IMPACT OF PSYCHOLOGICAL CHARACTERISTICS ON THE BUSINESS PERFORMANCE OF MUSLIM WOMEN ENTREPRENEURS IN SRI LANKA

  • M. A. C. Salfiya Ummah South Eastern University of Sri Lanka, Sri Lanka
Keywords: Psychological characteristics, Need for achievement, Risk taking, Internal locus of control, Independent motives.

Abstract

Women entrepreneurship is a highly stressful initiative which requires mental efforts related to psychological characteristics. In some Islamic families, women are less empowered, as their mobility is constrained and certain traditions and values observed by society affect their achievement in business. Therefore, this study aims to investigate the effects of several psychological capital (PC) factors on the business performance (BP) of Muslim women entrepreneurs (MWEs) in Sri Lanka. The measurement of PC entails the factors of need for achievement (NA), risk taking (RT), internal locus of control (ILC), and independent motives (IM). Data were collected using a structured questionnaire; the study sample involved 260 MWEs from Sri Lanka’s Eastern Province selected via the simple random sampling technique. The structural equation modeling (SEM) method with AMOS was used to test the proposed hypotheses. The findings show that only RT had a significant and positive impact on BP, whereas NA, ILC, and IM did not significantly influence the BP of MWEs in Sri Lanka. In short, those who were risk takers were able to make positive achievements in their business ventures. The study findings provide evidence of the significance of family members, spouses and social stigma on MWEs’ psychological state and ultimately their business performance.

References

Abdullah, S. A. C., & Sahad, M. N. (2016). Integrated marketing communication: A spiritual and an ethical Islamic perspective. International Journal of Islamic Marketing and Branding, 1(4), 305-320.

Ahmad, M., Ahmad, E., Kahat, M. B. H., & Mutaza, G. (2012). New determination of factors affecting the growth of small and medium enterprises in Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 4(6), 513-530.

Akhter, M. N., & Sobhani, F. A. (2016). Entrepreneurship for women in Islam: An institutional perspective. Daffodil International University Journal of Business and Economics, 10(2), 97-109.

Al-Quran Surah Ar-Rad: 11.

Al-Quran Surah An-Nisha:29.

Al-Sadi. R., Belwal, R., & Al-Badi, R. (2011). Women entrepreneurship in the Al-Batinah region of Oman: An identification for barriers. Journal of International Women Studies, 12(3), 58-75.

Anggadwita, G., & Dhewanto, W. (2016). The influence of personal attitude and social perception on women entrepreneurial intentions in micro and small enterprises in Indonesia. International Journal of Entrepreneurship and Small Business, 27(2/3), 131-148.

Anggadwita, G., Luturlean, B. S., Ramadani, V., & Ratten, V. (2017). Socio-cultural environments and emerging economy entrepreneurship: Women entrepreneurs in Indonesia. Journal of Entrepreneurship in Emerging Economies, 9(1), 85-96.

Anggadwita, G., Mulyaningsih, H. D., Ramadani, V., & Arwiyah, M. Y. (2015). Women entrepreneurship in Islamic perspective: A driver for social change. International Journal of Business and Globalization, 15(3), 389-404.

Annual Report, Department of Census and Statistics (DCS), Sri Lanka (2017).

Asad Sadi, M., & Al-Ghazali, B. M. (2010). Doing business with impudence: A focus on women entrepreneurship in Saudi Arabia. African Journal of Business Management, 4(1), 1-11.

Azam Roomi, M., & Harrison, P. (2010). Behind the veil: Women-only entrepreneurship training in Pakistan. International Journal of Gender and Entrepreneurship, 2(2), 150-172.

Baluku, M. M., Kikooma, J. F., Bantu E., & Otto, K. (2018). Psychological capital and entrepreneurial outcomes: The motivating role of social competences of owners of micro-enterprises in East Africa. Journal of Global Entrepreneurship Research, 8(26), 1-25.

Baluku, M. M., Kikooma, J. F., Bantu E., Onderi, P., & Otto, K. (2019). Impact of personal cultural orientations and cultural intelligence on subjective success in self-employment in multi-ethnic societies. Journal of Global Entrepreneurship Research, 9(8), 1-22.

