Abstract

The purpose of this paper is to identify the effects of digital economy on students’ entrepreneurial characteristics and entrepreneurship as career choices, comparatively between Malaysia and Indonesia. A sample of students was randomly selected from public universities and private universities in each country. Confirmatory Factor Analysis (CFA), the foundation of structural equation modelling (SEM) has been used. The results evidenced that digital economy in both countries significantly influencing the entrepreneurial characteristics of the students. However, all four dimensions of digital economy in Indonesia significantly affecting the students’ entrepreneurial traits, while only two dimensions are significant in Malaysia, i.e. social and cultural environment dimension and the consumer and business adoption dimension. Not only that, it is discovered that the university students in Malaysia are reluctant to become entrepreneurs in future despite the entrepreneurial characteristics the students possessed, contrarily with Indonesian university students. Therefore, both Malaysian and Indonesian governments need to keep on supporting the development of digital economy to encourage students to choose entrepreneurship as their careers in future. Plus, the lessons on entrepreneurship can be introduced as important subjects in universities in both countries.

Keywords: Career Choices, Digital Economy, Entrepreneurial Characteristics, Indonesia, Malaysia

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