Interconnectedness between entrepreneurial self-efficacy, attitude, and business creation: A serial mediation of entrepreneurial intention and environmental factor

Abstract

Entrepreneurial self-efficacy has been widely recognized as prominent in entrepreneurship, which can promote entrepreneurial intention, entrepreneurial attitude, and business creation. This paper aims at investigating the extent and relationship of entrepreneurial self-efficacy, entrepreneurial intention, entrepreneurial attitude, and business creation among graduates in Malaysia, as well as examine the serial mediators of entrepreneurial intention and environmental factors in linking this relationship. This present study used a quantitative approach with a self-administered survey directed at university students in Malaysia. A total of 282 public university graduates in the Klang Valley completed this survey, and we further analysed the data undergoing covariance-based structural equation modelling (SEM). The findings indicate that entrepreneurial self-efficacy has a robust effect on entrepreneurial intention, entrepreneurial attitude, and business creation among university graduates in Malaysia. In addition, results indicated that entrepreneurial intention and environmental factors completely mediate the serial mediation of entrepreneurial self-efficacy and business creation, while these two mediators partially mediate the link between entrepreneurial self-efficacy and entrepreneurial attitude among graduates in Malaysia.

1. Introduction

The entrepreneurship and business creation theme among university graduates has attracted attention among scholars and academicians in recent years [1,2]. The importance of entrepreneurship has been widely recognized as a prominent driver of economic growth and social development [3]. Numerous studies also reported that the matter of entrepreneurial activities is to provide new job creations and invite new labour absorption [4,5]. In many countries, including Malaysia, university graduates are confronted with finding suitable employment opportunities upon graduation [6,7]. The traditional job market may only be able to absorb some of the graduates, leading to unemployment [3]. In this regard, promoting entrepreneurship among university graduates as a viable career option can create more dynamic job opportunities and diminish economic and social issues.

The importance of developing students' entrepreneurial intentions has led to the need for educational transformation from job-seeker-oriented to job-creator-oriented [8]. This is because entrepreneurship has yet to be considered a vital career choice among students [9]. Preliminary works have indicated that uncertainty is one of the main reasons for the lack of student involvement in entrepreneurship [4,10]. Similarly, Yohana and Salsabila [11] mentioned that students often feel insecure about starting a business due to insufficient knowledge about entrepreneurship. Later, some studies reported that a lack of entrepreneurial intention would cause a decline in entrepreneurial activities [12,13]. Thus, understanding the factors affecting entrepreneurial intentions and business activities can promote the number of entrepreneurs from university graduates.

Educational institutions and policy research have responded to this issue by providing entrepreneurship education. For instance, in America, universities can play a prominent role in the local business ecosystem, linking education and enterprises to enhance entrepreneurial networks, investment trading, and business ventures [14]. In Singapore, entrepreneurial education has been offered since the 1980s and has become increasingly accepted over time [15]. Also, Dou et al. [16] reported that China had developed a counter-strategy to the education of entrepreneurial entities to generate sustained economic growth since 2014. Entrepreneurship education is emphasised in Malaysia to attract more people, especially young entrepreneurs [14]. As a result, it provides benefits in terms of employment opportunities and helps to improve the country's economy.

In Malaysia, the Cooperative Development Department introduced the cooperative shop in secondary schools in 1968 as a means of informal education [14]. This shows that entrepreneurship education is important because it enhances students’ motivation, awareness, thinking, and skills, ultimately enabling them to achieve entrepreneurial success [4]. However, this study proves that choosing an entrepreneurial career is still not an option [3]. In addition, there has been a crucial demand for entrepreneurial efficacy as the foundation of entrepreneurial intention and business university graduates [17]. Entrepreneurial efficacy is the belief that an individual can successfully perform entrepreneurial tasks and activities [18]. This belief is a prominent component of entrepreneurial intention and business creation.

