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Entrepreneurship Traits and Social Learning Process: An Overview and

Research Agenda

Article in Procedia - Social and Behavioral Sciences · January 2015

DOI: 10.1016/j.sbspro.2015.01.187

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Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753

ICEEPSY 2014

Entrepreneurship traits and social learning process: an overview

and research agenda
Mohamad Abdillah Royoª*, Azlineer Sarip
, Roziana Shaari

ªFaculty of Education, Universiti Teknologi Malaysia, UTM 81310 Skudai, Johor Malaysia

Faculty of Management, Universiti Teknologi Malaysia, UTM 81310 Skudai, Johor Malaysia

Abstract

This paper aims to focus on three main strands of research relating to entrepreneurship in Malaysia: the personality traits of
entrepreneur in automotive service industry (ASI); social learning process among ASI entrepreneur; and impact of the Big Five
personality traits namely Extraversion, Emotional Stability, Agreeableness, Conscientiousness, and Openness to Experience
upon entrepreneurship. It aims to suggest a tentative research agenda and offer directions for further research. Systematic and
critical literature review approach are employed to research on entrepreneurship and ASI development in Malaysia. The paper
proposes a conceptual framework that integrates the Big Five Personality model and the Entrepreneurial Learning Model.

©
© 2015
2015Published by Elsevier
The Authors. Ltd. This
Published is an open
by Elsevier access article under the CC BY-NC-ND license
Ltd.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the Organizing Committee of ICEEPSY 2014.
Peer-review under responsibility of the Organizing Committee of ICEEPSY 2014.

Keywords: Entrepreneurship; personality traits; social learning process; automotive service industry

1. Introduction

Entrepreneurial learning is unique since it involves a dynamic process of awareness, reflection, association and
application. It also involves transforming experience and knowledge into functional learning outcomes (Harrison
and Leitch, 2005). Despite entrepreneurial learning is credited for all its potential and values (Rae, 2004; Berglund,
Hellström, and Sjölander, 2007), the mutual understanding on its construct and definition are missing. As a result
entrepreneurial learning process remains ambiguous since it effect the context in which learning occurs and

* Corresponding author. Tel.: +607-5533174; fax: +607-5560542.

E-mail address: abdillah@utm.my

1877-0428 © 2015 Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the Organizing Committee of ICEEPSY 2014.
doi:10.1016/j.sbspro.2015.01.187
746 Mohamad Abdillah Royo et al. / Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753

includes the content of what is learned as well as the processes through which learning takes place (Moustaghfir and
Sirca, 2010; Hynes and Dodd, 2014). Furthermore, this field is said to be at its early life phase which debates are
still continuing on conceptual and methodological issues. It is argued that, the entrepreneurship content and its
learning process are ignored by practitioners and are not empirically studied by previous researchers.
It is realize that understanding human dynamics in order to understand entrepreneurship is becoming more
relevant. Entrepreneur is no longer a fixed identity who playing a fixed role in the economic process. Their role is
no longer limited as an agent for economic change or activity and makes buying and selling in the market for future
profit realization. They are an alert entrepreneur who will react and take necessary actions to changing market
condition and regularly changing their management style using innovative approach for their advantage. What are
the necessary actions taken by the entrepreneur? They act accordingly based on their learning experienced from
their environment. This is because entrepreneurship is a process of learning (Cope, 2005), but what and how they
learn remain poorly understood. For instance the ways in which entrepreneurs manage and grow their businesses
can be contributed towards significant understanding on their social learning process, however has not been
empirically studied by many researchers. Wright and Stigliani (2013), support that entrepreneurs experience and
decision making on their business/firms growth on what and how they grow firms, represent a rich arena for
studying entrepreneurial learning but has been neglected by previous studies.
Since the field revolves around complexity and ambiguity, hence it can be postulated that this field requires more
holistic investigation. Henry, Hill et al. (2005) said that previous research from various disciplines had been
conducted without developing its theoretical framework had cause many different analyses and outcomes from the
research conducted on the subject. The different views prolonged because each of researchers or experts involved
do not use each other’s work and the huge knowledge generated on entrepreneurship research had cause the
discipline to be fragmented and never been cumulated (Henry, Hill et al., 2005). The integration concept of
entrepreneurial learning and personality in this study attempt to investigate how personality traits of entrepreneur in
ASI effect their social learning process.

