Entrepreneurial Orientation and Venture Creation in Nigerian Context: Assessing Mediating and Moderating Roles of Self-Efficacy and Entrepreneurial Support among Graduates

Abstract

Over-reliance on hired jobs in the public and private sectors of the Nigerian economy has discouraged most graduates from becoming entrepreneurs. This leads to unemployment, poverty and low economic growth that breed insecurity. Drawing from the formative perspective, this study analyzed the mediating role of self-efficacy (SELF) and the moderating effect of entrepreneurial support (ENTSP) in relation to individual-level entrepreneurial orientation (ILEO; innovativeness, risk taking and proactiveness) and venture creation (VC) among Nigerian graduates. A reflective/formative type II method was applied to test the model’s relationships using 291 survey responses. The result of partial least squares structural equation modeling (PLS-SEM) reveals that the indirect relationship between ILEO and VC through SELF was positive and significant but negatively moderated by ENTSP, implying that not all instances of ILEO will result in VC through SELF because ILEO can directly lead to VC. The finding also indicates ENTSP did not have an impact on strengthening the relationship between SELF and VC. A limitation lies in the chosen method that weakens the generalizability of the result, but future studies considering a longitudinal survey are suggested. This study extends the entrepreneurial orientation model to enhance the venture creation literature theoretically and practically. We recommend intervention agencies to initiate effective ENTSP covering financial, non-financial and incubation services required to boost VC activities.