The nature of hybrid entrepreneurship in the context of a developing economy such as Vietnam
Creators: name: PETERSON, Mark
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 350704
subject: Entrepreneurship

description: This thesis examines the phenomenon of hybrid entrepreneurship in the context of Vietnam. Despite evidence showing hybrid entrepreneurship is a common mode of entry into entrepreneurship, the subject area is under-explored (Xi et al., 2017). Fewer than a dozen peer-reviewed studies have been published to date and all apart from one in Mexico, collected data in developed countries, specifically the US, Germany, UK, Sweden and France. Research into hybrid growth intentions is also limited and this study makes a contribution to fill this gap and to the development of theory. This study extends current research and can guide policymakers who continue to strive to encourage entrepreneurial activity in Vietnam.

Extant research examining the decision of individuals to engage in entrepreneurial activity almost exclusively casts this decision as a dichotomous decision between entry or no entry. Entry is an “all or none” choice between salaried employment and selfemployment (Folta et al. 2010, p. 253). This perspective suggests one would need to
give up paid employment in order to determine what the expected outcome might be from engaging in entrepreneurship. The reality however, underlines the importance of studying hybrid entrepreneurship as a distinct process of entrepreneurial entry (Folta et al., 2010; Wennberg et al., 2006). The data shows many individuals choose to maintain their paid employment while also starting a business venture and in many cases, these hybrid entrepreneurs outnumber full-time entrepreneurs (Burke et al. 2008; GEM, 2003).


The conceptual framework for this research to measure entrepreneurial growth intention is based on Ajzen’s (1991) Theory of Planned Behaviour (TPB) extended to include an addition of Perceived Risk as an independent latent variable. The approach utilized in this study mirrors more closely non-entrepreneurship intentions research using the TPB as the conceptual framework whereby individuals are surveyed about a behaviour in which they are already engaged. For example, smokers are asked about their intentions to quit smoking before and after a smoking cessation clinic (Tseng et al. 2018). The key point is the smokers are already engaged in smoking while the entrepreneurship intentions research typically asks students whose experience is limited to taking an entrepreneurship course to predict their future entrepreneurial behaviour (Nabi et al., 2018). As confirmed by several studies, there is a significant intentions-actions gap and many who say they intend to start a venture have in reality taken no action to do so when surveyed later (Van Gelderen et al., 2015).

The dependent variable (DV) of this research is entrepreneurial growth intention, measured by the three elements relating to expansion of the entrepreneurial venture
measuring growth intent. These three elements are whether the venture owners intend to invest funds, to hire additional staff and whether they believe in the importance of
developing and growing their business. The assumed outcomes of these three behaviours will result in higher investment in a venture (Cassar &amp; Friedman, 2009; McCarthy et al.1993), hiring more employees (Fairlie &amp; Miranda, 2017; Roman, 2013; Wells et al. 2003) and a greater determination to grow (Sadler-Smith et al., 2003).

Data was collected using a mixed methods sequential exploratory design (Cresswell et al., 2003). As hybrid entrepreneurship is a relatively underexplored phenomenon, a mixed methods approach was regarded as providing the most complete methodology. The sequence of this study was two qualitative focus groups in the North and South of Vietnam followed by a quantitative survey, also in the North and South. Study I, the qualitative study was regarded as a pre-study for the quantitative phase and helped to inform the quantitative survey instrument. The number of participants, all of whom were hybrid entrepreneurs, was nine in Hanoi (North) and six in Ho Chi Minh City (South).

Study II, the quantitative phase was conducted via a survey instrument to test the causal relationship of the four exogenous latent constructs with entrepreneurial growth intention as the endogenous variable and to explore how entrepreneurial engagement status moderates this causal relationship. The target participants for the survey were hybrid and full-time entrepreneurs in Hanoi and Ho Chi Minh City. A disproportionate stratified sample design was regarded as best suited to this research due to the different categories or “strata” of individuals surveyed. Following data screening, there were 305 valid observations with 79 full-time entrepreneurs and 226 hybrid entrepreneurs. First, chisquare tests were run to see if there were any significant correlations between hybrid entrepreneur intention and place of residence, gender and education. Then exploratory factor analysis (EFA) was carried out for dimension reduction and reaching a more parsimonious set of measurement items which measure a latent variable or construct (Hayton et al., 2004). The latter step was to evaluate the structural model beginning with the assessment of the outer measurement model. These assessments were carried out by applying partial least squares-structural equation modelling (PLS-SEM) using SmartPLS version 3.0 as recommended by Hair et al., (2014). Applying this statistical technique enabled testing of the nine hypotheses of this study.

