Ug S"co"d tnternatl

IN SEARCH OF INDONESIAN ENTREPRENEURS' VALUES:

A PROPOSED STUDY
Sabrina O. Sihombingr
Universitas pelita Harapan, Jakarta

INDONESIA
Email: rsabrinasihornbing@gntail.com

ABSTRACT
Enlrepreneur'ship i't one mqin .signi/icctnt
.factor thuttcontribtrle itt
enhctncing ecortorttic rrever.pment
Jor mony counrries. specificrr1,,
enlreprenellrs conlribute substanlioll,- to job creation,
new venlure
creolion, protluct antl service innovqlion, antl
mctny more. Thus, lhere
is o 5;reol dectl of'resectrch inlerest in enlrepretteurship.
Llthile exlensive
research on enlrepreneurshilt have beei conclucterJ
to erplore und
examine vorious foclors lhcrl inl/ttence inlentiott qnd
clicision to
become ctn entrepreneur, less attenlion has been
git:en to utttlerstand
enlreprenettr personol values. On the other hctncl,
ihe concept
vtrltrc
is one inrportutl variable lo htrntcrn ly'b because vcrlnes
'f a1
inJtuince
aspecls of human life. ll'toreover, values ctre
knov,tt tts lhe mist ctefining
';ipi")i
element,s oJ' culture. Therefore, this current
,t,d1: ,r,ii
enrerpreneurs' vorttes. specy'icatty, this re,searcrt
aims tg erprore and
idenlifii in"glrumental ancl terminal vnlue.g of Inclortesitnt
enrre,reneurs.
Reseorch melhod x'ill be clesignecl ro crciclress
stoges in ictentifiing
ctrn'enl instrumenlal and lerntittql vultte.s of lndonesic,,,
entreprerer,rs.
Dora ctnqrvsis wiil be c:onsistent with procedures.for
creveroping rrnt",
Keyrvords: varues, instrumental, tenninal, entrepreneur,
rndonesia

INTRODUCTION
Entrepreneurship is one main significant factor
that contribute

in enhancing economic
development fbr man,v countries. Specifically, they
contribute substantially to job creation, new
ventlrre creation, product and service innovaiion,
and many more (van praag & versloot, 2007).
Thus' there is a great cleal of research interest in entrepreneurship.
while extensive research on
entrepreneurship have been conducted to explore
and exarnine various fbctors that influence
intentiotl and decisiorl to become an entrepreneur, less
attention has been given to understand
entreprenellr personal values. value is defmed
as a [,'pe oi u"ti.r that
evaluation of behavior (Schwarlz, 1999). The concept
-tuides selection or
of value is one important variable to
httman life because valttes influence all aspects of
human life. In other r,vorcls, personal values
plal' a critical role in detennining entrepre,eurial
behavior (Lan et
>\ al.,
sr'r 2009;
ilrzrL
& oz,
'vvr) tFritzsche
2007, Schrvafiz,2006; Rohan, 2000).
The Rokeach value Surve-v (RVS) is knorvn as one
of value lneasurement. The RVS was
de'eloped b-v Rokeach (1913) in order to rneasirre
tu,o kinds of values: instrLunentul and
lenttinol' Tenninal values refer to desired end states
of existence or ultimate modes of living
rvhich have been idealized. This typeof values rnay
be self-centered

or

society-centered.

'AEF-1' '
11'

r,',\econtl

nl

rnrtl i ttnrtl Confbrenc:e

n ll nt reprengtr

rs hi lt

\rrother t1.pe of talues, i.e., instrumental refers to modes of- behavior and consist of troral
and conrpetence valttes (Rokeaci't. 1913). Though the RVS has been evalllated in nranl
',rlrres
Wang et
,.rrrpirical investigations ( e.g., Giacomirlo et al',20i3; Musil et al'.2009; Alien, 1994;
On the
cotltext'
westem
in
Rokeach
by
u'as
developed
:rl 1994), it is recogtlized that the RVS
Morcover,
2009).
al-,
(Evans
et
,,1lrer hancl, dilferent cultures ref-iect values clifferently
li.keach's rvork is claimed as out-of--date because it rvas cleveloped in 1968-1973. Yet, society
impacted by
:rrrr[ people valttes ale changing gradually (Blackrvell et al.' 2007; Arnett,2002) as
:,everal factors sucir as globalization (Srvadzba, 2011; Harvkins & Mothersbaugh. 2010),
(Tibbs,2011), and technology (Srvadzba,
1'0litical change (Lee,2003), econornic development
cllrrcnt instrumental and terminal
identily
and
.,0tty. Therefore. this research aims to cxplore
r rrlues of Indonesian entrepreneurs.

