The Role of TPB, Self-Reliance and Self-Sufficiency on Indigenous Entrepreneurial Behaviour

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).

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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.

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.

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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).

Assessment of measurement model

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.