Baron, R.A., Franklin, R. J., & Hmieleski, K.M. (2016). Why entrepreneurs often experience low, not high level of stress: The joint effects of selection and psychological capital. Journal of Management, 42(3), 742-768.

Byrne, B. M. (2016). Structural equation modeling with AMOS: Basic concepts, applications, and programming, 3rd ed., New York NA: Routledge.

Chowdhury, T. Y., Yeasmin, A., & Ahmed, Z. (2018). Perception of women entrepreneurs to assessing bank credit. Journal of Global Entrepreneurship Research, 8(32), 1-16.

Dechant, K. & Al Lamky, A. (2005). Toward an understanding of Arab women entrepreneurs in Bahrain and Oman. Journal of Development Entrepreneurship, 10(2), 123-140.

Dharmaratne, K. L. B. G. (2012). Impact of individual factors on the business performance of women entrepreneurs in Sri Lanka. Sabaragamuwa University Journal, 11(1), 139-165.

Faizal, P. R. M., Ridhwan, A. H. M., & Kalsom, A. W. (2013). The entrepreneurs’ characteristics from Al-Quran and Al-Hadis. International Journal of Trade, Economics, and Finance, 4(4), 191-196.

Fernando, A. K. A. (2006). Entrepreneurship and exploration of barriers to learning and practicing entrepreneurship. In Proceedings of the Third International Conference on Business Management. University of Sri Jayawardenapura, Colombo, 45-53.

Fuad, N., & Bohari, A. M. (2011). Malay women entrepreneurs in the small and medium sized ICT related business: A study on need for achievement. International Journal of Business and Social Science, 2(13), 272-278.

Gupta, P. D., Guha, S., & Krishnaswami, S. S. (2013). Firm growth and its determinants. Journal of Innovation and Entrepreneurship, 2(15), 1-15.

Gustomo, A., Ghina, A., Anggadwita, G., & Herliana, S. (2019). Exploring entrepreneurial competencies in identifying ideas and opportunities, managing resources, and taking action: Evidence from small catering business owners in Bandung, Indonesia. Journal of Foodservice Business Research, 22(6), 509-528.

Hair, J. F., Black, W. C., Barry, B. J., & Anderson, R. E. (2010). Multivariate data analysis 7thEd. New Jersey: Prentice Hall.

Hammawa, Y. M., & Norashidah, B. H. (2016). Women entrepreneurs’ spirituality in business based on Al-Quran and Sunnah: An ethico-metaphysical dimension. IOSR Journal of Business and Management, 18(6), 37-40.

Hwang, H., Malhotra, N. K., Kim, Y., Tomiuk, M. A., & Hong, S. (2010). A comparative study on parameter recovery of three approaches to structural equation modeling. Journal of Marketing Research, 47(4), 699-712.

Ibidunni, A.S., Ibidunni, O.M., Olukundar, M.A., Oke, O.A., Ayeni, A.W., Falola, H.O., Salautio, S.O.P. & Borishade, T.T. (2018). Examining the moderating effect of entrepreneurs’ demographic characteristics on strategic entrepreneurial orientation and competitiveness of SMEs. Journal of Entrepreneurship Education, 21(1), 1-8.

Ilhaamie A. G. A. (2017). Muslim women entrepreneurs’ motivation in SMEs: A quantitative study in Asia Pacific countries. Asian Economic and Financial Review, 7(1), 27-42.

Ilhaamie. A. G. A., Arni, B. S., Rosmawani, C. H., & Al-Banna, M. H. (2014). Challenges of Muslim women entrepreneurship in Malaysian SMEs. International Journal of Innovation, Management and Technology, 5(6), 428-433.

Islam, Md. A., Khan, M. A., Obaidullah, A. Z. M., & Alam, M. S. (2011). Effect of entrepreneur and firm characteristics on the business success of small and medium enterprises (SMEs) in Bangladesh. International Journal of Business and Management, 6(3), 289-299.

Itani, H., Sidani, M. Y., & Balbaki, I. (2009). UAE female entrepreneurs: Motivations and frustrations. Equality, Diversity, and Inclusion: An International Journal, 30(5),409-424.

Kargwell, S. A. (2012). A comparative study on gender and entrepreneurship development: Still a male’s world within UAE cultural context. International Journal of Business and Social Science, 3(6), 44-55.

