Institutional environments, self-efficacy, outcome expectations and country context: serial mediating effects on entrepreneurial intentions and decision-making

Purpose The influence of institutional environments in shaping entrepreneurial intentions is increasingly attracting scholarly attention, yet the motivational mechanism behind such a relationship remains relatively underexplored. Drawing on social cognitive career theory and institutional theory, this study explores the serial mediating effects of entrepreneurial self-efficacy (ESE) and entrepreneurial outcome expectations (EOE) in the relationship between individuals’ perceptions of institutional environments and their entrepreneurial intentions. Additionally, we examined whether the proposed serial mediating model is dependent on the country context in which one is embedded. Design/methodology/approach The empirical analysis was based on survey data collected from 351 students in Malaysia and Ghana, spanning two time points. Process Macro models were used to test our proposed hypothesis and model. Findings We find that individuals’ perceptions of all three dimensions of the institutional environment (regulatory, normative and cognitive) directly influenced their EI. Additionally, we found that only the perception of the normative environment (NE) has a positive impact on EOE, which in turn enhances EI. Findings also revealed country-specific dynamics. Specifically, we find that the perception of Ghana’s institutional environment significantly enhances students’ ESE, hence reinforcing EOE and, ultimately, their EI. Despite its long-standing efforts to support entrepreneurship, these effects are not as pronounced in Malaysia. Originality/value The study contributes to theory by emphasizing the critical role of the institutional environment’s normative dimensions and EOE in entrepreneurial decision-making, expanding the understanding of how institutional environments influence entrepreneurial intentions via the use of social cognitive career theory in entrepreneurial contexts.