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Does internship experience increase students’ belief in

their chance of success at the labor market?

The mediating effect of problem solving skills

Julia Voskuilen

10448993

Amsterdam, June 29, 2015

Bachelor Research Thesis Business Studies

Supervisor: Sofija Pajic and Renske van Geffen

Academic year: 2014 - 2015

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Statement of Originality

This document is written by Julia Voskuilen, who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document are original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

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Abstract

Although employers highly value transferrable skills among their employees and in particular their ability to solve problems, business schools make little effort in developing those skills among their students. A possible explanation for this is that business schools place too much emphasis on their scientific research and too little on business practice. For students, a solution to this problem might be undertaking work placement with companies. The proposed research is designed to address a deficit in knowledge about the way students believe internships increase their chance of success when entering the labor market, through their enhanced problem solving skills. More specifically, we hypothesize that students and graduates with internship experience become better problem solvers, and therefore are more confident about their employability than those without internship experience. We test the hypotheses by reaching out questionnaires to business students and graduates who are not full-time employed yet. About half of the 97 respondents have internship experience, the others have not. Unexpectedly, no significant effect of internship experience on problem solving was found and therefore neither was the mediating effect of problem solving on the relationship between of internship experience on self-perceived employability. However, problem solving did positively affect students’ and graduates’ self-perceived employability. This indicates that effective problem solvers have higher perceptions about their chance of success regarding their future employment.

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Table of Contents

Abstract 3 Foreword 6 1. Introduction 7 2. Literature review 11

2.1 The current situation in higher education 11

2.2 Employability skills – the importance of problem solving 13

2.3 Internship experience 16

2.4 Students’ self-perceived employability 18

2.5 Conclusion 20

3. Conceptual framework 21

3.1 Internship experience stimulates confidence in students’ career prospects 21

3.2 Internships stimulate students’ problem solving skills 22

3.3 A problem solving skill set enhances students’ belief in their future career success 23

3.4 Internships enhance students’ perceptions about their future career, through 24

their improved problems solving skills

4. Methodology 25

4.1 Research philosophy and approach 25

4.2 Research design 25

4.3 Sample 26

4.4 Data collection 27

4.5 Measures 28

4.5.1 Internship experience 28

4.5.2 Problem solving skills 29

4.5.3 Self perceived employability 29

4.5.4 Control variables 30

4.6 The final survey construction 30

5. Results 31

5.1 Descriptive Statistics 31

5.1.1 Sample Characteristics 31

5.1.2 Data Descriptions 32

5.2 Reliability of the scales 33

5.3 Correlations 33

5.4 T-test 34

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6. Discussion 37

6.1 The main findings 37

6.2 Theoretical implications 38

6.3 Practical implications 38

6.4 Limitations and suggestions for future research 39

7. Conclusion 41

Bibliography 42

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Foreword

This thesis was written for my Bachelor degree in Business studies at the University of Amsterdam. Writing it was a real challenge, but with the help I got from many people, it turned out to be, let’s say, not so bad. Therefore, I would like to thank them here. First of all, I thank my supervisor, Mrs. Sofija Pajic, for her willingness to supervise me (as the fourth and additional student). The guidance and suggestions she gave were very helpful and always on time. Secondly, I would like to thank Ruben Karelse not only for helping me with the use of Excel and SPSS, but also for his support during the whole process. Finally, I thank my friends and family for their support by providing distraction when needed.

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1. Introduction

Of the four most named CEOs who accomplished great things in their career, none had a business school degree. Two of them, Galvin of Motorola and Gates of Microsoft, did not even finish college (Mintzberg, & Lampel, 2001). This fact is partly in line with the study of Donaldson (2002), who identified that many MBA-educated employees value their MBA not because they consider its teaching have proven to be especially useful, but because they think that their ‘certification’ was key to achieving a more challenging job. So, despite that business schools have been among the fastest-growing segments in higher education over the past thirty years (Antunes, & Thomas, 2007), there are many questions about the relevance of their educational product and doubts about their effects on both the careers of their graduates and on management practice (Donaldson, 2002; Pfeffer, & Fong, 2002; Bennis, & O’Toole, 2005; Hergert, 2009).

A possible explanation for the lack of usefulness is that business schools tend to measure themselves almost solely by the rigor of their scientific research (Bennis, & O’Toole, 2005). According to these authors, they should measure themselves more in terms of the competences and skills of their graduates, or by how well they understand important drivers of business performance. The study of Hergert (2009) also recognized that the educational content of business schools faces criticism for failing to develop the necessary skills and to lead graduates to good corporate jobs. For this reason, companies complain they are not able to find graduates that possess the needed skills, which creates a mismatch (Hergert, 2009). But these calls are not only made by employers. Students discover that the scientific setting of classrooms may not prepare them well to become successful workers (Howard, 2004). Although the skills required vary depending on the type of job role to be carried out, there has been consensus on the importance of employability skills for graduates (Raybould, & Sheedy, 2005). According to them, employability skills refer to personal abilities of an individual, which can be taken from one job to another, used within any profession and at any stage of their career. From the perspective of employers, however, ‘employability’ refers to ‘work readiness’; that is, the possession of knowledge, attitudes, commercial understanding and skills that will enable new graduates to contribute to the organizational goals soon after commencing employment (Mason, et al., 2009). Nowadays, business schools should shift their focus from developing a specific knowledge base and academic skill to developing a transferrable skill set (Gardner, 1998). But what skills should be emphasized? Various studies attempted to identify a list of employability skills needed by entry-level business school graduates (Gardner, 1998; Raybould, & Sheedy, 2005; Aiken, Martin, & Paolillo, 1994; Gagne, 1980; Kelley and Gaedeke’s, 1990). Most employers require a set of basic skills, including literacy and using technology, but they also value various personal skills, like being responsible and flexible. Furthermore, communication, teamwork, creative thinking, planning and organizing skills are part of most lists. However, with remarkable consistency, these researchers all emphasize the need for graduates to be problem solvers. Two

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8 influential studies that contributed to the field of employability are Gagné (1986) and Jonassen (2000). They both recognized the importance of higher education teaching their students problem solving skills. According to them, problem solving is the most important activity in daily life, but also in professional contexts. Whether it is to find more time to spend with your family, to save your company, to keep your job or to end the world financial crisis, people are often required to, but also rewarded for solving complex business problems (Jonassen, 2000). Moreover, when examining the development of employability skills and how employers rated each skill, Molseed and colleagues (2003) identified that problem solving was one of the key skills that employers value. In overall, it becomes pretty apparent that the business environment with its social, economic and regulatory threats, calls for employees with a professional problem solving skill set (Pasmore, & Friedlander, 1982).