Lerner M., Brush C. & Hisrich, R. (1997). Israeli women entrepreneurs: An examination of factors affecting performance. Journal of Business Venturing, 12(4), 315-339.

Machado, H. P. V. (2016). Growth of small businesses: A literature review and perspective of studies. Gest. Prod, 23(2), 419-432.

Machmud, A., & Ahman, E. (2019). Effect of Entrepreneur psychological capital and human resources on the performance of the catering industry in Indonesia. Journal of Entrepreneurship Education, 22(1), 1-7.

Machmud, A., & Hidayat, Y. M. (2020). Characteristics of Islamic entrepreneurship and the business success of SMEs in Indonesia. Journal of Entrepreneurship Education, 23(2), 1-16.

Maden, C. (2015). A gendered lens on entrepreneurship: Women entrepreneurship in Turkey. Gender in Management: An International Journal, 30(4), 312-331.

McIntosh, J. C., & Islam, S. (2010). Beyond the veil: The influence of Islam on female entrepreneurship in a conservative Muslim context. International Management Review, 6(1), 103-109.

Mustapha, M., & Subramaniam P. A/P. (2016). Challenges and success factors of female entrepreneurs: Evidence from a developing country. International Review of Management & Marketing, 6(S4), 224-231.

Panda, S. (2018). Constrained faced by women entrepreneurs in developing countries: Review and ranking. Gender in Management, 33(4), 315-331.

Perera, T., & Budhadhasa, S. (1992). Characteristics of Sri Lankan entrepreneurs: How valid is the Schumpeter model? In G. Nanayakara (Ed.). The Emerging Economic Order in Sri Lanka Managerial Leadership. Postgraduate Institute of Management, Colombo, 83-92.

Ranasinghe, S. B. (2008). Factors contributing to the success of women entrepreneurs in Sri Lanka. Sri Lanka Journal of Advanced Social Studies, 1(2), 85-110.

Rani, S. H. Abd., & Hashim, N. (2017). Factors that influence women entrepreneurial success in Malaysia: A conceptual framework. International Journal of Research in Business Studies and Management, 4(1), 16-25.

Rashid, K. M., Ngah, H. C., Mohamed, Z., & Mansor, N. (2015). Success factors among women entrepreneurs in Malaysia. International Academic Research Journal of Business and Technology, 1(2), 28-36.

Rekarti, E., Bahari, Z., Zahari, N. M., Doktoralina, C. M., & Ilias, N. A. (2019). The sustainability of Muslim women entrepreneurs: A case study in Malaysia. International Journal of Financial Research, 10(5), 430-439.

Schumpeter, J. A., Clemence, R. V., & Swedberg, R. (2017). Essays: On entrepreneurs’ innovations, business cycles, and the evolution of Capitalism. New York: Routledge.

Tri Ramdhani, A. D., & Anggadwita, G. (2016). Identifications of Psychological Characteristics of Successful Muslim Women Entrepreneur in Islamic Perspective. Retrieved from http:///www.library.telkomuniverity.ac.id/pustaka/files.

Ullah, Md. M., Mahmud, T., & Yousuf, F. (2013). Women entrepreneurship: Islamic perspective. European Journal of Business Management (EJBM) Special Issue on Islamic Management and Business, 5(11), 253-269.

Walker, I., & Brown, A. (2004). What success factors are important to small business owners. International Small Business Journal, 22(6), 577-594.

Yadev, M. P. (2015). Model of entrepreneurial success: A review of research agenda. Journal of Advanced Academic Research, 2(1), 40-50.

Zulkiffli, S. N. A. (2014). Business performance of SMEs: Subjective or objective measures? Review of Integrative Business & Economic Research, 3(1), 391-401.

Published
2021-11-30
How to Cite
Ummah, M. A. C. S. (2021). IMPACT OF PSYCHOLOGICAL CHARACTERISTICS ON THE BUSINESS PERFORMANCE OF MUSLIM WOMEN ENTREPRENEURS IN SRI LANKA. Journal of Islamic Monetary Economics and Finance, 7(4), 651 - 670. https://doi.org/10.21098/jimf.v7i4.1380
Section
Articles