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ADHXXX10.1177/1523422320907045Advances in Developing Human ResourcesRiantoputra and Muis
Article
Advances in Developing Human
Abstract
The Problem.
Despite efforts to develop women entrepreneurs in Indonesia, the majority of them
are unable to grow their businesses. The literature suggests that cultural factors (i.e.,
non-egalitarian sex roles) may limit the actualization of psychological factors that are
critical for their successes.
The Solution.
To investigate the motivation, challenges, and opportunities facing women
entrepreneurs in Indonesia, this article focused on (a) characteristics of women
entrepreneurs based on their motives: necessity- versus growth-oriented, and
(b) psychological factors that influence their success. Focusing on micro and small
enterprises, we collected data from 200 (87 necessity-oriented, and 113 growth-
oriented) women entrepreneurs in Indonesia. The study findings demonstrate that
the success of women entrepreneurs in Indonesia is associated with their identity
conflict (i.e., induced by non-egalitarian sex-role culture), passion, and future time
orientation, all of which interplay differently for necessity- and growth-oriented
women entrepreneurs.
The Stakeholders.
This article is important for scholars, practitioners, and government officers in a
non-egalitarian sex-role country like Indonesia. It informs involved stakeholders of
the specific aspects that need to be considered in coaching and leadership training for
women entrepreneurs who are managing micro and small enterprises.
1
Universitas Indonesia, Depok, Indonesia
2
Universitas Negeri Makassar, Indonesia
Corresponding Author:
Corina D. Riantoputra, Universitas Indonesia, Kampus Baru UI-Depok, Jawa Barat 16424, Indonesia.
Email: corina.r@ui.ac.id
Riantoputra and Muis 151
Keywords
women entrepreneurs, psychological factors, necessity- and growth-oriented
motives, women leaders, identity conflict, Indonesia
Women entrepreneurs are key to the development of micro, small, and medium enter-
prises (MSMEs) in Indonesia because 60% of MSMEs are managed by women (The
World Bank, 2016). Although there are many developmental efforts directed to
improve their financial literacy and administrative skills, many of these women are
still unable to grow their businesses. Studies show that most women entrepreneurs in
MSMEs tend not to save for the future (The World Bank, 2016), direct capital intended
for their businesses to family members or community networks (Blattman et al., 2013;
Buvinić & Furst-Nichols, 2014), and lack proclivity to grow (Arsana & Alibhai, 2016).
Previous studies indicate that to empower women entrepreneurs, there is a need to
understand the reasons for their inability to take advantage of their skills for the growth
of their businesses. To that end, we argue for the need to pay more attention to the
psychological side of entrepreneurship (Frese et al., 2016) and to how its actualization
may depend on the culture.
Problem Statement
Research shows that one key reason for the lack of proclivity in the growth of women
entrepreneurs in Indonesia concerns their motives, which are categorized as growth-
oriented and necessity-oriented (Muis, 2017). In contrast to growth-oriented entrepre-
neurs, who demonstrate ability and willingness to expand their enterprises, necessity
women entrepreneurs are those who engage in entrepreneurial activities due to the
lack of alternatives and who are unlikely to change their business trajectory (Block &
Wagner, 2010). Arguably, necessity-oriented entrepreneurs are more prone to kin-tax
that directs their capital for their extended family and capital diversion, due to a lack
of motives to grow their business. Because of the importance of motives for the suc-
cess of women entrepreneurs in Indonesia, the purpose of this study was to portray and
discuss the characteristics of women entrepreneurs in Indonesia based on the two
motives. In this study, women entrepreneurs are defined as women who launch and
actively manage their businesses and have been doing it for a year or longer in MSMEs
in Indonesia. The success of women entrepreneurs refers to the extent of their entre-
preneurial behaviors (De Jong et al., 2013), which focus on the degree of their imple-
mentation of innovative ideas.