For this reason, it is important that graduates develop their ability to solve problems and meet the requirements imposed by employers; otherwise it will be hard to find a satisfying and successful job (Harvey, 2005). According to Mason and colleagues (2009), this ‘success’ in the graduate labor market is typically defined as graduates’ securing employment in jobs that make appropriate use of the skills and knowledge developed in the course of their university career. The question arises how business schools help students align their educational paths with their career plans and provide them with the problem solving skills necessary to handle the fuzzy, ambiguous and politically charged business world. Sparked by criticism, business schools modify their existing course content, introduce new courses and teaching methods, or expand the provision of opportunities for work experiences (Mason, et al., 2009). The latter refers to work experience gained during work-based programs such as formal placements and internships. Today, there is a growing trend to recruit from students who have been undertaking work placements with companies (Harvey, 2005). These internships tend to have many favorable outcomes that facilitate graduates’ transition from school to work (Andrews, & Higson, 2008).

So, due to its rising popularity and evidenced effectiveness, this study will focus on providing deeper insights how internships exert their positive influence on business students. Gault and

colleagues (2000) describe this extracurricular activity to any official or formal program that provides practical experience for beginners in an occupation or profession. It is evident from the study of Andrews and Higson (2008) that both graduates and employers value the experience and knowledge gained during internships. Internships are believed to help students build work-relevant skills, gain specific knowledge relevant for their future occupations, develop a clearer self-concept and confirm or redirect individual career goals (Brooks, et al., 1995). In addition, graduates who served as an intern had a higher post-graduation employment rate (69.1 percent) than graduates who did not (55.3

percent) (Knouse, et al., 1999; Harvey, 2009). Knouse and colleagues (1999) examined if this was due to the internship experience on students’ résumés, or due to the fact that these students became better students (having higher grades than students without internships, due to motivation). But despite the

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9 advantages of internships for both students and employers, none of the studies above showed the influence of internships on students’ ability to solve problems.

To our best knowledge, a rare example of a study that did take a look at the influence of internships on the development of problem solving skills is the study of Hergert (2011). Moreover, the study compares the benefits of internships and case studies. The author starts by addressing the criticism of business schools as being overly theoretical and abstract, and that case studies and internships help overcome this problem. They connect the academic studies with the world of business. In this context, case studies are seen as helpful tools to make these connections and let students become familiar with solving (replicated) business problems. However, he recognized that internships take this approach one step further by letting students solve real business problems. But despite the focus on both internships and problem solving, his study did not investigate the potential positive outcomes of these two factors on students’ perceptions on their chance of success in the labor market. Similarly, Gault and colleagues (2000) related past participation in an undergraduate field internship and early career success, overseeing the role of students’ employability perceptions. Although the study indicates significant early career advantages for undergraduates, like less time to obtain first position, it only identified the actual outcomes. However, we are in favor of the statement that the ‘reality as experienced by the students and graduates’ has an important additional value (Struyen, Dochy, & Janssens, 2003). The aim of this study is to better understand their perceptions on learning and on their chance of success. Graduates who perceive themselves as employable have a higher feeling of being in control of one’s career and are more confident to secure a suitable position in the labor market (De Cyper, et al., 2008). In the end, those who are more confident about their employability will apply for positions that are suitable and satisfying for them (De Cyper, et al., 2008). Although these effects of higher self-perceived employability are outside the scope of this study, it is important to examine what strategies they pick that might enhance their perceptions (e.g. internships). So, in order to fill the gap in the literature, this study will investigate how business internships will affect a students’ ability to solve problems and how this in turn will influence their perceptions of success when entering the labor market. Therefore, the main research question is: To what extent

doing an internship increases business students’ belief in their chance of success at the labor market, through increasing their problem solving skills?

The purpose of this study is to better understand students’ self-efficacy when they transit from

school to work. Because business schools increasingly lack the ability to facilitate this transition, it is important to investigate what other strategies are effective. Various authors examined the outcomes of different extracurricular activities. It is evidenced that internships are effective in developing students’ employability skills by linking education to the real business world. However, this study focuses on one skill in particular; problem solving. The ability of students and graduates to solve complex business problems is proved to be valued by employers and in turn proved to enhance their

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10 have room for improvement. Also, previous studies did not examine if students think alike about the effect of their problem solving skills on being employable. It is valuable to know their thoughts and experiences. It will provide insights for business schools about where to improve (e.g. providing opportunities for work experiences) which in turn might increase graduates’ confidence when looking for opportunities in the labor market.

To provide an answer to the research question, a survey will be conducted among business students and graduates with and without internship experience. Based on the results of the survey, an inference is made about the importance of internships and its influence on both students’ ability to solve problems and how students perceive themselves, in terms of success when entering the labour market.

This paper will follow up with a literature review, which will explore the topic by using previous research. Then the conceptual framework will be presented, showing the hypotheses used. After that, the research design and methodology are explained, followed by the results of the survey. The paper will end with a discussion of the research and a short conclusion.

