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FACTORS INFLUENCE INTENTION TO PARTICIPATE IN FRANCHISE INDUSTRY AS A CAREER OPTION: A STUDY ON MALAYSIAN PUBLIC UNIVERSITY GRADUATES NURUL ASHYKIN ABD AZIZ 1 NURUL AIEN ABD AZIZ 2 NOREEN NOOR ABD AZIZ 3 YUHANIS MOHAMED NOOR 4 1, 4 Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan 2, 3 Faculty of Business Management, UniversitiTeknologi MARA, Segamat, Johor. ABSTRACT This study aims to identify the factors that influence the Malaysian Public University Graduates intention to participating in franchise industry as a career. Survey study in eight Malaysian public universities was conducted via questionnaire by asking the level of graduates‘ intention to participate in this study. The results indicate the factors influence graduates intention to participate in franchise industry integrates: correlation value between attitude and intention to select franchise business as career option = 0.780 which moderate highly significant. Next, it also illustrates correlation between perceived behaviour control and intention to select franchise business as career option, r = 0.601 which moderate highly significant. At last but not least, result also illustrates correlation between knowledge and graduates select franchise business as career option, r = 0.609 which moderate highly significant. According the result that are gathered, attitude, perceived behaviour control and knowledge shows the significant relationship between the intentions for graduates in Malaysian public universities to select franchise business as a career option. Hence, the independent variables are considered as the factor to intention for to select franchise business as a career option among graduates. Key words: Franchising, Franchise, Malaysian Graduates, Public University 1.Background of Study According to International franchise Association website, franchising is simply a method to expanding a business and distributes goods and services through a licensing relationship. In franchising, franchisors whether a company or person who grants the license to a third party for conducting a business under their marks and not only specify the products and services that will be offered by the franchisees; a person or company who is grant the license to do business under the trademark and trade name by the franchisor, but also provide them with an operating system, brand and support. Based on the research done by (Chee & Bhatti, 2013) the franchising concept was originated from United States of America, where it is the more powerful way of facilitating the growth of services organizations. Years by years franchising is becoming trending. It is growing very fast and outstanding, effective and the best productive way to start-up and expand a business (Harif, Hoe, & Chin, 2014). Malaysia itself is the third largest industrialized market economy country in Southeast Asia. With a Gross Domestic Product that has grown at an annual rate of 6.5% for 50 straight years and a multi- ethnic and multi-cultural population of over 30 million (75% of whom live in urban areas), the country, not surprisingly, has attracted franchisors seeking to expand their businesses. INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311 VOLUME 5, ISSUE 8 AUGUST 2017 An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journal www.icmrr.org 60 [email protected]
Transcript

FACTORS INFLUENCE INTENTION TO PARTICIPATE IN

FRANCHISE INDUSTRY AS A CAREER OPTION: A STUDY ON

MALAYSIAN PUBLIC UNIVERSITY GRADUATES

NURUL ASHYKIN ABD AZIZ1 NURUL AIEN ABD AZIZ

2

NOREEN NOOR ABD AZIZ3 YUHANIS MOHAMED NOOR

4

1, 4Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan

2, 3Faculty of Business Management, UniversitiTeknologi MARA, Segamat, Johor.

ABSTRACT

This study aims to identify the factors that influence the Malaysian Public University Graduates

intention to participating in franchise industry as a career. Survey study in eight Malaysian public

universities was conducted via questionnaire by asking the level of graduates‘ intention to participate

in this study. The results indicate the factors influence graduates intention to participate in franchise

industry integrates: correlation value between attitude and intention to select franchise business as

career option = 0.780 which moderate highly significant. Next, it also illustrates correlation between

perceived behaviour control and intention to select franchise business as career option, r = 0.601

which moderate highly significant. At last but not least, result also illustrates correlation between

knowledge and graduates select franchise business as career option, r = 0.609 which moderate highly

significant. According the result that are gathered, attitude, perceived behaviour control and

knowledge shows the significant relationship between the intentions for graduates in Malaysian public

universities to select franchise business as a career option. Hence, the independent variables are

considered as the factor to intention for to select franchise business as a career option among

graduates.

