E-Jurnal Manajemen, Vol. 10, No. 11, 2021 : 1221-1242

ISSN : 2302-8912


DOI: https://doi.org/10.24843/EJMUNUD.2021.v10.i11.p09

SOCIAL ENTREPRENEURSHIP INTENTION DURING COVID-19 CRISIS AMONG UNIVERSITY STUDENTS:

A CASE STUDY FROM INDONESIA

Erilia Kesumahati

Fakultas Ekonomi, Universitas Internasional Batam, Kepulauan Riau, Indonesia email: [email protected]

Abstract

The young generation as agents of change needs social entrepreneurship knowledge to create social entrepreneurship intention to solve social issues, especially during the COVID-19 pandemic. This research was conducted to examine social entrepreneurship intention among university students in Batam City, Indonesia based on the Theory of Planned Behavior (TPB) with the addition of empathy, entrepreneurship education, and COVID-19 stress perception variables to the framework. This research used the purposive sampling method through an online questionnaire that was distributed to all students of the Faculty of Economics Universitas Internasional Batam who took social entrepreneurship course. The data collected from 269 respondents were analyzed using SmartPLS version 3.0 to test the proposed hypothesis. The research result confirmed that attitude, perceived behavioral control, and empathy have significant positive relationship with social entrepreneurship intention. Entrepreneurship education and subjective norm have no significant positive relationship on social entrepreneurship intention. Meanwhile, COVID-19 stress perception was not proven to have a significant negative relationship with social entrepreneurship intention. Based on this result, universities are suggested to improve social entrepreneurship learning method so it can generate student’s interest in social entrepreneurship as an attractive career choice.

Keywords: social entrepreneurship; social entrepreneurship intention; theory of planned behavior, COVID-19.

Abstrak

Generasi muda sebagai agen perubahan memerlukan pengetahuan social entrepreneurship untuk menciptakan social entrepreneurship intention dalam menyelesaikan permasalahan sosial khususnya selama masa pandemi COVID-19. Penelitian ini dilakukan untuk mengetahui social entrepreneurship intention pada para mahasiswa di Kota Batam, Indonesia berdasarkan Theory of Planned Behavior (TPB) dengan penambahan variabel empathy, entrepreneurship education, dan COVID-19 stress perception. Penelitian ini menggunakan metode purposive sampling melalui kuesioner online yang dibagikan kepada seluruh mahasiswa Fakultas Ekonomi Universitas Internasional Batam yang mengambil mata kuliah social entrepreneurship. Data yang dikumpulkan dari 269 responden dianalisa dengan menggunakan SmartPLS versi 3.0 untuk menguji hipotesis yang diusulkan. Hasil penelitian mengkonfirmasi bahwa attitude, perceived behavioral control, dan empathy memiliki hubungan signifikan positif dengan social entrepreneurship intention. Entrepreneurship education dan subjective norms tidak memiliki hubungan signifikan positif terhadap social entrepreneurship intention. Sementara itu, COVID-19 stress perception tidak terbukti memiliki hubungan signifikan negatif terhadap social entrepreneurship intention. Berdasarkan hasil penelitian ini, universitas disarankan untuk memperbaiki metode pengajaran social entrepreneurship agar dapat menimbulkan minat mahasiswa terhadap social entrepreneurship sebagai pilihan karir yang menarik.

Kata kunci: social entrepreneurship; social entrepreneurship intention; theory of planned behavior, COVID-19.

BACKGROUND

Entrepreneurship is considered as one of the important mechanisms that can support economic growth through job creation, innovation, and improving human welfare. Entrepreneurship is a dynamic institutional process where there is a process of interaction between entrepreneurial attitudes, entrepreneurial abilities and entrepreneurial aspirations of a person, which can encourage resource placement through the creation of new businesses. Being an entrepreneur means that the person should be able to identify the problem, see the opportunity, find innovation, and brings it to the market. This means that the entrepreneur is supposed not only to replicate what others doing in business Ács et al., 2019). This also applies to the social entrepreneurship concept. Social entrepreneurship is a socia value creation process by establishing a business that can be a non-profit organization, non-governmental organization NGO), or even a profit-making company. The main focus of social business can be directly targeted at the creation of social value itself or indirectly through the creation of economic value which is then used as social or environmental value Kabir, 2019).

There are 24.39 percent Indonesian entrepreneurs of the working-age population 15 years and above) in 2019. This number is slightly higher than in previous years in 2018 23.45 percent) and 2017 23.19 percent) Badan Pusat Statistik, 2019). Indonesian youths show the strongest desire to become entrepreneurs among other youths in ASEAN countries. Nowadays, there are about 34.1 percent of young Indonesian entrepreneurs aged 15-35 years) and this number would increase to 35.6 percent since many other youths are wishing to do so in the future. The latest development and growth of Indonesian unicorn technology companies might have inspired Indonesian youths to be entrepreneurs. The lowest percentage of the desire to be a future entrepreneur is found among Singaporean youths, with only 16.9 percent of youths expressing this aspiration World Economic Forum, 2019).