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2. Literature Review

In this section, the topic will be defined more precisely using previous research. First the literature concerning the role of higher education will be discussed, accompanied with criticism about the current state. The second part will explore employability skills, which is specified to problem solving. Next, the role of internship experience for both students and organizations will be examined and how it influences students’ transition from school to work, with a focus on developing problem solving skills. The fourth part of this section explores the concept of employability by looking at students’ and graduates’ perceptions. Finally, a short conclusion is provided which emphasizes the need for this research.

2.1 The Current Situation in Higher Education

Business schools were the commercial successes of the late twentieth-century education. The number of graduates in business degree-granting colleges and universities have soared (Pfeffer, & Fong, 2002; Antunes, & Thomas, 2007). Some scholars presume that those studies provide a base of advanced knowledge, skills and competencies (Baruch, 2009; Sturges, et al., 2003). Sturges and colleagues (2003) conclude that the program will develop the knowing-why (relating to career values, meanings and motivations) and the knowing-how (relating to skills and job-related knowledge) career

competencies. Besides, the study of Donaldson (2002) identified that many MBA-educated employees value their ‘certification’ because it was key to achieving a more challenging job. However, most of these employees did not value their degree because its teaching has proven to be especially useful. Like Donaldson (2002), many other scholars have questioned the value and relevance of business education and have doubts about their effects on both the careers of their graduates and on

management practice (Pfeffer, & Fong, 2002; Bennis, & O’Toole, 2005; Hergert, 2009; Porter and McKibben, 1988).

According to Bennis and O’Toole (2005), business education face intense criticism for failing to prepare leaders, impart useful skills, instill norms of ethical behavior and lead graduates to good jobs. Also Porter and McKibbin (1988) and Hergert (2009) noted that little attention is given to the development of leadership and several work-related skills. A possible explanation for the lack of usefulness is that business schools have quietly adopted an inappropriate model of academic

excellence; the scientific model as stated by Bennis and O’Toole (2005). This model is predicated on the faulty assumption that business is an academic discipline like chemistry and geology. In fact, business is a profession like medicine and the law. According to Bennis and O’Toole (2005), business schools should measure themselves in terms of the competencies of their graduates or by how well they understand drivers of business performance. Instead, they measure themselves almost solely by the rigor of their scientific research and although some of this research produced is excellent, little of it is grounded in actual business practice. The focus of business education has become increasingly

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12 circumscribed and less relevant to practitioners (Bennis, & O’Toole, 2005). According to them, both relevance and rigor are needed. Therefore, business schools should both educate practitioners and create knowledge through research.

Historically, emphasis was on the former at the expense of the latter (Antunes, & Thomas, 2007; Friga, Bettis, & Sullivan, 2003). Until the late 1950s, business schools could be described as ‘trade-schools’. These schools did not undertake much research and taught from a descriptive viewpoint (Gordon, & Howell, 1959). In 1959, the Ford and Carnegie foundations issued reports on the poor state of business school research and theory (Friga, et al., 2003). These foundations drove the development towards a research and discipline-led focus with an emphasis on scientific method, research and knowledge creation. In the process, the focus of business schools switched and now the objective of most is to conduct scientific research (Antunes, & Thomas, 2007). This switch created a gap between the rigor of the scholar and the relevance of understanding and improving management practice, which Friga and colleagues (2003) defined as the ‘Faculty-based era’. Bennis and O’Toole (2005) recognized that returning to the ‘trade-school’ paradigm is not an option. It is necessary to strike a new balance between scientific rigor and practical relevance and because greater emphasis is now placed on the academic nature of business education, more attention toward a greater inclusion of real-world experiences is needed (Clinebell, & Clinebell, 2008). The challenge is to restore balance to the curriculum and the faculty. Instead of teaching students to ‘talk’ business, they should also ‘learn’ business (Pfeffer, & Fong, 2002). However, there is no requirement for business schools to do so. They are not required to train practitioners or to demonstrate practical uses of their work. They are free to do whatever research they choose and to produce subsequent, even more focused, generations of scholars (Bennis, & O’Toole, 2005). Furthermore, there is no requirement to offer degree programs that develop the skill set of graduates required by employers (Hergert, 2009). Besides, few, if any, of the current business schools’ faculty is particularly well equipped to staff new models of business education that link education to practice (Pfeffer, & Fong, 2002). Today it is even possible to find tenured professors of management who have never set foot inside a real business, except as customers. So, business schools are packed with intelligent and highly skilled faculty, who has little or no

managerial experience (Bennis, & O’Toole, 2005). The scientific content of business schools nowadays fails to provide students with relevant working experience and the necessary skills to lead graduates to good corporate jobs (Hergert, 2009).

So questions arise about the effectiveness of business schools in preparing their students for future employment. As emerges from provided evidence, too much emphasis is placed on scientific research and too little on practice. In our opinion, business schools should move away from the scientific model toward a professional one in order to create a balance between relevance and rigor. The scientific setting of classrooms nowadays may not prepare students well to become high skilled, successful workers. It is this transition from education to work and from knowledge to practice that will be at the heart of this research.

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2.2 Employability Skills

Business schools try to prepare students well in order to make them successfully transit from school to work. During college, students develop a specific knowledge base and academic skills, but often lack a set of transferrable skills and competencies to handle the principal complex issues of work (Gardner, 1998). This lack is caused by a disagreement between employers and higher education about the learning goals that are most appropriate (Banta, 2011; Raymond, & McNabb, 1993). According to Banta (2011), employers would like colleges to put more emphasis on transferrable skills. These transferrable skills are of utmost importance because they facilitate not only the transition from school to work but also the transition between different tasks and a variety of jobs (Clinebell, & Clinebell, 2008). Students that possess those transferrable skills are better employable than students who do not (Cranmer, 2006). Therefore, transferrable skills are often referred to as employability skills.

