The Entrepreneurial Behavior and Practical Industrial Work

Experience as the Determinant Factor of Entrepreneurial Intention

Junaidi H. Matsum

Tanjungpura University, Pontianak, Indonesia

Keywords: Entrepreneurial intentions, Vocational High School, Industrial Work Experience.

Abstract: Generally speaking, competent workers and entrepreneur ready graduate are the challenges in the education

system, especially for Vocational High School. This paper aimed to reveal the entrepreneurial behavior and

industrial work practice experience as the determinant factor of entrepreneurial intentions of Vocational

High School 2 in Singkawang City. This research employed descriptive method in the form of correlation

research study with 44 graduate students as sample of this research. Results revealed that in fact, (1) the

entrepreneurial behavior factor is significantly and positively influences the entrepreneurial intention, (2)

the factor of industrial work practice experience is significantly and positively influences the entrepreneurial

intention, and (3) the entrepreneurial behavior and the experience of industrial work practice are both

significantly and positively influence the entrepreneurial intention. Considering the foregoing results, it is

demanding for Vocational High School to improve their quality in to create professional competency for

employment market.

1 INTRODUCTION

One economic development can be determined by

the entrepreneurship. In this globalization era, the

entrepreneurial behavior is expected to exist. The

entrepreneurial behavior refers to every individual

response towards risk in conducting business and

their courage in facing the challenge of the

entrepreneurship world. The theory of planned

behavior by Icek Azjen (in Srigustini, 2014)

expressed that the intention is influenced by the

attitude as the form of both positive and negative

trust of someone towards a behavior and subjective

norm. According to this statement, the

entrepreneurial behavior is a foundation in the

creation of entrepreneurial intentions.

According to Wibowo (2011:110), the

intermediate education, particularly vocational high

school is performing professional skills education

that combines educational and entrepreneurship

program at the school in systematic and

synchronized approach towards practical work in a

business sector in order to create professional

worker/labor. For these reasons, in recent decades,

the Vocational High School students who are being

educated need to be put into a perception that the

graduates should conceive entrepreneurial behavior

besides their opportunities to work in the business

and industrial world. However, in fact, graduate

students from vocational high school in Indonesia is

less keen on becoming successful entrepreneur.

Majority of them, consequently, are becoming

jobless.

Entrepreneurial behavior is one of the major

areas of entrepreneurship research. Lately, Daim et

al. (2016) carried out previous research on the

entrepreneurial intensions of students in terms of

genders and country of residence differences. The

paper explores perceived feasibility and desirability

for students in 10 countries. In fact, the results

indicate that gender impacts entrepreneurship

intention and the way it impacts is influenced by

which country the students are from (Daim et al.

2016). Meanwhile, this research aims to reveal the

entrepreneurial behavior of the students from West

Kalimantan, where the city is near border area of

Serawak, Malaysia. It is expected that they will have

a very good potential for successful enterprise.

Another related study was from Pakpahan

(2013), providing insight into practical industrial

work experience. The results confirmed that there is

a positive relation between practical industrial work

experience and entrepreneurial intention of the

eleventh grade students in Motorcycle Engineering

Program of SMK Persatuan Amal Bakti (PAB) 6

Medan Estate in the academic year of 2012/2013. By

Matsum, J.

The Entrepreneurial Behavior and Practical Industrial Work Experience as the Determinant Factor of Entrepreneurial Intention.

In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 351-355

ISBN: 978-989-758-308-7

351

contrast to this, the researcher purposely chose

graduate students as the subject of research based on

the consideration that they are a ready-used

graduates that are expected to utilize their practical

industrial work experience. The distinction also

toward the review of literature and with the

difference variables.

All in all, taking up those points, this paper aims

to explore on how the entrepreneurial behavior and

industrial work practice experience as the

determinant factor of entrepreneurial intentions of

Vocational High School 2 in Singkawang City.

Thus, the following research questions are

postulated: (1) Is there any influence of

entrepreneurial behavior towards the entrepreneurial

intentions of Vocational High School 2 Singkawang

City graduates? (2) Is there any influence of

industrial work practice experience towards the

entrepreneurial intentions of Vocational High School

2 Singkawang City graduates? (3) Is there any

mutual influence of entrepreneurial behavior and

industrial work practice experience towards the

entrepreneurial intentions of Vocational High School

2 Singkawang City graduates?

2 LITERATURE REVIEW

2.1 Entrepreneur Intention

For as long as has been discussed in the

entrepreneurship literature, many studies have

focused on intentions (Bird, 1988; Krueger et al,

2000). The intention as the tendency of desire

creates and utilizes the existing opportunity by

optimizing the available resources. According to

Winkel (1996:30) “intention is the tendency that

lives in the subject, to feel an interest towards a

certain thing/sector as well as felt delighted to be

involved in that sector”. Basically, the

entrepreneurial intention is a will or a feeling of

someone interest in conducting the business activity

and the willingness to work hard or being adamant

without fear towards the risk that would be faced.