The concept of social entrepreneurship which refers to the creation of a business that brings positive changes to the social and environmental community with a measurable impact and reinvests the profits earned to carry out its project, is developing quite well in Indonesia British Council Indonesia, 2018). The number of social enterprises is increasing in line with the development of entrepreneurship in general. In 2018, there were around 342,025 social enterprises across Indonesia consisting of Micro, Small, Medium Enterprises MSME), Non-Governmenta Organization NGO) both local and national, and co-operatives. Based on research conducted by British Council Indonesia, 2018), as many as 75 percent of the nearly 500 surveyed social enterprise leaders were aged between 18-44 years. From this figure, young people aged between 25-34 years dominate as leaders with a percentage of 46 percent. The purposes of establishing a social enterprise are to develop business, solve social and environmental problems, and create jobs. Most creative and social enterprises in Indonesia are young, i.e. newly established under 5 years British Council Indonesia, 2020).

In entrepreneurship, quality matters more than quantity. A country needs to have qualified entrepreneurs not only have many entrepreneurs) and also a wellfunctioning entrepreneurial ecosystem to support the entrepreneurial effort. Based

on Global Entrepreneurship Index GEI) which assess the entire entrepreneuria ecosystem in the world, The United States leads the world in entrepreneurship 1st rank), meanwhile, Indonesia is in 75th rank which is far away from other countries in Asia, such as Hong Kong 13th), South Korea 21th), Singapore 27th), and Malaysia 43th) Ács et al., 2019). Hence, Indonesia needs to improve its entrepreneurship ecosystem to support economic growth. One way to improve the entrepreneurial ecosystem is through entrepreneurial education by which students can develop their skills and competencies to seize business opportunities Ács et al., 2019; Elnadi et al., 2020). This will help them build resources and create a more positive and good analytical attitude of disadvantages and risks from entrepreneurial activities Paray & Kumar, 2020).

Many universities in Indonesia have organized social entrepreneurship education through formal education, training, workshops, and so on British Council Indonesia, 2018). Entrepreneurial education on higher education institute can generate the intention to create new venture which can generate economic growth, welfare, also social and civil stability Ács et al., 2019; Alshebami et al. 2020; Ayalew, 2020; Boldureanu et al., 2020; Elnadi et al., 2020; H. M. K. Hassan 2020; Paray & Kumar, 2020; Tiwari et al., 2020). Furthermore, entrepreneurship intention is considered as a predictor of future entrepreneurship behavior, including social entrepreneurship Pérez-Macías et al., 2020). Many scholars used the Theory of Planned Behavior TPB) to give empirical evidence of entrepreneurship intention Bhinekawati et al., 2020; Ghatak et al., 2020; Kruse, 2020; Ma et al., 2020; Paiva et al., 2020; Paray & Kumar, 2020; Pérez-Macías et al., 2020; Ruiz-Rosa et al. 2020). This theory considers intention as a predictor of actual behavior Ajzen 1991).

Socio-economic crises with a high level of uncertainty such as COVID-19 can hinder the promotion of the social entrepreneurship concept through entrepreneurship education Liguori & Winkler, 2020; Ratten, 2020; Ruiz-Rosa et al., 2020). Youths as an agent of change are important to get the knowledge of socia entrepreneurship concept to create a new job and develop an innovative solution to social issues, especially in global crisis Ruiz-Rosa et al., 2020). However, there are only a few studies on social entrepreneurship intention which also analyze the impact of the COVID-19 crisis. Empirical evidence of the impact of COVID-19 on social entrepreneurship intention is required as this will also give knowledge and best interest to other researchers, practitioners, and academicians.

This research was conducted to fill in the gap by giving more understanding of what factors that have significant relationship with social entrepreneurship intention among university students in Batam City, Indonesia, who were taking social entrepreneurship courses in the COVID-19 crisis time using the modified Theory of Planned Behavior TPB) framework. This study would contribute to provide literature on social entrepreneurship intention using the TPB framework with the addition of empathy, entrepreneurship education, and COVID-19 stress perception variables. Thus, the research objectives were to find out whether attitude, subjective norm, perceived behavioral control, empathy, and entrepreneurship education have significant positive relationship with socia entrepreneurship intention. In addition, this study was also conducted to examine

whether COVID-19 stress perception has a significant negative relationship with social entrepreneurship intention. This literature is required as this will also give knowledge and best interest to other researchers, practitioners, and academicians on social entrepreneurship intention during the COVID-19 crisis.

In answering research questions, several literature reviews need to be put forward to support the research. The concept of social entrepreneurship has been defined by many researchers. Social entrepreneurship intention is a person's desire belief, determination, commitment, and readiness to carry out innovative socia activities through the creation of new social businesses H. M. K. Hassan, 2020). An individual who has an intention towards social entrepreneurship can quickly seize opportunities to create new employment Ayalew, 2020). Among undergraduate university students, research of social entrepreneurship intention has become widely studied by scholars since it is considered as the gateway to studying the entrepreneurial system as well as the initial phase of a dynamic business process in the long run Ghatak et al., 2020; H. M. K. Hassan, 2020). Theory of Planned Behavior Ajzen, 1991) which consists of attitude toward the human behavior subjective norm, and perceived behavior control which further can predict the actual behavior, is extensively used to explain social entrepreneurship intention Kruse, 2020; Ma et al., 2020; Paray & Kumar, 2020; Ruiz-Rosa et al., 2020).