Two focus group studies allowed issues related to hybrid entrepreneurship to be explored in greater depth than possible with a mono-method quantitative study. From the qualitative study, it was apparent many hybrid entrepreneurs do not intend to transition to full-time entrepreneurship, regardless of the level of success of their venture. Prestigious jobs in education or government are highly valued and not given up easily, in part due to the influence of family who take pride in these positions. The findings emphasized that the engagement status of hybrid and full-time entrepreneurs were not all the same and therefore they should not be studied as a homogenous group.

All four independent constructs of the conceptual framework of this study were raised by focus group participants without direct instruction. Perceived risk was discussed in terms of increasing venture survival and success. Some reduced risk by testing out their ideas while maintaining the security of their employment. Others were using their employment salaries to fund venture expansion. Personal attitude was raised in the context of happiness, freedom, an increase in earnings and giving back to society. Perceived behavioural control was raised in terms of recognizing niche opportunities and identifying opportunities in a fast-developing economy. Subjective norms raised the influence of family in decision making with respect for the opinions of senior family members important to many. It was apparent from the discussions that the above-mentioned participant characteristics’ influenced their hybrid transition intentions which is encompassed in entrepreneurial engagement status and also their entrepreneurial growth intentions. 

While the government officially strives to encourage start-up activity, corruption remains a problematic though not insurmountable challenge. Paying necessary bribes was seen as a business expense to obtain necessary licenses or to reduce day-to-day interference. Finally, most participants saw geographic business differences in the North and South of the country. Northerners viewed the South as more free-marketed oriented and adventurous. The South was regarded as more liberal, more open to new ideas and the business environment overall as less subject to government interference. Southerners on the other hand believed Northern employees would be more loyal though acknowledged higher levels of government interference due to proximity to the nation’s capital. The quantitative study reveals several key points. The chi-square test results revealed there was a significant difference between the intention levels of hybrid entrepreneurs with more intending to transition to full-time entrepreneurship. There was no significant difference between North and South or in gender for the three levels of hybrid entrepreneurial intention. There was a significant positive correlation between paid employment and type of business entry. There was no significant difference between the education levels of the full-time and hybrid entrepreneurs.

The PLS-SEM analysis phase of the research uncovered first, perceived risk construct is a relevant extension to the theory of planned behaviour (TPB) when studying
entrepreneurial growth intentions. Second, entrepreneurial growth intention is influenced by the three constructs: perceived risk, personal attitude and perceived behavioural
control as assumed in this extended version of the TPB. Of these three factors, perceived risk is the most important one (β=0.166, p=0.002), followed by personal attitude (β=0.120, p=0.026) and then perceived behavioural control (β=0.098, p=0.089). Third and perhaps, the most interesting finding is that entrepreneurial engagement status moderates the relationship between perceived behaviour control, perceived risk and subjective norms and entrepreneurial growth intention (the dependent variable). Of these three moderating effects, perceived behaviour control is the most important (β=0.241, p=0.001), followed by perceived risk (β=0.145, p=0.002) and then subjective norms (β=0.108, p=0.066). A significant theoretical contribution of this research is to extend Ajzen’s (1991) theory of planned behaviour (TPB) to include perceived risk in a study of hybrid and full-time entrepreneurship and to focus on entrepreneurial growth intention construct as the dependent variable (DV). Furthermore, this study assesses how the engagement status to wage job and/or venture moderates the relationship between the exogenous variables and the DV by using entrepreneurial engagement status as a moderating variable (MV). A further theoretical contribution was the extension of theory of planned behaviour with the additional independent variable of perceived risk as a formative construct. Finally, the results of the qualitative and quantitative studies provide valuable insights and confirm the differences between hybrid and full-time entrepreneurs and that these two groups have different characteristics and should be studied separately.