Skip to main content
Log in

Entrepreneurial self-efficacy in Central Asian transition economies: quantitative and qualitative analyses

  • Article
  • Published:
Journal of International Business Studies Aims and scope Submit manuscript

Abstract

In both quantitative and qualitative field studies, the self-efficacy of entrepreneurs in the transition economies of Kazakhstan and Kyrgyzstan is examined. Using a social cognitive framework, the complex interaction among these entrepreneurs' (N=133) personal characteristics, environment, and self-efficacy is analyzed by structural equation modeling. Their self-efficacy was found to have a direct and mediating impact on performance. Another sample of entrepreneurs from these countries (N=239) qualitatively assessed what they actually do in their day-to-day activities. The findings from these two studies contribute to better understanding and have implications for successful entrepreneurial practice in countries undergoing the difficult process of transition to a market economy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1
Figure 2

Similar content being viewed by others

References

  • Aldrich, H.E. (1999) Organizations Evolving, Sage: Thousand Oaks, CA.

    Google Scholar 

  • Aldrich, H.E. and Baker, T. (1997) ‘Blinded by the cites? Has there been progress in entrepreneurship research?’, in: D.L. Sexton and R.W. Smilor (eds.) Entrepreneurship 2000, Upstart Publishing Company: Chicago, IL, pp: 377–401.

    Google Scholar 

  • Aslund, A. (1995) How Russia Became a Market Economy, The Brookings Institution: Washington DC.

    Google Scholar 

  • Bandura, A. (1977) ‘Self-efficacy: toward a unifying theory of behavioral change’, Psychological Review 84: 191–215.

    Article  Google Scholar 

  • Bandura, A. (1982) ‘Self-efficacy mechanism in human agency’, American Psychologist 37: 122–147.

    Article  Google Scholar 

  • Bandura, A. (1986) Social Foundations of Thought and Action: A Social Cognitive Theory, Prentice Hall: Englewood Cliffs, NJ.

    Google Scholar 

  • Bandura, A. (1997) Self-efficacy, Freeman: New York.

    Google Scholar 

  • Bandura, A. (1999) ‘Social cognitive theory of personality’, in L. Pervin and O. John (eds.) Handbook of Personality, (2nd edn), Guilford: New York.

    Google Scholar 

  • Bandura, A. (2000) ‘Cultivate self-efficacy for personal and organizational effectiveness’, In E.A. Locke (ed.) Handbook of Principles of Organizational Behavior, Blackwell: Oxford, pp: 120–136.

    Google Scholar 

  • Bandura, A. (2001) ‘Social cognitive theory: an agentic perspective’, Annual Review of Psychology 52: 1–26.

    Article  Google Scholar 

  • Begley, T.M. and Boyd, D.P. (1987) ‘Psychological characteristics associated with performance in entrepreneurial firms and smaller businesses’, Journal of Business Venturing 2: 79–93.

    Article  Google Scholar 

  • Bollen, K.A. (1989) Structural Equations with Latent Variables, Wiley: New York.

    Book  Google Scholar 

  • Boyd, N.G. and Vozikis, G.S. (1994) ‘The influence of self-efficacy on the development of entrepreneurial intentions and actions’, Entrepreneurship Theory and Practice 18: 63–90.

    Google Scholar 

  • Brockhaus, R.H. (1982) ‘The psychology of the entrepreneur’, in C.A. Kent, D.L. Sexton and K.H. Vesper (eds.) Encyclopedia of Entrepreneurship, Prentice Hall: Englewood Cliffs, NJ, pp: 39–57.

    Google Scholar 

  • Butterfield, K.D., Trebe Trevino, L. and Ball, G.A. (1996) ‘Punishment from the manager's perspective: a grounded investigation and inductive model’, Academy of Management Journal 39(6): 1479–1512.

    Article  Google Scholar 

  • Campbell, D.T. (1958) ‘Systematic error on the part of human links in communication systems’, Information and Control 1: 334–369.