Another purpose of the study was to investigate the interplay of motives and psy-
chological factors in influencing the success of women entrepreneurs. This investiga-
tion will use the self-regulatory theory consisting of promotion and prevention
regulatory focus (Higgins, 1998). Focus on promotion is triggered by the desire to
achieve an ideal self and potential gains (Higgins & Cornwell, 2016). People behave
to achieve their aspirations, hopes, and ideas regarding whom they want to be or their
152 Advances in Developing Human Resources 22(2)
ideal selves. Prevention focus, on the contrary, can be explained as behaviors that are
triggered by the desire to avoid punishment, satisfy their obligations and duties, and
meet the ideas of what they should do (Higgins & Cornwell, 2016). Furthermore, these
authors explain that when individuals unable to achieve their aspirations and hope
(i.e., promotion focus is not achieved), individuals experience sadness and discourage-
ment. However, if prevention focus is not achieved (meaning that individuals fail to
achieve their obligations and duties), they may experience anxiety and tension, even
guilt.
Literature Review
Research on entrepreneurship highlights the importance of two traits: entrepreneurial
passion and future time orientation. Given the context of this study, women-entrepre-
neur identity conflict (WEIC) is also taken into consideration.
Passion
While passion refers to “a strong inclination toward an activity that people like, that
they find important, and in which they invest time and energy” (Vallerand et al., 2003,
p. 756), entrepreneurial passion is related to a strong preference to entrepreneurial
activities. Based on the promotion and prevention of self-regulatory focus theory, indi-
viduals with entrepreneurial passion define their goal in terms of entrepreneurial
achievements and direct their activities accordingly. Cardon et al. (2009) argued that
passion is a critical element for entrepreneurial behaviors as it activates cognitive pro-
cessing, mobilizes energy, and strengthens commitment during difficult times.
Research also shows a positive relationship between passion and entrepreneurial suc-
cess (Bao et al., 2017; Murnieks et al., 2012; Thorgen & Wincent, 2015). Thus, we
hypothesize (see Figure 1) the following:
Identity Conflict
Research shows that passion does not work alone. Its influence on performance is the
result of its interaction with identity (Lin & Chen, 2016). In their analysis of the life
story of 45 entrepreneurs, Yitshaki and Kropp (2016) demonstrated how high-tech
entrepreneurs and sociopreneurs who operate in different contexts attribute different
meanings for their passion. They conclude that passion is subjectively intertwined
with identities and differs across categories of entrepreneurs.
Depart from the previous studies that investigated the interaction between passion
and entrepreneurial identity (Murnieks et al., 2012), the current study focuses on the
conflict of identity—between identity as women and entrepreneurs—which is called
women-entrepreneur identity conflict. WEIC refers to a sense a discrepancy in their
Riantoputra and Muis 153
identity as women and as entrepreneurs (Karelaia & Guillen, 2014), and thus, we
argue that this conflict may buffer the actualization of women entrepreneurial passion,
especially in a non-egalitarian culture. Although in Indonesia traditional culture coex-
ists with achievements of some women as senior managers (Riantoputra & Gatari,
2017), we argue that most women entrepreneurs who manage micro and small busi-
nesses function in a non-egalitarian sex-role culture. In a study of 163 women leaders,
Primagita and Riantoputra (2019) demonstrated that in a culture that emphasizes men
as the ultimate authoritative figures, women tend to feel inferior and suffer from iden-
tity conflict.
In light of the self-regulatory focus theory (Higgins & Cornwell, 2016), this culture
shapes the obligation and duties of women primarily in the domestic area. It structures
the expectations for women to prioritize their families at the expense of their careers
or businesses, making them more susceptible to divert their capital for families or
other people’s needs. Applying regulatory focus theory, it suggests that women entre-
preneurs tend to apply prevention focus. Their tendency to divert their capital for fami-
lies or other people’s needs may be an expression of their way to achieving their ought
self, that is, their obligation as induced by non-egalitarian sex-role culture, and to
avoid disapproval and punishment from their extended family. Research shows that
poorer women entrepreneurs are more likely to be subjected to a kin-tax where they
direct capital intended for their businesses to family members or community networks
(Buvinić & Furst-Nichols, 2014).
Thus, we hypothesize (Figure 1) the following:
Method
We chose to survey to collect data from women entrepreneurs who launched and are
managing their businesses.
