Application of entrepreneurial intention model in comparative international entrepreneurship research: A cross‐cultural study of India and Saudi Arabia

Abstract

The development of entrepreneurial activities helps in realization of multiple goals of sustainable development. This study aims to inspect the applicability of the entrepreneurial intention model (EIM) to explain entrepreneurial intention in different cultural contexts. A survey was conducted using the Entrepreneurial Intention Questionnaire. Based on 535 valid responses received from business students in India (N = 285) and Saudi Arabia (N = 250), the model was analyzed using the partial least square regression method. The results show that the EIM is validated for the combined sample (R2 combined = 0.522) as well as for the individual samples (R2India = 0.644; R2Saudi = 0.412). Demographic variables and human capital variables were found to impact the entrepreneurial intention differently in the combined sample and the individual samples of the two countries. Mul-tigroup analysis was performed to test if the country variable influences the hypothesized paths in the model. The results of the multigroup analysis show that many of the hypothesized relationships (gender–personal attitude; gender–subjective norm; gender–perceived behavioral control, role model–subjective norm, role model–perceived behavioral control, subjective norm–personal atti-tude, and subjective norm–entrepreneurial intention) are significantly different in the two countries. This study addresses the gap in comparative international entrepreneurship (CIE) research by testing the applicability of EIM in two different cultures. The findings are also significant for policy-makers at both national and international levels for facilitating entrepreneurship.