. Moreover, Iacobucci, Saldanha, and Deng (2007) provide ev-
Descriptive statistics and correlation among variables. idence that the SEM approach as outlined above is superior to tradition-
al regression analysis when testing for mediator relationships. In the
Mean SD 1 2 3 4 5 6
same vein, MacKinnon, Lockwood, Hoffman, West, and Sheets (2002)
1 Entrepreneurial 2.45 1.81 1 contrast 14 methods to test for mediator relationships. Their analyses
intention
reveal that the traditional approach by Baron and Kenny (1986) has
2 Attitude 4.10 1.33 .61** 1
3 Subjective norm 2.02 1.50 .53** .34** 1 the lowest statistical power. In contrast, the authors recommend testing
4 Perceived behavioral 3.65 1.52 .59** .48** .34** 1 for mediation by analyzing indirect effects applying the SEM approach
control as outlined above.
5 PEX: parental role 0.30 0.46 .12* .07 .12* .08 1
Taking the standardized path coefficients of the hypothesized full
models
6 PEX: work 0.48 0.50 .16** .15** .06 .19** .14** 1 mediation model (model A) into account, results suggest that all attitu-
experience dinal variables of the TPB display a highly significant (p ≤ .001) and
Note: n = 374; Pearson correlation (bivariate) with listwise deletion; SD: standard
positive effect (attitude: .27, subjective norm: .33, perceived behavioral
deviation; PEX: Prior Entrepreneurial Exposure. control: .40) on entrepreneurial intention. Exposure to entrepreneurial
*: p ≤ .05, **: p ≤ .01. role models positively influences the subjective norm in regard to

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
8 F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx

Table 3
Model comparisons for model 1.

Model comparisons - model 1a

Model and structure χ2 df Δχ2d χ2/df TLI IFI CFI RMSEA AIC

Ab PEX → TPB → EI 158.53 79 2.01 .97 .98 .98 .05 240.53


B PEX → TPB → EI and PEX: parental role models → EI 158.37 78 .16 2.03 .97 .98 .98 .05 242.37
C PEX → TPB → EI and PEX: work experience → EI 158.45 78 .08 2.03 .97 .98 .98 .05 242.45
D PEX → TPB → EI and PEX: parental role models → EI and PEX: work experience → EI 158.27 77 .26 2.06 .97 .98 .98 .05 244.27
Ec PEX → EI 486.84 86 5.66 .87 .90 .90 .11 554.84

a) n = 374.
b) Hypothesized model (full mediation).
c) Non-mediated model.
d) Significance levels: *: p ≤ .05; **: p ≤ .01; ***: p ≤ .001.
Note: df: Degrees of Freedom; TLI: Tucker Lewis Index; IFI: Incremental Fit Index; CFI: Comparative Fit Index; RMSEA: Root Mean Square Error of Approximation; AIC: Akaike Information
Criterion; PEX: Prior Entrepreneurial Exposure; TPB: Theory of Planned Behavior; EI: Entrepreneurial Intention.

