The Construct and Predictive Validity Testing of Indonesian Entrepreneurial Competence Inventory-Situational Judgment Test Model (Long Version)

Abstract This research aimed to test the internal and external validity of the Indonesian Entrepreneurial Competence Inventory that was constructed based on situational judgment test (SJT) model. Spencer’s entrepreneurial competence theory and interviews with entrepreneurs were employed to build the items. The internal construct validity was tested by applying confirmatory factor analysis (CFA), while the external construct validity was tested by implementing correlations with other tests that were theoretically correlate with entrepreneurial competency, namely the previous entrepreneurial competence (Likert-scale model) and risk behaviour. The predictive validity was analysed by using correlation testing with an instrument assessing balance scorecard measurement of entrepreneurial achievement. A sample of 149 entrepreneurs from industrial cities in Indonesia was recruited via convenience sampling. The CFA analyses showed that nine dimensions of the Indonesian Entrepreneurial Competences Inventory were valid. In the correlation testing with risk taking behaviour and business success, all of the dimensions were significantly valid, except the see and act on opportunity dimension. However, in the correlation with the previous entrepreneurial competence scale, the significant correlation was found only with commitment to work. In further analysis, the correlation between dimensions of the current inventory and dimensions of the previous scale showed that the significant correlations were found between competence of seeing opportunity and commitment to work, assertiveness, and persuasion. The impact to the future research and practice application were discussed.