The Roles of Extraversion and Risk-Taking Propensity in the Relationship Between Internal Locus of Control and Entrepreneurial Intention
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Abstract
This study examines how extraversion and risk-taking propensity shape the relationship between internal locus of control and entrepreneurial intention among undergraduate management students at Universitas Islam Indonesia (UII), Yogyakarta. Although internal locus of control, risk-taking propensity, and extraversion are each known to predict entrepreneurial intention, they are rarely modelled together in a single parallel mediation framework within a specific institutional context. A cross-sectional survey of 244 undergraduate management students was conducted using a bilingual (English-Indonesian) online questionnaire with positively keyed short scales adapted from the IE-4 internal locus of control scale, the Risk Propensity Scale, the Big Five Inventory-2 short form extraversion domain, and the Entrepreneurial Intention Questionnaire tradition. Partial Least Squares Structural Equation Modelling (PLS-SEM) was implemented in Python with 5,000 bootstrap resamples. The measurement model satisfied all criteria for reliability (Cronbach's alpha from 0.82 to 0.93), convergent validity (AVE from 0.53 to 0.73), and discriminant validity (Fornell-Larcker and HTMT ratios all below 0.80). Results showed that internal locus of control significantly predicts entrepreneurial intention directly and indirectly through both mediators. Risk-taking propensity and extraversion contributed comparably to the mediated pathway, with no significant difference between them. The indirect pathway accounted for 52.8 percent of the total effect, indicating substantial partial mediation. Findings support a hierarchical trait architecture in which internal control beliefs foster both risk tolerance and social engagement, and both of these traits channel control beliefs into entrepreneurial intention. Implications for psychologically informed entrepreneurship education in faith-based private universities in Indonesia are discussed.
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