Considering entrepreneurial self-efficacy for students, many studies on entrepreneurship have scrutinized the role of entrepreneurial efficacy in predicting entrepreneurial intention [12,18]. Review papers have been undertaken to reach a deeper understanding of gaps, resulting in numerous papers on the theme of entrepreneurship and entrepreneurial intention. However, little work has linked entrepreneurial efficacy with other predictors, e.g., environmental factors [19,20], entrepreneurial attitude [21,22], and business creation [23,24]. Thus, this research paper attempts to bridge the theoretical and empirical gaps by involving serial mediation of entrepreneurial intention and environmental factors. In the entrepreneurship stream of literature, there are several works examining entrepreneurial attitude, intention, and action, but the main concern is mainly on the student's level, with less emphasis on studying graduates' level, primarily in Malaysia [4,25].

This research paper aims to shed light on how entrepreneurial self-efficacy promotes entrepreneurial attitudes and business creation among university graduates in Malaysia. Also, this study examines the serial mediation effect of entrepreneurial intention and environmental factors on the link between entrepreneurial self-efficacy, attitude, and business creation. This research paper adds insight into the growing body of literature on entrepreneurship in the educational sector. This study adds insight into the new entrepreneurship research by considering the serial mediators of entrepreneurial intention and environmental factors. The outcome of this research can help policy researchers and educational institutions to obtain a better comprehension of entrepreneurship in the context of education, which will result in more support for enhancing entrepreneurs among university graduates.

The remaining structure of this research paper is provided as follows. Section 2 provides the literature and theories involved in this study. Section 3 explains the method and materials used to address research questions and hypotheses, while Section 4 provides the detailed statistical outcomes and is accompanied by a discussion in Section 5. The last section discusses the conclusion, limitations, implications, and direction for future scholars.

2. Literature review

2.1. Underpinning theories

Entrepreneurship has become increasingly essential for driving new job creation and poverty alleviation. Antecedent works have mentioned that entrepreneurial self-efficacy, intention, attitude, and business creation are interrelated concepts in the theme of entrepreneurship [12,18,26]. Several theories have been provided to understand the relationship between these concepts. The theory of planned behaviour (TPB) by Ajzen [27] and the theory of reasoned action (TRA) by Fishbein and Ajzen [28] are the largely used theories in entrepreneurship research. According to TPB, an individual's decision to initiate a business is affected by their beliefs towards entrepreneurship, their perceived social norms regarding entrepreneurship, and their perceived ability to engage in entrepreneurial behaviour. TPB also suggests that one's intention to initiate a business significantly predicts actual business creation [29].

Conversely, TRA assumes that the greater the intention to dispatch a behaviour which leads the more the behaviour will occur [28]. However, TRA does not directly address factors that may intervene between intention and behaviour, such as barriers or external constraints. Another theory that explains these relationships is the self-efficacy theory by Bandura [30]. This theory posits that an individual's self-efficacy beliefs promote attitude and behaviour. Bandura [30] also pointed out that the individual's behaviour is robustly influenced by self-efficacy, which is essential to provide expected outcomes. In entrepreneurship, self-efficacy is expounded as one's belief in their ability to initiate a business successfully [12]. In accordance with self-efficacy theory, individuals or students with high self-efficacy tend to have attitudes and behaviours in entrepreneurship, including business creation [31].

2.2. Entrepreneurial self-efficacy and entrepreneurial intention

The term self-efficacy was coined by Bandura [30] as an essential of people's intentions. In addition, self-efficacy is also a prominent individual characteristic that has been widely acknowledged among scholars as a consistent performance predictor [32]. Some studies remarked that self-efficacy is an individual's self-confidence to perform specific tasks and solve complex issues [12,32]. This is highly relevant in the context of entrepreneurship, which faces barriers, goal-settings, and opportunities. Furthermore, self-efficacy is generally deployed in entrepreneurship studies to forecast entrepreneurial intentions and to clarify the complicated entrepreneurial actions of potential and current entrepreneurs [33]. Elnadi and Gheith [19] found that an individual's likelihood of starting a business is affected by their attitude towards entrepreneurship, subjective norms, and perceived behavioural control. Previous research confirmed that entrepreneurial self-efficacy, one dimension of these factors, has multiple elements [12,34]. These include culture and environment, education and training, mentoring, and individual differences.