starting a business (.13, p ≤ .05), whereas it displays no significant ef- role models, whereas model 2b analyzes the effect of work experience
fect on attitude (.06) and perceived behavioral control (.08). In contrast, in a small or newly founded firm. We test the influence of the perceived
prior work experience in a small or newly founded firm has no signifi- quality of these two types of prior entrepreneurial exposure in separate
cant effect on the subjective norm in regard to starting a business models, as we included only individuals in each respective analysis who
(.05), whereas it positively affects the attitude (.15, p ≤ .01) as well as were able to rate their prior exposures as negative, neither / nor, or pos-
the perceived behavioral control in regard to starting a business (.22, itive. Thus, the sample size is reduced to n = 113 (students: n = 77;
p ≤ .001). In sum, these findings support our Hypotheses 1b, 2a, professionals: n = 36) in model 2a and n = 173 (students: n = 113;
and 2c, whereas we have to reject Hypotheses 1a, 1c, and 2b. Table 4 professionals: n = 60) in model 2b.
summarizes our results and Fig. 2 displays our results graphically. Again, we assume complete mediation as baseline model for model
Additionally, we test for group-specific differences in results comparison testing. The fit indices suggest good fit for both baseline
between students and professionals. To this end, we apply the critical models. Chi-square/df ratios (1.68 for model 2a, 1.39 for model 2b)
ratio (CR) test to detect significant differences between pairs of path co- are below the threshold of 3.0 (Kline, 1998). The TLI (.95 for model 2a,
efficients for each group. Path coefficients are considered significantly .98 for model 2b), the IFI (.96 for model 2a, .99 for model 2b), and the
different between groups (at the p ≤ .05 level) if the CR exceeds an ab- CFI (.96 for model 2a, .98 for model 2b) all match or exceed the thresh-
solute value of 1.96 (e.g., Eisingerich & Rubera, 2010; Yun-Jeong & Kelly, old of .95. The RMSEA stays below the cutoff point of .06 (Hu & Bentler,
2013). However, the CR values for all paths in model 1 are lower than 1999) in model 2b (.05), whereas model 2a displays a slightly higher
1.96, which suggests that no significant group-specific differences in RMSEA of .08. However, the RMSEA tends to overreject models due to
the relations between the two types of prior entrepreneurial exposure, small sample sizes (Hu & Bentler, 1999). As the sample size of our
the three mediating attitudinal variables of the TPB, and entrepreneurial model 2a is only n = 113, we follow Hu and Bentler's (1999) recom-
intention exist. Hence, the results of hypotheses testing (based on mendation to draw on a combination of IFI and CFI to assess the
model 1) apply to both groups. model fit (which yield satisfactory results for our model 2a as outlined
In a second set of models, we analyze the effects of the perceived above).
quality of prior entrepreneurial exposure on entrepreneurial intention To test our mediator Hypotheses 3a–c and 4a–c, we, again, contrast
mediated through attitude, subjective norm, and perceived behavioral each baseline model with competing models. More specific, we contrast
control. Model 2a examines this relation for exposure to entrepreneurial the baseline models (model A) with one nested model assuming partial

Table 4
SEM results for model 1.

Model 1a

Hypotheses Coefficientsb,c

Attitude Entrepreneurial intention .27*** (.08)


Subjective norm Entrepreneurial intention .33*** (.07)
Perceived behavioral control Entrepreneurial intention .40*** (.06)
H1a PEX: parental role models Attitude .06 (.14)
H1b PEX: parental role models Subjective norm .13* (.17)
H1c PEX: parental role models Perceived behavioral control .08 (.23)
H2a PEX: work experience Attitude .15** (.13)
H2b PEX: work experience Subjective norm .05 (.16)
H2c PEX: work experience Perceived behavioral control .22*** (.21)
Fit measures
χ2 158.53
df 79
χ2 / df 2.01
TLI .97
IFI .98
CFI .98
RMSEA .05

a) n = 374.
b) Standardized coefficients with standard errors in parentheses.
c) Significance levels: *: p ≤ .05; **: p ≤ .01; ***: p ≤ .001.
Note: df: Degrees of Freedom; TLI: Tucker Lewis Index; IFI: Incremental Fit Index; CFI: Comparative Fit Index; RMSEA: Root Mean Square Error of Approximation; PEX: Prior Entrepreneur-
ial Exposure.