Key words: Franchising, Franchise, Malaysian Graduates, Public University

1.Background of Study

According to International franchise Association website, franchising is simply a method to

expanding a business and distributes goods and services through a licensing relationship. In

franchising, franchisors whether a company or person who grants the license to a third party for

conducting a business under their marks and not only specify the products and services that will be

offered by the franchisees; a person or company who is grant the license to do business under the

trademark and trade name by the franchisor, but also provide them with an operating system, brand

and support. Based on the research done by (Chee & Bhatti, 2013) the franchising concept was

originated from United States of America, where it is the more powerful way of facilitating the

growth of services organizations.

Years by years franchising is becoming trending. It is growing very fast and outstanding,

effective and the best productive way to start-up and expand a business (Harif, Hoe, & Chin, 2014).

Malaysia itself is the third largest industrialized market economy country in Southeast Asia. With a

Gross Domestic Product that has grown at an annual rate of 6.5% for 50 straight years and a multi-

ethnic and multi-cultural population of over 30 million (75% of whom live in urban areas), the

country, not surprisingly, has attracted franchisors seeking to expand their businesses.

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311VOLUME 5, ISSUE 8 AUGUST 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 60 [email protected]

In Franchise Business Review‘s industry-wide benchmark survey, 13 percent of franchisees

are between the ages of 18 and 34. Some one-in-five franchisees that launched a business in the last

two years were under the age of 30, according to newly published figures – demonstrating the

increasing popularity of franchising as a career option for young people. The results of the British

Franchise Association (BFA) and NatWest‘s Franchise Survey 2015 showed that young people were

most attracted by the guidance and support offered by established franchisors and the fact that good

quality of training offered and previous business experience to become a franchisee is not required.

In Malaysia, the Malaysian Franchise Association (MFA) was formed in 1994 to support the

implementation of the Government program to promote entrepreneurship through franchising. The

formation of MFA is indeed timely as to promote the development of franchising in Malaysia. Similar

with other developing nations, governments of Malaysian have also taken many initiatives to promote

entrepreneurship more specifically franchise business within in the country in order to create more job

opportunities especially for fresh graduates and for economic growth. In this regard, universities and

also other government institutions have to design and conduct different training programs, seminars

and workshops to promote entrepreneurship in the country.

Universities also participating in promoting entrepreneurship culture by offering different

academic courses to the graduates in order to create awareness and improve the graduate‘s

knowledge, skills and abilities to be a successful entrepreneur. Therefore, the purpose of this study is

to investigate the factor that influence graduate‘s decision to select franchise business as career option

after graduation. Here is the list of the research objectives:

To identify the relationship between attitude and intention to participate in franchise industry

as a career option among Malaysian Public University Graduates.

To identify the relationship between knowledge and intention to participate in franchise

industry as a career option among Malaysian Public University Graduates.

To identify the relationship between perceived behavioural control and intention to participate

in franchise industry as a career option among Malaysian Public University Graduates.

2. Issues of the Study

` The issue that the researcher wants to find out is about the factors that will influence

graduates from public universities to select a franchise business as a career option. Researcher finds

out that there is a lot of limitations that influence graduates to choose franchise business as the career

option. According to (Leo, 2016), it shows that 51% over 100% shows that the majority of

unemployment rate among fresh graduates are from public universities. This is because 59% of them

are poor attitude, 64% are poor in speaking English and 60% are poor in communication skills.