While the entrepreneurial intention is described as the degree to which an individual is willing to initiate a business creation in the near future [35]. Several works have analysed the nexus between entrepreneurial self-efficacy and entrepreneurial intention among graduates. For instance, in a study conducted by Santos and Liguori [36], it was found that entrepreneurial self-efficacy has a positive influence on entrepreneurial intention among graduates. A study also found that the relationship between entrepreneurial self-efficacy and entrepreneurial intention is stronger for graduates with prior entrepreneurial experience [13]. Another study by Hsu et al. [18] investigated that entrepreneurial education could promote entrepreneurial self-efficacy, which positively drives entrepreneurial intention. Following the theory of planned behaviour by Ajzen [27], greater entrepreneurial self-efficacy can affect how individuals act when performing entrepreneurial activities and to what extent they persevere in their actions to confront opportunities and challenges. In sum, entrepreneurial self-efficacy is essential in determining whether graduates will engage in entrepreneurial activities. Individuals with high levels of entrepreneurial self-efficacy are more likely to be involved in entrepreneurial behaviour and vice versa. Therefore, the first hypothesis is presented as follows.

H1

Entrepreneurial efficacy has a positive and significant effect on entrepreneurial intention

2.3. Entrepreneurial self-efficacy, entrepreneurial attitude, and business creation

Entrepreneurial attitude and business creation are two essential concepts in entrepreneurship [31]. These can be stimulated by linking entrepreneurial self-efficacy. The level of entrepreneurial self-efficacy will affect entrepreneurial attitudes and business creation in certain ways. For instance, preparing for new business creation often faces challenges, obstacles, and insecurities. Then, individuals with entrepreneurial self-efficacy will generate more outstanding goal commitment to realise business opportunities [37]. In addition, the latter reflects a respondent's confidence in their ability to manage their business, including production, management, marketing, and financial tasks. A prior study has attempted to use entrepreneurial self-efficacy to predict attitudes and business creation and pointed out that entrepreneurial self-efficacy can promote a robust link to an entrepreneurial attitude [38].

High and low levels of self-efficacy are acquaintance with one's belief to perform a variety of tasks. According to self-efficacy theory [30], self-efficacy initiates certain attitudes and behaviours while facing obstacles and challenges. In this context, Yousaf et al. [31] added that self-efficacy can enhance confidence and belief in entrepreneurship, further affecting attitudes toward entrepreneurship. Entrepreneurial self-efficacy enhances an individual's positive beliefs about their abilities to recognise opportunities, take risks, and overcome challenges associated with entrepreneurship [39]. Regarding entrepreneurial behaviour, Darmanto and Yuliari [40] noted that individuals with higher confidence in managing and mitigating risks are more likely to have a positive attitude towards risk-taking and embrace entrepreneurial behaviour. Hence, the following hypotheses are proposed.

H2

Entrepreneurial efficacy has a positive and significant effect on business creation

H3

Entrepreneurial efficacy has a positive and significant effect on entrepreneurial attitude

2.4. Entrepreneurial intention and environmental factor mediators

Previous studies suggested the indirect effect of entrepreneurial self-efficacy and business creation through mediating variables [40]. Such relationships may occur through entrepreneurial intention and environmental factors. Entrepreneurial intention enables individuals to seize opportunities and overcome challenges, creating an optimistic and proactive entrepreneurial attitude [41]. From the perspective of the theory of planned behaviour (TPB), intention is a prominent key that affects behaviour and attitudes [27]. Meanwhile, the theory of reasoned action (TRA) provides a framework for predicting human behaviour, primarily in the context of decision-making and intentional behaviour [28]. According to this theory, subjective norms are linked with the environment and intention to enhance the initiative in preparing business creation [28].

The literature also presents empirical evidence on the relationship between entrepreneurial intention and business creation through environmental factors. For instance, Handayati et al. [5] remarked that there is a strong link between entrepreneurial intention and business creation among university students in Indonesia, while other studies have found the role of entrepreneurial self-efficacy in stimulating intention and behaviour [42]. In addition, some scholars have remarked that environmental factors are essential in determining intention, attitude, and business creation [43,44]. Indeed, antecedent studies have found that entrepreneurial intention can be predictor for entrepreneurial attitudes and behaviour [45,46].