1.1. Entrepreneurial Learning

Regardless of lack of solid theory in entrepreneurial learning, there is continuing interest in this field. Indeed,
the entrepreneurship education has gaining popularity and interest in higher education institutions. The important
of entrepreneurship education can be seen as it becomes the political agenda and the priority for both industrially
developed and developing countries. It is agree that the entrepreneurship education can increase the quality and
quantity of graduate entrepreneurs which enter into the country economy. Education they received in the higher
education institutions’ had absolutely influence their attitude towards entrepreneurship and equips them with
necessary knowledge and skills for entrepreneurial activities (Matlay, 2006).
In the United States (US), the remarkable increase in new business for the past 10 to 15 years is due to the
advantages and attractiveness of entrepreneurship activities in the economy (Lambing and Kuehl, 2007). The
practice of downsizing by big firms is believed to contribute into the increasing number of people considering
entrepreneurship as a career not only because of unemployment but also decreasing interest of people pursuing
career in a big corporation. For the past ten years, small, emerging and self-employed business had employs 77.4%
of all Americans and has produced 71.4% of all new jobs (Volmer, 2014).
Many developed countries had recognized the crucial contribution of the entrepreneurial firms to the economy
as an engine for economic growth and had emphasis the important of small firms as part of renewal process of
declining economies with its innovation which lead to technological change and growth in productivity (Kuratko,
2005).Today, entrepreneurship had gained its importance in Malaysia both in concept and activity. It can be seen
with the various supporting mechanism and policies that exist from funding, the physical infrastructures to the
consultation services initiated by the government. The seriousness of this field perceived by the government can be
seen with the setting up of Ministry of Entrepreneur and Co-operative Development (MeCD) in 1995 to deal with
entrepreneurship issues and its development in Malaysia. One of the main focuses of the ministry is the
acculturation of entrepreneurship culture. It is a continuous and long-term process that was designed to attract
various levels of society to be involved in business including students at secondary schools and institution of higher
 Mohamad Abdillah Royo et al. / Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753 747

learning. Various programmes have been offered by the ministry through its agencies to the existing and potential
entrepreneur with main objectives among others is to increase awareness and interest toward entrepreneurship as a
career.
In Malaysia, the awareness of the importance of entrepreneurship as a career has been increasing. The
government through its agencies have taken various efforts in order to make sure that the entrepreneurial mindset is
being cultured into the society. For example, the entrepreneurial learning efforts have been implemented in the
school curriculum starting from kindergarten to the institutions of higher learning. The entrepreneurship policy that
have been introduced by the government that involves several programmes have shown that every citizen in the
nation have the chance and access to be an entrepreneur. However, programmes that have been conducted are too
general and applicable to everyone that coming from various industries whereas different individuals have
difference need and preferences that requires specific learning approaches.
There are various theoretical approach can be applied on how entrepreneurship can be learned. Cognitive
approach that have been said to be the dominant in the study of learning (Rae, 2007) try to explain human
behaviour by understanding how the thought process work. It is assumed that as a human being, logic is being used
as process of making choices that make most sense to them using thinking, memorizing, knowing, and problem-
solving. In a learning process, this is known as a learner-centred approach where the learners find out the problem
for themselves in a self-directed way. For that reason, heuristics or experiential is identified as potential for
understanding entrepreneurial action (Holcomb et al. 2009). Most often comprehensive decision making is
impossible to be demonstrated by entrepreneurs without using heuristics to make judgements that yield acceptable
solutions. The context of learning that they facing is uncertain, and require the process of experiential learning e.g.
acquire, assimilate, and organize newly formed knowledge with pre-existing structures (Holcomb et al. 2009). In
other words, entrepreneurial learning is an experiential process that makes a person to acquire entrepreneurial
knowledge that helps them in recognizing business opportunities and be able to handling on the liabilities of
newness in new business venture (Politis and Gabrielsson, 2005).
Kolb (1984) mentioned that the core idea of experiential learning theory is that learning requires a person to
grasp and experience and then transform the experienced into something meaningful. This require a person to do
something with the experienced not simply to take it as it is in order to make the learning process happened. As an
entrepreneur often faced varieties of events and uncertainties, they are expected to have reacted upon it and develop
it as an entrepreneurial knowledge. The combination of grasping and transforming the experienced into knowledge
can be perceived as the process of entrepreneurial learning (Politis and Gabrilesson, 2005).