Besides that, it shows that the rate of unemployment rate in March 2014 is 6% compared with 2013 is

3%. In other hand, retrieved from Newhouse Syracuse University, there is 83% of graduate students

in 2014 is employ full-time after six months of graduation ("Employment Statistics ", 2016). The

fresh graduates that employ as part time worker is increases 6% in 2014 compared to previous year

2013 is 3%.In addition, retrieved from Utusan Online newspaper from ("Permodalan Nasional Berhad

need additional funds to increase promotion in franchise business," 2015), government wants to

increase an allocation of funds to Perbadanan Nasional Berhad (PNS) to create more programs and

deliver the information that are relate to franchise for entrepreneurs. Moreover, this allocation is to

carry out marketing promotions and the opportunity that being offered. Furthermore, the government

also committed to develop business by providing the opportunity and gives space to whose want to

venture franchise business. Thus, Ministry of Domestic Trade Cooperatives and Consumerism

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311VOLUME 5, ISSUE 8 AUGUST 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 61 [email protected]

(KPDNKK) can increase promotions and services to entrepreneur that has additional funds from

government. There is a 44 pre-franchisor from small entrepreneur and 867 pre-franchise that is

successfully developed and have potential to become a successful entrepreneur. At the end of this

year, PNS wants to increase the number pre-franchisor and pre-franchise that is registered and help to

change business image of small entrepreneurs. Besides that, young people and fresh graduate are

encourage to venture into the franchise business and choose the franchising as the career option.

Lastly, according to previous study, a franchise business can become a career option after graduate.

So, this research is conduct to explore the factors that influencing graduates to select franchise

industry as a career option.

3. Literature Review

Franchising In Malaysia

Franchise is a business that consists of franchisor and franchisee. It using the franchisor‘s trade name

and brand name to do the business and operating their business according to format provide by the

franchisor. (Chong, 2011)According to Miranda 1995 and Justis 1995, franchising is a rapid growth of

business. It is the important and famous in create a new business. (Harif & Hoe, January

2012).According to Chiou, Hsieh and Yang (2004), they classified that the factor of communication,

support service and competitive advantage of the franchisor can affect the relationship between

franchisor and franchisee. (Harif, Hoe, & Chin, ( Exogenous Factors Dictate the Quality of

Relationship Between Franchisee and Franchisor: A Malaysian Franchising Experience), November

21-23, 2013).In 1995, they are 125 franchise systems and consists of 800 franchisees in Malaysia. But

now there consists of 268 franchise systems with more or less than 6000 franchisees. The franchise

sector in Malaysia will have a good prospect and potential to develop (Harif, 2012) By operating a

franchise business in Malaysia can improves the country‘s economic and also help the people who is

fresh graduates. This will bring the advantage to both country and also individual‘s development.

(Hoe & Hoe, 2013).The franchisee should pay the franchisor franchisee fees, royalty fees and

marketing or advertising fees (Kritz). According to Irwin (2011) if want to success in the franchising,

the most important point is to find a place that is strategic to make sure that the population of

customer is many. For example can located near the area that consists of many residents, university

graduates or the city. Nowadays the market consists of variety of franchising such as food and

beverages, education, services, beauty and health, retail etc.Malaysian Government gives fully

support to encourage people to operate franchising to develop the country‘s economic and also spirit

of entrepreneurship. (al, October 2014).In a franchising, a financial plan is important when start up a

business. This can minimize the risk of failure. It can let the franchise system more efficient. (Harif &

Hoe, The New Framework of Financial Planning: A New Franchise System versus New Venture

Business, January 2012).

Intention

According to (Weinzimmer & Nystrom, 2015), intention mostly about how that business can be

created, continued and can be changed in the organization. This is more focused about how to grow

up the business environment in the organization. In this research, it is shown that about intention

complain (Kim & Boo, 2011). Besides that, it is also related with attitude about complaints with

before complaints experience. In other hand, it says that the desire of a people for involve in the

franchise business and how intentionally create to become an entrepreneur. Furthermore, according to

(Liñán, Santos, & Fernández, 2011), it is related how an individual that have entrepreneur background

will has a potential to become an entrepreneur. The intention is about entrepreneurial skill and

knowledge that have with every person that can manage the time wisely. As an entrepreneur,

