The mediating role of psychological capital on the behavior of Ivorian entrepreneurs seeking external financing

Abstract

Entrepreneurial intention plays a vital role in generating new business. Although many studies have shown that attitude influences the formation of intentions, few discuss this relationship by interactively engaging with social and psychological capital. This study aims to develop a structural model to form the entrepreneurial intention of Ivorian SME entrepreneurs which involves the interaction of social capital and psychological capital in the search for external financing. Data was collected randomly using an online questionnaire completed by 50 Ivorian SMEs. A theoretical analysis based on the theory of planned behavior (TPB) followed by a quantitative study was used to examine the developmental structure model of entrepreneurial intentions. The results reveal that in entrepreneurial orientation, psychological capital collaboratively and interactively influences the entrepreneurial intention of SMEs in seeking external financing. Psychological capital has been shown to have a positive mediation effect on the relationship between entrepreneurial orientation and entrepreneurial intention. Finally, psychological capital was also found to fully mediate the impact on entrepreneurial intention. The results of this study are discussed and some proposals with implications for practitioners and operators of small and medium-sized businesses have also been formulated.

Keywords: Entrepreneurial intention ; Social capital ; psychological capital ; external financing ; theory of planned behavior (TPB)

JEL Classification: L26

Paper type: Empirical research