The Inﬂuence of Personality Hardiness on Entrepreneurial Intention

Syarifah Farradinna, Rayhanatu Binqalbin Ruzain and Syarifah Fawani Gea Putri

Psycahology Faculty, Universitas Islam Riau, Pekanbaru, Indonesia

Keywords:

Entrepreneurial, Intention, Personality, Hardiness

Abstract:

Personality hardiness predicted to have stronger control over life and be able to maintain good business ac-

tivities. The aim of this study was to identify the characteristics of hardiness and how these characteristics

affect entrepreneurial intentions. Participants in this study were simple random sampling technique to obtain

211 students from the Islamic University of Riau who had acted as entrepreneurial. The author adapted the

construct of an entrepreneurial intention scale from Ajzen (Ajzen, 1991) theory consists of 14 items, and the

personality hardiness scale from (Kobasa, 1982) consists of 17 items and using factor analysis and correlation

analysis. The measurement model analysis shows p-value .4081 which means that the resulting model is the

goodness of ﬁt. While the value of the Z-value shows 4.916 > 1.96, which means there is a signiﬁcant re-

lationship between personality hardiness and entrepreneurial intentions while showing a positive correlation

.322. This shows that a positive relationship between personality hardiness and entrepreneurial intentions.

These results indicate the higher the personality hardiness, the higher the entrepreneurial intention. Based on

the analysis, the researcher suggested to the faculty and the university to support various training and skills

activities to increase entrepreneurial intention among students, perhaps through self-motivation management

training.

1 INTRODUCTION

The implications of unemployment in Indonesia ex-

plain that an increase in unemployment is the cause

of low income and economic growth of a country

(Sugiyanto, 2006). One of the causes of a coun-

try included in the category of developed countries

is when the number of business actors in the coun-

try is 2% of the population (McClelland, 1973). At

present. the number of business people in Indone-

sia only reaches 4.6 million or 1.6 percent of In-

donesia’s population which ranges from 290 million.

Data from the Central Statistics Agency of the city

of Pekanbaru. Riau, reported that in 2010 the num-

ber of business operators in the city was only 0.1

percent of the total population of the city of Pekan-

baru. which was 867 million people. This amount

is still in a very low, possibly due to the assumption

that business activities involve risks and uncertain-

ties, which a number of potential entrepreneurs do not

take priority to become an entrepreneur after gradu-

ation (Suryana and Bayu, 2012). Entrepreneurship

does not merely believe in circumstances that offer

opportunities, but rather the process of ”becoming”

something that implies great potentials such as stu-

dents in particular (Rasli et al., 2013). Entrepreneurial

university students play an important role in decision

making as a career goal, not only as a stepping stone

but more than a change in trends in determining fu-

ture jobs, especially those involving innovative, cre-

ative and appropriate technology, Although a number

of studies have attempted to show the importance of

entrepreneurship education among students in order

to generate student entrepreneurship intentions (Ma-

hajar, 2012). Entrepreneurial intention is known as

the key process of building the tendency for individ-

uals to choose as entrepreneurs as careers (Fayolle

and Gailly, 2015). Previous researchers have identi-

ﬁed the determinants of the intention to become an

entrepreneur are the desire to start and enjoy every

process of making decisions in running a business

(Suryana and Bayu, 2012). Entrepreneurial intention

is related to personality, this is evidenced in the study

of (Farradinna et al., 2018) which states that an en-

trepreneur of Micro, Small and Medium Enterprises

(MSMEs) in Pekanbaru City, Riau shows personality

factors predicting individuals’ ability to manage and

run their business. They concluded that individuals

with personality hardiness showed more open to op-

portunities and new ideas, the tendency to increase the

Farradinna, S., Ruzain, R. and Putri, S.

The Inﬂuence of Personality Hardiness on Entrepreneurial Intention.

