FACTORS AFFECTING THE SOCIAL INNOVATION INTENTION OF UNIVERSITY STUDENTS THROUGH SOCIAL ENTREPRENEURSHIP PROGRAMS.

FACTORS AFFECTING THE SOCIAL INNOVATION

INTENTION OF UNIVERSITY STUDENTS THROUGH

SOCIAL ENTREPRENEURSHIP PROGRAMS.

DOI: 10.13140/RG.2.2.12025.26729

This 211st _{era, society’s living standard are better than previously and the number of} educated people are also increases. However there are still a group of society that need help such as issue related to care of elderly and this group of people face a difficulty and need help. Even though there are many effort had been carried out by the government and a few NGO that took part to help solving this issue, but there are still limited assistance from them to help these groups. Therefore, one way to solve this problem by introducing the social entrepreneurship practice in Malaysia especially a university students. Social entrepreneurship concept is still new in Malaysia, therefore this study aim to identify the level of awareness, identify the main factor that affecting the university students towards creating an innovative solution for social entrepreneurship, and to know the relationship between the factor and intention towards creating an innovative solution for social entrepreneurship, all of this are illustrated in the theoretical framework of theory of planned behavior (TPB). This research focused on the university student that already participated in social entrepreneurship program to measure the effectiveness of program that have been conducted. this research utilized the quantitative method (questionnaire), student of University Teknikal Malaysia Melaka (UTeM) has been selected as a sample which is approximately 200 people by referring the Malhotra table. The result of data were analyzed using Statistical Package for the Social Sciences (SPSS).

Keywords: social entrepreneurship, theory of planned behavior (TPB), university student 1. Introduction

1.1 problem introduction

In this 21st _{era society’s living standard are better than previously and the number of} educated people are also increases. However there are still a groups society that needs help which this is the time that educated peoples are needed to improving and giving back to the society for a better life and this is the time where people need to thinking like a social

entrepreneurship. Social Entrepreneurship broadly understood as a practice that aims at social change has a long heritage (ignasi marti, 2006). According to Austin, Stevenson and Wei-Skillern, (2006,) the core definition of Social entrepreneurship is innovative, social value creating activity that can occur within or across the non-profit, business, and public sectors. In Malaysia, the concept of social enterprise is still a new phenomenon where public are still not clear about the whole concept of it. Our Prime Minister, Datuk Seri Najib Razak at the inaugural international conference for young leaders 2015 has stated that he want more youths to ventures into social entrepreneurship and help to bring about and lasting positive impact on society (the Malaysian Insider, 2015). As supporting the Prime Minister objectives, there are a few university provide an entrepreneurship program to give eye opening to students such as Universiti Kebangsaan Malaysia (UKM) since university in Malaysia also play an important role to encourage student to participate in social entrepreneurship. University is a potential place to develop a human capital to implement pattern changing idea to address the world’s most pressing challenges (Soosay et al., 2016). Hence, this study aim to identify the level of awareness of university student about social entrepreneurship, study the main factor that leads to creating intention of university students in developing an innovative works for social entrepreneurship and to examine the relationship between factors affected and intention to create an innovation in social entrepreneurship by applying a Theory Planned Behaviour (TPB) and this research will give implication to university, innovation and industry (Abu et al., 2015).

1.2 importance of the problem

Social entrepreneurship practice is really important as it will bring the awareness and cultivate the moral value of giving back to the community by doing a voluntary work, and it can help the people in need as nowadays there are many issues pertaining to society. The issue related to the care of elderly, lack of platform to help in sustaining the business of single mother association and even issue related to urban poor for instance, the issue of urban poor, it is actually address by a group of youth as a social enterprise in Malaysia. (thenasilemakproject.com) in which people are not enough profit to live in the urban area this group of people face a difficulty and need help .There is a fact say that almost a quarter of households in Malaysia earn less than RM 2,000 per month (Khazanah State of Households