1.2. Social Learning and Entrepreneurial Learning

Social and cultural influences in learning have always been the subject of research in learning behaviour of a
person (Ogbu, 1992; Jonsson, &Rudolphi, 2011; Hunter-Jones, 2012). There is always a question on how a person
can learn to work in entrepreneurial ways. Different person will act differently from each other during the learning
process. Entrepreneurial learning is a behavioural and social process where a person interacts with other people
trying to recognise and act on opportunities (Rae, 2007). Entrepreneurial learning is not only conducted in the
educational environment alone. It is also suggested that acquiring the entrepreneurial knowledge and skills involved
gaining social experience in the real world.
A social learning process theory by Wenger (1998) proposed that a person must actively involve in the
practising communities and constructing his/her identity in the same time. This involvement will shapes what they
do, who they are and how they interpret what they do in the communities. The social participation as a process of
learning and knowing is characterized by the integration of four components namely: meaning (learning as
experience); practice (learning as doing); community (learning as belonging) and identity (learning as becoming).
This foundation is closely related to what has been proposed by Rae (2007) that that entrepreneurship learning
model contained the social learning process. Social learning process connect individuals with its social context as
they develop their entrepreneurial identity and capability through his/her living environment.
Rae’s entrepreneurial learning model consists of 3 major themes which are divided into several sub-themes.
This model is introduced for deeper simulation for personal awareness and reflection on entrepreneurial learning
748 Mohamad Abdillah Royo et al. / Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753

with the major themes namely: Personal and social emergence (becoming an entrepreneur); contextual learning
(how people use their experience to find and work on opportunities); and the negotiated enterprise (how
entrepreneurs interact with others to create ventures).

Transition between
Identity as current and future
Role of the practice identity
family

Learning through
Narrative immersion within the
construction industry
of identity Personal & social
emergence
Entrepreneurial
learning Contextual
learning
Negotiated
Participation enterprise
and joint
enterprise Major themes Opportunity recognition
& innovation through
cultural participation

Negotiated meaning,
structure and Engagement in networks
practices of external relationship
Practical theories of
entrepreneurial action
Changing
roles over
time

Sub-themes

Fig. 1. Entrepreneurial learning model with its major and sub-themes

(source: David Rae, 2007 )

The model suggest by Rae do address other researchers concern on how entrepreneurial learning should be done.
The experiential learning model as explain by Kolb (1984) said that learning requires a transformation of
experienced into a process that bring meanings to the experienced. How to transform this experienced into
knowledge? During assimilation process of learning, individual predictions on perceptions is believed to be
strongly influenced. The following section will further discuss about individual differences i.e. personality as to
understand how the differences influence while entrepreneurs accumulate knowledge as people learn from the
consequences of actions taken and from the behavior and choices they observe in others (Holcomb et al. 2009).

2. Methodology

2.1. Context of Study: Automated Service Industry

In the United States, the automotive service industry had become a significant sector in the U.S. economy. This
industry encompasses all products and services purchases for light and heavy duty vehicles after the original sale.
This includes replacement parts, accessories, lubricants, appearance products, tires, collision repairs, service repairs
and so on. In year 2008, there are approximately 4.3 million people have been employed in the industry. Sales in
 Mohamad Abdillah Royo et al. / Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753 749

service related on cars and light truck had totalled to $210.2 billion while in heavy vehicle reached to $70.5 billion
(Aftermarket.org, 2013).

Because of this development, the automotive service industry had become one of the major supporting industry
in the automotive industry that need not to be disregard. Its contribution to the nation economy and employment
opportunity had proved that this sector had played an important roles in the economy just as same as the
manufacturing and assembly of the vehicles. In South Korea alone, more than 1.3 million people have been
employed in automotive service related activities (Klink & Mathur et al., 2013). In Malaysia, more and more new
establishment of auto service industry have been seen happening lately. This development has seen the employment
of 22,463 workers in the motor vehicles part and accessories industry (Brandt, 2011) in the year 2011.The
development of automotive industry has created supporting industry especially in service-related activities such as
banking, insurance, marketing, and automotive repair. Its highly diversified sector includes manufacturers,
suppliers, dealers, retailers, original equipment manufacturers, aftermarket parts manufacturers, automotive
engineers, motor mechanics, auto electricians, spray painters or body repairers, fuel producers, environmental and
transport safety groups, and trade unions. The major piece of automotive industry comes from the automobile and
automotive parts and components manufacturer that had been said to reach 31.5% share of global automotive
industry value. This had become key sources for the important of automotive service industry today.
Participant of this study are the entrepreneur in the automotive service industry (ASI) in the state of Johor. Since
entrepreneurial learning is characterized as unique, and rely on person experience, factors such as demographic
background, level of education, and entrepreneurial experienced need to be study in order to conclude the findings
on how they learn to become entrepreneur.