I,ITERATURE REYIEW
l'ulues

lhcre are rr-rany deflnitions of values ([,an et a1.,2008; Lombaert,2003). Some peopie relate
with nrarketing such as the term ''values of money" and "consumer value" (Zetterberg,
'.lues
l99g). According to Rokeach (1973,p.5),a value is defined as an enduringbeiief that a specific
values are
rrrode of conduct or endstate of existence. Furthermore, Rokeach pointed out that
of the
conception
prescriptiye beliels that they are ''abstract icleals" which represent a person's
delines
p
94)
tlre desirable. In harmony with Rokeach's clef-rnition of value, McGregor (2000,
and sees
about
thinks
one
hoiv
goals
affect
and
and
needs
important
pictures
of
values as mental
in
get
something
to
off
trade
to
u'illing
is
rvhat
one
and
oneself, what onc rvants out of tif.
in
lasting
and
intrinsic
are
that
people
beliels
are
5cturn. Researchers shgrvs that personal values
five features
an indivitlual's lit-e (e.g., Fries et al.,2007; Lages & Fernandes,2005). There are
to desirable
lead
beliets
of values are as follorvs. First, values are beliels. Second, those
explain
values
behnvior andior end states. Third, values go be1'ond specific situations. Fourth,
u,hy people select or evaluate events and behavior. Fifth, values are ordered by a ccrlain
hieiarchiial importance (Gmnert & Scl-rerhom, 1990 cited b1" Wang et al., 1994)'
Instrumentul and Terninsl Vslues
It was
The Rokeach Value Survey (RVS) is knor.vn as one value measurement in social science'
and
developed by ILokeach 1ilOS, 1973) in order to measure trvo kinds of values: instrumental
of
terminal (Table l). Terminal values refer to desired end states of existence or ultin-rate modes
society-centered'
or
selt--centered
be
may
values
typeof
This
living rvhich have been idealized.
Anoiher type of values, i.e., instrumental refers to modes of behavior and consist of moral
values and competence values (Rokeach , lg13). To be able to understand respondents'
in
instrumental and terminal values, they are asked to rank order each value as to its importance
their daily life.

l: Table l. Instrumental and Terminal Values

lnstrumental values:
A Comtbrtable Life (Prosperous Life)
Equality (Brotherhood & Equal Opportunity)
An Exciting Life (Stimulating, Active Life)
Family Security (Taking care of lovcd ones)
Freedom (lndependence and frcc choicc)
Health (Physical and mental wcll-bcing)
Inner Hamony (Freedom from inncr con{'lict)
Mature Love (Sexual and spiritual irrtirnar:y)
National Security (Pry1gglutt !i1)trI illtaIk

Terminal values:
(Hardworking,
Aspiring)
Ambitious
Broad-minded (Open-minded)
Capable (Competent; effective)
Clean (Neat and tidY)
Courageous (Standing up for your beliefs)
Forgiving (Willing to pardon others)
Helpful (Working for the rvelfare of others)
Honest (Sincere and truthful)

Imasinative (Daring and creative

The Seconcl I nternotional Llru!/i:rr.,lr

t:

9n Entrepreneurfu

Pleasure (An enjoyable, leisure

Salvation (Saved; eternal lif-e)

Self-respect
A Sense of Accornplishment (lasting

contribution)
Social Reco_snition (Respect and admiration)
True Friendship (CIose companionship)
Wisdom (A rnature understanding of Life)
A World at Peace (World liee of war and
conflict)
A World of Beauty (Beauty'of nature and the
arts )

Sotrrce: Rokeoch

In dependent (S e I t--rel i ant; sel f-suffi cient)

Intellectual (lntelligent and reflective)

Logical (Consistent; rational)
Loving (Aflectionate and tender)
Loyal (Faithfi"rl to friends or the group)
Obedient (Dutiful; respectflrl)

Polite (Courteous and rvell-mannered)

