Effect of Locus of Control on Entrepreneurial Attitudes and Self-Employment Intentions: The Moderating Role of Individualism

Abstract

Applying Ajzen’s planned behavior theory, we study the impact of control beliefs (reflected by an internal locus of control) and normative beliefs (investigated via individualistic cultural orientation) on entrepreneurial attitudes and self-employment intentions of final year university students. We particularly explore the interactive effect of internal locus of control and culture when explaining entrepreneurial attitudes, which consequently shapes self-employment intentions. The data were collected at a German university and three universities in East Africa. We received 590 complete responses. We used PROCESS Macro to test our model and hypotheses. Our findings show that both internal locus of control and culture predict entrepreneurial attitudes and self-employment intention. The effects of international locus of control are mediated by entrepreneurial attitudes. Moreover, the indirect effect is further conditioned by culture. Theoretical and practical implications of these findings are discussed.