DOI: 10.5220/0009119102510258

In Proceedings of the Second International Conference on Social, Economy, Education and Humanity (ICoSEEH 2019) - Sustainable Development in Developing Country for Facing Industrial

Revolution 4.0, pages 251-258

ISBN: 978-989-758-464-0

251

knowledge and resourceful in trying and ﬁnding new

experiences and exploring these ideas. In addition,

entrepreneurial intentions explain the entrepreneurial

process in directing and establishing new businesses

and job opportunities (Keat Salvarajah and Meyer,

2011). As it is known that the entrepreneur is the

initiator of career choice that shape the competitive

personal. adaptable. always learn to understand and

develop creative ideas and develop innovative ideas

(Al Mamun et al., 2018). Entrepreneurship is deﬁned

as an act of risk taking. creative thinking to open a

new business or advance an existing business (Hebert

and Albert. 1989). In fact, (Kao, 1993) explains

entrepreneurship as an effort to create value through

the introduction of business opportunities, risk-taking

management, and sharpening communication skills to

produce good business ventures. Meanwhile, busi-

ness actors are a way of thinking, exploring, reading

opportunities and taking opportunities related to busi-

ness (Timmons et al., 2004). Entrepreneurs who are

able to identify problems between traders and cus-

tomers respond more quickly to situations in order

to gain proﬁts faster than anyone (Deakins and Freel,

2009). Hardiness has been conceptualized into three

attitude structures namely; commitment, control. and

challenge (Maddi and Kobasa, 1984; Maddi, 2006).

Researchers believe that highly committed individu-

als perceive the importance of trust in engaging with

people and their environment, even describing pres-

sure as a natural thing. In addition. it is important

for the individual shows the attitude control affects

the result though it is difﬁcult to deal with. In the end.

hardiness individuals are strong people who face chal-

lenges from all pressures. because part of the process

of opportunity is learning, developing, and growing.

Personality hardiness predicts internal controls that

are strong in responding and resilient attitudes with

changing global trends (Sabela et al., 2014). In this

study, it was also reported that individual throughout

personality hardiness was better proven from courage

and feel incompetent. so they tended to dare to accept

and face changes and obstacles in their business (Far-

radinna et al., 2018). Why is personality hardiness

so important? and how strong can previous studies

describe the encouragement of entrepreneurial inten-

tions among students? Hardiness is a language term

of personality resilience, which is an internal charac-

teristic of individuals in responding to problems from

their environment (Bissonnette, 1998). Personality

hardiness itself is a way to form resilience to pres-

sure (Maddi, 2006). This illustrates the individual

personality is strong, resilient, stable and optimistic

in the face of pressure and can reduce negative feel-

ings (Kobasa, 1982). Individuals whose personality

hardiness show self-control ability, commitment and

better able to face the challenges. Positive psychol-

ogy to explain the attitude of hardiness is a trait that

easily transforms stress into a positive state, fosters

better performance to be more creative. Thought-

ful and fulﬁllment, maintain or improve the physi-

cal and mental health in carrying out tasks such as

entrepreneurs (Maddi, 2006). Hardiness personal-

ity leads individuals to be able to work effectively,

be able to perform difﬁcult tasks. act as leaders, be

creative. raise awareness in choosing careers as en-

trepreneurs, and avoid themselves from indiscipline

and behavioral problems. Hence the importance of

the entrepreneurial spirit, they need to know that the

strength of a nation’s economy due to the high inten-

tions of the individual as an entrepreneur. Thus. this

study needs to be carried out to identify the character-

istics of personality hardiness that inﬂuence the level

of the intention of entrepreneurs and how much the

role of the personality inﬂuences students’ intention

to become entrepreneurs.

Personality hardiness predicts internal controls

that are strong in responding and resilient attitudes

with changing global trends (Sabela et al., 2014).

In this study, it was also reported that individual

throughout personality hardiness was better proven

from courage and feelings incompetent. so they

tended to dare to accept and face changes and obsta-

cles in their business (Farradinna et al., 2018). Why

is personality hardiness so important? and how strong

can previous studies describe the encouragement of

entrepreneurial intentions among students? Hardiness

is a language term of personality resilience, which is

an internal characteristic of individuals in respond-

ing to problems from their environment (Bissonnette,

1998). Personality hardiness itself is a way to form

resilience to pressure (Maddi, 2006). This illustrates

the individual personality is strong, resilient, stable

and optimistic in the face of pressure and can reduce

negative feelings (Kobasa, 1982). Individuals whose

personality hardiness show self-control ability, com-

mitment and better able to face the challenges. Pos-

itive psychology to explain the attitude of hardiness

is a trait that easily transforms stress into a positive

state, fosters better performance to be more creative.