Responsible (Dependable and reliable)
S el f'-control led ( Restrained ; sel f-disciplin ed)

(1973)

-)

The RVS has been evaluated in many empirical investigations ( e.g., Iskra & Moskvicheva,
2014:. Quyen et al.,2014; Giacomino et al., 2013 Wang et ai. 1994). In its original fonrat, rhe
RVS recluires subjects to rank each value in the list terrninal and instruntental values. Horvever.
this procedttre results in one main limitation oFthe RVS., that is. respondents are forced to rank
all values to its importance as their guiding principle of their life (Wang et a1., 1994). To
overcome that limitation, a modified interval Liken-type scale is frequently employed (e.g.,
Giacomino et aI.,2013; Raboteg- Sarii et al., 1997; Wang et al.l994). With this modification,
the surve,v is becorning easy to ernploy and requires less time to cornplete.

rl enlreprene urs hip

Why sorle countries produce more entrepreneurs'/ Researchers have fbcused on cultural values
in order to answer that question. Since values guide people to behave, thus personal values
Va I u es

er

guide people in their decision to become entreprcneur or their entrpreneurship activities.

Moreover, values that held b.v entrepreneurs have implications for the entrepreneur such as horv
to start ne\\'ventues, how to create and manage the ventures. Researches have acknorvledged the
inflrtences of personal values toward entrepreneurship (Jakubczak & Rakorvska, 20l1
Anchorena & Ronconi, 2012; Halis et a1.,2007 Momis et al., 2002).

Value is knorvn as one core element of culture (Yuan & Dong, 2006). Therefore, different
cultures lvill provide different values (Evans et a1.,2009; YLran & Dong. 2006). For instance,
Westem values tend to hold an independent vielv of the self rvhereas non-westerx values are
nrore interdependent r.vhich stresses on connectedness and relationship (Evans et at.,2OO9')Table 2 provides values differences for several countries.

Table 2. Values differences in several countries

Values
Achievement and success, Activity. Efficiency and practicality,
Progress, Material cornfbrt, Individualism, Freedom, External
conformitv, Humanitarianisnr, Youthflriness, Fitness and health.

Country
Antericax

Australia*

Respect for democracy, A strong sense ofjustice, A sense of fairness,

Tolerance, Care for others, A potverflll sense of egalitarianism, A
less selfish society, Freedom of self-deternrinatiorr

i6#iV.eiv,:

s
:'

l' h e

Secon

cl I n t e r nlJ

t i tt n a

('hina***

C o nfe r e n

c'

a!]

l'. ! t!

! L:ll9l1-g!l;llltl-

Guanxi, Importance ol'lhce, Thrift, Farnily and group orientation,

Aversion to larv. Respect for etiquette, a-ee and hieriirchy, Long-tcrnr

orientation, Traditional creeds.

I'hailand***x

Ego orientation, Grateful relationship orientation. Smooth interpersonal

relation orientation, Flexibility adjustment orientation, Religiosit-v

orientation, Education competence orientation, Interdependence
orientation, Fun-leisure orientation, Achievement-task orientation.

Malaysia** *x

Valuing time, Perseverance, Pleasure of rvorking, Dignity

ol'sirlplicity,

examples' Obligation of duty,

Character, Kinclness, Inf-luence
Wisdorn of econonty, Patiencc, Inlprovenrent of talent. Joy ol

ol

originating.

lndonesia***xx

mutual assistalce, detnocracy, religion, hanlony, hospitalitl', religious

fanaticism, and individualism.

*** Faure & Fttng (2008),

,\rntrces; *Schif/inan and Kanuk (2010), "*' Black-t;'ell et al. (2006),
***xsian et ctt. (2007),x*** Komin (1995, in Rochmon, 2007),*****Sihontbittg (201-1)
ITESEARCH NTETHODS
t'ttere will be l-ive stages in identifying current instrumental and terminal values of Indonesian
cptrepreneurs. Data analysis rvill be consistent rvith procedures 1'or developing scales (e.g.,
Sihombing & Pongtuluran,20ll;Verbekc,2007; Parasuraman et a1..2005: Adcock & Collier,
2001; Churchill, 1 979).