Attitude is a determinant of behavioral intention which refers to the extent to which a person has a good or poor judgment of the behavior Ajzen, 1991). Students may have different attitudes and reactions to entrepreneurial interests. The positive or negative attitude they might show towards this interest in entrepreneurship depends on their background and other traits. They are more likely to become entrepreneurs after graduation if they have a positive attitude towards entrepreneurship and conversely, they may not be self-employed if they form negative attitudes. In general, those who want to be financially independent and get a large income will tend to choose as entrepreneurs Ayalew, 2020). Many studies evidenced the positive relationship of individual attitude on entrepreneuria intention Al-Mamary et al., 2020; Ayalew, 2020; Luc, 2020a, 2020b; Lukman et al., 2020; Ruiz-Rosa et al., 2020; Tiwari et al., 2017). Therefore, it is proposed that: H1: Attitude toward social entrepreneurship has a significant positive relationship with social entrepreneurship intention.

Subjective norm refers to the social pressure a person feels to perform or not to perform a behavior Ajzen, 1991). Subjective norm on social entrepreneurship refers to the opinions perception of people or environment family, friends colleagues) who are close to someone about the implementation of social and/or environmental projects Ruiz-Rosa et al., 2020). Subjective norm become the main reflection of social and cultural values based on beliefs about how other people think that someone should behave and motivation to obeys the norms of the reference group. This subjective norm can influence a person's interest in doing social entrepreneurship as evidenced by researchers Luc, 2020a, 2020b; Ruiz-Rosa et al., 2020; Tiwari et al., 2017). Therefore, it is proposed that:

H2: Subjective norm has a significant positive relationship with socia entrepreneurship intention.

Perceived behavioral control refers to the ease or difficulty a person feels in carrying out behavior and is considered as a reflection of the past and the obstacles that are anticipated. This perceived behavior control varies depending on the situation and action. A person can believe that his achievement depends on his behavior Ajzen, 1991). Researchers evidenced that perceived behavioral control has a positive relationship to social entrepreneurship intention Luc, 2020a, 2020b; Ruiz-Rosa et al., 2020; Tiwari et al., 2017). Therefore, it is proposed that: H3: Perceived behavioral control has a significant positive relationship with social entrepreneurship intention.

This research added several variables to the Theory of Planned Behavior TPB) framework to explain more on entrepreneurship intention based on previous studies such as empathy, entrepreneurship education, and COVID-19. Empathy is a feeling of an individual who puts himself in the place of others so that it can influence the individual's behavior to help others. Someone who has empathy can understand the emotional state of others based on the experiences and emotions that other people are experiencing Tiwari et al., 2020). Most social entrepreneurs are founded because social entrepreneurs are empathetic and willing to help people to solve social problems Rozar et al., 2020). Empathy has a positive relationship with entrepreneurship intention as evidenced by many scholars Aure, 2018; Bazan et al., 2020; Garaika, 2020; Ghatak et al., 2020; Hockerts, 2017). Therefore, it is proposed that:

H4: Empathy has a significant positive relationship with social entrepreneurship intention.

The development of entrepreneurship is supported by the entrepreneurial ecosystem as guidance to system performance. The entrepreneurial ecosystem is a complex structure of a socio-economic system and can be defined as the dynamically inherent interaction between the entrepreneurial attitudes, abilities, and aspirations of an individual, which drives the allocation of resources through the creation and operation of new businesses Ács et al., 2019). Entrepreneurship education is one of the entrepreneurial ecosystem elements besides other elements such as access to infrastructure, finance, human resources, government support, institutional strengthening, and networking Ács et al., 2019; Elnadi et al., 2020). Entrepreneurship education must be implemented based on theoretical knowledge of psychological cognition, creative psychological development, and by using specific teaching strategies. This will guide and instill an entrepreneurial spirit in students Ma et al., 2020).

University plays an important role in entrepreneurship to stimulate and support students' entrepreneurial development efforts through entrepreneurship education Yordanova et al., 2020). Any entrepreneurial intention a person has is usually not enough to take a step forward in creating a venture. This intention needs to be supported by strong education, especially with entrepreneurial features. Individuals need to be fully supported by entrepreneurship education that enables and supports them to carry out their activities professionally and with less risk Alshebami et al., 2020). Entrepreneurship education can include providing a suitable environment that provides the latest syllabus to meet the requirements of students to become entrepreneurs. Students may have high entrepreneurial

intentions when they first start their entrepreneurship course because they have learned many concepts related to the business environment Boldureanu et al., 2020). Many researchers evidenced that entrepreneurship education has a positive impact on entrepreneurship intention Alshebami et al., 2020; Ayalew, 2020; Boldureanu et al., 2020; Chen et al., 2020; Elnadi et al., 2020; H. M. K. Hassan, 2020; Noerhartati et al., 2019; Paray & Kumar, 2020; Tiwari et al., 2020; Yordanova et al., 2020). Therefore, it is proposed that:

H5: Entrepreneurship education has a significant positive relationship with social entrepreneurship intention.

