Abstract
This research aims to assess the most well-known theory in the field of intention, namely the Theory of Planned Behaviour, known as the TPB model while considering the significant characteristics of indigenous peoples: self-reliance and self-sufficiency. This survey included 40 indigenous entrepreneurs from Perak and Pahang. To develop a questionnaire related to this study, academicians who are experts in entrepreneurship and JAKOA officers are selected for pre-test content validity. The researcher conducted a pilot test for construct validity based on the pre-test. SmartPLS 4.0 was used to test the study model. According to the findings, subjective norms are favourably connected with indigenous people's decision to become entrepreneurs. As a result, the model was used in this study on the subject of Entrepreneurship Intention to aid in developing and supporting entrepreneurship among indigenous people in general. This study will impact indigenous entrepreneurs' contributions to improving their socioeconomic status and advantages to the country's economic and social growth.
Keywords: Entrepreneurial Behaviour, Entrepreneurial Intention, Indigenous Entrepreneur, TPB
Introduction
Entrepreneurial behaviour has been widely examined and has become a phenomenon among researchers over the last decades because it is one of the primary drivers of the economy for continuing growth and development at all levels of society (Bogatyreva et al., 2022). Entrepreneurial behaviour helps greatly to survive external changes and future resilient growth; hence, a growing body of study has looked into the significance of entrepreneurial behaviour in boosting new venture performance and competitive advantage (Wang et al., 2022). Ajzen (1991) and Lihua (2022) states that entrepreneurial behaviours and intentions are related, yet Neto et al. (2020) deliberate entrepreneurship as a planned behaviour. As a result, formulating entrepreneurial intentions is generally seen as a critical step in beginning a new firm (Neneh, 2019). Understanding entrepreneurial intentions and their antecedents is thus essential to understand why a person selects an entrepreneurship job (Vamvaka et al., 2020).
Poverty among the indigenous people
According to the latest statistics, most indigenous people in Peninsular Malaysia are still classified as B40 (Bottom 40% - lower-income group – household income is below RM4850 per month), making them the country's largest contributor to poverty (DOSM, 2020; Nor Emmy Shuhada et al., 2020). Poverty causes hunger, malnutrition, limited access to education and other basic services, social prejudice and marginalization, and a lack of participation in regional development decisions (Shah et al., 2018). The government has introduced indigenous people to entrepreneurship to improve their socioeconomic conditions and reduce poverty (Rosdi et al., 2018).
Economic and entrepreneurial activities of the indigenous people
Despite programs and initiatives introducing Indigenous people to entrepreneurship, some began to believe it could improve their socioeconomic situation, but Indigenous people's participation in entrepreneurship remains low (Cheng & Helen, 2021; Rosdi et al., 2018). Figure 1 shows the state breakdown of entrepreneurs based on 10MP (2011-2015) and 11MP (2016-2020) statistics. The 2016-2020 numbers show a 38.8% reduction from 2011-2015 (JAKOA, 2022).
Entrepreneurial behaviour among indigenous people
Entrepreneurs are unique. These traits are crucial to understanding why some establish new businesses and others do not (Bi et al., 2021). Thus, it is crucial to understand the elements that foster entrepreneurial behaviour (Wang et al., 2022). Entrepreneurial behaviour greatly impacts an individual or business's competitive advantage because it succeeds in specific attributes like desire, character, talents, expertise, knowledge, and skills (Baluku et al., 2021).
Indigenous in Malaysia struggle to participate in economic activities outside their community (Amiruddin et al., 2020; Cheng & Helen, 2021; Roddin et al., 2017). As a government agency responsible for indigenous people's well-being, JAKOA has conducted and prepared vocational training and skills training programs like automotive repair, sewing, agriculture, and handicrafts. However, only some indigenous community has attended these courses, and even fewer have attended JAKOA's entrepreneurship training. Statistics show that only 327 indigenous people. Thus, indigenous entrepreneurs still need to be available (JAKOA, 2022). Thus, indigenous entrepreneurs still need to be available (Cheng & Helen, 2021).