,ltoge

- E-xplorutory Research and

ltem Generation

Ilased on literature revierv, an open-ended questionnaire will be developed tc'r erplore

instmmental a1d terminal of entrepreneurs'values. Furthennore, fiequently-mentioned values
will be converted into items in order 1cl obtain the baseline pool of value items. Another source
fbr item generation rvas instrumnetal and tenninal valrtes devcloped by Rokeach (1973). Item
generations in this stage can be stated as the rnost important part in developing measurement
(Hinkin, 1995). A combination oldeductive and inductive approach rvill be applied to generate
items. Furthennore, expert judges lvill be used in this research in order to enhance tlre items
pool of value statemeni(Diamantopoulos, 2005). Expert judges that will be chosen should have
expertise in the research area (i.e. expert knowledge of the topic). Expert judges rviil be asked
rvhether items in the list of value items are representing frequently mentioned value statel-nents.
When frequently-mentioned values are converted into items, several bias types such as doublebarelled, ambiguous, leading, and other bias iterns r.vili be eliminated in initial screenin-e.
Expert judges rvill also assess content validitv of all value items.

Questionnsire design
Likert-type scale will be used in this research. Respondetns rvill be asked the degree to rvhich
s(he) agrees with a statement: strongly agree, agree, neutral, disagree, or strongly disagree.
General instructions rvill be locatecl at the top of the page. This research rvill also apply a pilot
study prior to administering the questionnaire to a sample of respondents in order to establish
content validity. In order words, a pilot study rvill ensure questionnaire clarity and qttestion
rvording. A pilot study will involvc I0 rcspondents and invite then-r to comment on the questions

Stage 2

t.],:

-&,*

Th

Sec

on d I n I ern ot i on

al

C o n-fer en c e

on En tr e pr

en

eu r s h ip

and wordings. The comments of these 10 individuals then

questionnaire.

will providc lilr

rcvisions to the

Stage 3 - Data collection und santple

Data will be collected through closed-ended questionnaires. A samplc size of 500 rvill be
establisheit in this research. A purposive design sampling rvill be employed. Two main criterias
are: (1) respondents should have been at least one year in become an small or medium venture
entrepreneurs, and (2) respondents live in cities of Tangerang and Jakarta. Personal interviervs
rvill be applied to enslrre the respondents can frll-in the questionnaires. This method is also
chosen since data collection through personal intervieu,s will yield higher response rates than
person al l.v-administered questionnaire.

Item recluction rvill be performed by item-to-total corelations and principal components

exploratory factor analysis. Iterns lvill be dropped rvhen item-to-total correlatiotts are less than
0.50. Then, the remaining items rvill be factor analyzed. Exploratory factor analysis rvith
varimax rotation using the criterion of eigenvalues greater than one will be applied in order to
perfbrm value items.
Scale validatiott
A total of 500 respondenst r,vill be included to validate the scale. The fundarnental criteria of
good measures (i.e., reliability, dimensionality, and validity) rvill be applied in this research.
Reliability analysis rvill be first conducted. Specifically,examination of coefficient alpha and
item-to-total correlation will be conducted to delete itenrs rvhose elimination improved
rcliability coefficient alpha. Then, exploratory f'actor analysis (EFA) rvill be performed to
dctermine the number of underlying dimensions fiom a data (Hair et al., 2006). Moreover, all
items revealed by the analysis rvill be preceded through confirmatory fhctor analysis (CFA) as a

Stage 5

con fi nnaton perspectivc.

CONCLUSION
This research aims to identify current instrumental and terminal valttes of Indonesian
entrepreneurs. From a theoretical point of view, the results of this study give contributions to
the understanrling of entrepreneur's values, specifically' instrumental and terminal values.
Terminal values sholvs the objectives of the life of a person, that is, the ultirnate things the
person wants to achieve in life rvhereas instrumental values indicate the ntethods an individual
would like to adopt to obtain l-ris life's aim. Since not many studies focus on instrumental and
terminal values of entrepreneurs, this research rvill give contribution in identiflring those valttes,
especially in Indonesian context. From a practical point of vierv, the understanding of
lndonesian entrepreneurs' personal values rviil contribute social science researchers and
practitiorrers to understand Indonesian entreprenurs beiie[s that guide them to desired end states
of and their beliefs as modes of behavior that consist of moral values and conlpetence values.
T1-ris understanding will suppot-t Indonesian government in encouraging and developing
entreprenettrs.

'

!ry=
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