Uncertainty is a condition where there are many unknown possibilities and variables. This uncertainty can be seen by humans with skepticism and is likely to be avoided whenever possible Kabir, 2019). In a state of economic crisis, there are a lot of uncertainty and disruptions such as the increasing number of unemployed, the difficulty of finding a job, and the increasing number of closed businesses, which make people think about whether opening their own business is the right career choice. The COVID-19 pandemic is not only a socio-economic crisis, but has also become a multi-dimensional crisis with a high level of uncertainty that has changed many things in life. There are many risks and stresses from COVID-19 that affect the future of a person's life which are quite the same or even worse than the risks that occur during other economic crises. The stress caused by COVID-19 can hinder a person's formal education and career choices in the future Islam et al., 2020). The economic crisis has proven to have a significant negative effect on student’s entrepreneurship interests Arrighetti et al., 2016). Moreover, the research conducted by Ruiz-Rosa et al. 2020) showed that students' interest in social entrepreneurship during the COVID-19 crisis has decreased compared to before the emergence of the crisis. Therefore, it is proposed that:

H6: COVID-19 stress perception has a significant negative relationship with social entrepreneurship intention.

Based on the description of the hypothesis above, the research framework is illustrated in Figure 1.

RESEARCH METHOD

This research adopted validated questionnaires from previous research which utilize a five-point Likert scale ranging from 1 strongly disagree) to 5 strongly agree). Attitude 3 items), subjective norm 3 items), and perceived behavioral control 6 items) were adopted from Ruiz-Rosa et al. 2020), empathy 3 items) were adopted from Bazan et al. 2020), entrepreneurship education 4 items) were adopted from Hassan 2020), COVID-19 stress perception 12 items) were adopted from Islam et al., 2020), and social entrepreneurship intention 6 items) were adopted from Hassan 2020) and Ruiz-Rosa et al. 2020).

The population of this research was all undergraduate students in their fourth semester at Faculty of Economics Universitas Internasional Batam. As this research used the purposive sampling method, online questionnaires were given to all students who took social entrepreneurship courses for at least 1 semester majoring in management, accounting, and tourism). A filter question was given to confirm this. The sampling frame consists of 516 students from 12 classes. The selection of

sample number in this research was based on the analytical method that will be used i.e. PLS-SEM that can predict complex research models using various constructs variable indicators, and structural paths with no data distribution assumptions based on a causal relationship approach Hair et al., 2019). According to Kline 2016), the median sample number used in SEM analysis is 200. While Memon et al. 2020) suggest that suitable sample size for multivariate analysis such as PLS-SEM is between 160 and 300. The determination of the number of samples commonly used is at least 10 times the number of arrows that point at most to a construct Hair et al., 2014). Based on this requirement, then the minimum number of samples used in this research should be 60 samples because there are 6 arrows connected to 1 dependent construct, namely social entrepreneurship intention. However, a minimum of 200 samples will be used in this research and it will meet the requirements not only stated by Hair et al. 2014), but also as suggested by Kline 2016) and Memon et al. 2020).

Online questionnaires using Google form were distributed through WhatsApp group and Microsoft Teams chat on March 2021 based on the sampling frame. A reminder message to fill out the questionnaire was sent to the students a week after the questionnaire was sent. The data collection timeline was 4 weeks since the questionnaire was distributed. Data were analyzed using SPSS version 23 for demographic information of respondents and Common Method Bias CMB) analysis. SmartPLS version 3.0 was used for measurement model analysis reliability, validity, and model fit testing) and structural model analysis collinearity, hypothesis testing, and R-square testing).

Figure 1. Research Framework

Source: Adapted from Ruiz-Rosa et al. (2020).

RESULT AND DISCUSSION

A total of 269 completed responses out of 516 sent questionnaires) were returned, thus indicate a 52.13 percent of response rate. There were 72 male 26.8 percent) and 197 female 73.2 percent) respondents. The majority of respondents 83.6 percent) were between 18-20 years old, followed by 14.5 percent aged 21-23 years and 1.9 percent aged more than 23 years. The profile of students studying at Universitas Internasional Batam are diverse. Some are purely students and some have jobs other than studying because the study programs are held in morning or evening classes. As many as 47.6 percent of respondents were pure students, 46.8 percent of respondents were students who also worked as employees, and 5.6 percent of respondents were students who were also entrepreneurs. There are three study programs at the Faculty of Economics Universitas Internasional Batam, namely management, accounting, and tourism. Most respondents were from management study programs 66.2 percent), followed by accounting 30.5 percent), and tourism 3.3 percent). The majority of respondents 98.1 percent) did not have personal experience in running social entrepreneurship and there were 1.9 percent of respondents who had an experience of running social entrepreneurship.