Report 2014) with the economy today, it is hard to living with such income. Even though there are many effort had been carried out by the government and a few NGO that took part to help solving this issue, however there are still limited assistance from them to help these groups. Minister of Youth and Sports, Hon. Khairy Jamaluddin, said that the concept of social entrepreneurship is still new in Malaysia. Social entrepreneurship from his perspective is actually driven by a social mission. Wealth and profit are not the mission of social entrepreneurs, but it is actually prioritizing the achievements and impact of social mission. Social entrepreneurship practice enhance the youth to do a voluntary work, and it can help the people in need without rely on government and NGOs to do that. As what Minister of Youth and Sports, Hon. Khairy Jamaluddin said that, he want young people to think that social change is not just a voluntary work by NGOs alone but can be done by them through social entrepreneurship. (Beritaharian, 2015)

1.3 literature review

This study reviewed the past research that are related to social entrepreneurship and this research reviewed a previous research that discussed about definition of social entrepreneurship, the researcher commented that social entrepreneurship really need to stand with a strong definition that differentiate the definition between social entrepreneurship and entrepreneurship to clear the understanding of people about social entrepreneurship. According to Praszkier and Nowak (2012) some individual might relate to the inherent quality of innovation, some to promise of social change, some to crucial personality characteristics, and still others to solving a social problem. From the definition it shows that social entrepreneurship is not prioritizing the profit only but also emphasize their business to help social. Apart from that, this research also reviewed the previous research that study why social entrepreneurship is social and Peredo and McLean (2006) has investigated it and according to them) social entrepreneurship are driven by social goals and that’s what make one different with entrepreneurship. In other words, social entrepreneurship has a desire to benefit society in some way or ways which is to increase the social life. They have a creative mind to find a new and better ways to create and sustain social value. Social entrepreneurship characterized by Bornstein’s (1998) as an innovative characters, he stated that one that thinking open to new possibilities by introducing innovative ideas, combine visions with

down-to-earth realism, someone who are creatives and highly ethical to their ideas of social change. Beside according to Drayton (2002, 2005) and Hammonds (2005) are, individual that having a new idea for solving a critical social problem, being creative, having an entrepreneurial personality, envisioning the broad social impact of the idea, possessing an unquestionable ethical fiber. Moving to Social entrepreneurship typology, SE is unique and differ from normal entrepreneurship typology as according to Dees (1998) what distinguishes the social entrepreneur from the traditional is their social mission. They are not focusing on wealth creation but on creating outcomes of social value. Austin et al (2008) mention that the realm of the social entrepreneur differs from traditional entrepreneurship in several ways, first point is that social enterprise it may choose a lower rate of profit in order to deliver social benefits to the wider community and second point is social entrepreneurship may lie in their deployment of resources. Social entrepreneurship often used voluntary labors, may or may not apply a pay rates but it may be more modest, and much of the workforce may be voluntary to donate their time for the social activity a social entrepreneurship may seek to exchange assets of a non-economic value as what most social entrepreneurship are aim about.

Beside study the previous research about social entrepreneurship in details, factors, intention and theory that related to this research also being investigated. I terms of factors that related to this study, past researcher has investigated that in order for individual to know about social entrepreneurship it’s actually affected from the understanding and intention to aware about this topic. (David A. Kirby and Nagwa Ibrahim, 2011). Previous research has studied about the case for social entrepreneurship education in Egyptian University, where its aimed to explore the awareness of social entrepreneurship amongst Egyptian students and to determine what is needed to create more graduate social entrepreneurship. This study has stress the importance of the knowledge and intention to aware of the students in other for them to aware and acknowledge about social entrepreneurship. [ CITATION Dav11 \l 1033 ]. On the other hand, peer pressure also has been known as one of the reason for others individual to intend in doing something because influence by their peer. In Theory of Planned behavior (TPB) peer pressure determinant are placed under Subjective norms. Subjective norm refer to the perceived social pressure for or against performing the behavior (Ajzen, 1987). According to Ajzen (1991) this construct refers to the “likelihood that important referent individuals or groups approve or disapprove of performing a given behavior.” and lastly the researcher reviewed the effectiveness of social entrepreneurship program undertook by a university in Malaysia. Previous researchers mentioned that universities are seedbeds of