Participants
Using convenience sampling from three provinces in Indonesia (i.e., West Java,
Middle Java, and South Sulawesi), we collected data from 202 women entrepreneurs
who are founders, owners, and managers of their businesses. However two partici-
pants did not answer the questions related to their motive. Thus only 200 participants
categorized as growth- and necessity entrepreneurs. The questionnaires were adminis-
tered as a face-to-face paper survey. Enumerator assistance was utilized for low-edu-
cated participants who needed assistance in understanding the questionnaires. The
participants were appreciated by souvenirs. The average age was 38.2 years old, most
of them had no university education (62.4%), and most had never experienced any
training to empower them as entrepreneurs (71.78%).
Measurement Variables
Entrepreneurial success, entrepreneurial passion, WEIC, and future time orientation
were measured on a 6-point Likert-type scale (rated 1 = “strongly disagree” to 6 =
“strongly agree”). We translated the scales to Bahasa Indonesia (Indonesian language)
and did the back-to-back translation to make sure that the meaning of each item is
identical with their original item.
Drawing on De Jong et al. (2013), entrepreneurial success was assessed with five
items (improved current products/services, introduced entirely new products/services,
improved current work practices, introduced entirely new work practices, and realized
organizational change) with Cronbach’s alpha .79. Entrepreneurial passion was mea-
sured on five items by Vallerand et al. (2003), including “I spend much time doing this
activity” with Cronbach’s alpha .85. WEIC was assessed based on Karelaia and
Guillen (2014), including “I think that I am not influential enough because I am a
woman” with Cronbach’s alpha .74. Future time orientation was measured based on
Zhang et al. (2013), including “Meeting tomorrow’s deadlines and doing other neces-
sary work comes before tonight’s play” with Cronbach’s alpha .79.
Findings
Table 1 presents the results of a descriptive statistical analysis of total participants,
necessity-oriented, and growth-oriented entrepreneurs. It shows that the education of
most necessity-oriented entrepreneurs was a non-university level (64 participants or
74%), whereas the education level of growth-oriented women entrepreneurs was univer-
sity level (60 participants or 53.9%). The differences in education level indicate the dif-
ferences in their ability to analyze and problem-solving of these two categories of women
entrepreneurs. Their ability to understand business challenges may be worsening because
most women entrepreneurs never get any coaching to improve their businesses.
Because of non-egalitarian sex roles in Indonesia, we analyzed to what extent
women entrepreneurs receive support from their husbands. Table 1 shows that,
although the majority of respondents reported their husbands as supportive or very
supportive (157 participants or 75%–80%), only approximately 25% of respondents
(50 participants) reported that their husbands were willing to care for their children.
The current data also indicate that only approximately 60% of respondents (120 par-
ticipants) reported gaining permission from their husbands to be entrepreneurs.
Table 1 shows that participants had a similar psychological profile in terms of pas-
sion, future time orientation, and entrepreneurial success. The only significant differ-
ence was the reported WEIC: Necessity-oriented entrepreneur reported a significantly
higher level of WEIC (tvalue = 2.32, p < .05). Furthermore, there is no difference in the
level of entrepreneurial success of both groups, which most likely occurred due to the
subjective measure of entrepreneurial success.
156 Advances in Developing Human Resources 22(2)
Variables M SD 1 2 3 4 5 6 7 8
1. Motive — — 1
2. Education — — .30** 1
3. Age 38.2 10.4 −.17* −.36** 1
4. Participation in training/ — — −.01 .25** −.06 1
coaching
5. Husband’s support 4.57 0.70 .05 −.03 .03 −.08 1
6. WEIC 2.14 0.67 −.16* −.23** −.11 .07 −.32** 1
7. Passion 5.09 0.68 .01 .02 −.02 −.15* .22** −.34** 1
8. Future time orientation 3.84 0.77 −.04 .14* −.08 .06 −.02 −.07 .23** 1
9. Entrepreneurial success 4.13 0.91 .09 .35** −.13 .15* .13 −.21** .31** .37**
that the higher the passion, the more likely women entrepreneurs achieve success.
Future time orientation also significantly influenced entrepreneurial success; therefore,
Hypothesis 3 was supported. This result indicates that those who can plan for the future
tend to be more successful.