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx 9

PEX: parental
Attitude .27***
role models .13*

Subjective .33*** Entrepreneurial


.15** norm intention

.40***

PEX: work
.22*** Perceived
experience in small /
behavioral control
newly founded firms

Fig. 2. Results model 1.

mediation (model B) and one alternative non-mediated model assum- p ≤ .001; subjective norm .27, p ≤ .01; perceived behavioral control:
ing only a direct relation between the predictor and the dependent .41, p ≤ .001) and model 2b (attitude: .32, p ≤ .001; subjective norm
variable (model C). Compared to model A, model B includes a direct .35, p ≤ .001; perceived behavioral control: .34, p ≤ .001). We analyze
path from quality of entrepreneurial role model exposure / quality of the predictors' effects on TPB's attitudinal variables. Only the path coef-
work experience in a small or newly founded firm to entrepreneurial in- ficients of perceived quality of entrepreneurial role model exposure on
tention. Model C assumes only a direct (non-mediated) effect from each attitude (.23, p ≤ .05) as well as on subjective norm (.27, p ≤ .05) display
predictor variable on entrepreneurial intention. Table 5 displays that the a significant relation in model 2a. In contrast, the effect of entrepreneur-
differences between χ2 values are not significant for models B and C ial role model exposure perceived as positive on perceived behavioral
compared to the respective baseline model A. Each baseline model A control is non-significant (.08). Model 2b suggests that the perceived
displays the lowest AIC value. In sum, these results suggest that each quality of work experience in a small or newly founded firm has no
baseline model A best fits the data. Hence, the attitudinal variables of significant effect on any of the attitudinal variables of the TPB (.02 on at-
the TPB fully mediate the relationship between quality of entrepreneur- titude, .07 on subjective norm, .04 on perceived behavioral control).
ial role model exposure as well as quality of work experience in a small Summing up, we find support for Hypotheses 3a and 3b, while we
or newly founded firm on entrepreneurial intention. have to reject Hypotheses 3c and 4a–4c. Fig. 3 displays results for
Next, we report the standardized path coefficients for each complete model 2a, whereas Fig. 4 depicts results for model 2b.
mediation model (models 2a and 2b). As Table 6 displays, attitude, sub- Similar to model 1, we test for group-specific differences in results
jective norm, and perceived behavioral control display a significantly between students and professionals in models 2a and 2b. Again, the
positive effect on entrepreneurial intention in model 2a (attitude: .34, CR values for all paths in models 2a and 2b are lower than 1.96, which

Table 5
Model comparisons for models 2a and 2b.

Model comparisons — model 2aa

Model and structure χ2 df Δχ2d χ2/df TLI IFI CFI RMSEA AIC
b
A Quality: parental role models → TPB → EI 116.10 69 1.68 .95 .96 .96 .08 188.10
B Quality: parental role models → TPB → EI and Quality: parental role models → EI 115.90 68 .20 1.70 .95 .96 .96 .08 189.90
Cc Quality: parental role models → EI 210.64 74 2.85 .86 .88 .88 .13 272.64
a) n = 113
b) Hypothesized model (full mediation)
c) Non-mediated model
d) Significance levels: *: p ≤ .05; **: p ≤ .01; ***: p ≤ .001
Note: df: Degrees of Freedom; TLI: Tucker Lewis Index; IFI: Incremental Fit Index; CFI: Comparative Fit Index; RMSEA: Root Mean Square Error of Approximation; AIC: Akaike
Information Criterion; TPB: Theory of Planned Behavior; EI: Entrepreneurial Intention

Model comparisons — model 2ba

Model and Structure χ2 df Δχ2d χ2/df TLI IFI CFI RMSEA AIC
b
A Quality: work experience → TPB → EI 95.60 69 1.39 .98 ,99 ,98 .05 167.60
B Quality: work experience → TPB → EI and Quality: work experience → EI 95.44 68 .16 1.40 .98 .98 .98 .05 169.44
Cc Quality: work experience → EI 243.92 74 3.30 .88 .90 .90 .12 305.92

a) n = 173.
b) Hypothesized model (full mediation).
c) Non-mediated model
d) Significance levels: *: p ≤ .05; **: p ≤ .01; ***: p ≤ .001.
Note: df: Degrees of Freedom; TLI: Tucker Lewis Index; IFI: Incremental Fit Index; CFI: Comparative Fit Index; RMSEA: Root Mean Square Error of Approximation; AIC: Akaike Information
Criterion; TPB: Theory of Planned Behavior; EI: Entrepreneurial Intention.