Pintrich and Schunk (2002) sounded the same,

stating that the entrepreneurial intention is (a)

General attitude towards the activity. The like or

dislike feelings, agree or disagree, with the general

activity towards positive trait or favoring activity.

(b) Specific conscious for or living the activity,

which is the awareness to decide an activity or

object. (c) Enjoyment of the activity is the delight

feeling towards the interesting activity. (d) Personal

importance or significance of the activity to the

individual. (e) Intrinsic interest in the content of the

activity, which is the intrinsic intention towards the

content of the activity with the flow of delightful

emotion. (f) Reported choice of or participant in the

activity, which is the individual that choose or

participate in the activity.

Speaking in further, Harun and Ramayah

(2005:28) expressed that the individual intention to

become entrepreneur can be known from the

decision, the interest, the delighting, and the courage

in risk taking.

By referring to the explanation above, the

entrepreneurial intention is (a) The will to become

an entrepreneur, (b) The interest in entrepreneurship,

activity, (d) Contain high curiosity regarding

entrepreneurship world, (e) Delight in conducting

entrepreneurship activity, and (f) Being adamant to

conduct entrepreneurship activity. The factors that

influence entrepreneurial activity according to

Suryana (2011) in outline are grouped into intrinsic

and extrinsic factor. The intrinsic factors include

income, prestige, and pleasure feeling. The extrinsic

factors include family environment, community

environment, opportunity, and knowledge/education.

2.2 Entrepreneurial Behavior

The entrepreneurial behavior is the determinant

factor of entrepreneurial intention. Wijaya (2008:97)

expressed that “Behavior is based on the interest

towards business opportunity, positive perspective

towards business failure, eager to taking the risk,

and challenge”. Wijaya (2008:95) boldly added that

“Behavior is the foundation to produce the

intention”. The entrepreneurial behavior is the will

of someone to move forward and dare to take the

risk in business sector in order to fulfill their needs

independently, which is influencing the high and

low intention towards entrepreneurship.

2.3 The Industrial Work Practice

Experience

The education/knowledge acquired through

industrial work practice gives the experience

towards students that in further grows their intention

in entrepreneurship. According to The Department

of Education and Culture (2005:112); industrial

work practice is the part of a dual educational

system, defined as the form of the educational

process of professional skill that combines

educational and entrepreneurship program at the

school in systematic and synchronized approach

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

352

towards practical work in the business sector in

order to achieve certain competency level.

According to Wena (1996:61), the students

experience that has been conducting industrial work

practice can be measured through: (a) the accuracy

of student in mastering a particular skill, (b) the

student work swiftness in conducting an

assignment/time efficiency, (c) the quantity and

quality of students’ work results, (d) learning shift

level, and (e) the compatibility in conducting work

with procedures or according to the instruction from

the work supervisor.

By that means, industrial work practice is the

form of training and education that provide

experience from the industry or workplace

intentionally to equip the graduates with knowledge

and skills in accordance with that entrepreneurship

world.

2.4 Theoretical Framework

Entrepreneurial intention and practical industrial

work experience are core to achieve successful in

entrepreneurship. Entrepreneurial intention is

defined as the willingness in undertaking actions or

activities, and cope with the existing opportunity on

the available resources. Therefore, entrepreneurial

behavior is the very beginning step to take into

account in becoming successful entrepreneur. In line

with this matter, practical industrial work experience

is also considered as an underpinning to gain

entrepreneurial intention. Industrial work practice

experience is a part of dual educational system, in

which educational and entrepreneurship program are

combined together.

From the aforementioned theories, it is clearly

seen that to become an entrepreneur, one needs to

have entrepreneurial behavior and practical

industrial work experience. Therefore, this research

aims to reveal how are the entrepreneurial behavior

and industrial work practice experience as the

determinant factor of entrepreneurial intentions of

Vocational High School 2 in Singkawang City.

3 METHODS

This study was carried out using descriptive method

in the form of correlation research study. The place

of research is Vocational School 2 Singkawang City.

The amount of sample was taken with the

formulation of Isaac & Michael (Sugiyono,

2014:128). The proportional random sampling

method is used for each class with 44 students.

Regarding the technique and data collection tools,

the researcher used indirect communication with a

questionnaire, direct communication through

interview guideline, and documentary study

technique with the notebook. Hypothesis is

formulated and tested using multiple regression

analysis. The steps of analyzing the data were

normality test, multicollinearity test, hypothesis test,

multiple regression analysis, coefficient of

correlation, and coefficient of determination. Then,

the data was analyzed by using the 16 Version of

SPSS software.