Definitions of those employability skills range from a limited set of threshold skills to a wide range of knowledge, skills and attributes that graduates are expected to have acquired in higher education (Hillage, & Pollard, 1998). Raybould and Sheedy (2005) describe employability skills as personal abilities of an individual, which can be taken from one job to another, used within any profession and at any stage of their career. From the perspective of employers, however, employability refers to ‘work readiness’; that is, the possession of knowledge, attitudes, commercial understanding and skills that will enable new graduates to contribute to the organizational goals soon after commencing

employment (Mason, et al., 2009). The National Centre for Vocational Education Research (NCVER) identified the following six types of employability skills:

1. Basic skills – such as literacy, using numbers and using technology; 2. People-related skills – such as communication and teamwork;

3. Conceptual skills – such as problem-solving, planning and organizing, thinking innovatively and creatively;

4. Personal skills and attributes – such as being responsible, resourceful, flexible, able to manage own time and having self-esteem;

5. Skills related to the business world – such as innovation skills and enterprise skills and; 6. Skills related to the community – such as civic or citizenship knowledge and skills. Various other studies attempted to identify the skills and attributes needed by entry-level business school graduates (Gardner, 1998; Raybould, & Sheedy, 2005; Aiken, Martin, & Paolillo, 1994; Gagne, 1980; Kelley and Gaedeke’s, 1990). With remarkable consistency, these researchers all emphasize the need for graduates to be communicators and problem solvers. Gagne (1980) believes that the central aim of education is to teach students to think (rationally) and to become better problem solvers.

Problem solving is the process of using reasoning and analysis to look beyond the surface of a problem to the underlying concepts that need to be part of the solution (Barkman, & Machtmes, 2002). Simply stated, problem solving is finding solutions to occurring problems (van Aken, et al., 2012).

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14 Business schools, however, struggle to revise and update the curricula to produce graduates with problem solving skills (Tanyel, Mitchel, & McCalum, 1999). They consistently try to replicate true managing in the classroom to improve work-related skills (Mintzberg, & Lampel, 2001).

Unfortunately, they cannot. The case study is a case in point. It is seen as a powerful teaching tool that helps students improve their ability to solve complex business problems. According to Harvard Business School (2004), it ‘’brings undergraduate classes to life with discussions about realistic business scenarios’’. In class, students try to solve cases and gain valuable experience in cooperative problem solving (McCarthy, & McCarthy, 2006). But despite the popularity of the method, McCarthy and McCarthy (2006) argue that case studies cannot substitute for real-world experiences. Students with little or no management experience are asked to solve a case of 20 pages on a company they do not know and told to pronounce on its strategy the next day (Mintzberg, & Lampel, 2001). They simply lack to provide students with a direct, personal encounter. This is proven by the study of Isenberg (1986), which found that managers solved a short business case more effectively than college undergraduates. The content analyses suggested that the managers began planning courses of action relatively sooner, used more reasoning processes and made fewer requests for specific information than the students did. So, solving paper cases can develop a number of cognitive competences, but not all the competences necessary to be successful in the fuzzy, ambiguous and politically charged real-life organizational context (van Aken, Berends, & Van der Bij, 2012). It indicates that it is more effective to let students come face-to-face with making decisions that are real rather than merely thinking about a situation or case. By this, students will learn business instead of talking about

business (Pfeffer, & Fong, 2002). Also Jonassen (2000) identified the importance of employees being able to solve problems. It is generally regarded as the most important cognitive activity in daily life and professional contexts. Every day, employees are required to and rewarded for solving problems. However, learning to solve meaningful problems is too seldom required in the curricula (Jonassen, 2000). The few problems that students do encounter are well-structured problems (cases) that are inconsistent with the nature of real business issues. They need to be exposed to “real-world messy problems that defy neat solutions” (Banta, 2001).

In addition, the business environment changes faster than curricula at colleges and universities. For this reason, it is important for students to gain real-world experiences (Tanyel, Mitchel, & McCalum, 1999). Furthermore, Cranmer (2006) argued that experience with problem solving on a course is relevant to students’ employment. She identified a difference in relevance between engineering and history students. According to the scientific model of Bennis and O’Toole (2005), business is a profession (like engineering) and not an academic discipline (like history). Therefore, it is important for business students to gain experience with solving challenging problems. But it is not only in the interest of business students to gain a problem solving skill set. Organizations are continually confronted with social, economic and regulatory threats. This problem increased the search for solutions and therefore resulted in a call for problem solving skills among all

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15 organizational members (Pasmore, & Friedlander, 1982). In addition, the process of solving business problems aims to realize improved performance for the organization on the basis of the designed solution. It is a structured process consisting of consecutive elements (van Aken, et al., 2012), as opposed to a ‘muddling through’ approach (Forester, 1984). The elements are captured in the Problem Solving Cycle (Figure 1). Often a company faces interrelated problems; the problem mess. To formulate a clear business problem, this mess has to be identified and structured, which results in the problem definition. The next step consists of analysis and diagnosis, in which the problem and its context are analyzed and the causes of the problem are established. After this step, a solution and the implementation process are designed. This solution has to tackle the most important causes. In the intervention step, the solution is implemented and during the evaluation step, the effects of this implemented solution are assessed.

Figure 1: The Problem Solving Cycle

Source: Adopted from van Aken, J., Berends, H., & Van der Bij, H. (2012). Problem solving in

organizations: A methodological handbook for business and management students. Cambridge University Press.

In sum, it is important for students to develop their employability skills in order to facilitate the transition from school to work. Disagreement among multiple studies exists about the skills needed, but there is consistency about the importance of communication and problem solving. Business schools try, but often fail, to replicate the real-world of business in classrooms in order to develop those skills. Case studies are seen as a helpful tool that replicates real problems, but lack to provide students with a direct, personal encounter. Together with its proven relevance in the business world, problem solving will be the focal point of this study.

