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Measuring entrepreneurial orientation and institutional theory for informal enterprises: scale validation.

ABSTRACT: The importance of institutional factors and entrepreneurial orientation is widely recognized in the study of entrepreneurship development, leading to the development of different measurement scales. Using the sample of 45 informal enterprises, we examined the factor structure, reliability, convergent and discriminant validity of the selected constructs adapted to measure these constructs in the context of informal enterprises in Nigeria. We examined 45 items that measure institutional factors (political, cognitive, cultural, and corruption) and entrepreneurship orientation (innovativeness, proactiveness, and risk-taking). An assessment of Cronbach's alpha and composite reliability shows that the items measuring risk-taking, proactiveness, uncertainty avoidance, and masculinity are internally consistent. However, some of the items measuring other constructs have lower loading, highlighting their lack of internal consistency. The results also evidence convergent and discriminant validity of the measures used. We conclude that most of the items are reliable measurements of the corresponding constructs, and the constructs adapted to measure these constructs correlate positively with the alternative measure of the constructs. Thus, the measures evaluated in this study can be used to assess these constructs across informal enterprises. The paper contributes to validating the measurement scales and indices of institutional theory and theory of entrepreneurial orientation in the context of informal enterprises.

Supplementary information

The online version contains supplementary material available at 10.1007/s11135-022-01357-1.

SUBMITTER: Kabir I

PROVIDER: S-EPMC9120806 | biostudies-literature |

REPOSITORIES: biostudies-literature

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Project description:IntroductionThe impact of entrepreneurship training on the levels of compulsory education has been weak until now. Complementarily to the demand of greater effectiveness in entrepreneurship education, it is a priority to make scientifically verified instruments available to provide useful information about the achievement of the competences needed for the development of entrepreneurial capacities. Our research is focused on the design and assessment of entrepreneurship competency, tackling one the dimension concerning business skills or competences. Specifically, the aim of the study consists in the development, validation and reliability of an instrument, intended for secondary education, created with the purpose of detecting the strictly indispensable entrepreneurial competencies in the basic training of the business profile, the Basic Scale of Entrepreneurial Competencies (BSEC).MethodsThe research was developed in three phases via qualitative and quantitative methods. In the development phase the items were generated and the dimensions and components of entrepreneurship competency were identified. Also, the content and face validity were carried out, where experts (n = 48) and students (n = 24) took part. In the recruitment phase a multi-stage sampling stratified by conglomerates was performed, obtaining a sample of 1440 students, aged between 11 and 17 years old (M = 14.6, SD = 1.597) and a composition by sex of 679 girls and 761 boys. Construct validity was evaluated in the assessment stage through factor analysis (EFA and CFA). Later, the reliability was studied via the Cronbach´s α coefficient and the stability and reproducibility over time with the test-restest technique. Finally, the convergent and divergent validity were evaluated through the average variance extracted (AVE), the composite reliability (CR) and the square root of the AVE.Results44 items were developed in the phase of generating items. After carrying out the validity of the content, there were 14 items with acceptable values in the Content Validity Ratio (CVR.89) and in the Content Validity Index (CVI.92). During the validation of the scale, the results of the exploratory and confirmatory factor analysis confirmed a first-order trifactorial structure and a second-order factor. The scale's stability was appropriate, having an ICC = .92. The convergent validity results with Composite Reliability (CR) scores > 0.7 and the Average Variance Extracted (AVE) >. 0.50, along with the square root values of the AVE greater than the correlations between the other constructs show us important evidence of the validity of the Scale. The structure of the BSEC is made up of 13 items and three domains: Operations and Marketing Competencies (OMC), Competencies in Socio-Business and Legal Organization (CSBLO) and Economic-Financial Competencies (EFC).ConclusionsThe results of the research reflect its validity and reliability. This Scale has an evident usefulness for the training and assessment of entrepreneurship competence. Specifically, it is efficient for the valuation of entrepreneurial competencies in adolescent students in the stage prior to their incorporation into the work environment or their integration into the itineraries leading to higher education levels.

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Measuring entrepreneurial orientation and institutional theory for informal enterprises: scale validation.

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