Based on the theories and outputs of the preliminary studies, serial mediation in this research paper is based on the agreement that entrepreneurial self-efficacy can promote entrepreneurial intention [19,31] and strengthen environmental factors [40], which in turn affect behaviour [12]. Indeed, entrepreneurial attitudes are essential to improving opportunities in entrepreneurship. Serial mediation analysis enables to link between entrepreneurial self-efficacy and entrepreneurial attitudes through entrepreneurial intention and environmental factors. Some scholars noted that individuals with higher entrepreneurial self-efficacy are more confident and believe that affects entrepreneurial intention [19,31] and environmental factors [40], which further influences entrepreneurial attitudes [47]. Therefore, the hypotheses are presented below.

H4

Entrepreneurial intention and environmental factors are mediators in the relationship between entrepreneurial self-efficacy and business creation

H5

Entrepreneurial intention and environmental factors are mediators in the relationship between entrepreneurial self-efficacy and entrepreneurial attitude

3. Method

3.1. Research design

This research used a quantitative survey to collect data from 282 public university students in the Klang Valley of Malaysia. The reason for selecting this study is based on the belief that there are many students of different educational levels at these public universities. The framework in this present paper is based on theories and preliminary relevant papers. This study involved covariance-based structural equation modelling in comprehend the complexity of the proposed model and hypotheses.

3.2. Sample and data collection

The data in this research have been acquired from a self-administered survey conducted in public universities in the Klang Valley of Malaysia. The respondents of this present study were university students who had taken entrepreneurial subjects at a public university to see the impact of entrepreneurial efficacy and business creation on students. This study involved a simple random sampling method widely used in entrepreneurship and social science studies. In total, 300 questionnaires were allocated to the university graduates in the Klang Valley of Malaysia, including those from Universiti Kebangsaan Malaysia (UKM), Universiti Malaya (UM), Universiti Teknologi Mara (UiTM), and Universiti Putra Malaysia (UPM). After removing some responses with missing values and incomplete responses, the final sample was 282 responses for further analysis (94 % response rates). The final estimation was run on a data sample of 282 respondents. The respondents were informed of the study's purpose and were asked to answer the questionnaire in 15–20 min. Written consent was acquired from participants before involvement in this survey and they informed for the research purpose as well as to keep their confidentiality. Permission to perform this research was acknowledged by the research ethics committee of Universiti Kebangsaan Malaysia, Bangi, Malaysia.

3.3. Measurement

This research evaluates university students' perceptions using a seven-Likert scale, ranging from 1 ′strongly disagrees' to 7 ′strongly agree' The instruments used in this research were involved in and adopted from previous papers. Entrepreneurial self-efficacy refers to individuals' belief in their capabilities to undertake entrepreneurial activities successfully. The assessment of entrepreneurial self-efficacy was adopted using seven items from Kim-Soon et al. [48]. In addition, entrepreneurial intention refers to individuals' inclination and readiness to engage in entrepreneurial activities. We adopted nine items from Kusumojanto et al. [4] to measure entrepreneurial intention. Later, business creation refers to the process of initiating and establishing a new business venture. This study measured business creation using nine items from Nieuwenhuizen and Swanepoel [49]. Environmental factors, in the context of this research, refer to external influences or contextual factors. We included six items from Martins and Perez [50]. Lastly, an entrepreneurial attitude refers to individuals’ overall evaluation or favourability towards entrepreneurship as a career path or activity. We adopted eleven items from Anwar et al. [51] to measure this variable. We involved back-to-back translation method to ensure the accuracy of language between English and Bahasa Melayu Malaysia.

3.4. Pilot study

The research instrument underwent expert review to ensure its content and language validity. Bartlett's Test of Sphericity determines the correlation between items, and p-values should be significant [52]. Table 1 shows that Bartlett's Test of Sphericity for entrepreneurial efficacy and business creation is significant, with a p-value <0.01 of 0.000. This implies that the interconnectedness between entrepreneurial efficacy items and business creation is sufficient for factor analysis. The KMO test value for each dimension is more significant than 0.60, indicating that further analysis is worthwhile. To ensure reliability, a pilot study was tested on 30 public university students in Malaysia undergoing the software of SPSS version 27. The pilot results indicated that Cronbach's alpha value of the entrepreneurial efficacy variable was 0.820, while that of the item creation business was 0.928. Descriptive statistics of mean scores and deviations from these pools are used to test the effectiveness of entrepreneurship and business students. Hair et al. [52] stated that Cronbach's alpha values upper than 0.7 are reasonable and acceptable.