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2.3 The internship experience

The question arises how business schools help students align their educational paths with their career plans and how they incorporate real business practices into their curriculum. Because business schools often lack the ability to integrate management practice, other methods are used to achieve this. They provide students with opportunities for work experiences, like work-based programs such as formal placements and internships (Mason, et al., 2009). However, some scholars and professionals question the outcome of internship performance and the decision to award institutional credit to business students due to the fact that they complete an internship under the supervision of practicing

professionals who do not hold scholarly credentials and may not embrace academic values, such as inquiry or reflection (Cuneen, & Sidwell, 1994). Eyler (1992) stated that business schools were ‘’dubious about the value of internship programs that displace significant amounts of coursework, questioning whether the educational opportunity costs are offset by what is learned in the field”. Nevertheless, internships have become an increasingly popular element of higher education in business (Hergert, 2011). Besides, there is a growing trend to recruit from students who have been undertaking work placements with companies (Harvey, 2005). A study of Paton (2014) identified that, in England, four-in-ten vacancies at large private and publicly owned companies are only open to those individuals who have previously carried out internships, industrial placements or work experience. An example is Hewlett Packard, which strongly supports intern programs by recruiting seventy percent of its workforce in a single year from its pool of interns (Watson, 1995). Therefore, the Association to Advance Collegiate Schools of Business (AACSB) recommends that business schools should more tightly link their programs to the ‘real’ business world. Experience continues to be one of the key attributes graduates can offer a prospective employer and internships are a

mechanism to accomplish this goal (Gault, Redington, & Schlager, 2000). According to them, an internship refers to any official or formal program that provides experience practice for beginners to become known with an occupation or profession and which encompass a wider variety of academic disciplines and organizational settings. Research on internships has expanded over the past several years, with greater interest in its design and consequences for both interns and organizations. In general, internships are viewed as a positive experience for college students that result in a number of favorable outcomes (Andrews, & Higson, 2008).

The main benefit is that the practical learning experience of the internship links classroom theory to business practice (McCarthy, & McCarthy, 2006;Hergert, 2011). Hergert (2011) addresses the criticism of business schools as being overly theoretical and abstract and that internships help overcome this problem. They help students make the connections between their academic studies and the world of business. While case studies are seen as helpful tools in accomplishing this connection, internships take the approach one step further (Hergert, 2011). Furthermore, it enabled interns to better crystallize their job interests and abilities (Hite, & Bellizi, 1986). According to Hite and Bellizzi (1986), internships better prepare students to begin their careers than those with formal classroom

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17 training only. They reported positive changes in feelings of personal efficacy and a greater sense of responsibility and career development. This greater sense for development was also found by Brooks and colleagues (1995). Besides, they identified that students who served as interns built work relevant skills, gained specific knowledge of their future occupations, developed a clearer self-concept and enhances students’ employability. Furthermore, students with internship experience were offered a job more quickly than those who did not (Knouse, & Fontenot, 2008; Harvey, 2009; Callanan, & Benzing, 2004, Gault, et al., 2000, Taylor, 1988) In today’s highly competitive job market, a certification no longer guarantees a job and therefore it is highly favorable for interns to be invited to become part of the permanent staff (Coco, 2000). When individuals become part of the permanent staff, it is important for them that there exists a ‘fit’ between their personal characteristics and their work environment. With an internship, students become more aware of one’s personal characteristics and gain a realistic understanding of various career fields and environments that allow a ‘fit’ check (Callanan, & Benzing, 2004). This might results in higher levels of job satisfaction in their subsequent jobs (Gault, et al., 2000). Finally, the study of Pedro (1984) found that internships can make students more ambitious which results in higher grades, while other studies suggest that students are often motivated to seek out internships as a means for securing employment (Hergert, 2011). They create valuable connections and networking opportunities that improve the career prospects for students.

But hiring organizations also benefit from the practical learning experience of internships. Internships provide a ‘risk-free’ method for organizations to evaluate the prospective employees and they provide a steady number of motivated human resources who are relatively less expensive than full-time employees (Coco, 2000). In addition, they help organizations gain a positive recruiting image and ensure a pool of talented newcomers (Greenhause, et al., 2000).

However, serving as an intern might bring some challenges (Chandra, & Paperman, 1983). Students' positive expectations before taking an internship may not match their eventual experiences (Knouse, et al., 2008). However, the number of potential benefits for both the interns and

organizations often outweighs their drawbacks. Perhaps the term ‘synergy’ is appropriate in this context to describe the mutual benefit that companies and the intern bring to one another (Coco, 2000). One mutual benefit of an internship that receives attention today is the development of generic skills. In recent years, the modern workplace has emphasized the importance of those skills (Knouse, et al., 2008). As mentioned before, internships have the potential to develop such skills (Brooks, et al., 1995). Within this generic skill set, both Molseed and colleagues (2003) and Jonassen (2000) found that employers rated the problem-solving skill as perhaps most important for graduates to possess. However, it is found by McCarthy and McCarthy (2006) that business students lack the ability to solve complex business issues. Internships enable students to handle such particular business problems (Molseed, et al., 2003). They provide exposure to real business problems and issues that are usually not as well covered in textbooks. By this, students get the opportunity to show employers how they think and solve problems on the job (Knouse, et al., 2008). In addition, students have a chance to take

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18 on real responsibilities while working close with professionals (Coco, 2000). Serving as an intern will not only display their knowledge of concepts learned in class, but also allow them to demonstrate their ability to apply the learned concepts and skills to the work situation (Knouse, et al., 2008). The increased popularity of internships is also a result of the static nature of the curricula at colleges and universities and the fast changing business environment. Internships are viewed as a method for students to get acquainted with the dynamic business world and the social, economic and regulatory threats accompanied (Tanyel, Mitchel, & McCalum, 1999). Moore (1997) even predicts that many business schools will not survive, because many organizations assume a larger role in the education of their employees. Students also realize that having a degree is simply not sufficient, and that it requires other attributes to be employable.