It should be noted, however, that the positive relationship between passion and
future orientation with entrepreneurial success is not evidenced in necessity-orientated
entrepreneurs. For them, the only significant factors are education and the interaction
between passion and WEIC. This result indicates that factors influencing entrepre-
neurial success for growth-oriented entrepreneurs are different from that for necessity-
oriented entrepreneurs. For necessity-oriented entrepreneurs, the significant effect of
passion and future time orientation is hidden after WEIC is entered into the analysis
(Table 3: Models 2 and 3 for necessity entrepreneurs). For growth-oriented entrepre-
neurs, the influence of passion and future time orientation are still evident in the final
model (Table 3: Models 2 and 3 for growth entrepreneurs).
Table 3 also shows that WEIC moderates the impact of passion on entrepreneurial
success. However, the direction is not as expected. Slope analysis demonstrates that
WEIC suppresses the strength of the relationship between passion and entrepreneurs’
success, especially for women with low WEIC (Figure 2). Thus, for women with low
WEIC, higher passion does not relate to higher success. On the contrary, for women
with a high level of identity conflict, identity conflict strengthens the role of passion
for success. It seems that women with high WEIC tend to overcompensate the conflict
that they experience by working harder to achieve higher success.
Variable 1 2 3 1 2 3 1 2 3
Education .33** .26** .28** .28* .30** .28** .35** .21* .23**
Participation in .05 .09 .10 −.01 −.04 .02 .10 .20* .20*
training/coaching
Motive −.01 .01 −.01
Passion .23** .21** .27* .15 .25** .26**
Future orientation .27** .24** .23* .16 .31** .30**
WEIC −.04 −.04 −.01 −.06 −.06 −.05
WEIC × Passion .18** .27* .13
R2 .11 .28 .31 .08 .25 .30 .15 .33 .34
ΔR .11 .16 .03 .08 .17 .04 .15 .18 .01
F 8.58 14.78 8.12 3.57 6.04 5.24 9.55 9.47 2.65
df1, df2 3, 190 3, 187 1, 186 2, 80 3, 77 1, 76 2, 108 3, 105 1, 104
Figure 2. Slope analysis with WEIC as a moderator between passion and entrepreneurs’
success.
Note. WEIC = women-entrepreneur identity conflict.
Riantoputra and Muis 159
Study Limitations
This study has several limitations. First, it used a subjective measure of entrepreneur-
ial success that could mask the objective success of women entrepreneurs and factors
Riantoputra and Muis 161
influencing it. Second, the cross-sectional nature of the research design limits the con-
clusion of causality. Despite its limitations, a large number of participants, the use of
enumerators to collect data, and the good scales provide convincing data useful to
progress knowledge and to enrich practices.
Conclusion
This article aims to understand the motivation, challenges, and opportunities in
Indonesia. Employing a survey with good reliability scores, this study advances
understanding of women entrepreneurship by showing that the two categories of
women entrepreneurs possess similar psychological attributes, but the interplay of
those variables generates different factors that are important for the success of dif-
ferent groups. In other words, the current study uncovers the interplay of the motiva-
tion and challenges of women entrepreneurs in a non-egalitarian sex role. These
findings are significant for HRD strategies in Indonesia and other countries facing
similar challenges. Developmental strategies, such as coaching and leadership train-
ing, should focus on different aspects of women entrepreneurs—necessity- or
growth-oriented entrepreneurs included.
Furthermore, the current study contributes to the literature on self-regulatory focus
theory by indicating that factors that perform as activators or inhibitors are subjective
for different contexts. In this study, WEIC that was hypothesized to act as inhibitors
turned out to be an accelerator of the relationship between passion and success for
necessity-oriented entrepreneurs. However, this acceleration suggests an overcompen-
sation of identity conflict, which may result in stress and burnout in the long term. This
finding suggests the complexity of factors influencing women entrepreneurs in non-
egalitarian sex-role countries, not limited to Indonesia.
Funding
The author(s) disclosed receipt of the following financial support for the research, authorship, and/
or publication of this article: The author received financial support from Universitas Indonesia.
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Author Biographies
Corina D. Riantoputra holds a doctoral degree from the University of New South Wales,
Australia, and currently serves as an associate professor in Universitas Indonesia.
Ismarli Muis is an associate professor in Universitas Negeri Makassar (UNM), Indonesia. She
holds a doctorate in research on the entrepreneurial success of opportunity- and necessity-based
entrepreneur.