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
10 F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx

Table 6
SEM results for models 2a and 2b.

Model 2aa Model 2bb

Hypotheses Coefficientsc, d Coefficientsc, d

Attitude Entrepreneurial intention .34*** (.20) .32*** (.12)


Subjective norm Entrepreneurial intention .27** (.14) .35*** (.11)
Perceived behavioral control Entrepreneurial intention .41*** (.13) .34*** (.10)
H3a Quality: parental role models Attitude .23* (.15)
H3b Quality: parental role models Subjective norm .27* (.22)
H3c Quality: parental role models Perceived behavioral control .08 (.26)
H4a Quality: work experience Attitude .02 (.15)
H4b Quality: work experience Subjective norm .07 (.19)
H4c Quality: work experience Perceived behavioral control .04 (.24)
Fit measures
χ2 116.10 95.60
df 69 69
χ2 / df 1.68 1.39
TLI .95 .98
IFI .96 .99
CFI .96 .98
RMSEA .08 .05

a) n = 113.
b) n = 173.
c) Standardized coefficients with standard errors in parentheses.
d) Significance levels: *: p ≤ .05; **: p ≤ .01; ***: p ≤ .001.
Note: df: Degrees of Freedom; TLI: Tucker Lewis Index; IFI: Incremental Fit Index; CFI: Comparative Fit Index; RMSEA: Root Mean Square Error of Approximation.

suggests that no significant group-specific differences in the relations .45) nor the direct (−.02; p = .68) effect of perceived quality of work
between perceived quality of prior entrepreneurial exposure, the experience in a small or newly founded firm on entrepreneurial inten-
three mediating attitudinal variables of the TPB, and entrepreneurial in- tion is significant.
tention exist. Hence, the results of hypotheses testing (based on models As an additional robustness check, we apply the more conservative
2a and 2b) apply to both groups. (MacKinnon, Warsi, & Dwyer, 1995) Sobel test for mediation (Sobel,
As hypotheses testing based on large sample standard errors may 1982). The results support our findings as outlined above. The effect of
lead to inaccurate results in our comparatively small samples in models perceived quality of entrepreneurial role model exposure (model 2a)
2a and 2b (MacKinnon et al., 2002), we additionally employ the is mediated through attitude (p ≤ .1) and subjective norm (p ≤ .1)
bootstrapping method (Preacher & Hayes, 2004, 2008) to substantiate but not through perceived behavioral control (p = .47). The effect of
our findings. Bootstrapping refers to an empirical estimation of the sam- perceived quality of work experience in a small or newly founded firm
pling distribution of a statistic based on multiple resamples drawn from (model 2b) is neither mediated through attitude (p = .75), or
the existing data. The resulting bootstrapping sampling distribution is subjective norm (p = .40) nor through perceived behavioral control
then used to generate p-values as well as confidence intervals and, in (p = .58). Table 7 summarizes the results from hypotheses testing.
turn, test hypotheses (Efron & Tibshirani, 1993). Following recommen- Lastly, we evaluate the predictive validity of all our models as several
dations by Shrout and Bolger (2002), we use 1000 bootstrap resamples authors (e.g., Armstrong, 2012; Gigerenzer & Brighton, 2009) empha-
from the existing data to estimate direct and indirect effects. Results size that it is not sufficient to rely on fit indices as even good fitting
confirm our previous findings as outlined above. Regarding perceived models may lead to poor predictions. In order to avoid this potential
quality of entrepreneurial role model exposure (model 2a), the fallacy, we follow a recent recommendation by Woodside (2013) and
mean standardized indirect effect on entrepreneurial intention is .17 cross-validate our models by randomly splitting each original sample
(p ≤ .05), whereas the mean standardized direct effect is non- in two samples (calibration and validation sample) using each sample
significant (.04; p = .75). In contrast, neither the indirect (.05; p = as a holdout sample to assess the predictive validity of the other sample.