    Article  Google Scholar 

  • Campbell, D.T. and Fiske, D.W. (1959) ‘Convergent and discriminant validation by the multitrait-multimethod matrix’, Psychological Bulletin 56: 81–105.

    Article  Google Scholar 

  • Carroll, G. and Hannan, M. (2000) The Demography of Corporations and Industries, Princeton University Press: Princeton, NJ.

    Google Scholar 

  • Chell, E., Haworth, J. and Brearley, S. (1991) The Entrepreneurial Personality: Concepts, Cases, and Categories, Routledge: New York.

    Google Scholar 

  • Churchill, N.C. (1992) ‘Research issues in entrepreneurship’, in D.L. Sexton and J.D. Kasarda (eds.) The State of the Art of Entrepreneurship, PWS-Kent: Boston, pp: 579–597.

    Google Scholar 

  • Connor, W.D. (1991) ‘The rocky road: entrepreneurship in the soviet economy’, in B. Berger (ed.) The Culture of Entrepreneurship, ICS Press: San Francisco, CA, pp: 81–91.

    Google Scholar 

  • Covin, J.G. and Slevin, D.P. (1989) ‘The strategic management of small firms in hostile and benign environments’, Strategic Management Journal 10(1): 75–87.

    Article  Google Scholar 

  • Delbecq, A.L., Van de Ven, A.M. and Gustafson, D.H. (1975) Group Techniques for Program Planning, Scott Foresman: Glenview, IL.

    Google Scholar 

  • Dess, G.G. and Beard, D.W. (1983) ‘Dimensions of organizational task environments’, Administrative Science Quarterly 29(1): 52–73.

    Article  Google Scholar 

  • Dess, G.G. and Robinson Jr, R.B. (1984) ‘Measuring organizational performance in the absence of objective measures’, Strategic Management Journal 5(3): 265–273.

    Article  Google Scholar 

  • Dowling, P.J., Schuler, R.S. and Welsh, D.E. (1994) International Dimensions of Human Resource Management, Wadsworth: Belmont CA.

    Google Scholar 

  • Earley, P.C. (1989) ‘Social loafing and collectivism: a comparison of the United States and the People's Republic of China’, Administrative Science Quarterly 34(4): 565–580.

    Article  Google Scholar 

  • Earley, P.C. (1993) ‘East meets west meets mideast: further explorations of collectivistic and individualistic work groups’, Academy of Management Journal 3(2): 319–348.

    Article  Google Scholar 

  • Earley, P.C. (1994) ‘Self or group? Cultural effects of training on self-efficacy and performance’, Administrative Science Quarterly 39(1): 89–117.

    Article  Google Scholar 

  • Gartner, W.B. (1984) ‘Problems in business startup: the relationships among entrepreneurial skills and problem identification for different types of new ventures’, in J.A. Hornaday, F. Tarpley, J.A. Timmons and K.H. Vesper (eds.) Frontiers of Entrepreneurship Research, Babson College: Wellesley, MA, pp: 496–512.

    Google Scholar 

  • Gartner, W.B. (1988) ‘Who is an entrepreneur? Is the wrong question’, American Journal of Small Business 12(4): 11–32.

    Google Scholar 

  • Gist, M.E. (1989) ‘The influence of training method on self-efficacy and idea generating among managers’, Personnel Psychology 42: 787–805.

    Article  Google Scholar 

  • Gist, M.E. and Mitchell, T.R. (1992) ‘Self-efficacy: a theoretical analysis of its determinants and malleability’, Academy of Management Review 17(2): 183–211.

    Google Scholar 

  • Helmer, O. (1983) Looking Forward: a Guide to Future Research, Sage: Beverly Hills, CA.

    Google Scholar 

  • Herron, L., Sapienza, H.J. and Smith-Cook, D. (1992) ‘Entrepreneurship theory from an interdisciplinary perspective’, Entrepreneurship Theory and Practice 2: 5–11.

    Google Scholar 

  • Hitt, M.A., Dacin, T.M., Levitas, E., Arregle, J.-L. and Borza, A. (2000) ‘Partner selection in emerging and developed market contexts: resource-based and organizational learning perspectives’, Academy of Management Journal 43(3): 449–468.