Table 1.

KMO and bartlett estimation.

Variable	KMO Test	Bartlett Test (Sig)
Entrepreneurial Self-Efficacy	0.852	0.000
Business Creation	0.953	0.000
Entrepreneurial Intention	0.930	0.000
Entrepreneurial Attitude	0.823	0.000
Environmental Factor	0.912	0.000

3.5. Common method bias

This present study also checks the potential of common method bias (CMB) using two approaches. First, this study involved Harman single-factor analysis with five constructs [53] and it was found that 38.57 per cent of the total variance was the enormous variance provided, which is lower than the threshold of 50 per cent. In addition, this research also estimated using the full-collinearity model suggested by Kock [54], which showed that variance inflation factor (VIF) ranged from 1.683 to 2.722, which is less than the 3.3 thresholds, indicating that CMB does not occur in this research.

3.6. Data analysis

A two-step structural equation modelling from Anderson and Gerbing [55] was involved to estimate the proposed conceptual model and conduct hypothesis testing. The first stage is a measurement model. The first step is the measurement model, which estimated confirmatory factor analysis, validity, and reliability. To determine the reliability of the constructs, Cronbach's alpha and composite reliability (CR) were used. The validity of the constructs was estimated using the standardized loadings of each measured item and the average variance extraction (AVE). Discriminant validity was estimated following the Fornell-Larcker [56] criteria. In the second stage of the study, hypothesis testing and mediation analysis were conducted using IBM-SPSS-AMOS 27. The bootstrapping method with 5000 bootstraps and 95 % confidence intervals was used to establish a mediation relationship in the model by demonstrating the significance of the indirect effects [57].

4. Results and discussions

4.1. Profile of respondents

Table 2 presents information about the profile of respondents in this research. The majority of respondents were female students (70.6 %) from Universiti Teknologi Mara (UITM) with a percentage of 24.1 %, Universiti Kebangsaan Malaysia (UKM) (24.8 %), respondents from Universiti Malaya (UM) (23.8 %), and Universiti Putra Malaysia (UPM) (27.3 %). In general, approximately 28 % of the respondents had businesses, while the rest had no businesses. In terms of race, Malay students were 254 (90.1 %), China 12 (4.3 %), India 13 (14.6 %), and other races 13 (1.1 %) respondents. The table also shows that most respondents have bachelor's holders, with a percentage of 67 %, followed by 76 diploma students (27 %) and 17 master's degree holders (6 %). Lastly, the majority of respondents were involved in social science (50.4 %), technical science (24.8 %), pure science (19.5 %), medical (4.3 %), and other fields (1.1 %).

Table 2.

Demographic profile of respondents.

Demography	Frequency	Percentage
Gender
Male	83	29 %
Female	199	70.6 %
Race
Malay	254	90.1 %
Chinese	12	4.3 %
Indian	13	4.6 %
Others	3	1.1 %
Education Level
Diploma	76	27 %
Bachelor Degree	189	67 %
Masters	17	6 %
Field of Study
Social Science	142	50.4 %
Technical Science	70	24.8 %
Pure Science	55	19.5 %
Medical Science	12	4.3 %
Others	3	1.1 %
Institution
UITM	68	24.1 %
UKM	70	24.8 %
UM	67	23.8 %
UPM	77	27.3 %
Business Ownership
Yes	80	28.4 %
No	202	71.6 %

Note. UiTM: Universiti Teknologi Mara, UKM: Universiti Kebangsaan Malaysia, UPM: Universiti Putra Malaysia, UM: Universiti Malaya.