The use of questionnaires in research can raise the issue of common method variance originating from the measurement method, respondent selection, and survey context and will then lead to Common Method Bias CMB) Hulland et al., 2018). Several ways to overcome this are by conducting pre-test questionnaires, using multi-scale measurements on different constructs, developing appropriate research designs, and using statistical analysis to determine the presence of CMB Hulland et al., 2018). Harman's single-factor test is one of the statistical analysis techniques to detect the presence of CMB by using factor analysis of all items of the research construct. If there is no single factor that has a variance value of more than 50 percent, then there is no CMB in the study. Based on SPSS software analysis, the total value of variance in this research was 32.750 percent, so it can be concl ded that there was no CMB in this research data.

Table 1.

Respondent Demographics Data

Variable

Category

Frequency

Percent

1. Gender

Male

72

26.8%

Female

197

73.2%

Total

100%

2. Age

18 – 20 years old

225

83.6%

21 – 23 years old

39

14.5%

Above 23 years old

5

1.9%

Total

100%

Continue…

Continue Table 1.

Variable

Category

Frequency

Percent

3. Occupation

Pure Student

128

47.6%

Student and employee 126

46.8%

Student

and 15

5.6%

entrepreneur

Total

100%

4. Study program

178

66.2%

Management

82

30.5%

Accounting

9

3.3%

Tourism

Total

100%

5. Social

5

1.9%

entrepreneurship

Yes

264

98.1%

experience

No

Total

100%

Source: Research Data 2021

The initial measurement using SmartPLS for this research was the evaluation of the measurement model or outer model. At this stage, reliability and validity testing was carried out. Reliability testing was analyzed from the value of outer loading, Cronbach's alpha, and Composite Reliability CR). Outer loading shows how big the contribution of the indicator in measuring a construct. The greater the value of the outer loading of an indicator, the greater the reliability of the measurement model. The recommended minimum outer loading value for the reflective measurement model is 0.7 Garson, 2016). However, Hair Hair et al. 2019) suggests that the minimum value for outer loading is 0.708 because at this value, a construct can explain more than 50 percent of the variance in the indicators. In this study, the minimum outer loading value used was 0.7.

Several indicators had outer loading values below 0.7 so they were deleted and not included in the next evaluation, namely ATT1, COV 1, COV 2, COV 7 COV 12 Table 2). In addition to outer loading, the reliability of a construct can also be seen from the value of Cronbach's alpha and Composite Reliability CR). Cronbach's alpha value above 0.8 indicates good reliability, a value of 0.7 is quite acceptable, and a value of 0.6 is used for exploratory research scales Garson 2016). All constructs in this study had good reliability, as it can be seen from the value of Cronbach's alpha above 0.8, namely ATT 0.805), SN 0.847), PBC 0.903), EMP 0.877), EE 0.921), COV 0.902), and SEI 0.912). Composite reliability CR) shows the internal consistency of a construct that is more often used by researchers because it can estimate reliability more precisely Garson, 2016; Hair et al., 2014, 2019).

The CR values between 0.7 to 0.9 are satisfactory to good values. CR values of 0.6 to 0.7 are values that can be used for exploratory research Hair et al., 2019). All constructs had CR values above 0.9 which indicated good internal consistency

reliability, i.e ATT 0.911), SN 0.907), PBC 0.926), EMP 0.924), EE 0.944) COV 0.918), and SEI 0.932).

Measurement of validity was done by looking at the value of Average Variance Extracted AVE) which is a measurement of convergent validity or the extent to which a construct converges to explain the variance of the items or indicators.

The recommended AVE value is at least 0.5 which indicates that a construct can explain at least 50 percent of the variance of the items Hair et al., 2019). The AVE value of each construct in this research varied, but all of them were above 0.5. The highest value was AAT 0.837) and the smallest was COV 0.583) Table 2).

Table 2.

Construct Reliability and Validity

Construct                   Item

Outer         Cronbach’s     CR AVE

Loading       Alpha

  • 1.    Attitude toward social entrepreneurship (ATT)      ATT2

ATT3

  • 2.    Subjective Norm (SN)

SN1 SN2 SN3

  • 3.    Perceived Behavioral

Control (PBC)             PBC1

PBC2

PBC3

PBC4

PBC5

  • 4.    Empathy (EMP)            B 6

EMP1

EMP2

EMP3

  • 5.    Entrepreneurship

Education (EE)             EE1

EE2 EE3 EE4

  • 6.    COVID-19 stress

perception (COV)          COV3

COV4

COV5

COV6

COV8

COV9

COV10

COV11

0.805             0.911   0.837

0.921

0.908

0.847                0.907

0.872           0.764

0.870              7

0.881

00..788488          0.903               0.926

0.831          0.675

0.840

0.865

0.752

0.897

0.9077            0.877                  0.924

0.8373           0.803

0.868

0.945

0.930           0.921               0.944

0.852           0.809

0.714

0.743

0.719

0.834           0.902                0.918

00..778914            0.583

0.776

0.742

Continue…

Continue Table 2.

