Title: Entrepreneurial intentions in times of economic recession: the dual role of environment

Authors: Katerina Voutsina; Giorgos Papagiannakis; Spyros Lioukas

Addresses: School of Business and Economics, The American College of Greece, 6 Gravias Street, 15342, Aghia Paraskevi, Athens, Greece ' Department of Economics, University of the Peloponnese, Tripolis Campus, 22100, Greece ' Athens University of Economics and Business, 76, Patission Street, 10434, Athens, Greece

Abstract: Although intentions are considered the most frequently used predictor of entrepreneurial action, little is known about how such intentions are formed under adverse environmental conditions. Given that the disruption of economic activities has become the new normal for business, understanding the influence of a severely resource-poor context on the intention to initiate a new venture is important. Addressing the above concern, the present study explores the impact of the economic recession on entrepreneurial intentions. Drawing upon the theory of planned behaviour (TPB) and applying the structural equation modelling design to a sample of 618 university graduates in Greece, we show that recession plays a dual role: it negatively affects subjective norms and self-efficacy while also moderating the attitudes-intention relationship. Implications for theory and practice are discussed.

Keywords: entrepreneurial intentions; economic recession; theory of planned behaviour; attitudes; subjective norms; self-efficacy.

DOI: 10.1504/JIBED.2022.126949

Journal for International Business and Entrepreneurship Development, 2022 Vol.14 No.3, pp.265 - 286

Received: 09 May 2022
Accepted: 11 May 2022

Published online: 14 Nov 2022 *

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