Developing Future Green Entrepreneurs: The Role of Entrepreneurial Self-Efficacy and Growth Mindset in Higher Education: Evidence from Indonesia and Malaysia

Abstract

This study investigates the psychological-cognitive factors influencing green entrepreneurial intention among university students in Indonesia and Malaysia. While sustainable development requires multi-stakeholder participation, students represent a critical demographic for driving environmental change through entrepreneurship. Despite increasing environmental awareness, green entrepreneurial intention remains limited in developing countries. Drawing on Social Cognitive Theory, Growth Mindset Theory, and the Theory of Planned Behavior, this research examines how Entrepreneurial Self-Efficacy (ESE) and Growth Mindset (GM) shape students' intentions to pursue environmentally sustainable ventures. The study employs a quantitative methodology, surveying 445 students from four universities: Pasundan University, Esa Unggul University, INTI International University, and Universiti Malaysia Sabah. Data analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM) reveals that ESE positively influences GM (β = 0.837), ESE positively affects Green Entrepreneurial Intention (GEI) (β = 0.385), and GM demonstrates a stronger effect on GEI (β = 0.543). The model explains 70.0% of the variance in GM and 79.2% in GEI, indicating strong predictive power. Theoretically, this research extends sustainable entrepreneurship literature from structural approaches to psychological-cognitive perspectives in developing country contexts. Practically, the findings underscore the importance of integrating psychological capital development into entrepreneurship education, emphasizing experiential learning, incubation programs, and ecosystem-centered initiatives to foster students' confidence and mindset for sustainable enterprise creation.