The TPB postulates that intentions are a good predictor of actual conduct, explaining the direct relationship between entrepreneurial intentions and behaviour (Ajzen, 1991; Lihua, 2022). Assessing indigenous people's entrepreneurial intentions, which predict their actions, is crucial to increasing their entrepreneurship. The best predictor of behaviour is intentions. Therefore, the higher the intent for carrying out the activity, the more likely it will be done (Bagis, 2022). Even though research has shown that entrepreneurial intentions strongly predict entrepreneurial behaviour, evidence suggests that not all intentions are always translated into actual behaviour due to several confounding factors, such as individual traits and personalities (Schmidt et al., 2022).
However, such studies limit our understanding of entrepreneurial behaviour, as growing evidence shows that not all intentions are translated into actual behaviour when starting and managing new businesses (Wang et al., 2022), particularly in the context of indigenous peoples, who are known as a community with unique languages, knowledge systems, and beliefs, as well as invaluable knowledge of practices for sustainable natural resource management. Indigenous Peninsular Malaysians are self-reliant. The tribes became self-sufficient by harvesting and earning money from forests (Amiruddin et al., 2020). Indigenous Peninsular Malaysians are self-reliant. The tribes became self-sufficient by harvesting and earning money from forests (Nor Emmy Shuhada et al., 2020). Given the prior discussion, this study seeks to determine whether proximal antecedents of entrepreneurial intention, such as attitude, subjective norms, perceived behavioural control, and actual behavioural control, as well as significant indigenous characteristics like self-reliance and self-sufficiency, influence indigenous Peninsular Malaysians' business start-up activities.
Literature Review
Entrepreneurial intentions predict entrepreneurial action (Li et al., 2020). High entrepreneurial intentions encourage and greatly impact entrepreneurial action (Kong et al., 2020). The TPB is one of the most often used theoretical models for predicting behaviour (Neneh, 2019). In 1985, Icek Ajzen established the theory, concentrating on attitude, subjective standards, and perceived behavioural control related to goals (Bannor et al., 2021). However, Icek Ajzen has added actual behavioural control to the TPB (Ajzen, 2019). Thus, to study indigenous people in Peninsular Malaysia, particularly Perak and Pahang, it is necessary to link them to intention indicators, as intention has been scientifically shown to form entrepreneurial behaviour.
Theory of Planned Behaviour (TPB)
The Theory of Planned Behaviour, created by Ajzen (1985) Icek Ajzen (1985), ties ideas to behaviour by linking domain characteristics like attitude, subjective norms, and perceived behavioural controls to an individual's intention (Lu et al., 2022). According to the TPB, the stronger a person's intention to conduct a given behaviour, the more likely it will be performed (Neneh, 2019). TPB is the most widely used model for characterizing and predicting intentions and behaviour (Maheshwari & Kha, 2022). The TPB has traditionally been used as a grounded theory to detect entrepreneurial behaviour in quantitative and qualitative surveys, according to Zaremohzzabieh et al. (2019). The TPB was chosen as the study's underpinning theory since it is one of the most widely utilized theoretical models for predicting behaviour.
Attitude
Entrepreneurship is associated with valuable, beneficial, and desirable firm behaviour (Mahfud et al., 2020). Attitudes evaluate specific aims, unlike qualities (Ajzen et al., 2018). Thus, the attitude has three main components: emotive, cognitive, and behavioural. The cognitive component includes an individual's beliefs, thoughts, and knowledge about the behaviour. The affective component is their emotional reaction and feelings toward the behaviour, and the behavioural component is how they react to a specific set of behaviours (Jena, 2020). Thus, the following hypotheses were formulated:
H1: Attitude positively effects on entrepreneurial behavior.
