Factors determining entrepreneurial career choices between migrants and indigenous people: Evidence from Papua – Indonesia

Abstract

Little is known about the factors that determine entrepreneurial career choices among migrants and indigenous people in Papua Province, Indonesia. The objective of this study is to analyze the influence of entrepreneurial leadership, work culture, and cognitive learning on entrepreneurial career choices among migrants and indigenous Papuans (OAPs), with entrepreneurial intention as a mediating variable and decision-making process as a moderating variable. Data were collected using questionnaires distributed to 450 respondents of small and medium-sized enterprises (SMEs) in Sentani City, Jayapura City, and Arso City. This data was then analyzed by applying a structural equation modeling (SEM) approach. The results reveal that entrepreneurial leadership, work culture, and cognitive learning have a positive and significant influence on the entrepreneurial career choice of SMEs in Papua. Entrepreneurial intention was found to mediate the relationship between the three variables partially. The decision-making process significantly moderated the relationship between entrepreneurial intention and the entrepreneurial career choice of SMEs in Papua. This study makes concrete contributions not only to the existing body of knowledge related to factors determining entrepreneurial career choices but also to policies for the central government of Indonesia and the regional government of Papua in improving entrepreneurship programs, particularly for the OAPs, as they have significant differences in skills, knowledge, and other socio-economic and cultural backgrounds vis-à-vis the migrants in Papua.