Thoughtful and fulﬁllment, maintain or improve the

physical and mental health in carrying out tasks such

as entrepreneurs (Maddi, 2006). Hardiness person-

ality leads individuals to be able to work effectively,

be able to perform difﬁcult tasks. act as leaders, be

creative. raise awareness in choosing careers as en-

trepreneurs, and avoid themselves from indiscipline

and behavioral problems. Hence the importance of

the entrepreneurial spirit, they need to know that the

ICoSEEH 2019 - The Second International Conference on Social, Economy, Education, and Humanity

252

strength of a nation’s economy due to the high inten-

tions of the individual as an entrepreneur. Thus. this

study needs to be carried out to identify the character-

istics of personality hardiness that inﬂuence the level

of the intention of entrepreneurs and how much the

role of the personality inﬂuences students’ intention

to become entrepreneurs.

2 METHODOLOGY

The construction of the research is based on Planned

Behavior Theory from (Ajzen, 1991) to explain the

concept of entrepreneurial intentions. namely atti-

tudes. subjective norms, and behavioral control as

dependent variables of this study. Entrepreneurial in-

tentions are considered to be the best predictors of

planned behavior and behavioral tendencies. The in-

dependent variable of this study is hardiness person-

ality factors which consist of commitment, control,

and challenge. The implementation process collects

data performed after obtaining permission from the

university and the faculty, which is given in class.

The average age of participants is 18 to 26 years

old, participants have the background to create. de-

velop and market their products or services consis-

tently. The survey questionnaire was designed for

this study consisted of three parts. Part A consists of

questions that require participants to answer their self-

report. Part B consists of statements relating to en-

trepreneurial intentions containing 14 items of state-

ments that support indicators of entrepreneurial inten-

tion among students, consisting of attitudes. subjec-

tive norms and behavioral control. Entrepreneurial

University students are asked to indicate their level

of agreement to choose entrepreneurial intentions as

their careers with around a scale of 1 to 5, where 1

= Strongly Disagree 2 = Disagree 3 = moderate 4

= Agree 5 = Strongly agree to each statement. Part

C consists of statements that require participants to

assess the level of personality hardiness tendencies

by determining the level of agreement on a scale of

1 to 5 (1 = Strongly Disagree; 2 = Disagree; 3 =

moderate; 4 = Agree; 5 = Strongly agree) through

marking ’tick’ in the column for each of the respec-

tive statements. The questionnaire was developed in

a test with a sample of 30 respondents to carry out

the reduction factors and to provide an indication of

the reliability, dimensional size of Part B and Part C

of the questionnaire further reﬁned before collection.

This study involved a sample of 250 university stu-

dent entrepreneurs. Sample simple random sampling

retrieval methods are used to collect data from stu-

dent entrepreneurs. Participants came from various

faculties at the Islamic University of Riau, from race

and sex, and year of study where they were chosen

randomly and simple random sampling for this sur-

vey. The total number of questionnaires that were

returned was 211 questionnaires. This research was

conducted on students on the campus of the Islamic

University of Riau, Pekanbaru. Indonesia. Proﬁle of

students from various faculties, ages, sexes, and se-

niority of study proposed in Table 1. The selection of

the number of samples taken is simple random sam-

pling based on the estimated number of students from

various categories of business unit types. In general,

the construct validity test value can be viewed using

standard goodness of ﬁt value for assessing the suit-

ability of an acceptable standard of reference is the

value of Chi-Square. Chi-Square values can take sta-

tistical tests related to signiﬁcant requirements ful-

ﬁlled. Standard values p-values > .05 followed by

RMSEA criterion indicates the value < .08. whereas

GFI, NFI, and CFI produce value > 0.9 which shows

a model of the goodness of ﬁt. The construct valid-

ity test needs to be carried out before carrying out a

model test analysis for the hypothesis, namely factor

analysis or conﬁrmatory factor analysis (CFA) to test

the uni-dimensionality of the measuring instrument.

