How do locus of control influence business and personal success? The mediating effects of entrepreneurial competency

Abstract

This research aims to assess the influence of locus of control on the expression of entrepreneurial competency in a small business setting. Specifically, it predicts how this can generate positive outcomes in terms of business growth, quality of life, and sustainable entrepreneurial intention. Survey responses were collected from 102 small-sized firms in Malaysia. Structural equation modeling was performed to validate a mediation model and test nine research hypotheses. The results suggested that internal locus of control indirectly affects the venturing outcomes via entrepreneurial competency, whereas external locus of control has no such consequences. Thus, it can be deduced that beliefs based on internal attributions—rather than external forces, define entrepreneurs’ destiny, and their competencies serve a perpetual role in linking these beliefs to positive business performance, life satisfaction, and sustainable entrepreneurial behavior. In practical terms, policymakers may gradually shift their focus from supplying direct financial relief assistance to the owner-managers to empowering them with core competencies building programs, especially during disasters and recessions. This study unravels the complexities of the entrepreneurial psychology-competency interface and fills a gap in the literature by providing compelling evidence of the adverse consequences of relying too heavily on fate or external assistance.

Do Entrepreneurial Intention Influence Entrepreneurial Attitude?

“…This is contrary to some research results, which reveal that locus of control can positively influence entrepreneurial attitudes (Arkorful & Hilton, 2022;Mohamed et al, 2023;Dixit et al, 2023). This means that not all students can understand the extent to which their characteristics can influence their behaviour, especially in generating attitudes towards entrepreneurship, especially if they believe that their behaviour is strongly influenced and controlled by factors beyond their control (Mohd Noor et al, 2021;Hamzah & Othman, 2023), so they have the idea that they have no control over the decisions they will make, which results in personal decisions that cannot be used (Biswas & Verma, 2021). Therefore, parents must have a good understanding of their children's abilities and potential (Wati & Sahid, 2022), so that they can develop the ability to understand their behavior.…”

Rutas hacia la interdisciplina: Casos y aproximaciones desde las Ciencias Sociales

“…La noción locus de control emana de la teoría del aprendizaje social (Rotter, 1966) y enfatiza sobre el grado en que los individuos consideran que tienen o no el control acerca de una situación específica (Dawwas y Haddad, 2018). Cuando los sujetos asumen que poseen el control de la circunstancia se denomina "locus de control interno"; en tanto, si carecen de control y aluden que los factores externos son los elementos influyentes, se opera bajo un esquema de "locus de control externo" (Hamzah y Othman, 2023). En el marco del emprendimiento, dado que el locus de control refiere a la creencia de que acciones propias (control interno) o los eventos externos (control externo) influyen sobre los resultados, entonces es factible deducir que el éxito emprendedor depende de las habilidades individuales y del soporte del medio ambiente institucional (Terán y Guerrero, 2020).…”

Entrepreneurial competencies in the success of enterprises: A bibliometric analysis of the publications in the field

“…The study of Hamzah and Othman (2023) aimed to assess the influence of locus of control on entrepreneurial competency in a small business setting. They predicted how this could generate positive outcomes regarding business growth, quality of life, and sustainable entrepreneurial intention.…”