Subjective norms
Subjective norms affect an entrepreneur's decision to start a business and follow social norms (Bhuyan & Pathak, 2019). People may act similarly as long as it serves their reference group (Wahyuni et al., 2019). Ajzen (2019) subjective norms are a person's evaluation of other people's opinions on whether they should do or not do a certain behaviour. H2 was derived from this literature:
H2: Subjective norms positively effects on entrepreneurial behaviour.
Perceived behavioural control
A person's perceived behavioural control is how easy or hard it would be to perform the intended behaviour (Haddad et al., 2021). Ajzen (1991) defines as an individual's self-perception of their ability to do certain conduct, such as starting a new company. Self-efficacy, perceived control, and understanding of the behaviour and abilities influence an individual's intention to engage in a given behaviour (Romero-Colmenares & Reyes-Rodríguez, 2022). Thus, the hypothesis was:
H3: Perceived behavioural control positively effects on entrepreneurial behaviour.
Actual behavioural control
Actual behavioural control is the skills and resources an individual needs to perform an intended behaviour, and if actual behavioural control is difficult to identify in a problematic situation, perceived behavioural control can be used to predict behaviour (Ajzen, 2019). Thus, the following hypothesis was formulated:
H4: Actual behavioural control positively effects on entrepreneurial behaviour.
Self-reliant
Indigenous people in Peninsular Malaysia are among the most marginalized Malaysians, especially in their power to control their fate (Lee et al., 2018). As a result, they demand complete autonomy in their customary areas, such as land ownership, lifestyle choice, and interactions with the dominant culture (Norhayati & Ramle, 2021). Indigenous peoples can choose their political position and seek economic, social, and cultural development to gain independence and distinctness (Nor Emmy Shuhada et al., 2020). Because Peninsular Malaysia's indigenous people are determined to protect their ancestral regions and identities, they have preserved their ancient way of life by relying on forest-based produce and nature for survival, resulting in self-reliance (de Vries et al., 2016). Self-reliance was a key factor in this study's search for indigenous entrepreneurs. This feature will help this study comprehend indigenous people's entrepreneurial conduct. H5 was derived from this literature:
H5: Self-reliant positively effects on entrepreneurial behaviour.
Self-sufficiency
Indigenous peoples are used to self-sufficiency. Indigenous peoples' cultural identity, ethnic sanctuary, and economic opportunity have long been protected (Tengeh et al., 2022). Indigenous peoples or aborigines around the world are the essences of a self-sufficient culture, according to Amiruddin et al. (2020). This culture allows and demonstrates their respect for nature, which they believed provided them with food and necessities. It has led them to live simply with limited reliance on modern technologies and materials. Thus, Amiruddin et al. (2020) found that a self-reliant mindset leads to self-sufficiency. Thus, indigenous people with great self-reliance will be self-sufficient. H6 was thus:
H6: Self-sufficiency positively effects on entrepreneurial behaviour.
Despite these findings, this study considers self-reliance and self-sufficiency important in characterizing indigenous Malaysian entrepreneurs. Figure 2 shows this study's conceptual framework based on literature reviews.
Research Methodology
Research design
Deductive reasoning emphasizes causality to make and verify findings and predictions (Creswell & Creswell, 2018). Hence this study used it to answer the question at hand using a quantitative method to examine the relationship between independent variables (IVs) and dependent variables (DVs). Quantitative methods examined indigenous people's entrepreneurial behaviors in Pahang and Perak. Researchers used a cross-sectional design to collect data. Cross-sectional data is collected concurrently (Bougie & Sekaran, 2019). The researchers conducted a face-to-face survey with questionnaires.
In Pahang and Perak, indigenous entrepreneurism was studied. This pilot study assesses potential constructs for the next study. Before undertaking the pilot study, the researcher conducted preliminary tests. Pre-testing ensured that the measurement and item sets were appropriate and accurately represented the study's main idea. Ikart (2019) hypothesized that a rigorous expert evaluation of the pre-testing questionnaire serves the intended purpose and adds value to the questionnaire, so two academics teaching research methodology and entrepreneurship and two JAKOA officers were chosen for this study to ensure the survey instrument's content validity.
