Unpacking the Mediating Role of Institutional Environment in Shaping the Relationship between Faculty Entrepreneurial Mindset and Self-Efficacy

Abstract

Purpose - Research on entrepreneurial mindset and self-efficacy has been growing within entrepreneurship studies. The purpose of this study is to examine the mediating effect of the higher education institutional environment on the relationship between entrepreneurial mindset and teaching self-efficacy.

Design/methodology/approach - A cross-sectional quantitative data were used, using purposive and snowball sampling methods. This paper has used descriptive and correlational research design to study the phenomena. A total of 211 responses were collected from faculty members teaching in management colleges under the bachelor and master programs in Nepal. Data were analyzed using SPSS version 30 and SMART PLS 4.0, and hypotheses were tested through structural equation modeling.

Findings - The findings of the study indicated that the entrepreneurial mindset has a positive but non-significant direct relationship with self-efficacy. However, the institutional environment, particularly the humanistic environment (r=.628, p<.01), significantly mediated this relationship, whereas bureaucratic and entrepreneurial environments showed no mediating effect.

Originality/value – This study advances theoretical understanding by bridging individual cognitive attributes with contextual institutional factors, providing a more holistic explanation of entrepreneurial behavior among faculty. The study’s value lies in its practical implications for policymakers and academic leaders to design supportive institutional frameworks that foster entrepreneurial capabilities and confidence among educators.