Moderating Effect of Demographic Factors and Entrepreneurial Phase on the Relationship between Entrepreneurial Competencies and Innovation of ASEAN Entrepreneurs

Abstract

This paper focuses on the relationship between entrepreneurs’ competencies and innovation arguing that age and education play an important role in moderating this relationship. Data on entrepreneurial activities was analysed using Global Entrepreneurship Monitor – GEM framework. The GEM model identifies key elements of the relationship and interaction between entrepreneurship and economic growth. It defines entrepreneurship as consisting of three main components: entrepreneurial framework conditions, entrepreneurial competencies and aspirations, and the phase of entrepreneurial activities. This study uses the 2013 individual level data of ASEAN countries in the GEM consortium. Using multiple regression modelling, research findings indicate that competencies enhance innovation, higher education reduces innovation, early entrepreneurs are more innovative than established business owners, and young entrepreneurs are generally more innovative, but the interaction between age and competency would lead to stronger innovation.