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311VOLUME 5, ISSUE 8 AUGUST 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 62 [email protected]

nowadays, the internet is most important to make a promotion about the product to make customer

knows about the product or services in the market (Ismail, Jaffar, Khan, & Leng, 2012). According to

(Ribeiro Soriano, Guzmán-Alfonso, & Guzmán-Cuevas, 2012), The intention is about entrepreneurial

desire and important thing for entrepreneur to understand and know about business is an

entrepreneurial process because it is as introduction before trying to open a business in entrepreneurial

behaviour. Thus, this example show about how entrepreneurial behaviour begins to build of desire

such as behaviour and this intention is influenced by different factors. From the point of Krueger and

Kickul (2011), intention can be defines as the entrepreneur thinking and also their action. They also

agree that for the success of the entrepreneurial, the intention is very important. (Welsh & Tullar,

2013).According to Sieger et al., 2011.Many of the factors can influence the graduate‘s

entrepreneurial intention.

Attitude

According to Fishbein, the meaning of attitude was study tendency to respond to an object in a

favorable or unfavorable way (Li, 2012). Attitude is showing one‘s positive or negative performance

of behavior. Universities are always promote entrepreneurship culture by provide relevant

entrepreneurship courses to students. This will create the student‘s attitude, knowledge and talent to

improve their interest to become an entrepreneur (Chee & Bhatti, 2013).According to Barclays and

NCGE, past researchers found that the main problem that become the barrier to student is

motivational factor that affect them to open franchise business rather than only want to solve their

financial problem (Chee & Bhatti, 2013). A person that is strongly reliance on one person or no

experience in managing business like the student that is just come out from university and start

entering the journey of working can choose franchising as their career option. This is because the

franchisor will gives franchisee fully support and gives the training program for the franchisee more

than 4-6 weeks (Kritz).In the journey to success, the most important key is the franchisee‘s attitude

and the need to develop their personal capabilities. As highlighted by Singh and Magee (2001), the

student can succeed in franchising because consists of entrepreneurship education that enable them to

have an entrepreneurial thinking and can know the latest technology. (Micozzi & Micozzi, December

2014).

Perceived Behavioural Control

According to past study done by Ajzen (1998), (Kim, Ham, Yang, & Choi, 2013)(Huda, Rini,

Mardoni, & Putra, 2012) find that perceived behavioural control (PBC) is belief that ones have in

their life. PBC exist in Theory of Planned Behaviour. PBC focus on belief because it measure the

resources and opportunity that encounter especially when performing certain behaviour. it also happen

when one having difficulties in life. Besides of this, PBC also about the need of opinion when

performing the specific behaviour and evaluation for the level of importance of those resources and

chances for the achievement of outcomes. PBC or simply behavioural control means that one‘s

perceived simplicity or difficulty in performing of one‘s specific behaviour. PBC is actually reflects a

personal‘s evaluation of the ability to perform the behaviour.PBC will change by rely on the

conditions and the types of behaviours that should be perform. When the beliefs is linked with the

specific accomplishments, for example one‘s belief in expert computing skill. Then, it is called as

perceived behavioural control.PBC also have two control factors which are internal and external

constraining factors. Internal control linked with the knowledge and also self-efficacy such as skills,

capabilities, power of determination, and responsibility. While external control linked with the

environment such as time, chance, and reliability on others. It start from the subjective degree of

control over a behaviour performance when a person evaluate out how simple or hard it would be to

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311VOLUME 5, ISSUE 8 AUGUST 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 63 [email protected]

conduct that behaviour. Thus, PBC is the final year students of perception of how easy or difficult to

choose franchise business as career.In the Theory of Planned Behaviour (TPB), the actual behavioural

control is linked with the capability to carry out some behaviour. In the literature, most of them will

focus on PCB which is emphasized with studying effect of PCB in Entrepreneurship intention(Matlay

et al., 2012). In the TPB also, the actual behavioural control make easy the influence of intentions on

behaviour. Then, actual behavioural control affects the perceived behavioural control. In the past

studied did by Ajzen (1991), this concept is same with Bandura‘s (1977) perceived self-efficacy,

which is ‗‗focus with judgments of how well one can implement courses of action that needed to

handle with expected situations‘‘.