2.2. Research Design

From the literature review, entrepreneurship is interdisciplinary in nature that was affected by many factors such
as economic, psychological and social. We attempt to make a connection between entrepreneurial traits and
entrepreneurial learning through experiential and transformative learning. Due to this, it is crucial for us to adopt
multi approach that can give us the fullest range of relevant data that will provide a legitimate and justified
argument in the analysis. As a result, we plan to combine qualitative and quantitative approach in this research.
Qualitative design will involve interviews and document analysis meanwhile the questionnaire instrument will be
used for the quantitative design. The design of this research is aimed to answer the following questions:

1. To investigate the dominant personality traits of entrepreneur in ASI

2. To understand the social learning process among ASI entrepreneur
3. To investigate the impact of Big Five personality traits namely Openness to Experience, Conscientiousness,
Extraversion, Agreeableness, and Neuroticism upon entrepreneurial learning.

3. Research Propositions and Expected Output of the Research Agenda

The ideas that the entrepreneurship can be learned are resulted from several research findings that tried to
differentiate personality traits between entrepreneur and a group of non-entrepreneur (such as paid managers and
high achievers person) (Envick and Langford 2000). It is hypothesize that an entrepreneur is a unique person and
he/she must have a unique set of personality. However, research conducted found that some of the entrepreneurial
traits can also be found in non-entrepreneur. This rejects the notion that an entrepreneur is different from another
person and their talent can’t be learned by others. Instead, the entrepreneur is no different from others and their
behaviour can be learned through entrepreneurship activity (Rae, 2007).

The difference in learning ability and behaviour had raise questions whether a person is born with
entrepreneurial skills or it is a result of entrepreneurial teaching by others. If a person is born with entrepreneurial
750 Mohamad Abdillah Royo et al. / Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753

skills, so why putting so much effort on educating others and even become a special agenda for a nation?
Entrepreneurship is capable to be teach to others while learning can have an impact and have a significant
contribution to the entrepreneurship development. On the other hand, the innate individual characteristics is said to
have a limited contribution to entrepreneurial development that education have to be filled. With the ability of
teaching entrepreneurship, it is mean that there is no longer fix supply of people to become entrepreneur.
Many researches that have been conducted suggest that the entrepreneur is psychologically implicit. There is
research on entrepreneur’s risk-taking behaviour (Brockhaus, 1980) and entrepreneur need for achievement and
locus of control (Hansemark, 1998; Hansemark, 2003) with among of its objective is trying to understand why
some people become entrepreneur and some don’t. As a result, there are numerous lists and traits characteristics for
entrepreneurship suggested by various researchers (Kirby, 2004; Kuratko, 2005; Barringer and Ireland, 2008;
Zimmerer, Scarborough et al., 2008) which can be summarized as below:

Table 1: Entrepreneurship traits

Author Entrepreneurship Traits

David A. Kirby (2004) Risk-taking capability; Need for achievement; Locus control;
Desire for autonomy; Deviancy; Creativity and opportunism;
Intuition

Donald F. Kuratko (2005) Opportunities seekers; Beyond security risk taker; Tenacity to push
idea through reality
Zimmerer et al (2008) from Desire for responsibility; Preference for moderate risk (risk
David McClelland eliminators); Confidence in their ability to succeed; Desire for
immediate feedback; High level of energy; Future orientation
(serial entrepreneurs); Skill in organization; Value of achievement
over money
Zimmerer et al (2008) High degree of commitment; Willingness to accept risk, work hard
and take action; Flexibility
Barringer and Ireland (2008) Passion for the Business; Product/Customer Focus; Tenacity
Despite Failure; Execution Intelligence