The following step is to test the construct validity of

data items. The construct validity test of this study

uses conﬁrmatory factor analysis with MPLUS soft-

ware. This step is carried out to obtain good analysis

factor outcome criteria (Harrington, 2009). Based on

the CFA analysis. it is known that the model is not

ﬁt. Therefore researchers need to modify the model.

where measurement errors on some items are free to

correlate with each other. So that the model ﬁt of a

set of entrepreneurial intentions items obtained was

tested by MPlus-SEM, CFI= .926; df = 73; p-value =

.0028; RMSEA= .050. This explanation can be seen

in Figure 1.

The model test based on Figure 2 shows that an

analysis of one factor is acceptable, this means that

the whole item measures personality hardiness vari-

ables. The value of a good z-value coefﬁcient is >

1.96, which states that 14 hardiness personality items

are valid. This explanation can be seen in Table 3.

Based on the CFA analysis for a set of items the per-

sonality hardiness variable shows a model that is not

ﬁt. As with the previous variables, researchers need to

modify the model by emphasizing measurement er-

rors, which eliminates correlated items. Thus the ﬁt

model is obtained from the set of hardiness personal-

ity items so that the CFI test is obtained = .881; df =

114; p-value = .0002; RMSEA = .050. This explana-

tion can be seen in Figure 2.

The Inﬂuence of Personality Hardiness on Entrepreneurial Intention

253

Table 1: Proﬁle of the Participants (N=211)

Demographic Categories Frequency %

Gender

Male 75 35.5

Female 36 64.5

Age

18 to 20 30 14.2

21 to 23 166 78.7

24 to 26 15 7.1

Faculty

Islamic 11 5.2

Economy 53 25.1

Communication Studies 17 8.0

Social and Political Sciences 15 7.1

Teacher and Science 24 11.4

Law 24 11.4

Agriculture 11 5.2

Psychology 36 17.0

Engineering 20 9.5

Seniority at UIR

Degree year 1 7 3.3

Degree year 2 16 7.6

Degree year 3 36 17.1

Degree year 4 122 57.8

Degree year 5 21 9.9

Degree year 6 6 2.8

Degree year 7 3 1.4

Table 2: Loading Factor Entrepreneurship Intention

Item Estimate SE

Sikap (Attitude)

3. Menjadi seorang wirausaha memberikan lebih banyak keuntungan daripada kerugian

.487 .057 8.599

Being an entrepreneur gives more advantages than disadvantages

4. Saya memiliki keinginan menjadi seorang wirausaha

.674 .046 14.786

I have a desire to become an entrepreneur

5. Menjadi seorang wirausaha akan memberikan saya kepuasan yang besar

.634 .050 12.654

Being an entrepreneur will give me great satisfaction

10. Diantara berbagai pilihan, saya lebih memilih menjadi wirausahawan

.739 .039 18.918

Among various choices, I prefer to be an entrepreneur

12. Sangat menarik bagi saya menjadi wirausahawan

.797 .039 20.369

It is interesting for me to be an entrepreneur

14. Jika saya memiliki kesempatan dan modal, saya ingin memulai sebuah usaha

.528 .059 9.008

If I have the opportunity and capital, I wan to start a business

Norma (Norms)

1. Keluarga saya berpikir agar saya menjadi seorang wirausahawan

.450 .068 6.658

My family thinks that I will become an entrepreneur

5. Teman-teman saya berpikir agar saya menjadi seorang wirausahawan

.801 .049 16.524

My friends think that I will become an entrepreneur

9. Orang-orang terdekat saya berpikir agar saya menjadi seorang wirausahawan

.808 .055 14.763

The people closest to me think that I become an entrepreneur

Kontrol Perilaku (Behavior Control)