So, internships provide numerous benefits for both the students and the related organizations. As a result, they have become an increasingly popular element of higher education. When looking at their potential to develop a problem-solving skill set among graduates, internships provide a more valuable experience than what is learned in classrooms. This study will empirically investigate to what extent business students believe internships will enhance their ability to solve complex business problems and how this in turn affects their perception of success when entering the labor market.

2.4 Students’ self-perceived employability

Because long-term employment is no longer guaranteed, maintaining and enhancing one’s

attractiveness in the labor market has become a key goal for individuals (Rothwell, & Arnold, 2008). The end of lifetime job security and the greater uncertainty among employers have driven current interest in the concept of employability (Hillage, & Pollard, 1998). However, the term ‘employability’ is used in a variety of contexts with a range of meanings. Sanders and de Grip (2004) suggest that the concept has changed systematically over the last three decades, depending on the labor market conditions and government policies. Despite, this study is attracted to the definition used by Hillage and Pollard (1998, p.12): ‘employability is the capability to move self-sufficiently within the labor market to realize potential through sustainable employment’. It is about the capability of individuals to gain initial employment, maintain employment or to obtain new employment that is related to their qualifications (van der Heijden, 2002).

According to Hillage and Pollard (1998), employability consists of four components. The first one is individuals’ employability assets. These assets can be categorized in baseline assets (such as basic skills and personal attributes), intermediate assets (such as occupational specific, generic or key skills and key personal attributes), and high level assets (such as skills that contribute to organizational performance). Previous literature suggests the importance of transferrable skills for employability and its increased attention by employers when selecting employees (Banta, 2011). Therefore, by focusing on problem solving, this study includes generic skills that are part of individuals’ intermediate assets. However, it is not enough to only possess these assets. People also need the capability to exploit them

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19 (Hillage, & Pollard, 1998). This includes the need for career management skills, job search skills and having a strategic approach to the labor market. In addition, there is an important relationship between assets and deployment. The extent to which individuals are aware of what assets they possess and their relevance to employment opportunities available may affect their willingness to undertake activities that enhance their employability; in this study it will be internships. The third component of

employability is individuals’ ability to present their assets to the market. This includes, for example, a presentation of their CV, their interview techniques, their qualification. The final component is individuals’ ability to realize that the employability assets depend on the context (e.g. personal and external conditions) and their inter-relationship.

Up to now, the part is about (general) employability. This study, however, emphasized the individual focus on employability. It is about what individuals (e.g. students and graduates) believe their employment options are. Employability is often seen as the route to future career success (Rothwell, & Arnold, 2008). In former times, employability was relevant to those already in employment by which they prepared for job changes. But since the emergence of the employability curriculum in universities, an individual evaluation of the impact should be incorporated. Therefore, this study investigated students’ and graduates’ self-perceived employability (Rothwell, & Arnold, 2008). They define self-perceived employability as ‘a current assessment of one’s capacity to navigate the world of work in the future’. It differs from subjective career success, which reflects ‘current evaluation of an accumulation of past experiences’. Thus for students, self-perceived employability is defined as ‘the perceived ability to attain sustainable employment appropriate to one’s qualification level’ (Rothwell, & Arnold, 2008). This definition is derived from the one mentioned above about (general) employability, developed by Hillage and Pollard (1998).

Rothwell and Arnold (2008) added two further dimensions to the four components identified by Hillage and Pollard (1998). The first one is the impact of the reputation (brand image) of the universities attended on a students’ perception. The ‘brand’ on a résumé might lent credibility to individuals’ job seeking potential (Rothwell, & Arnold, 2008). A higher ranking of your university on the list of popular universities from which employers select might increase students’ belief in their future career successes. Furthermore, the chosen field of study was also added to their study. Together with the contributions of Hillage and Pollard (1998), Rothwell and Arnold (2008) developed a matrix, consisting of eight components that all affect students’ self-perceived employability (Figure 2).

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20

Figure 2: Students’ self-perceived employability matrix

Source: Adapted from Rothwell and Arnold (2007) Self-perceived employability: Construction and

initial validation of a scale for university students. Journal of vocational behavior.

2.5 Conclusion

Previous research showed the criticism of the current state in higher business education. An important critic refers to the failure to develop the generic skills necessary for graduates to become successful workers. Various scholars addressed the particular need of one generic skill type; students’ ability to solve problems. This enables them to solve challenging problems that organizations are confronted to. Business schools try to replicate true managing and ‘real’ problem solving in the classroom.

Unfortunately, they cannot. This results in the urgency of other methods. An internship is seen as a helpful tool to accomplish a connection between students’ academic studies and the world of business. While various studies investigated the favorable outcomes of internships, the impact of

internships on developing a problem solving skill set among business students has not been

investigated thoroughly yet. Besides, it did not examine how students’ belief in their chance of success in the labor market is increased by these improved problem solving skills. Therefore, the current research tries to fill this gap by attempting to answer the following question: To what extent doing an

internship increases business students’ belief in their chance of success at the labor market - through increasing their problem solving skills?

This will be done looking at their internship experience, their ability to solve business problems (including all element of the Problem Solving Cycle) and how this in turn influences their perceptions of success when entering the labor market.

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3. Conceptual framework

After having explored previous research in the prior section, this section will define the conceptual framework on which this research is based. Besides, this section also provides the used hypotheses. First, the general effect of internships on students’ perception about their chance of success when they enter the labour market is investigated. Then, the expectations about internships influencing students’ employability skills, with problem solving in particular, are translated to the second hypothesis. The third prediction identifies the effect of having problem solving skills on the increased belief of students in their success when entering the labour market. And finally we predict that there is a mediating effect of problem solving on the relationship between internship experience and self-perceived employability. To make the relationships between the variables clearer, a conceptual model is provided at the end of this section (Figure 3).