entrepreneurship to teach their students the way to think and behave entrepreneurially (Bygrave 2004). In this part of the effectiveness of program there are a few aspects that considered important to ensure the program is valuable which are; supportive environment, activity, program promotion, benefit, and extrinsic rewards. All of this play an important role to act as a system that need to be together to ensure the program will deliver effectively give a valuable knowledge and new perception to the participants. In terms intention, previous research stated that intentions are presumed to capture the motivational factors that influence a behavior; they are indications of how hard people are willing to try, of how much of an effort they are planning to exert, in order to perform the behavior. The general rule in TPB is that the stronger the intention to engage in a behavior the more likely should be its performance (Ajzen 1991) . In measuring the intention, previous research had stated that it is whether the individual willing to plan something related to that and willing to start that particular intention object. In terms of theory, the researcher study the theory of Planned Behavior( TPB). The theory of planned behavior (TPB) is an extension of the theory of reasoned action (Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975). It is made necessary by the original model’s limitations in dealing with behaviors over which people have incomplete volitional control. The development of the TBP/TPA originated in the field of social psychology. The theory of planned behavior is a theory which predicts deliberate behavior, because behavior can be deliberative and planned. It is consist of 3 determinants that lead to behavioral intentions which is the intention to innovate in SE and behavior which are; attitude towards behavior; level of awareness ( behavioral beliefs and outcome evaluations ), subjective norm; peer pressure ( normative beliefs and motivation to comply) and, perceived behavior control; SE program (belief about ease/difficulty of behavior).

1.4 Hypotheses

This study aimed to examine the relationship of awareness of the universities students on social entrepreneurship, peer pressure and social entrepreneurship program whether this factor will positively or not affect the intention to innovate in social entrepreneurship. All of these factor are derived from the TPB.

2 . Research Method

This study utilized a descriptive study. Descriptive study is aim to gain an accurate profile of events, persons or situation. This research aim to seek insight into the actual phenomenon students’ awareness about social entrepreneurship and factor that affecting the intention of students towards creating innovative solution for social entrepreneurship. Apart from that this research used the quantitative approach. Saunders et.al (2012) has stated that quantitative approach is generally associated with positivism. This approach examines the relationship between variables which are measured numerically and analyzed using a range of statistical techniques which is using SPSS software (reliability test, multiple liner regression). This study also conducted a research design which is used a survey that utilize questionnaire (self-completed and web based ) to obtain data and used question like “what”, “who”, “where”, etc. a questionnaire was designed with 4 section namely; (i)Section A( demographic), (ii) Section B (level of awareness),(iii) Section C (effectiveness of social entrepreneurship program) and, (iv) Section D (intention to innovate in social entrepreneurship),and applied a likert-style rating( strongly disagree-strongly agree) for the respondent to answers. This study took place at Universiti Teknikal Malaysia Melaka (UTeM) because this university has a center of entrepreneurship development which provide an entrepreneurship programs for students and had successfully implemented a social entrepreneurship program for students such as EYEI program. This research took approximately 9 month (2 semester) which is used a cross sectional study to conducted this study.