2. Jika saya mau. saya bisa dengan mudah menjadi seorang wirausahawan

.418 .057 7.273

If I want to, I can easily become an entrepreneur

6. Mudah bagi saya bekerja sebagai wirausahawan

.501 .060 8.401

It’s easy for me to work as an entrepreneur

8. Semua keputusan tergantung pada diri saya apakah saya akan menjadi wirausahawan atau tidak

.355 .067 5.306

All decisions depend on me whether I will become an entrepreneur or not

11. Ada beberapa kondisi diluar kendali saya yang dapat mempengaruhi saya sebagai wirausahawan

.178 .074 2.385

There are several conditions beyond my control which can affect me as an entrepreneur

13. Sebagai seorang wirausahawan, saya memiliki kendali atas usaha saya

.518 .062 8.354

As an entrepreneur, I have control over my business

ICoSEEH 2019 - The Second International Conference on Social, Economy, Education, and Humanity

254

Figure 1: Entrepreneurial intention SEM analysis.

3 RESULT AND DISCUSSION

The results of the analysis of this study to prove

the hypothesis there are effects of personality hardi-

ness on entrepreneurial intentions among students. To

assess the goodness of ﬁt model, CFA-MPlus soft-

ware from SEM provides a model suitability test in-

cluding the Chi-Square model conformity standard.

This analysis examines the measurement model by

using the Chi-Square test which obtained a p-value

= .4081; RMSEA = .0000, meaningful this testing

model shows the goodness of ﬁt. Further explanations

can be seen in Figure 3.

4 RESULTS AND DISCUSSION

The results of the analysis of this study to prove

the hypothesis there are effects of personality hardi-

ness on entrepreneurial intentions among students. To

assess the goodness of ﬁt model, CFA-MPlus soft-

ware from SEM provides a model suitability test in-

cluding the Chi-Square model conformity standard.

This analysis examines the measurement model by

using the Chi-Square test which obtained a p-value

= .4081; RMSEA = .0000, meaningful this testing

model shows the goodness of ﬁt. Further explanations

can be seen in Figure 3.

The results shown in Figure 3 show that personal-

ity hardiness inﬂuences entrepreneurial intentions, the

z-value that shows Z = 4.916 > 1.96. This means that

The Inﬂuence of Personality Hardiness on Entrepreneurial Intention

255

Figure 2: Personality hardiness SEM analysis

Table 3: Loading Factor Personality Hardiness

Item Estimate SE

Sikap (Attitude)

3. Menjadi seorang wirausaha memberikan lebih banyak keuntungan daripada kerugianBeing an entrepreneur gives more advantages than disadvantages

.487 .057 8.599

Being an entrepreneur gives more advantages than disadvantages

4. Saya memiliki keinginan menjadi seorang wirausaha

.674 .046 14.786

I have a desire to become an entrepreneur

5. Menjadi seorang wirausaha akan memberikan saya kepuasan yang besar

.634 .050 12.654

Being an entrepreneur will give me great satisfaction

10. Diantara berbagai pilihan, saya lebih memilih menjadi wirausahawan

.739 .039 18.918

Among various choices, I prefer to be an entrepreneur

12. Sangat menarik bagi saya menjadi wirausahawan

.797 .039 20.369

It is interesting for me to be an entrepreneur

14. Jika saya memiliki kesempatan dan modal, saya ingin memulai sebuah usaha

.528 .059 9.008

If I have the opportunity and capital, I wan to start a business

Norma (Norms)

1. Keluarga saya berpikir agar saya menjadi seorang wirausahawan

.450 .068 6.658

My family thinks that I will become an entrepreneur

5. Teman-teman saya berpikir agar saya menjadi seorang wirausahawan

.801 .049 16.524

My friends think that I will become an entrepreneur

9. Orang-orang terdekat saya berpikir agar saya menjadi seorang wirausahawan

.808 .055 14.763

The people closest to me think that I become an entrepreneur

Kontrol Perilaku (Behavior Control)

2. Jika saya mau. saya bisa dengan mudah menjadi seorang wirausahawan

.418 .057 7.273

If I want to, I can easily become an entrepreneur

6. Mudah bagi saya bekerja sebagai wirausahawan

.501 .060 8.401

It’s easy for me to work as an entrepreneur

8. Semua keputusan tergantung pada diri saya apakah saya akan menjadi wirausahawan atau tidak

.355 .067 5.306

All decisions depend on me whether I will become an entrepreneur or not

11. Ada beberapa kondisi diluar kendali saya yang dapat mempengaruhi saya sebagai wirausahawan

.178 .074 2.385

There are several conditions beyond my control which can affect me as an entrepreneur