Fig. 3. Results model 2a.

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx 11

Fig. 4. Results model 2b.

Consistent with the requirements to assess the cross-validity of struc- Our findings strongly confirm prior studies (e.g., Kolvereid, 1996;
tural equation models (Byrne, 2004, 2010), we constrain each models Tkachev & Kolvereid, 1999), which support the applicability of the TPB
structural paths for each sub-sample. That is, the validation sample's to explain entrepreneurial intention (with, however, only implicitly as-
structural paths are constrained to the estimated values of the calibra- suming indirect effects of exogenous variables). Moreover, we find em-
tion model's structural paths. In order to assess each model's predictive pirical support for our theoretical prediction that the three attitudinal
validity, χ2 and CFI differences between the unconstrained and variables (attitude, subjective norm, and perceived behavioral control)
constrained models are taken into account. Results of this procedure of the TPB mediate the influence of prior entrepreneurial exposure on
lend further support to the predictive validity of all our models, as entrepreneurial intention. This finding is consistent with the formula-
none of the χ2 differences between unconstrained and constrained tion of the TPB (Ajzen, 1991) as exogenous influences (such as prior en-
models are statistically significant (p N .1) and the differences in regard trepreneurial exposure) on intention are mediated through attitude,
to CFI values are remarkably small (Δ CFI ≤ .006) and, hence, well subjective norm, and perceived behavioral control. Furthermore, this
below the critical threshold of Δ CFI ≤ .01 (Cheung & Rensvold, 2002). outcome may explain why prior research on demographic characteris-
tics of entrepreneurs testing direct-effects models instead of applying
indirect intention-based frameworks such as the TPB displays rather
6. Discussion inconclusive results (Shook et al., 2003). Based on our findings, we
encourage future research to employ indirect (intention-based) models
The present study's overall aim is to disentangle the effect of prior in order to reduce the inconclusive findings from direct effects models.
entrepreneurial exposure on entrepreneurial intention to gain a better One alternative framework in this regard may be social cognitive career
understanding of how prior entrepreneurial exposure influences indi- theory (SCCT) (Lent, Brown, & Hackett, 1994). Rather similar to the TPB,
viduals' intention to become an entrepreneur. To this end, we analyze the SCCT regards individual's outcome expectations (which reflect TPB's
how different types of exposure (observational exposure to entrepre- attitude) and self-efficacy (which is related to TPB's perceived behavior-
neurial role models, work experience in a small or newly founded al control) influential for individuals' career intentions. However, the
firm) and the perceived quality of exposure influence individuals' entre- SCCT also postulates reciprocal influences (i.e., higher self-efficacy
preneurial intention mediated through the attitudinal variables of the leads to more positive outcome expectations regarding entrepreneurial
TPB (i.e., attitude, subjective norm, and perceived behavioral control). behavior), which are largely neglected in the TPB (Segal, Borgia, &
The stability of our results across groups (students and professionals) Schoenfeld, 2002). As Liñán and Chen (2009) have shown that
suggests a broad generalizability of our findings. individual's subjective norm influences entrepreneurial intention

Table 7
Summary of results from hypotheses testing.

Model Hypothesis Relationship Finding

Model 1 H1a PEX: parental role models Attitude Rejected


H1b PEX: parental role models Subjective norm Confirmed
H1c PEX: parental role models Perceived behavioral control Rejected
H2a PEX: work experience Attitude Confirmed
H2b PEX: work experience Subjective norm Rejected
H2c PEX: work experience Perceived behavioral control Confirmed
Model 2a H3a Quality: parental role models Attitude Confirmed
H3b Quality: parental role models Subjective norm Confirmed
H3c Quality: parental role models Perceived behavioral control Rejected
Model 2b H4a Quality: work experience Attitude Rejected
H4b Quality: work experience Subjective norm Rejected
H4c Quality: work experience Perceived behavioral control Rejected

Note: PEX = Prior Entrepreneurial Exposure.