Knowledge

According to Saes, Silva, de Castro Souza, and Schnaider (2011), a successful business needs to deal

with the ongoing challenges of successive generations of tacit knowledge (derived from the

monitoring of trends and investment in innovative products and services, as well as the need to make

decisions in an uncertain environment). In this situation, it is not efficient for a firm to suspend

capacity to generate knowledge for the benefit of economies of scale, leading to the decision of the

organization to combine strategy internalized and external sources. In the case of a franchise, this is

very clearly a combination of strategic, stable over time, company-owned stores and franchise units.

Yang (2013), he investigated how different the process of gaining of knowledge management and

dissemination of knowledge affect the performance of the manufacturer. In addition, knowledge-

based economic outlook and transaction costs serve as a theoretical basis. Findings from the study

reported a major and positive relationship between the process of knowledge management (KM) and

performance relationship. Based on Nawaz, Hassan, and Shaukat (2014), knowledge organization run

more effectively has gained a competitive position in an uncertain environment. Effective knowledge

management has helped the company to become an innovative organization. Firms will also get a

competitive advantage and first-mover advantages through innovation, then it has improve the

performance of the company. Process innovation relies on knowledge and knowledge management

becomes an important component in carrying out any kind of company. Knowledge management is

necessary to survive in the competitive situation and the company has to innovate to compete. After

focusing the acquisition of knowledge of the past and present, he tried to attract attention by making

the competition between the two paradigms dominate the process of knowledge, "the collection and

spread of knowledge is relatively unstructured and skills through experience, education, and access to

the literature, for example the assists by the web on the whole and encoding a principled substance

within the framework of inference logic-mathematical as supported by the semantic web "and

predicted" which is a bridge between them that would be something greater research and

development, and one with a big surprise in beyond anything that we may rational predict at this

stage."Gaines (2013)

4. Methodology

In this study, research will be conduct by using the quantitative research. According to Mark

Saunders, Philip Lewis, and Thornhill. (2007), quantitative mostly use as a synonym for any data

collection method such as questionnaires or data analysis procedures such as graphs or statistics that

emerged or use numerical data. This method purpose is to quantify data and gather up result from a

sample to the population. A set of questionnaire will be distributed to 240 students in the eight public

universities about the factors that influence graduates in Malaysia public university to select franchise

business as career option. This question will be used to gather all of the information needed regarding

the research topic in which the question will be divided into several parts that will fulfil the research

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An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 64 [email protected]

objectives that the researcher wants to achieve and to study. Since, this research will be focusing on

the franchise business as career option, so this method is very suitable to gather the reliable

information from the students. Population is a group of potential participants to whom researcher want

to gather up the results of the study. (Salkind, 2008)In this research the researcher will choose the

final year students in public universities in Malaysia that has the faculty of business. The total

population will consist of all public universities. This population is choosing based on their intention

about the franchising business that can become as a career when finishing the study. The respondents

are students that learn in faculty business in each public university in Malaysia. The sample size is

more focusing on respondents whereas can help to analyse the result of the finding. This research

conduct to find that factors that can influence graduates to select franchise business as a career option.

Based on this research, the researcher is assuming that 240 respondents are enough to select as

respondents to answer the questionnaire. The researcher is using 8 of public universities that can

answer the questionnaires. Each of universities will answer at least 30 questionnaires. The sampling

method taking the selection of population and using the collection of data as information (Latham,

March 8, 2007). The sampling method that the researcher used is non-probability sampling. This

element does not have equal chance of being selected. It is very economical and easily performed.