4.2. Measurement model

The measurement models of five constructs were estimated using confirmatory factor analysis (CFA). A good-fit measurement model was confirmed by some indicators, including p < 0.001, RMSEA = 0.074, CFI = 0.911, TLI = 0.903, and Chisq/df = 2.535 (see Fig. 1). The fitness values for the Comparative Fit Index (CFI) and Tucker Lewis Index (TLI) meet the suggested literature values of at least 0.90. The RMSEA index value is less than 0.08 and the Chisq/df is lower than 5.0, remarking that each index category's fit value criteria have been accomplished. The factor loading of all items ranging from 0.68 to 0.91 indicates the unidimensionality criteria of the measurement scale for all five constructs of entrepreneurial self-efficacy, entrepreneurial attitude, entrepreneurial intention, and business creation have met the thresholds [52,58].

Fig. 1.

Measurement model.

The statistical estimation also shows that validity and reliability have been satisfactory since the AVE (0.845–0.953) and loading factor (0.68–0.91) have upper than the threshold. In addition, this research paper also estimates discriminant validity undergoing the criteria from Fornell-Larcker [56]. The square root value should be greater than the maximum correlation with other constructs and higher than 0.7 to ensure discriminant validity. The statistical output indicated a greater value than the correlation between other latent variables (see bold mark). Thus, this model is declared to meet the requirements of discriminant validity (see Table 3).

Table 3.

Discriminant validity.

	CR	AVE	EE	EA	EI	EF	BC
EE	0.845	0.646	0.804
EA	0.930	0.624	0.695	0.790
EI	0.953	0.715	0.578	0.580	0.846
EF	0.907	0.620	0.503	0.698	0.618	0.787
BC	0.960	0.750	0.509	0.738	0.899	0.691	0.867

Note. EE: entrepreneurship self-efficacy; EA: entrepreneurial attitude; EI: entrepreneurial intention, EF: environmental factor; BC: business creation; AVE: average variance extracted; CR: composite reliability.

4.3. Structural model and hypothesis testing

The significance of the hypothesized relationships was performed based on the path coefficients (p < 0.05). As illustrated in Fig. 2 and Table 4, entrepreneurial self-efficacy has positively influenced entrepreneurial intention among graduates in Malaysia (β = 0.806, t = 7.966, p < 0.001), supporting H1. Entrepreneurial self-efficacy has been statistically significant in influencing business creation among graduates in Malaysia (β = 0.088, t = 3.590, p < 0.05), supporting H2. Similarly, entrepreneurial self-efficacy is related to entrepreneurial attitude (β = 0.343, t = 5.662, p < 0.001), supporting H3.

Fig. 2.

Structural model.

Table 4.

Hypothesis estimation.

Construct	Estimate	S.E.	C.R	p-value	Decision
EI < --- ESE	0.806	0.088	9.110	***	Significant
BC < --- ESE	0.088	0.055	3.591	0.012	Significant
EA < --- ESE	0.343	0.054	5.825	***	Significant

Note. *** significant at a level of <0.001, EI = entrepreneurial intention, ESE = entrepreneurial self-efficacy, BC = business creation, EA = entrepreneurial attitude.

4.4. Serial mediation

Fig. 2 and Table 5 remark that entrepreneurial intention and environmental factors were serial mediators in the link between entrepreneurial self-efficacy, entrepreneurial attitude, and business creation. The statistical estimation for the serial mediator confirmed that entrepreneurial intention and environmental factors play a significant role in the relationship between entrepreneurial self-efficacy and business creation (β = 0.115, t = 5.232, p = 0.001), supporting H4. Furthermore, the direct effect of entrepreneurial self-efficacy and business creation in the presence of mediators reduced the coefficient value and was not statistically significant (β = 0.057, p = 0.119). Thus, entrepreneurial intention and environmental factors completely mediate the connection between entrepreneurial self-efficacy and business creation among graduates in Malaysia.

Table 5.

Serial mediation.

Construct	Direct Effect	Indirect Effect	Estimate	Lower Bound	Upper Bound	P-value	Decision
ESE—EI—EF—BC	0.057 (0.119**)	0.083	0.115	0.058	0.188	0.001	Complete Mediation
ESE—EI—EF—EA	0.078 (0.002*)	0.065	0.118	0.066	0.201	0.001	Partial Mediation

Note. * significant, **not significant, EI = entrepreneurial intention, ESE = entrepreneurial self-efficacy, BC = business creation, EA = entrepreneurial attitude, EF = environmental factor.