    Article  Google Scholar 

  • Hofstede, G. (2001) Culture's Consequences, Sage: Thousand Oaks, CA.

    Google Scholar 

  • House, R.J., Hanges, P.J., Javidan, M. and Dorfman, P.W. (2004) in V. Gupta (eds.) Culture, Leadership, and Organizations, Sage: Thousand Oaks, CA.

    Google Scholar 

  • Ireland, R.D., Hitt, M.A., Camp, S.M. and Sexton, D.L. (2001) ‘Integrating entrepreneurship with strategic management actions to create firm wealth’, Academy of Management Executive 15(1): 49–63.

    Article  Google Scholar 

  • Johnson, B.R. (1990) ‘Toward a multidimensional model of entrepreneurship: the case of achievement motivation and the entrepreneur’, Entrepreneurship Theory and Practice 14(Spring): 39–54.

    Google Scholar 

  • Johnson, S. and Loveman, G. (1995) Starting over in Eastern Europe: Entrepreneurship and Economic Renewal, Harvard Business School Press: Boston, MA.

    Google Scholar 

  • Judd, C.M., Smith, E.R. and Kidder, L.H. (1991) Research Methods in Social Relations, (6th edn), Holt, Rinehart & Winston: New York.

    Google Scholar 

  • Kaplan, D. (2000) Structural Equation Modeling, Sage: Thousand Oaks, CA.

    Google Scholar 

  • Kaser, M.X. (1995) ‘Privatization in the CIS’, in A. Smith (ed.) Challenges for Russian Economic Reform, The Brookings Institution: Washington DC, pp: 117–202.

    Google Scholar 

  • Kerlinger, F.N. (1979) Behavioral Research: a Conceptual Approach, Holt, Rinehart & Winston: New York.

    Google Scholar 

  • Khandwalla, A. (1977) The Design of Organizations, Harcourt Brace Jovanovich: New York.

    Google Scholar 

  • Kline, R.B. (1998) Principles and Practice of Structural Equation Modeling, Guilford Press: New York.

    Google Scholar 

  • Kornai, J.X. (1995) Highway and Byways: Studies on Reform and Post-Communist Transition, MIT Press: Boston, MA.

    Google Scholar 

  • Krueger, N.F. and Brazeal, D.V. (1994) ‘Entrepreneurial potential and potential entrepreneurs’, Entrepreneurship Theory and Practice 18(Spring): 91–104.

    Google Scholar 

  • Lawler, E.E. (1967) ‘The multitrait-multirater approach to measuring managerial job performance’, Journal of Applied Psychology 51: 369–439.

    Article  Google Scholar 

  • Luthans, F. (2002a) ‘The need for and meaning of positive organizational behavior’, Journal of Organizational Behavior 23: 695–706.

    Article  Google Scholar 

  • Luthans, F. (2002b) ‘Positive organizational behavior: developing and managing psychological strengths’, Academy of Management Executive 16(1): 57–72.

    Article  Google Scholar 

  • Luthans, F. and Davis, T.R.V. (1982) ‘An idiographic approach to organizational behavior research: the use of single case experimental designs and direct measures’, Academy of Management Review 7(3): 380–391.

    Google Scholar 

  • Luthans, F. and Lockwood, D.L. (1984) ‘Toward an observation system for measuring leader behavior in natural settings’, in J.G. Hunt, D. Hosking, C. Schriesheim and R. Steward (eds.) Leaders and Managers, Pergamon: New York.

    Google Scholar 

  • Luthans, F. and Morey, N. (1984) ‘An emic perspective and ethnoscience method for organizational research’, Academy of Management Review 9(1): 27–36.

    Google Scholar 

  • Luthans, F. and Morey, N. (1985) ‘Refining the displacement of culture and the use of scenes and themes in organizational studies’, Academy of Management Review 10(2): 219–229.

    Google Scholar 

  • Luthans, F., Hodgetts, R.M. and Rosenkrantz, S.A. (1988) Real Managers, Harper: Cambridge, MA.