The researcher choose to use the snowball sampling. At first, the researcher choose one respondents

that are conform the characteristics of the study. After getting the data from the respondent, the

researcher will ask them to pass to their friends that have the same characteristics. After finish, the

second respondents will pass to others. Then the researcher will stop once the number of respondents

is enough for the study. (Awang, 2012). The data that have collect is a set of questions that respondent

need to answers on their own. Self-completion questionnaires are best for gathering data on relatively

simple topics, and for getting a general overview of an issue.. After collecting the data, researcher will

key in the data into Statistical Packages for the Social Science (SPSS).

5. Results and Findings

Demographic Analysis of Respondents

Table 1: Demographic Analysis of Respondents

Category Frequency Percentage(%)

Gender Male 82 41.0

Female 118 59.0

Race Malay 70 35.0

Chinese 45 22.5

Indian 50 25.0

Others 35 17.5

Age 20-25 years old 115 57.5

26-35 years old 48 24.0

36-45 years old 33 16.5

>46 years old 4 2.0

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An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 65 [email protected]

Level of Education Diploma 56 28

Bachelor‘s degree 97 48.5

Master 47 23.5

PhD 9 4.5

Field/Background Marketing/Retail 76 38

Banking/Finance 43 21.5

Management/HR 24 12.0

Operations 21 10.5

Others 36 18.0

According to table 1, it shows about the demographic analysis of respondent‘s gender where the

percentage for male category is 41% and for the female is 59%. Furthermore, for the analysis of race,

the high percentage is fall at category of Malay followed by Indian and Chinese (35%,25% and 22.5

respectively) and the lowest is others race(17.5%). On the other hand, the analysis for respondent‘s

age shows that it is about 57.5% fall at category of 20 to 25 years old, 24% for 26 to 35 years old,

16.5% for 36 to 45 years old and 2 % for more than 46 years old. Besides that, the chart also shows

about the education level of respondents where it is about 28% of the respondents is a Diploma

holder, 48.5% is a Bachelor‘s degree holder, 23.5% is Master holder and 4.5% is a PhD holder. At last

but not least is the analysis of respondent‘s field. It shows that it is about 38% of the respondents

having Marketing/Retail background, 21.5% having Banking/Finance background, 12% having

Management/Human Resources background, 10.5% having operations background and 18% is others.

Descriptive Analysis

Table 2: Descriptive Analysis

Mean Standard Deviation

Intention 4.5671 0.74533

Attitude 3.4664 0.66207

Perceived Behavioural Control 4.5571 0.68787

Knowledge 3.8213 0.57711

The descriptive analyses are the numbers which are used to provide a brief description of the

data and visualize the data. For the descriptive analysis, the researcher was making an analysis about

the mean for the dependent variables and independent variables. The highest mean is perceived

behavioural control variable which is 4.5571. The lowest mean is attitude which is 3.4664. Overall

average means for all independent variables and dependent variable is range from 3.4664 until 4.5671.

These shows that the average means for the respondent that answers this questionnaire is toward agree

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311VOLUME 5, ISSUE 8 AUGUST 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 66 [email protected]

with independent variables and dependent variable. So, this all variables are contributed to this

research. In this research that conducted was used 5 scale which is 1=strongly 2=disagree, 3=neutral,

4=agree, and 5= strongly disagree. In this average mean, it shows that the average means is toward to

4 which are agreed. It range more than 3, which is respondent towards agree to this questionnaire.

Correlation Analysis

Table 3: Correlation Analysis

Variable P value

Intention 1.000

Attitude 0.780**

Perceived Behavioural Control 0. 601**

Knowledge 0. 609**

Pearson correlation defined as a test which measures the relationship between independent variables

and dependent variables. The objective of this test is whether the correlation is statically significant.