Construct

Item

Outer

Loading

Cronbach’s Alpha

CR

AVE

7. Social Entrepreneurship

0.912

0.932

0.697

Intention (SEI)

SEI1

0.824

SEI2

0.766

SEI3

0.904

SEI4

0.861

SEI5

0.833

SEI6

0.815

Source: Research Data 2021

Other validity measurements were performed using the Fornell-Larcker Criterion Discriminant Validity. The square root of AVE value of a construct must be greater than the value of other constructs. In other words, the variance value of a construct with its indicators must be greater than the variance between the construct and other construct indicators Garson, 2016). Based on Table 3, all constructs met the discriminant validity requirements where all values of the square root of AVE were greater in the construct itself compared to other constructs.

Table 3.

Fornell-Larcker Criterion Discriminant Validity

Construct

ATT

COV

EMP

EE

PBC

SEI   SN

1. Attitude toward social

0.915

entrepreneurship (ATT)

2. COVID-19 stress

0.257

0.764

perception (COV)

3. Empathy (EMP)

0.473

0.242

0.896

4. Entrepreneurship

0.612

0.210

0.501

0.899

Education (EE)

5. Perceived Behavioral

0.442

0.199

0.499

0.470

0.822

Control (PBC)

6. Social Entrepreneurship

0.573

0.237

0.538

0.565

0.691

0.835

Intention (SEI)

7. Subjective Norm (SN)

0.530

0.266

0.435

0.409

0.433

0.388

0.874

Source: Research Data 2021

The next test carried out was Heterotrait-Monotrait Ratio HTMT) analysis to confirm discriminant validity. HTMT ratio refers to the geometric mean of the relationship between indicators between different constructs divided by the average mean of the relationship between indicators in the same construct Garson, 2016; Hair et al., 2019). A well-fitting model is said to have an HTMT ratio below 1.0 Garson, 2016). All constructs in this research met the discriminant validity requirements with the HTMT ratio ranging from 0.201 to 0.754 Table 4).

Table 4.

Heterotrait-Monotrait Ratio (HTMT)

Construct

ATT

COV

EMP

EE

PBC

SEI SN

1. Attitude Toward Social

Entrepreneurship (ATT)

2. COVID-19 Stress

0.290

Perception (COV)

3. Empathy (EMP)

0.562

0.288

4. Entrepreneurship

0.709

0.219

0.561

Education (EE)

5. Perceived Behavioral

0.518

0.201

0.552

0.511

Control (PBC)

6. Social Entrepreneurship

0.668

0.233

0.600

0.616

0.754

Intention (SEI)

7. Subjective Norm (SN)

0.638

0.311

0.507

0.460

0.496

0.435

Source: Research Data 2021

Standardized Root Mean Square Residual SRMR) was used to see the mode fit of this model. SRMR shows how far the difference between the observed correlation matrix and the model-implied correlation matrix. The smaller the SRMR value, the better the model. The ideal SRMR value used to show a good model is below 0.8 Garson, 2016). The SRMR value was obtained at 0.069 which indicated that this research model was good.

The next step after the measurement model evaluation stage had been carried out was the structural model or inner model evaluation. Collinearity testing was done to ensure that there was no bias in the regression measurement of the relationship between constructs. This can be shown from Variance Inflator Factor VIF) value. The ideal VIF value is below or close to 3.0 which indicates that there is no collinearity problem in the research model Hair et al., 2019). All constructs in this research met the requirements of the collinearity test because they had VIF values between 1.112 COV) and 1.948 ATT) as shown in Table 5.

Table 5

Collinearity Statistics - Inner Variance Inflator Factor (VIF)

Construct

Social Entrepreneurship Intention

Attitude Toward Social Entrepreneurship (ATT)

1.948

Subjective Norm (SN)

1.560

Perceived Behavioral Control (PBC)

1.544

Empathy (EMP)

1.620

Entrepreneurship Education (EE)

1.830

COVID-19 Stress Perception (COV)

1.112

Source: Research Data 2021

Based on the structural or the inner model evaluation, the path coefficient, t-value, and p-value were obtained from the analysis using the bootstrapping technique. The path coefficient standard β), refers to the strength of the relationship

in a path that ranges from -1 to 1. If the value is close to 1 or -1, the stronger the positive or negative relationship on that path Garson, 2016). In Table 6, H3 PBC → SEI) had the largest path coefficient, i.e 0.470 which means that there was the strongest positive relationship among other paths. While H2 had the smallest path coefficient, which was -0.074 which indicated that there was a negative relationship on the path. The hypothesized negative relationship on H6 COV → SI) was not proven. In fact, a positive relationship was found on that path with a path coefficient of 0.037. To interpret the statistical significance of the relationship between constructs, it can be seen from the t-value. If the t-value above 1.96 based on a 95% confidence interval), it is said that the relationship between constructs is significant Garson, 2016; Hair et al., 2014, 2019). Based on Table 6, there were 3 relationships between constructs that have been proven to be significant and the proposed hypothesis can be proven true, namely H1 ATT → SEI), H3 PBC → SEI), and H4 EMP → SEI). While H2 SN → SEI), H5 EE → SEI), and H6 COV → SEI) were not confirmed.