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
12 F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx

through attitude and perceived behavioral control, an additional avenue activities, whereas general work experience has no effect. Our results
for future research might be to delve deeper into the reciprocal relations emphasize that small or newly founded firms also provide an environ-
between attitudinal variables (Krueger, 2009). ment in which entrepreneurial learning through direct experiences
Prior entrepreneurial exposure can occur through the observation of occurs. Moreover, working for a small or newly founded firm also
role models as well as through direct experience (Bandura, 1977; heightens individuals' attitude towards starting a business. The latter
Latham & Saari, 1979). Moreover, individuals may perceive prior entre- finding empirically supports Dyer (1994) who emphasizes that prior
preneurial exposure as positive or negative (Krueger, 1993). Opposed work experiences might expose individuals to an entrepreneurial life-
to conventional entrepreneurship wisdom, we find hardly any significant style, which in turn leads to higher a level of entrepreneurial intention.
connection between entrepreneurial role model exposure (i.e., exposure In contrast, the perceived quality of work experience in a small or newly
to parents who previously started a business) and entrepreneurial inten- founded firm has no effect on any of the attitudinal variables preceding
tion mediated through the attitudinal variables of the TPB. Exposure to entrepreneurial intention. Hence, the positive effects on attitude and
parental role models only positively influences the subjective norm, perceived behavioral control occur through such (unrated) work expe-
whereas it has no significant effect on either attitude or perceived behav- rience alone — it is not required that individuals perceive the exposure
ioral control in regard to starting a business. Hence, individuals with as positive.
entrepreneurial parents perceive social pressure to start a business.
However, they neither have a more positive attitude towards starting a 7. Implications and limitations
business, nor do they feel more capable of successfully performing the
tasks related to starting a business compared to individuals without 7.1. Implications
entrepreneurial parents. Only when individuals perceive parental role
model exposure as positive, they develop a more positive attitude to- Our results confirm that attitude towards starting a business,
wards starting a business. We suggest two explanations why our analysis subjective norm, and perceived behavioral control in regard to starting
does not support prior direct studies (e.g., Crant, 1996; Matthews & a business are better predictors of entrepreneurial intention compared
Moser, 1995), which emphasize a positive influence of entrepreneurial to direct effects of demographic characteristics such as prior entrepre-
role models on entrepreneurial intention. First, prior research analyzing neurial exposure. These three attitudinal variables depend (amongst
direct effect models often employs samples of existing business owners, others) on one's upbringing, education, or prior experiences (Douglas
which may have simply taken over their parents' business. Hence, future & Shepherd, 2000). Hence, they can be altered by policy makers setting
research should further explore how founders who intend starting a new the economic preconditions for entrepreneurship in general and in (en-
business differ from successors (Zellweger, Sieger, & Halter, 2011). Sec- trepreneurial) education and training programs in particular (Kolvereid
ond, prior research mostly neglects to take into account how (positive & Isaksen, 2006). To have an impact on entrepreneurial intentions,
or negative) individuals actually perceived the parental role model expo- initiatives promoting entrepreneurial activity must render starting a
sure. We extend prior literature by demonstrating that only prior role business both desirable (by changing behavioral beliefs relating to atti-
model exposure perceived as positive positively affects individuals' atti- tudes) and feasible (by changing control beliefs relating to perceived
tude towards starting a business. This finding extends a study by Kim behavioral control) in the eyes of potential entrepreneurs (Gird &
et al. (2006) who suggest that prior founders are strongly discouraged Bagraim, 2008; Krueger et al., 2000). However, as subjective norm is
from starting another business by negative experiences. Hence, our find- also one of the significant predictors of intention, it may not be sufficient
