The transformative power of entrepreneurial Self-Efficacy on identity aspiration and nascent behaviours: evidence from Vietnam

This study investigates the antecedents of nascent entrepreneurial behaviors in Vietnam, an emerging economy where entrepreneurship is a crucial growth engine. Grounded in social cognitive career theory and identity theory, we examine the relationships between entrepreneurial self-efficacy, entrepreneurial identity aspiration, opportunity exploration, and opportunity exploitation. Employing a cross-sectional design, we collected data from 502 working-age adults in South Vietnam. Structural equation modeling was used to test hypotheses concerning the direct and indirect effects of self-efficacy and identity aspiration on nascent behaviors. Our findings indicate a significant positive effect of identity aspiration on exploration and exploitation, which is more substantial for exploration. Specific self-efficacy dimensions exhibit differential effects: searching and marshaling predict exploration, while managing resources predicts exploitation. Furthermore, self-efficacy dimensions positively relate to identity aspiration. Contrary to our hypothesis, identity aspiration did not mediate the relationship between self-efficacy and nascent behaviors. These results contribute to the literature by highlighting the nuanced role of self-efficacy and entrepreneurial identity in predicting nascent entrepreneurial activity within Vietnam’s institutional context.