    Google Scholar 

  • Luthans, F., Stajkovic, A.D. and Ibrayeva, E. (2000) ‘Environmental and psychological challenges facing entrepreneurial development in transitionary economies’, Journal of World Business 35(1): 95–110.

    Article  Google Scholar 

  • Luthans, F., Welsh, D.H.B. and Rosenkrantz, S.A. (1993) ‘What do Russian managers really do?’ Journal of International Business Studies 24(4): 741–761.

    Article  Google Scholar 

  • Luthans, F. and Youssef, C.M. (2004) ‘Human, social, and now positive psychological capital management: investing in people for competitive advantage’, Organizational Dynamics 33(2): 143–160.

    Article  Google Scholar 

  • Maddux, J.E. (2002) ‘Self-efficacy’, in C.R. Snyder and S. in Lopez (eds.) Handbook of Positive Psychology, Oxford University Press: Oxford UK, pp: 277–298.

    Google Scholar 

  • McClelland, D.C. (1987) ‘Characteristics of successful entrepreneurs’, Journal of Creative Behavior 21: 219–233.

    Article  Google Scholar 

  • Mehrabian, A. and Banks, L. (1978) ‘A questionnaire measure of individual differences in achieving tendency’, Educational and Psychological Measurement 38: 475–478.

    Article  Google Scholar 

  • Miles, M.B. and Huberman, M.A. (1984) Qualitative Data Analysis: a Sourcebook of New Methods, Sage: Beverly Hills, CA.

    Google Scholar 

  • Miller, D. and Friesen, P.H. (1983) ‘Strategy-making and environment’, Strategic Management Journal 4: 221–235.

    Article  Google Scholar 

  • Mintzberg, H. (1973) The Nature of Managerial Work, Harper & Row: New York.

    Google Scholar 

  • Mott, P.E. (1972) The Characteristics of Effective Organizations, Harper & Row: New York.

    Google Scholar 

  • Naffziger, D. (1995) ‘Entrepreneurship: a person based theory approach’, in J.A. Katz and R.H. Brockhaus Sr (eds.) Advances in Entrepreneurship, Firm Emergence and Growth, Vol. 2, JAI Press: Greenwich, CN, pp: 21–51.

    Google Scholar 

  • Nelson, L. and Kuzes, I. (1995) Radical Reform in Yeltsin's Russia: Political, Economic, and Social Dimensions, M.E. Sharpe: New York.

    Google Scholar 

  • Newman, K.L. (2000) ‘Organizational transformation during institutional upheaval’, Academy of Management Review 25(3): 602–619.

    Google Scholar 

  • North, D.C. (1990) Institutions, Institutional Change and Economic Performance, Cambridge University Press: Cambridge.

    Book  Google Scholar 

  • Olcott, M.B. (1996) Central Asia's New States: Independence, Foreign Policy, and Regional Security, US Institute for Peace: Washington.

    Google Scholar 

  • Peng, M. (2001) ‘How entrepreneurs create wealth in transition economies’, Academy of Management Executive 15(1): 95–101.

    Article  Google Scholar 

  • Peng, M. and Heath, P.S. (1996) ‘The growth of the firm in planned economies in transition: institutions, organizations, and strategic choice’, Academy of Management Review 21(2): 492–528.

    Google Scholar 

  • Puffer, S.M. (1994) ‘Understanding the bear: a portrait of russian business leaders’, Academy of Management Executive 8(1): 41–54.

    Google Scholar 

  • Puffer, S.M. (1999) ‘Global statesman: Mikhail Gorbachev on globalization (interview)’, Academy of Management Executive 13(1): 8–14.

    Google Scholar 

  • Puffer, S.M. and McCarthy, D.J. (2001) ‘Navigating the hostile maze: a framework for Russian entrepreneurship’, Academy of Management Executive 15(4): 24–36.

    Article  Google Scholar 

  • Rotter, J.B. (1966) ‘Generalized expectancies for internal vs external control of reinforcement’, Psychological Monographs 80: 1–28.