4 RESULTS AND DISCUSSION

4.1 Research Finding

Based on the data analysis result and hypothesis test,

it can be known that: (a) the entrepreneurial

behavior is significantly and positively influences

the entrepreneurial intention of graduated students of

Vocational High School 2 Singkawang. The

influence strength is showed by the 23.72% value of

determination coefficient. (b) The industrial work

practice is significantly and positively influences the

entrepreneurial intention of Singkawang City 2

Vocational High School graduates. The strength of

the correlation is showed by the 66.26% value of

determination coefficient. (c) The entrepreneurial

behavior and the experience of industrial work

practice are both significantly and positively

influence the entrepreneurial intention of Vocational

High School graduates. The influence strength is

showed by the 75.86% value of determination

coefficient.

4.2 Research Discussion

4.2.1 The entrepreneurial behavior factor

has an influence towards the

entrepreneurial intention.

The entrepreneurial behavior is significantly and

positively influences the entrepreneurial intention of

Vocational High School 2 Singkawang graduates.

The influence strength is showed by the 23.72%

value of determination coefficient. This condition

shows that the entrepreneurial behavior conceives

the important role for Vocational High School

students. In line with the opinion of Wijaya

(2008:95) which stated that “The behavior is the

foundation to produce the intention”. In that order,

The Entrepreneurial Behavior and Practical Industrial Work Experience as the Determinant Factor of Entrepreneurial Intention

353

the entrepreneurial behavior could affect

entrepreneurial intention. The students who own

high entrepreneurial behavior level will emerge the

high entrepreneurial intention level as well and for

the opposite, the students who own low

entrepreneurial behavior level will result in the low

entrepreneurial intention level. This research is in

line with the research of Wijaya (2008) which

explained that the behavior variable directly

influences the entrepreneurial intention.

4.2.2 The industrial work practice

experience has an influence towards

the entrepreneurial intention.

The industrial work practice experience is

significantly and positively influences the

entrepreneurial intention of Vocational High School

2 graduates in Singkawang City. The strength of the

correlation is showed by the 66.26% value of

determination coefficient. This condition shows that

the industrial work practice experience conceives the

important role for Vocational High School students.

The students who own high industrial work practice

experience level will emerge the high

entrepreneurial intention level as well and for the

opposite, the students who own low industrial work

practice experience level will result in the low

entrepreneurial intention level. The industrial work

practice or entrepreneurship is the effort of the

educational institution to conduct learning activity

that being directed towards the development of soft

skill and professional competency for the need of

job market outside the main school activity.

Theoretically, the dual educational system is a

professional skills education that systematically

combines the educational program at the school with

the skills development that acquired through

working in directed business sector to achieve

certain professional competency.

Therefore, the industrial work practice is having

a high influence towards the high and low level of

graduate student entrepreneurial intention. This

condition is caused by the valuable experience

acquired by the students while conducting industrial

work practice that enhancing their intention in

entrepreneurship.

4.2.3 The factor of entrepreneurial behavior

and the experience of industrial work

practice are having influence towards

the entrepreneurial intention.

The entrepreneurial behavior and the experience of

industrial work practice are both significantly and

positively influence the entrepreneurial intention of

graduated students of Vocational High School 2

Singkawang. The influence strength is showed by

the 75.86% value of determination coefficient. Thus,

if the students conceive the entrepreneurial behavior

followed by the high industrial work practice

experience, the entrepreneurial intention would be

high as well. In the opposite, if the students conceive

the entrepreneurial behavior followed by the low

industrial work practice experience, the

entrepreneurial intention would be low as well. This

condition shows the importance of high

entrepreneurial behavior and industrial work practice

that should be existed as the addition value towards

the enhancement of professional skills competency.

The entrepreneurial intention always related to its

influencing factors. Aside from the entrepreneurial

behavior and industrial work practice, there are

many other factors that could influence the

entrepreneurial intention. Suryana (2011) divided

the influencing factors of entrepreneurial intention

into two massive group which are the intrinsic and

extrinsic factor.

5 CONCLUSIONS

Based on the foregoing findings and discussion, it

can be concluded that the entrepreneurial behavior

factor is significantly and positively influences the

entrepreneurial intention of Vocational High School

graduates showed by the 23.72% value of

determination coefficient. In addition, the factor of

industrial work practice experience is significantly

and positively influences the entrepreneurial

intention of graduated students of Vocational High

School showed by the 66.26% value of

determination coefficient. Also, the entrepreneurial

behavior and the experience of industrial work

practice are both significantly and positively

influence the entrepreneurial intention of Vocational

High School graduates showed by the 75.86% value

of determination coefficient.

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

354

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