As shown by the Table 1, we have come out with various traits that try to explain the behaviour or
characteristics of an entrepreneur. We can see that these traits have become the main criteria that have been
included in the curricular for the courses or training for existing entrepreneur and potential entrepreneur. Scholars
in entrepreneurial learning would agree that these traits can be learned and beneficial for an individual to be success
in their business venture (Baum and Locke, 2004). It is important to note that entrepreneurial traits do have the
influenced on the learning approach taken by educator in the real world. With these various traits, every person has
different preferences on how they learned and why they learned.
The above explanation has posed interesting agenda for further investigation on how the personality model
particularly the Big Five Personality dimensions (Extraversion, Emotional Stability, Agreeableness,
Conscientiousness, and Openness to Experience) has connection to entrepreneurial learning. It is believed that this
model is claimed to be useful to test person’s characteristic (Mount and Barrick, 1998). Unlike other theory such as
2-factors theory and Myers-Briggs Type Indicator, the Big Five Personality is more reliable, not too short and not
too lengthy for respondent to answer. Indeed, the model provides solid foundation for investigating the question of
interest (Mount and Barrick, 1998). Our propositions on the relationship between the Big Five Personality and
entrepreneurial learning can be regarded on several justifications (see below). We are based on Rae’s model of
entrepreneurial (figure 1) to discuss about the associations.

Proposition #1: How personality influence personal and social emergence?

According to Rae (2007), how entrepreneur see themselves and how others see them changes through a process of
personal learning and emergence are very importance for entrepreneurial identity development. Wenger (1998)
 Mohamad Abdillah Royo et al. / Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753 751

stresses that ‘learning as becoming’ (identity) can shape what people do, who they are and how they interpret what
they do in their communities of practice. Entrepreneurs is expected to be active participants in their development;
they must actively constructing knowledge rather than simply absorbing it. In that case their identity formation
occurred as early as teenager age is believed to play significant effect on entrepreneurial learning. For instance, we
can assume that person with extraversion characteristic such as talkative, verbal sociable, social unrestrained are
able to renegotiate their personal and social identities towards becoming successful entrepreneur.

Proposition #2: How personality influence contextual learning?

Social participation in community, industry and other networks are some of the mechanism for entrepreneur to
learn through experience and may develop their ability to recognize opportunities (Rae, 2007). It is widely
recognized that when entrepreneur make everyday judgments under uncertainty, they rarely use exhaustive
analyses (Holcomb et al., 2009). This may confer the question of how entrepreneur personality traits (Extraversion,
Emotional Stability, Agreeableness, Conscientiousness, and Openness to Experience) orients entrepreneurs to their
context of learning and provides guidelines for action? For instance, how they react and take necessary actions to
changing market conditions (Corbett, 2005)?

Proposition #3: How personality influence negotiated enterprise?

Rae (2007) described that entrepreneurial process is closely related to negotiated enterprise since a business venture
is not enacted by one person alone, but is dependent on the outcome of negotiated relationships with other parties
including customers, investors and co-actors such as employees or partners. We believe that this context of learning
require persons with “diverging” learning style e.g. being imaginative and understand people better in order to view
concreate situations from many different point of views (Kolb, 1984). This explanation may lead to further
investigation on “to what extend the variance of personality dimensions or traits could help explain entreprenuerial
learning process and provides guidelines for entrepreneurs action?” For instance, the characteristics of being
emotional stability and openness to experience when receiving criticism or feedback through interative process of
exchange with others within and around the enterprise.

The above explanation has discussed proposition about association between Big Five Personality and
entrepreneurial learning, and can be illustrated in the framework as below:

Big Five
Personality Entrepreneurial
Learning

Extraversion
Personal &
Emotional social
Stability emergence
Contextual
Agreeableness Learning

Conscientiousness Negotiated
Enterprise
Openness to
Experience

Fig. 2. Entrepreneurial learning framework

752 Mohamad Abdillah Royo et al. / Procedia - Social and Behavioral Sciences 171 (2015) 745 – 753

4. Conclusion

In a nutshell, it is interesting to highlight that the study on ‘what’ and ‘how’ entrepreneurs learn to gain a better
understanding of the entrepreneurs learning process should be given more emphasis. Since entrepreneurial learning
is heavily rely on experience, thus the body of knowledge is identified as unique, difficult to imitate and uncertain.
The study on entrepreneurs in ASI context contributes to this understanding particularly on learning through
immersion within specific context or industry that will lead into entrepreneurial action. Human dynamics (i.e.
difference in personality) serve as a basis of understanding towards how personality may influence entrepreneurs’
construction of identity e.g. current and future identity.

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