The Moderating Role of Institutional Environment in Entrepreneurial Aspiration-Intention link

Amid rising youth unemployment, entrepreneurship is a key pathway for economic development. Grounded in the Theory of Planned Behavior (TPB), this study examines the impact of entrepreneurial aspiration on self-employment intention and the moderating role of the institutional environment among Indian business students. Using data from 673 students and PLS-SEM analysis, findings show that entrepreneurial aspiration significantly enhances intention, while the institutional environment has a stronger direct effect and positively moderates this relationship. The model shows moderate explanatory power (R² = 0.438). The study extends TPB by incorporating aspiration and institutional factors, offering practical insights for policymakers and educators.