Based on the description above, H1 ATT → SEI) was proven and is in line with research conducted by Al-Mamary et al. 2020), Ayalew 2020), Luc 2020a 2020b), Lukman et al. 2020), Ruiz-Rosa et al. 2020), and Tiwari et al. 2017). Attitude showed a significant positive relationship towards social entrepreneurship intention, which was the second strongest among the three positive significant relationships in the model β = 0.236, t = 3.770, ρ = 0). The perception that socia entrepreneurship is considered to have many advantages by helping other people besides doing business), more attractive and satisfying, is a positive attitude that needs to be instilled in the younger generation Ruiz-Rosa et al., 2020). In the context of entrepreneurship in general, entrepreneurship education and financia support can foster a positive attitude and interest in entrepreneurship in students in Malaysia Hassan et al., 2020). With the increasing exposure of entrepreneurship knowledge that students get from an early age from school, it will further increase the enthusiasm to create their own jobs. Likewise, good financial support from family, friends, or other parties will increasingly build a positive attitude in starting a new business, especially if they see that entrepreneurship is a way to be financially independent and gain a large income Ayalew, 2020; H. Hassan et al., 2020).

The second hypothesis, i.e H2 SN → SEI) was not proven in this study. The result showed the opposite, i.e there was a negative and insignificant relationship β = -0.074, t = 1.337, ρ = 0.182). It means that subjective norm which refers to opinions or perceptions from people around about the implementation of socia entrepreneurship or social projects, did not even cause students' interest in making social entrepreneurship projects. This might be because people around them did not have a good understanding of the concept of social entrepreneurship itself. This has led to a lack of support and motivation for people who will open businesses and also have a social mission. This result does not support research conducted by several previous researchers Luc, 2020a, 2020b; Ruiz-Rosa et al., 2020; Tiwari et al., 2017).

Similar to the case with H1, H3 PBC → SEI) was also proven true β = 0.470 t = 8.091, ρ = 0). It can be seen that perceived behavioral control which refers to the ease or difficulty a person feels in carrying out behavior, had the strongest

relationship to social entrepreneurship intention compared to other relationships in the model. This result supports the research conducted by Luc 2020a, 2020b), Ruiz-Rosa et al. 2020), and Tiwari et al. 2017). Thus, this shows that the greater the perceived behavioral control a person has, the more interest in creating social entrepreneurship projects. The perceived behavioral control in this context can be seen as the ease of identifying and creating new business opportunities, ability to be creative, able to manage a social project, and become a leader.

The next hypothesis, i.e H4 EMP → SEI) was confirmed and it had the weakest relationship compared to other significant positive relationships β = 0.139, t = 2.047, ρ = 0.041). This result is supported by previous research Aure, 2018; Bazan et al., 2020; Garaika, 2020; Ghatak et al., 2020; Hockerts, 2017). This result indicates that people have an interest in creating a social business project if they can place themselves in a person who has a disadvantage which then create a sense of willingness to help, find new business opportunities, create a new product/service with their creativity, and become leaders in solving social problems. This is in line with the fact that many social entrepreneurs start their business from social concern for the people around them and want to solve the social problem Rozar et al., 2020).

Similar to H2, H5 EE → SEI) was also not proven in this study. Although the path coefficient showed that it had a positive relationship, however, it was not significant β = 0.152, t = 1.935, ρ = 0.054). Therefore, H5 was not confirmed. This result is not in line with previous research Alshebami et al., 2020; Ayalew, 2020; Boldureanu et al., 2020; Chen et al., 2020; Elnadi et al., 2020; H. M. K. Hassan, 2020; Noerhartati et al., 2019; Paray & Kumar, 2020; Tiwari et al., 2020; Yordanova et al., 2020). The COVID-19 pandemic is a socio-economic crisis with a high level of uncertainty that has changed many things in life around the world, one of which is a change in education. This change requires a rapid migration from the real educational environment to the online environment due to social distancing policy, where before the crisis, online education is considered as something is optional and expensive. As such, COVID-19 has resulted in a major disruption to the education system which is still largely understood due to its severe effects Ratten, 2020). This online learning condition that has limitations may result in the entrepreneurship teaching process not being as optimal as face-to-face teaching. Therefore, students might not absorb and understand the concept of entrepreneurship well which further reduces their interest in running a social business. This condition makes entrepreneurship educators and universities must have innovation and uniqueness in providing digital lessons that can be accessed in a timely and practical manner Ratten, 2020). In addition, they can strive to maintain the education quality and produce the same output as the face-to-face teaching process. With this pandemic condition, in the future students are expected to be more adaptable, creative, and innovative in seizing opportunities through entrepreneurship education Highfield et al., 2020).