Population and sample
JAKOA reports 78,425 and 60,565 indigenous people in Pahang and Perak, respectively. Therefore, these two states were chosen for this pilot project (JAKOA, 2022) using purposive sampling. Forty indigenous entrepreneurs from both states were selected based on two criteria: (1) they must be indigenous, and (2) they must own or be active in any entrepreneurial operations, regardless of age. Many indigenous entrepreneurs choose to remain unregistered, according to JAKOA inspectors. Judgment (purposeful) sampling is utilized because the researcher selects respondents. The researcher needs more information sources because Pahang and Perak's indigenous people reside in scattered villages. Judgment sampling involves picking people in the best position to provide relevant information and who have the appropriate traits, according to Bougie and Sekaran (2019).
Data collection
The researchers initially obtained each indigenous entrepreneur's most current address from JAKOA to discover appropriate responders based on the researchers' criteria. The researcher then asked the Village Chief or for help in identifying the correct respondents who had either registered with the Companies Commission of Malaysia (CCM) or JAKOA or had never registered with any agency, regardless of age, which is not reflected in JAKOA and CCM data and records. JAKOA Rompin and Perak officers helped researchers collect data.
Data analysis
For demographic data analysis, cross-tabulation will categorize data. Pivot tables in Microsoft Excel boost data analysis efficiency. Hence the researcher used them for cross-tabulation analysis (Grech, 2018). Second, the PLS-SEM was selected to test the hypotheses. Recent multivariate analysis method PLS-SEM accurately predicts theoretically validated cause-effect relationship models. Over the last two decades, this technique has grown in favor of social sciences and other fields (Dash & Paul, 2021; Zeng et al., 2021). This study uses SmartPLS 4.0 to analyze data using partial least squares structural equation modeling (PLS-SEM). Smart PLS-SEM is suitable for analyzing complicated research models with associated theories and empirical data (Sobaih & Elshaer, 2022).
Findings
Cross-tabulation analysis evaluates demographics, including gender, age, ethnicity, subgroups or tribes, firm ownership, entrepreneur categories, years since establishment, and educational background. Data shows that responders meet the researchers' criteria for this pilot project.
Assessment of measurement model
Convergent validity
Below are the validity results. Table 1 reveals that the Average Variance Extracted (AVE) values ranged from 0.547 to 0.875, above the suggested 0.50 (Hair et al., 2021). An AVE value of 0.50 or higher indicates that the construct explains more than half of the variance in its indicators, according to Hair et al. (2018). Thus, Table 1 suggests that this study's constructs have excellent convergent validity. Therefore, responders understand the study's question or statement and the researcher's needs.
Discriminant validity
The researcher assessed discriminant validity using Heterotrait-Monotrait Ratio Statistics (HTMT) in PLS-SEM. Average construct correlation is calculated using the HTMT criterion. Thus, it will define structure uniqueness. Discriminant validity results are in Table 2. A less than 0.90 is a discriminant validity requirement for HTMT (Henseler et al., 2015; Roemer et al., 2021) If the value is more than 0.90, Henseler et al. (2015); Roemer et al. (2021) recommend bootstrapping.
Assessment of structural model
After the measurement model, PLS-SEM uses the structural model. Bootstrapping will test the hypothesis between constructs (Hair et al., 2021). The study's hypothesis is summarized in Table 3. Attitude, perceived behavioural control, actual behavioural control, self-reliance, and self-sufficiency did not affect indigenous people's entrepreneurial behaviour, with p-values better than 0.05 and t-values less than 1.645. (Hair et al., 2019; Hair et al., 2021) state that the critical t-values for one-tailed tests are larger than 1.645 and for two-tailed tests, greater than 1.96 with a 5% significance level (p-value). These are directed hypotheses. Hence one-tailed tests were used. With a t-value of 1.902 and a p-value less than 0.05 or 0.029, only subjective norms are significant.