ings at least partly resolve ambiguous results of prior research analyzing to change the behavioral and control beliefs of potential entrepreneurs.
the (direct and unrated) effects of entrepreneurial role models on In fact, the approval of potential entrepreneurs' attachment figures
entrepreneurial intention. must also be taken into consideration, when paving the way for entre-
However, in neither case (unrated or perceived as positive) does en- preneurship (Kolvereid & Isaksen, 2006).
trepreneurial role model exposure lead to a higher perceived behavioral For initiatives promoting entrepreneurship such as entrepreneurial
control in regard to starting a business. This finding casts doubts on the education and training programs, it may be reasonable to screen and
effectiveness of observational learning from role models (as suggested select potential projects based on the attitude, subjective norm, and
by Scherer, Adams, Carley et al. (1989), Scherer, Adams and Wiebe perceived behavioral control of potential entrepreneurs. However, as
(1989)). Only direct experiences such as work experience in a small or these attitudinal variables are not directly observable, prior entrepre-
newly founded firm seem to convey the necessary tacit knowledge neurial exposure may serve as a signal to identify promising entrepre-
relevant for starting a business. In other words, individuals, who were neurs (Krueger, 1993; Scherer, Adams, & Wiebe, 1989). However, our
exposed to entrepreneurial role models, are not able to transfer the results suggest that one may not regard prior entrepreneurial exposure
observed business knowledge to their own startup attempt. Future re- as unidimensional, but rather account for differences in terms of type
search should hence control for industry effects in role model relation- and perceived quality of prior exposure. The mere observation of entre-
ships, as some knowledge observed from entrepreneurial role models preneurial role models has only a very limited impact on the three
might be industry-specific (Kim et al., 2006) and hence not overly useful attitudinal variables preceding entrepreneurial intention per se. Only
in every startup attempt. Moreover, this finding also contradicts role model exposure perceived as positive leads to a more positive atti-
previous research arguing that entrepreneurial parents provide their tude towards starting a business. However, role model exposure alone
children with financial, human, social, and other resources necessary does not convey the necessary skills to potential entrepreneurs. The
to successfully start a business (Aldrich & Cliff, 2003; Scott & Twomey, perceived behavioral control over the process of starting a business is
1988). only positively affected for individuals with prior direct experience
Besides exposure to entrepreneurial role models, we investigate the (such as work experience in a small or newly founded firm). Our results
effects of prior work experience in a small or newly founded firm on the imply that the integration of role models in entrepreneurship education
attitudinal variables of the TPB. Our results suggest that such direct ex- and training programs – as recommended by several scholars (e.g., Scott
perience leads to a more positive attitude in regard to starting a busi- & Twomey, 1988; van Auken et al., 2006) – has only a positive effect
ness. Moreover, prior work experience in a small or newly founded on attitude towards starting a business, if trainees perceive the exposure
firm seems to convey tacit knowledge necessary for starting a business as positive. However, entrepreneurship trainees are only able to
as it elevates individuals' perceived behavioral control over the process learn relevant skills for starting a business by own start-up experiences
of starting a business. Our findings extend an earlier study by Kim et al. or internships. Learning by doing the necessary competencies gives in-
(2006) who find that mainly current business ownership and manage- dividuals a greater confidence in regard to starting their own business
rial experience positively affect entry into nascent entrepreneurial (Kolvereid & Isaksen, 2006). These findings call for entrepreneurship

Please cite this article as: Zapkau, F.B., et al., Disentangling the effect of prior entrepreneurial exposure on entrepreneurial intention, Journal of
Business Research (2014), http://dx.doi.org/10.1016/j.jbusres.2014.08.007
F.B. Zapkau et al. / Journal of Business Research xxx (2014) xxx–xxx 13

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