Examining the effect of entrepreneurship ecosystem on entrepreneurial intention of graduating students a mediating role of knowledge production practice in case of Ethiopian Universities

Abstract

The purpose of this study is to investigate how universities contribute to the production of knowledge and building entrepreneurship ecosystem for growth of entrepreneurial intentions of graduate students. A survey questionnaire was used to collect data and analyzed through both descriptive and inferential statistics methods of data analysis Structural Equation Modeling (SEM) was the primary analytical technique; Principal Component Analysis (PCA) was used only for initial scale purification and not as a confirmatory method. The research finding shows that an integrated and supportive entrepreneurship ecosystem, mediated through Knowledge Production Practice, significantly shapes the entrepreneurial mindset of graduate students. Specifically, entrepreneurial education (β = 0.254, p  = .003), entrepreneurial support (β = 0.357, p  < .001), and industry collaboration (β = 0.566, p  < .001) significantly and positively predict students’ entrepreneurial intentions. Industry collaboration emerged as the strongest predictor. The effect of incubation centers was significant but comparatively weaker (β = 0.225, p  = .001). Knowledge production practice (KP) significantly mediates these relationships (indirect effects: β = 0.052 to 0.156, p < .05).The study advances existing literature by developing an integrated framework that links entrepreneurship ecosystem components entrepreneurship education, training and support programs, incubation, and industry collaboration with entrepreneurial intention through the mediating mechanism of knowledge production capability. Universities play a transformative role by providing educational knowledge, experiential opportunities, institutional support, and real-world exposure. A holistic ecosystem linking education, support services, incubation, and industry collaboration can empower students to transition from job seekers to job creators, fostering sustainable entrepreneurship in Ethiopia.