Skip to main content
SpringerLink
Log in

Development and validation of a locus of control scale for the entrepreneurship domain

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

Locus of control has been extensively examined in entrepreneurship research, but with mixed results. This may be due to measurement issues, such as the widespread use of Rotter’s (1966) general locus of control scale, which is not domain specific. Not surprisingly, Rotter’s scale has been shown to be multidimensional, including personal efficacy. When the first Panel Study of Entrepreneurial Dynamics (PSED I) was constructed in the late 1990s, a measure of locus of control was included. Unfortunately, this scale was also multidimensional. Thus, measurement of the construct may be problematic. Because locus of control continues to be important in organizational research, where it has been found to influence intentions, motivation, satisfaction, and performance, we examined the PSED I dataset to determine whether we could develop a more robust measure after the fact. To this end, we constructed a unidimensional locus of control scale using the sample of nascent entrepreneurs in the PSED I dataset and validated the scale using two additional samples.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Anderson, C. R. (1977). Locus of control, coping behaviors, and performance in a stress setting: A longitudinal study. Journal of Applied Psychology, 62(4), 446–451.

    Article  Google Scholar 

  • Begley, T. M., & Boyd, D. P. (1987). Psychological characteristics associated with performance in entrepreneurial firms and smaller businesses. Journal of Business Venturing, 2, 79–93.

    Article  Google Scholar 

  • Bonnett, C., & Furnham, A. (1991). Who wants to be an entrepreneur? A study of adolescents interested in a young enterprise scheme. Journal of Economic Psychology, 12, 465–478.

    Article  Google Scholar 

  • Bradley, G. L., & Sparks, B. A. (2002). Service locus of control: Its conceptualization and measurement. Journal of Service Research, 4(4), 312–324.

    Article  Google Scholar 

  • Brockhaus, R. H. (1976). Locus of control and risk-taking propensities as entrepreneurial characteristics. PhD thesis. Seattle, WA: Washington University.

  • Campbell, D. T., & Fiske, D. W. (1959). Convergent and discriminant validation by the multitrait-multimethod matrix. Psychological Bulletin, 56(2), 81–105.

    Article  Google Scholar 

  • Carter, N. M., Gartner, W. B., Shaver, K. G., & Gatewood, E. J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18, 13–39.

    Article  Google Scholar 

  • Cattell, R. B. (1966). The scree test for the number of factors. Multivariate Behavioral Research, 1, 245–276.

    Article  Google Scholar 

  • Chen, C. C., Greene, P. G., & Crick, A. (1998). Does entrepreneurial self-efficacy distinguish entrepreneurs from managers? Journal of Business Venturing, 13, 295–316.

    Article  Google Scholar 

  • Chen, G., Gully, S. M., & Eden, D. (2001). Validation of a new general self-efficacy scale. Organizational Research Methods, 4(1), 62–83.

    Article  Google Scholar 

  • Clark, L. A., & Watson, D. (1995). Constructing validity: Basic issues in scale development. Psychological Assessment, 7(3), 309–319.

    Article  Google Scholar 

  • Cohen, J., & Cohen, P. (1983). Applied multiple regression/Correlation analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates.

    Google Scholar 

  • Collins, B. (1974). Four components of the Rotter internal–external scale: Belief in a difficult world, a just world, a predictable world, and a politically responsive world. Journal of Personality and Social Psychology, 29, 291–381.

    Article  Google Scholar 

  • Collins, C. J., Hanges, P. J., & Locke, E. A. (2004). The relationship of achievement motivation to entrepreneurial behavior: A meta-analysis. Human Performance, 17(1), 95–117.

    Article  Google Scholar 

  • Cromie, S. (1987). Motivations of aspiring male and female entrepreneurs. Journal of Occupational Behaviour, 8(3), 251–261.

    Article  Google Scholar 

  • Cromie, S., & Johns, S. (1983). Irish entrepreneurs: Some personal characteristics. Journal of Occupational Behaviour, 4(4), 317–324.

    Google Scholar 

  • Cromie, S., Callaghan, I., & Jensen, M. (1992). The entrepreneurial tendencies of managers: A research note. British Journal of Management, 3(1), 1–5.

    Article  Google Scholar 

  • Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297–334.

    Article  Google Scholar 

  • Cronbach, L. J., & Meehl, P. E. (1955). Construct validity in psychological tests. Psychological Bulletin, 52, 281–302.