This research also reported that the serial mediator of entrepreneurial intention and environmental factors in mediating entrepreneurial self-efficacy and entrepreneurial attitudes exist in the model (β = 0.118, t = 5.473, p = 0.001), supporting H5. Later, the direct effect of entrepreneurial self-efficacy and entrepreneurial self-efficacy in the presence of mediators affected to reduce the coefficient value and was also found statistically significant (β = 0.078, p = 0.002). Thus, entrepreneurial intention and environmental factors partially mediate the association between entrepreneurial self-efficacy and entrepreneurial attitudes among graduates in Malaysia.

5. Discussions

This research empirically examines the relationship between entrepreneurial self-efficacy, attitude, and business creation and investigates the serial mediator of entrepreneurial intention and environmental factors. This research paper provides five hypotheses with two serial mediations and confirmed all the hypotheses proposed.

The first finding indicates that entrepreneurial self-efficacy has a robust influence on entrepreneurial intention among graduates in Malaysia. This finding supports some preliminary studies [33], which mention that entrepreneurial self-efficacy has been considered a prominent predictor of entrepreneurial intention [12]. In essence, graduates who have a strong belief in their ability to be entrepreneurial feel more in control of their entrepreneurial activities and are more confident in their ability to succeed in starting and running a business. Therefore, it is crucial for universities and policymakers to escalate the enhancement of entrepreneurial self-efficacy among graduates in Malaysia to promote entrepreneurship in the country. This study also confirms that the theory of reasoned action (TRA) provides a framework for understanding how entrepreneurial self-efficacy influences entrepreneurial intention among graduates.

This research shows empirical evidence that self-efficacy has a positive and significant influence on business creation, consistent with preliminary papers [31,38]. Entrepreneurial self-efficacy gives individuals the confidence and motivation to take risks and overcome the challenges of running a new venture [59]. In addition, individuals with high levels of entrepreneurial efficacy are more likely to continue in their efforts and adapt to changing circumstances, which are essential factors in the success of a new business [60]. In addition, students with higher entrepreneurial self-efficacy tend to take calculated risks and pursue opportunities that can lead to tremendous success. Hence, educational institutions need to organise various programs to enhance entrepreneurial self-efficacy through particular entrepreneurship education or practical experience.

Entrepreneurship has become a popular career choice among graduates in Malaysia [7]. However, running a business can be daunting, and many potential entrepreneurs may need more confidence and skills to succeed. This is where entrepreneurial self-efficacy comes into play [4,10]. An earlier study has shown that entrepreneurial self-efficacy remarkably relates to entrepreneurial intentions and attitudes [61]. Several studies have analysed the association between entrepreneurial self-efficacy and attitudes among graduates in Malaysia. For example, Omar [62] demonstrated that greater levels of entrepreneurial self-efficacy were connected with greater intention to start a business and more positive attitudes towards entrepreneurship among Malaysian graduates.

Similarly, Yusoff and Ibrahim [63] indicated that self-efficacy robustly predicted entrepreneurial intentions and attitudes among Malaysian university students. Thus, entrepreneurial self-efficacy is an essential factor in shaping the attitudes and intentions of graduates towards entrepreneurship. This study expanded on the theory of planned behaviour (TPB), which points out that attitudes toward a behaviour influence behavioural intentions. In the context of business creation, students with high self-efficacy tend to have positive attitudes toward starting a business [27]. Additionally, confirming business creation and developing entrepreneurial self-efficacy can further promote entrepreneurial attitudes among graduates in Malaysia. Thus, more attention should be focused on the students’ entrepreneurial self-efficacy so they can enhance their confidence in dealing with new business creation.