The last hypothesis, i.e H6 COV → SEI) was also not proven. The results of the analysis on H6 showed that COVID-19 did not have a significant negative relationship with social entrepreneurship intention as previously proposed, but instead had an insignificant positive relationship β = 0.037, t = 0.854, ρ = 0.394). Previous study conducted by Ruiz-Rosa et al. 2020) showed that social

entrepreneurship intention decreases during the COVID-19 period. Meanwhile this study shows that with the COVID-19 crisis, students still have the intention to create social entrepreneurship even though it is not significant. It might be due to the stress level of the younger generation is not as high as the older generation and they could also still manage their lives so they did not feel too much tension from the COVID-19 pandemic. Moreover, this is supported by the fact that the respondents in this study were unmarried students, so they did not have family responsibilities. Therefore, the COVID-19 pandemic might not have a severe impact on their lives and they could still see their future optimistically. Even though they feel a little stressed due to COVID-19, but this did not reduce their interest in creating a social business. They might notice that many people around them were more severely affected by this pandemic condition, so they were actually interested in doing social missions and also doing business at the same time. Therefore, the pressure and stress from COVID-19 did not necessarily make them reluctant or reduce their interest in doing social entrepreneurship. This is supported by research conducted by Arrighetti et al. 2016) that in time of economic crisis, there is indeed a negative effect on the economic environment and significant negative effect on possibility in creating new business. However, it does not have an impact on the tendency of someone to decide to become an entrepreneur. The high unemployment rate can also create a new spirit to create the second-best alternative as an entrepreneur rather than being unemployed. However, Ruiz-Rosa et al. 2020) suggest that due to the specificity of the type of social entrepreneurship that provides solutions to both social and environmental problems, the barriers that arise from crises such as COVID-19 on social entrepreneurship intention can be anticipated with support from the educational environment. The university can provide good educational methods and support for social entrepreneurship so that even in times of crisis, it will make the younger generation still be able to identify social business opportunities. This will certainly help a country not only in creating jobs, but also in solving social and environmental problems.

Table 6.

Hypothesis Finding Summary

Hypothesis

Standard β

Standard Deviation

t-value

ρ-valu

Interpretation

Hypothesis

Test Result

H1: ATT → SEI

0.236

0.063

3.770

0

Significant

Supported

H2: SN → SEI

-0.074

0.055

1.337

0.182

Not significant

Not supported

H3: PBC → SEI

0.470

0.058

8.091

0

Significant

Supported

H4: EMP → SEI

0.139

0.068

2.047

0.041

Significant

Supported

H5: EE → SEI

0.152

0.078

1.935

0.054

Not significant

Not supported

H6: COV → SEI

0.037

0.044

0.854

0.394

Not significant

Not supported

Source: Research Data 2021

The variance in the endogenous construct can be seen from the value of R-square. The R-square values have different categories, where 0.75 is a substantia category, 0.5 is a moderate category and 0.25 is a weak category Hair et al., 2019). The value obtained in this study was 0.601 which is in the category range between

substantial and moderate. It was also indicated that the exogenous variables in this study contributed to explaining the endogenous variable, i.e social entrepreneurship intention by 60.1 percent. Other variables as examined in previous research would contribute to the remaining variances such as entrepreneurship experience, mora obligation, self-efficacy, social support, business ties, sharing achievement perceived social worth, environment support, emotional intelligence, and socia activity Darmanto & Pujiarti, 2020; Garaika, 2020; Hockerts, 2017; Latif & Ali 2020; Noerhartati et al., 2019; Wu et al., 2020). The structural model of this research is shown in Figure 2.

Figure 2. Research Structural Model

CONCLUSION AND SUGGESTION

This research aims to examine what factors that have significant relationship with social entrepreneurship intention by using a modified Theory of Planned Behavior TPB) on students who were taking social entrepreneurship courses. The results confirmed previous literature that attitude, perceived behavioral control, and empathy have significant positive relationship with social entrepreneurship intention. Perceived behavioral control has the strongest relationship with socia entrepreneurship intention compared to others. Subjective norm, and entrepreneurship education do not have significant positive relationship with socia entrepreneurship intention. Meanwhile, the COVID-19 stress perception which was

hypothesized to have a significant negative relationship with socia entrepreneurship intention is also not supported.

This research provides not only a contribution to the literature of socia entrepreneurship intention using Theory of Planned Behavior TPB) with the addition of empathy, entrepreneurship education, and COVID-19 stress perception variables to the framework, but also provides practical implications. Universities that play an important role in providing social entrepreneurship education should be able to ensure that the teaching system provided during the COVID-19 period remains good and of the same quality as before the pandemic occurred. However, this may be understandable because at the time this research was conducted, education was conducted online due to the COVID-19 pandemic. This online education could not produce optimal learning compared to the face-to-face teaching system. This what makes students might not understand the concept of socia entrepreneurship well so their interest in doing social entrepreneurship decreases. Therefore, universities should be able to develop innovative and creative teaching systems that can increase students’ learning engagement. In addition, it is important to provide students with not only soft skills, hard skills, technical skills, but also creative thinking skills. Various ways can be done by providing many group discussions, case studies, making business projects, organizing seminars and workshops with practitioners, and conducting business competitions. By generating interest in social entrepreneurship, it will increasingly open up new job opportunities and increase the resolution of social and environmental problems. Therefore, social entrepreneurship will be an attractive career choice for students in the future.

The results of this research certainly have limitations such as the findings cannot be generalized as the scope of the research was only carried out at one university and used limited variables. Further research is recommended to use a larger research scope, diverse variables, different theoretical frameworks, use mediators, and also examine the moderating effect of COVID-19 impact on socia entrepreneurship intention.

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