    Article  Google Scholar 

  • Curtain, R., & Reynolds, P. D. (2004). Data documentation, data collection, and weights. Appendix B. In W. B. Gartner, K. G. Shaver, N. M. Carter, & P. D. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation (pp. 477–494). Thousand Oaks, CA: Sage.

    Google Scholar 

  • DeVellis, R. F. (2003). Scale development: Theory and application. Newbury Park, CA: Sage.

    Google Scholar 

  • Eysenck, H. J., & Eysenck, S. B. G. (1968). Manual of the Eysenck personality inventory. San Diego, CA: Educational and Industrial Testing Service.

    Google Scholar 

  • Fabrigar, L. R., Wegener, D. T., MacCallum, R. C., & Strahan, E. J. (1999). Evaluating the use of exploratory factor analysis in psychological research. Psychological Methods, 4, 272–299.

    Article  Google Scholar 

  • Ferguson, E. (1993). Rotter’s locus of control scale: A ten-item two-factor model. Psychological Reports, 73, 1267–1278.

    Article  Google Scholar 

  • Ford, M. W., & Matthews, C. H. (2004). Individual problem solving. In W. B. Gartner, K. G. Shaver, N. M. Carter, & P. D. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation (pp. 196–204). Thousand Oaks, CA: Sage.

    Chapter  Google Scholar 

  • Furnham, A. (1986). Economic locus of control. Human Relations, 39(1), 29–43.

    Article  Google Scholar 

  • Furnham, A. (1994). Personality at work. New York, NY: Routledge.

    Google Scholar 

  • Gartner, W. B. (1988). “Who is an entrepreneur?” Is the wrong question. American Journal of Small Business, 12, 11–32.

    Google Scholar 

  • Gartner, W. B., Shaver, K. G., Carter, N. M., & Reynolds, P. D. (Eds.). (2004). Handbook of entrepreneurial dynamics: The process of business creation. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Gatewood, E. J. (2004). Entrepreneurial expectancies. In W. B. Gartner, K. G. Shaver, N. M. Carter, & P. D. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation (pp. 153–162). Thousand Oaks, CA: Sage.

    Chapter  Google Scholar 

  • Gatewood, E. J., Shaver, K. G., & Gartner, W. B. (1995). A longitudinal study of cognitive factors influencing start-up behaviors and success at venture creation. Journal of Business Venturing, 10(5), 371–391.

    Article  Google Scholar 

  • Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis (5th ed.). Upper saddle River, NJ: Prentice Hall.

    Google Scholar 

  • Hansemark, O. C. (2003). Need for achievement, locus of control and the prediction of business start-ups: A longitudinal study. Journal of Economic Psychology, 24(3), 301–319.

    Article  Google Scholar 

  • Herron, L., & Sapienza, H. J. (1992). The entrepreneur and the initiation of new venture launch activities. Entrepreneurship: Theory & Practice, 17, 49–55.

    Google Scholar 

  • Hodgkinson, G. P. (1992). Research notes and communications development and validation of the strategic locus of control scale. Strategic Management Journal, 13, 311–317.

    Article  Google Scholar 

  • Inegbenebor, A. (2007). Pharmacists as entrepreneurs or employees: role of locus of control. Tropical Journal of Pharmaceutical Research, 6(3), 747–754.

    Article  Google Scholar 

  • Johnson, K. L., Arthaud-Day, M. L., Rode, J. C., & Near, J. P. (2004). Job and life satisfaction. In W. B. Gartner, K. G. Shaver, N. M. Carter, & P. D. Reynolds (Eds.), Handbook of Entrepreneurial Dynamics: The Process of Business Creation (pp. 163–170). Thousand Oaks, CA: Sage Publications.

    Chapter  Google Scholar 

  • Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits—self-esteem, generalized self-efficacy, locus of control, and emotional stability—with job satisfaction and job performance: A meta-analysis. Journal of Applied Psychology, 86(1), 80–92.

    Article  Google Scholar 

  • Judge, T. A., Erez, A., Bono, J. E., & Thoresen, C. J. (2002). Are measures of self-esteem, neuroticism, locus of control and generalized self-efficacy indicators of a common core construct. Journal of Applied Psychology, 83(3), 693–710.

    Google Scholar 

  • Kaiser, H. F. (1960). The application of electronic computers to factor analysis. Educational and Psychological Measurement, 20, 141–151.

    Article  Google Scholar 

  • Kaufmann, P. J., & Dant, R. P. (1999). Franchising and the domain of entrepreneurship research. Journal of Business Venturing, 14, 5–16.

