Studying the direct, indirect and moderating effects of institutional environment on entrepreneurial intentions of agricultural students

Institutional environment influences entrepreneurial intention and behavior. However, cognitive models have not usually included this factor in their analyses. Therefore, the main objective of this study is to evaluate the direct, indirect and moderating effects of institutional environment on entrepreneurial intentions using the Theory of Planned Behavior. This is a descriptive survey research, which uses questionnaires for collecting data. The content validity of the questionnaire was confirmed by a panel of experts. The construct validity and the reliability of the research instrument were assessed by estimating the measurement model. Data were collected from 300 agricultural students from four public universities in western Iran. Structural equation modelling showed attitudes toward entrepreneurship and perceived behavioral control significantly relate to entrepreneurial intentions. The perceptions of the institutional environment indirectly related to entrepreneurial intentions via attitudes and perceived behavioral control. These findings suggest that public policy makers and decision makers need to pay attention to creating favorable conditions for entrepreneurship in the country, and to removing the numerous institutional pressures and constraints faced by potential entrepreneurs.