3.1 Internship experience stimulates confidence in students’ career prospects

As mentioned in the literature review, this study focuses on the positive outcomes of internships, which have been identified by various studies (Andrews, & Higson, 2008; Brooks, et al., 1995; Callanan, & Benzing, 2004’; Gault, et al., 2000; Hite, & Bellizzi, 1986; Knouse, & Fontenot, 2008; McCarthy, & McCarthy, 2006; Raymond, et al., 1993; Taylor, 1988). An internship has consequences for both interns as for organizations (Greenhause, et al., 2000). But evidently, students are the most important beneficiary of these outcomes. Knouse and Fontenot (2008) found an internship to be an overall beneficial activity that can enhance employability through work-related and organizational learning experience and by linking classroom theory to business practice (McCarthy, & McCarthy, 2006). They are believed to help students build work-relevant skills, gain specific knowledge of their future occupations, develop a clearer self-concept and confirm or redirect individual career goals (Brooks, et al., 1995). Furthermore, students with internship experience were also offered a job more quickly than those who did not (Knouse, & Fontenot, 2008; Harvey, 2009; Callanan, & Benzing, 2004, Gault, et al., 2000; Taylor, 1988), because a ‘certification’ does not longer guarantee a job (Coco, 2000). Internships offer a chance to obtain permanent employment, for which they get higher salaries and experience higher job satisfaction (Gault, et al., 2000). Additionally, internships exhibit positive influence in more indirect ways. They have the ability to motivate students and make them more ambitious about their future by, for example, finding out their job interest and abilities (Hite, & Bellizzi, 1986; Pedro, 1984). It also allows for a ‘fit’ check between students’ personal characteristics and the career field or environment (Callanan, & Benzing, 2004). Last, but not least, relevant is that internships expose students to ethical issues and global dimensions sometimes not gained in

classrooms (Raymond, et al., 1993). In sum, internships facilitate students’ transition into the real world of business by providing numerous benefits.

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22 students’ perceptions about their future career success. The studies that involved investigation of students’ perceptions used this input for understanding the aspects of optimal internship experience. However, they did not go beyond the immediate internship experience and investigate perceptions about more far reaching benefits of the internship for students’ future career. For example, the study of Hite and Bellizzi (1986) showed how these positive expectations about internships aid marketing faculty in the development and management of an internship program. Furthermore, the study of Hergert (2011) investigated student’s perceptions of the value of internships in business education. He tried to identify what factors account for the most valuable internship experience. The perceived value and the students’ demographic profile, the structure of the internship and the connection to the

students’ career plans strongly correlate. However, this study pays less attention to the ability of internships to improve students’ skills and competencies to, in turn, enhance their chance of success in their future career. Their expectations before taking an internship may differ from their experiences after experiencing one (Moghaddam, 2011). But based on the numerous benefits mentioned above, this study expects that students’ belief of their career success is enhanced by doing an internship. Therefore, this study predicts that:

Hypothesis 1: Internships increase students’ belief in their chance of success when

entering the labor market.

3.2 Internships stimulate students’ problems solving skills

Various studies attempted to identify the required skills and attributes for graduates to have when entering the world of business (Aiken, Martin, & Paolillo, 1994; Gagne, 1980; Gardner, 1998; Kelley and Gaedeke’s, 1990; Raybould, & Sheedy, 2005). Overall, their lists differ. However, all studies emphasized the need for graduates to be both communicators as well as problem solvers. For instance, the study of Molseed and colleagues (2003) focuses on employers’ ratings of the necessary skills. They found that problem solving was one of the key skills employers value. Also Jonassen (2000) and Gagné (1980) identified the importance of problem solving. But although their results suggest problem solving as key, their main research is focused on multiple employability skills.

Besides, none of these studies examined what factors enhance employability skills (including problems solving). They identified which skills and attributes are required with their relative

importance, but they did not identify what activities might develop or improve them. The latter is done by Mason and colleagues (2009). They showed the impact of various initiatives on students’

employability skills and found that structured work experience or employer involvement in degree course design have clear positive effects on enhancing skills. Brooks and colleagues (1995) also identified this effect of structured work experience (e.g. internships).

A possible explanation for the enhanced employability skill set is that internships provide a practical learning experience. It helps students make connections between classroom theory and

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23 business practice (McCarthy, & McCarthy, 2006). By doing an internship, students experience the ‘real’ business world and are exposed to ‘real-world’ messy problems, for which they need to defy effective solutions (Banta, 2001). The business world becomes a laboratory for students to see how the learned material in the classroom relates to the practice of business.

Because most previous studies focused on a set of employability skills, this study will extend their insights by focusing on only one particular skill type; problem solving. Because the business environment exposes students to real problems, we expect that their problem solving skills are improved by serving as an intern. Therefore the second hypothesis is:

Hypothesis 2: Internships positively affect students’ ability to solve business problems.

3.3 A problem solving skill set enhances students’ belief in their future career success

Recently, employers are more interested in students that have developed a set of transferrable skills than in those having a specified knowledge base (Banta, 2011). These skills help employees switch between different tasks at work (Clinebell, & Clinebell, 2008). Also Molseed and colleagues (2003) are interest in the development of transferrable skills among students. They found that employees’ ability to solve complex business problems was one of the key skills employers value. This has partly to do with the fact that employees who are better problem solvers are also better work performers (Clinebell, & Clinebell, 2008). The process of problem solving (e.g. The Problem Solving Cycle) shows its aim to realize improved performance for the organization on the basis of the designed solution (van Aken, et al., 2012). Besides, organizations are confronted to an increasing number of threats (Pasmore, & Friedlander, 1982) and therefore, they must search for employees who are capable of solving these social, economic and regulatory problems in order to survive. Nevertheless, Forester (1984) states that the ‘muddling through’ approach is a more appropriate process for dealing with problems arising in unstable environments. He mentioned that the duration of the ‘rational-comprehensive’ process is too long, by defining the problem, collecting all relevant information, raking the values, evaluating alternatives and finally selecting the strategy to solve the problem. But van Aken and colleagues (2012) identified this as necessary to obtain the best solution to a given problem. Even in turbulent environments, the ability to solve problems in a deliberate manner remains important. This is evident from the exuberant use of situational interviews by employers in the hiring procedure (Latham, et al., 1980). In situational interviewing, job-seekers are asked to respond to a specific situation they may face on the job. These types of questions are designed to draw out more of your analytical and problem-solving skills, as well as how you handle problems with short notice and minimal preparation. Other studies also identified the importance of employees being problem solvers (Jonassen, 2000; Gagné, 1984). They mentioned that problem solving is generally regarded as the most important cognitive activity in daily life and professional contexts. Virtually everyone, in their everyday and professional lives, regularly solves problems.