    Article  Google Scholar 

  • Kaufman, P. J., Welsh, D. H. B., & Bushmarin, N. V. (1995). Locus of control and entrepreneurship in the Russian Republic. Entrepreneurship Theory & Practice, 20(1), 43–56.

    Google Scholar 

  • Keh, H. T., Foo, M. D., & Lim, B. C. (2002). Opportunity evaluation under risky conditions: The cognitive processes of entrepreneurs. Entrepreneurship Theory & Practice, 27, 125–148.

    Article  Google Scholar 

  • Korunka, C., Frank, H., Lueger, M., & Mugler, J. (2003). The entrepreneurial personality in the context of resources, environment, and the start-up process: A configurational approach. Entrepreneurship Theory & Practice, 28(1), 23–42.

    Article  Google Scholar 

  • Krueger, N. (2009). Entrepreneurial intentions are dead: Long live entrepreneurial intentions. In A. L. Carsrud & M. Brännback (Eds.), Understanding the entrepreneurial mind (pp. 51–72). New York, NY: Springer.

    Chapter  Google Scholar 

  • Lefcourt, H. M. (1981). Research with the locus of control construct. New York: Academic Press.

    Google Scholar 

  • Levenson, H. (1974). Activism and powerful others: Distinctions within the concept of internal- external control. Journal of Personality Assessment, 38(4), 377–383.

    Article  Google Scholar 

  • Levenson, H. (1981). Differentiating among internality, powerful others, and chance. In H. M. Lefcourt (Ed.), Research with the locus of control construct (pp. 15–63). New York, NY: Academic Press.

    Google Scholar 

  • Liao, J., & Welsch, H. (2004). Entrepreneurial intensity. In W. B. Gartner, K. G. Shaver, N. M. Carter, & P. D. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation (pp. 186–195). Thousand Oaks, CA: Sage.

    Chapter  Google Scholar 

  • March, H. W., & Richards, G. E. (1986). The Rotter locus of control scale: The comparison of alternative response formats and implications for reliability, validity, and dimensionality. Journal of Research in Personality, 20, 509–528.

    Article  Google Scholar 

  • Mescon, T., & Montanari, J. (1982). The personality of independent and franchise entrepreneurs. Proceedings of the Academy of Management, 413–417.

  • Miller, M. B. (1995). Coefficient alpha: A basic introduction from the perspectives of classical test theory and structural equation modeling. Structural Equation Modeling, 2(3), 255–273.

    Article  Google Scholar 

  • Monsen, E., & Urbig, D. (2009). Perceptions of efficacy, control, and risk: A theory of mixed control. In A. L. Carsrud & M. Brännback (Eds.), Understanding the entrepreneurial mind (pp. 259–289). New York, NY: Springer.

    Chapter  Google Scholar 

  • Monsen, E., Urbig, D., Renko, M., Tarabishy, A. E. & Schjoedt, L. (2010). Explaining entrepreneurial intent and behavior: Moderating effects of efficacy and control beliefs. Presented at the 2010 Babson College Entrepreneurship Research Conference, Lausanne, Switzerland.

  • Mueller, S. L., & Thomas, A. S. (2001). Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness. Journal of Business Venturing, 16, 51–75.

    Article  Google Scholar 

  • Netemeyer, R. G., Bearden, W. O., & Sharma, S. (2003). Scaling procedures: Issues and applications. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Ng, T. W., Sorensen, K. L., & Eby, L. T. (2006). Locus of control at work: a meta-analysis. Journal of Organizational Behavior, 27, 1057–1087.

    Article  Google Scholar 

  • O’Connor, B. P. (2000). SPSS and SAS programs for determining the number of components using parallel analysis and Velicer’s MAP test. Behavior Research Methods, Instruments & Computers, 32(3), 396–402.

    Article  Google Scholar 

  • Paulhus, D. (1983). Sphere-specific measures of perceived control. Journal of Personality and Social Psychology, 44, 1253–1265.

    Article  Google Scholar 

  • Rauch, A., & Frese, M. (2007). Born to be an entrepreneur? Revisiting the personality approach to entrepreneurship. In J. R. Baum, M. Frese, & R. Baron (Eds.), The psychology of entrepreneurship (pp. 41–65). Mahwah, NJ: Lawrence Erlbaum Associates.

    Google Scholar 

  • Reynolds, P. D., & Curtain, R. (2004). Examples of analysis: work file preparation, comparisons, and adjustment of weights. Appendix C. In W. B. Gartner, K. G. Shaver, N. M. Carter, & P. D. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation (pp. 495–540). Thousand Oaks, CA: Sage.