Discussion
This study examines how attitude, subjective norms, perceived and actual behavioural control, and entrepreneurial behaviour affect indigenous people in Pahang and Perak. The researcher studied indigenous people's self-reliance and self-sufficiency to study their entrepreneurial behaviour. Attitude, perceived behavioural control, actual behavioural control, self-reliance, and self-sufficiency did not affect indigenous entrepreneurs' entrepreneurial behaviour (H1, H3, H4, H5, and H6 are rejected). H2 accepts that subjective norms strongly influence entrepreneurial behaviour.
In this study, indigenous people were asked about their significant others' views on entrepreneurial activities to evaluate subjective standards. Friends, relatives, and tribe members were among these. According to the research, indigenous people said family, friends, and loved ones affected their desire to become entrepreneurs. Subjective norms or normative references from family, friends, and co-workers directly affect entrepreneurial intention (Hung & Khai, 2022). The individual may seek advice and support from friends and family because being an entrepreneur is difficult (Wahyuni et al., 2019). Each normative belief strengthens a person's pressure to follow the appropriate referent (Romero-Colmenares & Reyes-Rodríguez, 2022).
Indigenous peoples have distinct languages, knowledge systems, beliefs, and sustainable natural resource management skills. They use and cherish their ancestral land. Their physical and cultural survival depends on their inherited land. Traditional values, visions, needs, and priorities shape indigenous development beliefs. Thus, indigenous people considered their reference individuals vital when they wished to become entrepreneurs (Amiruddin et al., 2020). Thus, indigenous people need social references to help them become successful businesses.
Implications
Entrepreneurial intention and behaviour are studied in this study. The TPB may use these findings to encourage indigenous entrepreneurs. TPB links entrepreneurial intention to entrepreneurial behaviour. Therefore, many academics have adopted it. Therefore, indigenous people's entrepreneurial activities, particularly in Perak and Pahang, can be used to evaluate and develop their intention to become entrepreneurs and improve their socioeconomic conditions.
This study shows how different social groups engage in entrepreneurial behaviour. According to the research, the individual intention will act early before entering a venture. The stronger an indigenous person's entrepreneurial intention, the better their chances of becoming an entrepreneur. Thus, the government, notably JAKOA, must include indigenous societal references when creating entrepreneurial activities for indigenous people. The National Entrepreneurship Policy's goal of making Malaysia an enterprising nation by 2030 can be achieved by addressing this crucial issue.
Limitation and future research
This research is limited. This investigation started with TPB's core theory. Future studies can examine mediator and moderator variables from the expanded TPB, such as cultural or psychological factors, to compare culturally diverse respondents' behaviours. Second, future studies can use demographic information like ethnicity to show behavioural differences in respondents, and third, as this is only a pilot study, future research can consider surveying all indigenous people in Malaysia.
Conclusion
Entrepreneurship is essential to improving socioeconomic conditions in all nations, especially indigenous ones. Subjective norms encourage indigenous entrepreneurs, according to the research. Indigenous people carefully follow their ancestors' culture and beliefs. Thus, important people greatly influence their survival decisions. Thus, the government or JAKOA should consider this element when designing entrepreneurial programs or efforts for indigenous people to create more innovative, viable, and resilient businesses in the future.
Acknowledgments
The authors thank the participating organizations (JAKOA Perak and JAKOA Rompin) and the survey respondents for providing valuable information.
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Derani, N. E. S., Mokhtar, M., & Nawanir, G. (2023). The Role of TPB, Self-Reliance and Self-Sufficiency on Indigenous Entrepreneurial Behaviour. In N. M. Suki, A. R. Mazlan, R. Azmi, N. A. Abdul Rahman, Z. Adnan, N. Hanafi, & R. Truell (Eds.), Strengthening Governance, Enhancing Integrity and Navigating Communication for Future Resilient Growth, vol 132. European Proceedings of Social and Behavioural Sciences (pp. 564-577). European Publisher. https://doi.org/10.15405/epsbs.2023.11.02.44