13. Sebagai seorang wirausahawan, saya memiliki kendali atas usaha saya

.518 .062 8.354

As an entrepreneur, I have control over my business

ICoSEEH 2019 - The Second International Conference on Social, Economy, Education, and Humanity

256

Figure 3: SEM Analysis for personality hardiness on entrepreneurial intentions

there is a relationship between personality hardiness

and entrepreneurial intentions. The estimated corre-

lation value shows a positive direction of R = .322.

These results indicate that the higher the personal-

ity hardiness, the higher the entrepreneurial intention.

Meanwhile, the indirect effect of the dimensions of

the challenge (R = .354), control (R = .375), and com-

mitment (R = .409) against entrepreneurial intentions

are positive and signiﬁcant. The ﬁnal analysis of the

value of R2 for personality hardiness showed 11 per-

cent variation support for entrepreneurial intentions.

5 CONCLUSION

This study empirically has shown positive effects of

personality hardiness to show the intention of en-

trepreneurship to college students. Previous studies

that support (Bruce and Sinclair, 2009) report schol-

ars who have high personality hardiness show bet-

ter task resolution initiatives, are able to plan even

when faced with failures, and have a strong desire

for success. As has been demonstrated in previous

studies that one determinant of intention to become

entrepreneurs starts from within the individual in a

positive view of his surroundings (Suryana and Bayu,

2012). Individual factors such as personality are also

evidenced in (Farradinna et al., 2018) supporting in-

dividual entrepreneurial intentions in managing and

running their business. Another study also supports

that the more positive the entrepreneurial attitude, the

norms that are shown and the stronger self-efﬁcacy

in the individual, the higher the intention to become

entrepreneurial (Wijaya et al., 2015). Other studies

sources explained that the intention of entrepreneur-

ship related to the three essential elements that are

decision-making, a positive perception of, and re-

sponse to opportunity (Krueger Jr et al., 2000). In

fact, we examine three dimensions of personality re-

silience towards entrepreneurial intentions, and the

dimension of commitment is felt to offer a higher

value of inﬂuence than other dimensions. This proves

that a high commitment to work shows individu-

als who are able to face life’s challenges and man-

age business opportunities better (Maddi, 2002). We

prove that contributing personality hardiness predicts

entrepreneurial intentions among university students

by 11 percent. One previous study stated that the per-

sonality hardiness of students as entrepreneurs was

able to manage the business they were doing better

than those who showed lower personality hardiness

(Sabela et al., 2014). The same results with the study

of (Fayolle and Gailly, 2015) that identiﬁed the de-

terminants of the desire to run a business were the

intention to start a business, to innovate and to take

the decision to run and develop its business unit. This

study has several limitations. The dimensions of per-

sonality hardiness in this research model are not ex-

plained more fully and deeply, which might be a fac-

tor that can inﬂuence entrepreneurial intentions. In

addition, this study focuses on students at one partic-

ular university, so there is a high likelihood of limit-

ing the generalization of ﬁndings. Furthermore, this

study adopts self-reports that are highly dependent on

student experience about entrepreneurship, thus limit-

ing ﬁndings. Universities have an important inﬂuence

on getting involved and trying to make students im-

prove entrepreneurial intentions among students. Fac-

ulties and universities collaborate in conducting train-

ing and activities to improve hard and soft skills re-

lated to entrepreneurship. Future researchers must ex-

pand the scope of studies by integrating training ex-

periment methods to increase entrepreneurial inten-

tions that focus on different climates, cultures, and

geographical conditions to deepen our understanding

of the paradigm of entrepreneurial intentions.

The Inﬂuence of Personality Hardiness on Entrepreneurial Intention

257

ACKNOWLEDGEMENTS

This research was supported by Universitas Islam

Riau, Indonesia.

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