2.1 Sampling design

The researcher utilized non-probability sampling which is using a purposive sampling technique. Purposive techniques according to Saunders et al, (2012) is a techniques that used the researcher judgement. this research intend to study the level of awareness and factors affecting the intention of undergraduate students whom already joining a social entrepreneurship program to create an innovative work for social entrepreneurship. According to Saunders et al, (2012) in choosing the suitable sample size for non- probability

sampling, it is depending on researcher question(s) and objectives. patton (2002) added that it’s about what it needed to find out, what will be useful, what will have credibility and what can be done within the available resources. The researcher used Malhotra table to select the number of respondent which is referring to problem identification research which are approximately 200 students from 668 total of participants that already join the social entrepreneurship program.(refer appendices)

3. result of analysis

This research achieved its objectives and the result are analyzed using regression analysis, descriptive analysis, and reliability analysis to test the reliability of the questionnaire asked in survey. In the demographic profile of the respondent, it shows that females are the most respondents in this research (65%), the most respondents ages are between 21-23 years old, while most of the respondents are from FPTT faculty, and year 4. The reliability analysis for each section in the survey shows a good result which are 0.7 above of Cronbach alpha. Reliability statistic for dependent variables ( Intention to innovate in social entrepreneurship) is 0.890 which shows a very good reliability , while for the independent variables ;Level of awareness is 0.840 also shows a very good reliability , Peer pressure is 0.850 shows a very good reliability, Social entrepreneurship program; supportive environment is 0.840 recorded as a very good reliability , activities is 0.894, got a very good reliability, program promotion 0.837, a very good reliability, extrinsic rewards is 0.845 also shows a very good reliability ,but benefit of the program , shows only good reliability which is 0.787.

For objectives 1, to identify the level of awareness among respondents towards SE by using the descriptive analysis. from that result the researcher can conclude that the respondent are clearly aware about the SE because it shows the total mean are high ( M:3.7100). Respondent indicated that their level of awareness in SE depending on their answer in level of awareness question. from the result , respondent are more aware of the needs of special requirement to be a social entrepreneur (etc.creative and innovative) , followed by respondent are realizing that there are a social entrepreneurship programs implemented in university, respondent aware of the evolution and involvement of public towards social entrepreneurship in Malaysia . Last but not least the respondent understand the definition of social entrepreneurship clearly. For objective 2, to examine the main factor that affecting the intention of students towards creating innovative solution for social

entrepreneurship, the researcher utilized the regression analysis. the main factors that affecting the intention is extrinsic rewards due the highest value of R( 0.757) from modal summary, and this variable also significantly predict the outcome ( refer table ANOVA). Apart from that the coefficient table also shows a highest b-value( 0.757) this shows that the main factor is extrinsic rewards. For objective 3, by utilized the Multiple Regression Analysis, the result shows that the relationship between all the variables is partially positive and it indicates that only some of the factors affecting the intention to innovate in SE. From the table modal summary, it shows that overall factors affected 62.2% to the dependent variables but refer to coefficient table, peer pressure and level of awareness p value are not significant which is 0.101, and 0.210 respectively. Thus it shows that overall of this factor still affecting 62.2% affecting the dependent variable and only some factor which is SE program affecting the dependent variables. From this result the hypothesis 1 and 2 are accepting the hypothesis null ,H10 and H2 0 peer pressure and awareness does not affect the intention to innovate in social entrepreneurship, and hypothesis 3 accepting the hypothesis 1, H31 ,SE program positively affect the intention to innovate in social entrepreneurship.

4.Discussion

The first objectives aimed to identify the level of social entrepreneurship awareness among university students. From the finding , the level of awareness among university students are being measured by their understanding and answer from the questionnaire, the highest scale of rating indicated that they are more understand and aware about that. Students are more aware about the requirements to become a social entrepreneur where it needs a special requirement to be a social entrepreneur such as be more creative and innovative person. Apart from that, most of the students are already have a little bit of experience in became a social entrepreneur during an activities in the program. they maybe realize that they need to be more creative to create a business that aim for profit and social need. Thus the level of SE awareness among university students is they are aware of the special requirement to become a social entrepreneur. The second objectives aimed to examine the main factors that affecting the intention of students towards creating innovative solution for social entrepreneurship. from the findings, the main factors that affecting the intention of students towards