    Google Scholar 

  • Reynolds, P. D., Carter, N. M., Gartner, W. B., Greene, P. G., & Cox, L. W. (2002). The entrepreneur new door: An executive summary of the panel study of entrepreneurial dynamics. Kansas, MO: Kauffman Center for Entrepreneurial Leadership.

    Google Scholar 

  • Rosenberg, M. (1965). Society and the adolescent self-image. Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Rotter, J. B. (1966). Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs, 80(whole no. 609).

    Google Scholar 

  • Rotter, J. B. (1990). Internal versus external control of reinforcement: A case history of a variable. American Psychologist, 45(4), 489–493.

    Article  Google Scholar 

  • Saucier, G., & Goldberg, L. R. (1996). The language of personality: Lexical perspective on the five-factor model. In J. S. Wiggins (Ed.), The five factor model of personality (pp. 21–50). New York, NY: Guilford.

    Google Scholar 

  • Scarpello, V., & Campbell, J. P. (1983). Job satisfaction: Are all the parts there? Personnel Psychology, 36, 577–600.

    Article  Google Scholar 

  • Schjoedt, L., & Shaver, K. G. (2007). Deciding on an entrepreneurial career: A test of the push and pull hypotheses using the PSED data. Entrepreneurship Theory & Practice, 31(5), 733–752.

    Article  Google Scholar 

  • Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13, 257–279.

    Article  Google Scholar 

  • Shaver, K. G. (2004). Attribution and locus of control. In W. B. Gartner, K. G. Shaver, N. M. Carter, & P. D. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation (pp. 205–213). Thousand Oaks, CA: Sage.

    Chapter  Google Scholar 

  • Shaver, K. G., & Scott, L. R. (1991). Person, process, choice: The psychology of new venture creation. Entrepreneurship Theory & Practice, 16(2), 23–45.

    Google Scholar 

  • Shaver, K. G., Carter, N. M., Gartner, W. B., & Reynolds, P. D. (2001). Who is a nascent entrepreneur? Decision rules for identifying and selecting entrepreneurs in the Panel Study of Entrepreneurial Dynamics. Paper presented at the Babson College Kauffman Foundation Entrepreneurship Research Conference, Jönköping, Sweden.

  • Spector, P. E. (1982). Behavior in organizations as a faction of employee’s locus of control. Psychological Bulletin, 91(3), 482–497.

    Article  Google Scholar 

  • Spector, P. E. (1988). Development of the work locus of control scale. Journal of Occupational Psychology, 61, 335–340.

    Article  Google Scholar 

  • Spector, P. E. (1992). Summated rating scale construction. Newbury Park, CA: Sage.

    Google Scholar 

  • Velicer, W. F. (1976). The relation between factor score estimates, image scores and principal component scores. Educational and Psychological Measurement, 36, 149–159.

    Article  Google Scholar 

  • Zwick, W. R., & Velicer, W. F. (1986). Comparison of five rules for determining the number of components to retain. Psychological Bulletin, 99(3), 432–442.

    Article  Google Scholar 

Download references

Acknowledgments

Portions of this study were presented at the 2008 Babson College Entrepreneurship Research Conference, Chapel Hill, NC and at the 2008 PSED Symposium at Clemson University, SC. The authors appreciate the comments provided by participants at the 2008 PSED Symposium, in particular by the discussant, William Forster, and by the anonymous reviewers.

Author information

Authors and Affiliations

  1. Department of Management, LeBow College of Business, Drexel University Center for Graduate Studies, One Capitol Mall, Suite 260, Sacramento, CA, 95814, USA

    Leon Schjoedt

  2. Department of Management and Entrepreneurship, School of Business, College of Charleston, 5 Liberty Street, Room 305m, Charleston, SC, 29401, USA

    Kelly G. Shaver

Authors
  1. Leon Schjoedt
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kelly G. Shaver
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Leon Schjoedt.

Appendix

Appendix

Table 5 Items from the PSED mail questionnaire considered in the present study. 
Full size table

Rights and permissions

Reprints and permissions

About this article

Cite this article

Schjoedt, L., Shaver, K.G. Development and validation of a locus of control scale for the entrepreneurship domain. Small Bus Econ 39, 713–726 (2012). https://doi.org/10.1007/s11187-011-9357-0

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11187-011-9357-0

Keywords

JEL Classifications

Search

Navigation