Later, the serial mediation using structural equation modelling indicated that entrepreneurial self-efficacy is a crucial factor in determining the success of graduate entrepreneurs in Malaysia. However, the association between entrepreneurial self-efficacy and business creation is complex and mediated by other factors, i.e., entrepreneurial intention and environmental factors. Entrepreneurial intention is acquaintance with business creation among graduates [19,31,59]. Furthermore, entrepreneurial intention has been found to mediate the connectivity between entrepreneurial self-efficacy and business creation among graduates [64]. This suggests that graduates with high self-efficacy are more likely to pursue entrepreneurial activities if they have a solid intention to do so. From this result, there is an increasing demand for increasing entrepreneurial intention and considering environmental factors to drive business creation from university students.

On the other hand, environmental factors, such as the availability of resources and support from family and friends, also play a crucial role in mediating the relationship between self-efficacy and business creation [12,40]. For instance, graduates with high entrepreneurial self-efficacy tend to initiate a business when they have access to financial resources and a supportive social network. This is resonated by several works which mention that a lack of resources and support may deter graduates with high entrepreneurial self-efficacy from pursuing entrepreneurial activities [7,10]. Thus, this study confirms that entrepreneurial intention and environmental factors can mediate the association between entrepreneurial self-efficacy and business creation among graduates in Malaysia.

The last finding confirms the serial mediation of the link between entrepreneurial self-efficacy and business creation through entrepreneurial intention and environmental factors. Some studies mentioned that the relationship between entrepreneurial self-efficacy and entrepreneurial attitudes could be moderated by environmental factors [40] and entrepreneurial intention [19]. Environmental factors such as cultural norms, social support, and institutional support can influence one's entrepreneurial intentions and behaviour [33]. In this regard, students with high entrepreneurial self-efficacy may not pursue entrepreneurship if their cultural norm is to pursue traditional career paths.

6. Conclusion

In summary, this study investigated the relationship between entrepreneurial self-efficacy, entrepreneurial attitude, and business creation among graduates in Malaysia, as well as investigated the serial mediation of the link between self-efficacy, entrepreneurial attitude, and business creation through entrepreneurial intention and environmental factors. The findings indicate that self-efficacy significantly influences entrepreneurial intention, entrepreneurial attitude, and business creation. This paper confirms the serial mediation of entrepreneurial intention and environmental factors in linking entrepreneurial self-efficacy and business creation. Similarly, this study also remarks on the serial role mediation of entrepreneurial intention and environmental factors in mediating self-efficacy and entrepreneurial attitudes among graduates in Malaysia.

This study provides several important implications. First, this study provides substantial theoretical implications to the literature on entrepreneurship and business creation by considering some prominent variables, i.e., entrepreneurial self-efficacy, entrepreneurial attitude, and environment factors. In addition, the integration of environment factors and entrepreneurial intention can promote business creation among university students. Therefore, it sheds light on the factors influencing graduates' entrepreneurial attitudes, actions, and behaviuors, providing valuable insights for policymakers, educators, and aspiring entrepreneurs. Furthermore, the findings suggest that building and enhancing graduates’ entrepreneurial self-efficacy is crucial for promoting entrepreneurial intention and business creation, and it has brought practical implications for business and policymakers to include developing training programs and workshops that focus on building self-efficacy beliefs, such as providing mentorship, guidance, and real-world experiential learning opportunities. This study also proposes the methodological implications of using serial mediation. The serial mediation result implies that environmental factors and entrepreneurial intention play a significant role in mediating the connectivity between self-efficacy and business creation, which has implications that government bodies, industry leaders, and educational institutions should collaborate to create an environment that encourages and supports entrepreneurship.

Like other studies, this study has limitations. First, the study may have relied on a specific sample of graduates in Malaysia, which lies in the generalisability of the results to other contexts study or populations. Future scholars can include a more diverse sample, encompassing graduates from different universities, regions, and cultural backgrounds. Second, a self-administered online survey has the potential for bias; thus, future research can involve other methods for a more comprehensive understanding of the relationships studied.

Data availability statement

Data included in article/supp. material/referenced in article.

CRediT authorship contribution statement

Sheerad Sahid: Writing – original draft, Software, Methodology, Investigation, Conceptualization. Nor Shafira Norhisham: Visualization, Project administration, Methodology, Investigation, Formal analysis, Conceptualization. Bagus Shandy Narmaditya: Writing – review & editing, Visualization, Software, Methodology, Formal analysis, Conceptualization.

Declaration of competing interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.