creating innovative solution for SE is SE program (extrinsic reward). Extrinsic rewards and resource investment have been seen as necessary to motivate employee creativity, especially in formalized tasks (Amabile et al., 1986). It is proved that extrinsic rewards are the most factors that encourage and affecting student to have that intention. Students are more attractive to a tangible things like money. Rewards in terms of money in the program will affecting the participation of students because they are attracted by the rewards to participate. Last objectives aimed to identify the relationship between factor affected and their intentions to create an innovative solution for social entrepreneurship are achieved. Based on the finding, factor affected; level of awareness, peer pressure, and SE program are partially affecting the intention to create an innovative solution for social entrepreneurship. An experiences and a valuable extrinsic rewards that they got from SE program gives a biggest impact in their life to have that intention apart from being aware about SE evolution and their peer pressure. Being aware about the definition doesn’t help much in creating an intention inside they mind because they have their own understanding about SE definition based on experiences from SE program and there is still low level of awareness among them. Apart from that they also didn’t know really well about SE program in the university and Malaysia because of SE is still new and most of the students that didn’t participate in SE program didn’t know about this. In terms of peer pressure, as a university students most of them kind of started to think what they need to do instead of following their friends decision, and since SE is still new among them, then the awareness is still low to put a pressure to each other. It might be one of the reason that peer pressure doesn’t even affecting their intention. Thus SE program is necessary to enhance the level of awareness among university students.

In term of academic implication ,previous researcher mention that universities are the seedbeds of entrepreneurship to teach their students the way to think and behave entrepreneurially (Bygrave, 2004). This mean that university play an important role to create a positive environment and culture to support and encouraging SE in the university . SE implication in the university lead the university to have more positive environment for the students in order for them to nurture the concept and understanding of SEwithin themselves. One of the way to spread out the positive environment towards all the students is by organizing more SE program. This also help the university to strategies their SE program in a most effective and careful way to ensure that the SE program platform will yield positive impact to the students. Moreover, with SE the students will be able to think critically and

creatively as their mind level had increased and thus will have them in their academic perspective

In term of innovation SE has a potential to increase the innovation rate through SE program or others government program (Abu et al., 2014). The SE program will create a goal based oriented environment and from that perspective, they who practice SE will have their innovation stimulated. Moreover, extrinsic rewards and resource investment have been seen as necessary to motivate employee creativity, especially in formalized tasks (Amabile et al., 1986). Thus, extrinsic rewards can stimulate the intention and motivation of students to take part in the competition to create an innovative solution for community. In term of practical, based on Ministry of Higher Education, in a Malaysia Higher Education Blueprint 2013-2025, government want to nurture a graduate with a critical thinking skill, entrepreneurial skill, holistic and balanced (characters and knowledge). The main point is that, government want Malaysian to have the character of a good citizenry which is someone that can contribute to the country and society via their ability to generate wealth for the country. For instance graduates become the entrepreneurship or a job creator. Apart from that, government also want a Malaysian that be able to enhance the social well-being of society at large through the knowledge acquired and transferred. This SE shape a student critical thinking to be more human being rather than a human capital because they are exposed to SE concept that inspired an individual to be more concerning about others and to have such a precious value in their mind to care for others . In the context of industry, a graduated that had been exposed to SE, derived them to be more easily in having a sense of giving back to the community such as contribute in a Social Corporate Responsibility (SCR) in an industry.

4.1 Limitation

In conducted a research the researcher face a few limitations that need to be improve to ensure more quality for future study that have a similar title with this research. The first limitation in this research is providing more questionnaire to answer by the respondents. This research only provide 34 questions asked for the respondents. The questions only focuses on 3 major factor that affect the intention of university student towards creating innovate solution to in SE which are (1) attitude towards social entrepreneurship ( level of awareness), (2) subjective norm ( peer pressure), and (3) perceived behavior control ( SE program). the researcher hope that in the future there will be more questions asked to ensure and identify others important factor that affect. Second limitations is to expand the sample size of the

respondents . This research only be able to capture 200 opinions of respondents which is only UTeM students that took part the survey. For the future, the researcher can find more respondents from other university to collecting a various type of idea such as UITM, UTHM and UKM. Third limitations is regarding the perception that come from students only. This research only study about the factor that might affecting the university students to have an intention in creating an innovative solution. In the future, the researcher may come up with others opinion from different position of individual such as lectures, the SE founder itself, and other expert in SE.