    Article  Google Scholar 

  • Seligman, M.E.P. and Csikszentmihalyi, M. (2000) ‘Positive psychology: an introduction’, American Psychologist 55: 5–14.

    Article  Google Scholar 

  • Shaver, K.G. and Scott, L.R. (1991) ‘Person, process, choice: the psychology of new venture creation’, Entrepreneurship Theory and Practice 15(Winter): 23–45.

    Google Scholar 

  • Sherer, M., Maddux, J.E., Mercadante, B., Prentice-Dunn, S., Jacobs, B. and Rogers, R.W. (1982) ‘The self-efficacy scale: construction and validation’, Psychological Reports 51: 663–671.

    Article  Google Scholar 

  • Slevin, D.P. and Covin, J.G. (1995) ‘Entrepreneurship as firm behavior: a research model’, in J.A. Katz and R.H. Brockhaus Sr (eds.) Advances in Entrepreneurship, Firm Emergence and Growth, JAI Press: Greenwich, CN, Vol. 2, pp: 40–51.

    Google Scholar 

  • Snyder, C.R. and Lopez, S. (2002) Handbook of Positive Psychology, Oxford University Press: Oxford.

    Google Scholar 

  • Stajkovic, A.D. and Luthans, F. (1997) ‘A meta-analysis of the effects of organizational behavior modification on task performance, 1975–95’, Academy of Management Journal 40: 1122–1149.

    Article  Google Scholar 

  • Stajkovic, A.D. and Luthans, F. (1998a) ‘Self-efficacy and work-related performance: a meta-analysis’, Psychological Bulletin 124: 240–261.

    Article  Google Scholar 

  • Stajkovic, A.D. and Luthans, F. (1998b) ‘Social cognitive theory and self-efficacy: going beyond traditional motivational and behavioral approaches’, Organizational Dynamics 26(4): 62–74.

    Article  Google Scholar 

  • Taylor, M. (1997) ‘The business culture in Kazakhstan’, in M. Bateman (ed.) Business Cultures in Central and Eastern Europe, Butterworth-Heinemann: Oxford, pp: 78–87.

    Google Scholar 

  • Thornton, G.C. and Zorich, S. (1980) ‘Training to improve observer accuracy’, Journal of Applied Psychology 65: 351–354.

    Article  Google Scholar 

  • Van de Ven, A.H., Hudson, R. and Schroeder, D.M. (1984) ‘Designing new business startups: entrepreneurial, organizational, and ecological considerations’, Journal of Management 10(1): 87–107.

    Article  Google Scholar 

  • Vesper, K.H. (1980) New Venture Strategies, Prentice Hall: Englewood Cliffs, NJ.

    Google Scholar 

  • Walck, C. (1994) ‘Understanding the bear: executive commentary’, Academy of Management Executive 8(1): 41–54.

    Google Scholar 

  • Zahra, S.A. (1993) ‘A conceptual model of entrepreneurship as firm behavior: a critique and extension’, Entrepreneurship Theory and Practice 17(Summer): 5–21.

    Google Scholar 

  • Zahra, S.A., Ireland, D.R., Gutierrez, I. and Hitt, M.A. (2000) ‘Privatization and entrepreneurial transformation: emerging issues and a future research agenda’, Academy of Management Review 25(3): 509–524.

    Google Scholar 

Download references

Acknowledgements

We thank Professor Mary Ann Von Glinow and three anonymous JIBS reviewers for their suggestions. We also thank Professor Alex Stajkovic for his help on the analysis in Study 1.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Fred Luthans.

Additional information

Accepted by Mary Ann Von Glinow, Departmental Editor, 6 March 2005. This paper has been with the author for two revisions.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Luthans, F., Ibrayeva, E. Entrepreneurial self-efficacy in Central Asian transition economies: quantitative and qualitative analyses. J Int Bus Stud 37, 92–110 (2006). https://doi.org/10.1057/palgrave.jibs.8400173

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/palgrave.jibs.8400173

Keywords

Navigation