Table 3 illustrates correlation between attitude and intention to select franchise business as career

option. The index obtained on attitude factor, r = 0.780 and the p-value=0.000 which moderate highly

significant. Next, it also illustrates correlation between perceived behaviour control and intention to

select franchise business as career option. The index obtained on intention r = 0.601 and the p-

value=0.000 which moderate highly significant. At last but not least, table also illustrates correlation

between knowledge and graduates select franchise business as career option. The index obtained on

intention r = 0.609 and the p-value=0.000 which moderate highly significant.

6. Discussion

Based on the result of correlation analysis has shown that the relationship is moderate highly

significant which is Pearson Correlation 0.780 or 78% and significant value is 0.000 (p<0.05). So the

hypothesis is supported which is there are a significant relationship between attitude and intention to

select franchise as career option. This can prove that the attitude of university graduates can improved

by conduct education programs, trainings and also seminars in university. (Baum, 2004)This can

increase the intention of graduates towards the franchising. Through the learning and social

interactions with entrepreneur, the high positive attitudes can be formed. (Rae and Carswell, 2000).

Based on the result of correlation analysis has shown that the relationship is moderate highly

significant which is Pearson Correlation 0.601 or 60.1% and significant value is 0.000 (p<0.05). So

the hypothesis is supported which is there are a significant relationship between perceived behaviour

control and intention to select franchise as career option. According to past study done by Ajzen

(1998), (Kim, Ham, Yang, & Choi, 2013)(Huda, Rini, Mardoni, & Putra, 2012), PBC have two

control factors which are internal and external constraining factors. Internal control linked with the

knowledge and also self-efficacy such as skills, capabilities, power of determination, and

responsibility. While external control linked with the environment such as time, chance, and

reliability on others. It start from the subjective degree of control over a behaviour performance when

a person evaluate out how simple or hard it would be to conduct that behaviour. Thus, PBC can

explained the graduates of perception of how easy or difficult to choose franchise business as career.

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311VOLUME 5, ISSUE 8 AUGUST 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 67 [email protected]

Based on the result of correlation analysis has shown that the relationship is moderate highly

significant which is Pearson Correlation 0.609 or 60.9% and significant value is 0.000 (p<0.05). So

the hypothesis is supported which is there are a significant relationship between knowledge and

intention to select franchise as career option. Based on past researchers, (Chee & Bhatti, 2013) that

know-how about famous franchise operations motivate fresh graduates to select franchise business as

career. Besides that, class room learning more specifically lecturers are play important role in order to

enhance graduates knowledge about franchise business.

6. Conclusion

As a conclusion, the factor that are influencing graduates in public universities in Malaysia to select

franchise business as career option which is attitude, perceived behaviour control and knowledge

.Then, based on the recommendations that are given in this research can help the graduates in

Malaysia that are interested in doing franchise business and can run the business very well. Based on

the reliability test that was conducted, there is excellent relationship and moderate relationship where

it is suitable for this research between independent variables and dependent variables. For the

statistical result from the descriptive analysis, the main factor that is influencing graduates as a career

option is knowledge. It means that, if the graduates want to select franchise business as a career

option, knowledge factor is the main factor that will consider. Besides that, the researcher also use a

Pearson Correlation to test the hypotheses that are built to see the relationship between independent

variables which is attitude, financial support, perceived behaviour control, knowledge and subjective

norm with dependent variable intention. According to Pearson Correlation, there is significant

relationship between independent variables with dependent variables. On the Pearson Correlation test,

it is shows that there are strong correlation and moderate correlation between two variables which is

independent variable with dependent variable. There is strong relationship between independent

variable attitudes with dependent variable intention. It shows that the strong correlation between two

variables. So, the most influence factor is attitude that is needed when choosing franchise business.

Lastly, it is concluded based on these research objectives. The research objective from this study is

the factors that are influencing graduates in public universities in Malaysia to select franchise business

as a career option. According the result that are gathered, attitude, perceived behaviour control and

knowledge shows the significant relationship between the intentions for graduates in Malaysian public

universities to select franchise business as a career option. Hence, the independent variables are

considered as the factor to intention for to select franchise business as a career option.

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