4.2 Recommendation For Future Research

There are a few recommendations for the research in the future. For the future researcher, they are advised to search for other critical factor that may affecting the intention of university student towards creating an innovative solution for SE. apart from that since this research only utilize quantitative method to collect data , future research can use observation and qualitative method (interview) in order to know more about others factors that affecting the intention of university student towards creating an innovative solution for SE. by asking face to face future researcher might know their true feeling about SE. Lastly, future researchers are suggested to focus on comparison with other state such as peninsular or Sabah/ Sarawak.

Acknowledgement

First of all I would like to thank God for the blessings, my healthiness, and courage to perform on this final year project that have been given to me. I would like to express my deepest gratitude to Universiti Teknikal Malaysia Melaka (UTeM) on the opportunity to carry out this final year project. I also want to thank my supervisor with my sincere heart , Dr. Juhaini Binti Jabar on the guidance that was given to me to complete this project. Thank you for always help me out whenever I felt hopeless and confused in completing my final year project , you encouragement that given to me gave me the strength to pursue my project. not forgetting to others lecturer who helped me to complete this final year project. To my family, I would like to thank for the moral support, encouragement and my financial for the completion of this final year project. You all are the reason for me to keep strong. Special thank for my friends who helped in preparing this project, thank you for the support and sharing an information to me. Appreciation also goes to all those involved either directly or

indirectly helping with this project. I hope that this report can serve as a reference to other students.

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indirectly helping with this project. I hope that this report can serve as a reference to other students.

references

REFERENCES

Abu, F., Jabar, J., & Yunus, A. R. (2015). Modified of UTAUT Theory in Adoption of Technology for Malaysia Small Medium Enterprises (SMEs) in Food Industry. Australian Journal of Basic and Applied Sciences, 9(4), 104–109.

Abu, F., Yunus, A. R., Majid, I. A., Jabar, J., Aris, A., Sakidin, H., & Ahmad, A. (2014). Technology Acceptance Model (TAM): Empowering Smart Customer To Participate in Electricity Supply System. Journal of Technology Management and Technopreneurship, 2(1), 85–94.

Bessant,J.,& Tidd, J.(2011). Innovation and Entrepreneurship. Chi Chester: John Willey &sons,, Ltd

Fayolle,A.,& Kyro, P.(2008). The Dynamic between Entrepreneurship, environment, and education

Mai, R., Robinson,J., & Hockets.,K. (2006). Social Entrepreneurship

Ana Maria Peredo and Murdith McLean (2006). Social entrepreneurship; a critical review of the concept.

David A. Kirby and Nagwa Ibrahim (2011). The case for (social) entrepreneurship education in Egyptian universities

Natalia Martin Cruz,Ana Isabel Rodriguez Escudero and Juan Herangomez Barahona. (2009). The effect of entrepreneurship education programmes on satisfaction with innovation behavior and performance. Journal of European Industrial Training, 16

F.N Ugwu and C.N Ezeani (2012).Evaluation of entrepreneurship awareness and skills among LIS students in Universities in South East Nigeria.

Bernama (2015) Magic. Social Entrepreneurship Needs To Be Legally Recognised In Malaysia – Khairy, Retrieved from.https://mymagic.my/en/social-entrepreneurship-needs-to-be-legally-recognised-in-malaysia-khairy/

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Pusat Pembangunan Keusahawanan (PPK) Universiti Teknikal Malaysisa Melaka (UTeM)