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24 So, it is clear that employers value graduates that have developed their problem solving skills. An employee who is capable of solving complex business problems is a valuable asset to the

organization by which organizational performance is enhanced and survival in unstable environments is more assured. However, none of the studies mentioned above link the positive outcomes of problem solving skills to students’ perceptions of their future career success when they enter the world of business. The study of Haasler (2013) did. However, his focus was not on problem solving only and it was more related to students’ self efficacy. Because employers see problem solving skills among their employees as key, it will be equally important for students to develop them in order to find a satisfying job. Therefore, the third prediction is:

Hypothesis 3: Problems solving skills will positively affect students’ belief in their chance of success at the labor market.

3.4 Internships enhance students’ perceptions about their future career, through their improved problems solving skills

Moreover, based on all the above, we expect that work placements will stimulate the development of problem solving skills among interns, helping them to solve business problems that might occur when they obtain employment in the (near) future (Banta, 2011; McCarthy, & McCarthy, 2006). Therefore, one could expect that the development of the ability to solve real-world, messy business problems through the internship experience will enhance students’ confidence of success when entering the labor market. So consequently, we hypothesize that:

Hypothesis 4: Problem solving skills has a mediating effect on the relationship between internship experience and self-perceived employability.

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4. Methodology

The previous sections discussed the existing literature related to the research problem and the conceptual framework, which showed the hypotheses. The following section includes a detailed description of the research design and method through which the hypotheses will be tested. First the research philosophy and approach will be discussed. This is followed by an explanation on how data was collected. Next, the measurements used for each variable are discussed and finally, the final construction of the survey is considered.

4.1 Research philosophy and approach

The underlying philosophical assumptions will underpin the used research strategy and the research method as part of that strategy (Saunders, Lewis, & Thornhill, 2012). This research reflects the principles of positivism, by which it tries to describe the experiences that are faced by business students and graduates. The descriptions of those objective meanings are captured by quantitative research (Saunders, et al., 2012) and the end product is expected to be law-like generalizations (Remenyi, et al., 1998). Furthermore, research will be conducted taking a deductive approach. With this approach, hypotheses are developed based on existing theory (Brown, et al., 2010). This process of reasoning from different statements that were found in the literature led to new hypotheses and through the implementation of relevant methodology, the study is going to test if the formulated hypotheses are right or wrong (Saunders, et al., 2012).

4.2 Research design

The positivism philosophy is likely to be associated with a highly structured methodology in order to facilitate replication (Gill, & Johnson, 2002). So for this research, a questionnaire-based survey is used to collect the data needed to test the hypotheses. This strategy is useful to test the multiple variables associated with the hypotheses and to compare the answers given by business students or graduates with and without internship experience (Saunders, et al., 2012). In addition, Saunders and colleagues (2012) recognized the convenience of surveys to reach the needed amount of people in fast and affordable ways. Those ways include reaching people by e-mail, by telephone, providing hand-outs or with the use of online-surveys. Another motive for using a questionnaire-based survey is that the questions and statements must be standardised and consistent. The reliability increases when we ask each individual exactly the same questions, because their answers are compared in the following section (Saunders, et al., 2012). Furthermore, previous studies with similar types of propositions used the survey method as well (Hergert, 2009; Mason, William, & Cranmer, 2009).

There are, of course, some drawbacks to the survey design. It is not possible, for example, to adapt the design of the questionnaire once it is set, in contrast to qualitative research. This makes the design inflexible. Besides, there is only one chance to collect the data and therefore it must be done properly from the beginning (Saunders, et al., 2012). These limitations are considered while designing

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26 the questionnaire. Another limitation is the number of questions that are included. To reach a desirable amount of participants, the number of questions used must be appropriate; otherwise people are not willing to fill them in (Saunders, et al., 2012). The survey used for this study is relatively lengthy (approximately 15 minutes). It is developed in collaboration with three other bachelor students. The main topic (self-perceived employability) is shared among all four of us, but the different subtopics resulted in a relatively large questionnaire. But the survey is also administered by four people and therefore it becomes more feasible to reach the needed sample. Furthermore, standardization of the questionnaire ensured that the participants are asked the same questions, which are therefore easier to compare. Again: designing the questionnaire, including the definitions used, has been a conscious and well-thought process. We strive to minimize the risk of misinterpretation and to prevent obtaining invalid outcomes due to respondents interpreting questions differently (Saunders, et al., 2012). The questionnaire was self-administered. This improved feasibility of this study, saving a lot of time in collecting the data. When people fill them in themselves, the questions can be most quickly completed. Furthermore, self-administration guarantees anonymity, as there is no interviewer who has to write down the answer of the respondent. By option for such way of data collection we aimed at reducing the subject or participant bias (Saunders et al., 2012) and therefore improve the reliability of the data.

4.3 Sample

Participants in this study were both business students and graduates. They follow (or followed in case of graduates) a business-oriented study in the Netherlands. The criteria for sample selection were several. Firstly, it was important that participants were not full-time employed yet, because some of the hypotheses of this study relate to the perceptions students and graduates have. Secondly, it was also important that the sample includes students and graduates with, but also without internship experience, to compare whether their problem solving skills and their perceived chance of success actually differ. This was done to provide a more valid picture. Because Dutch universities do not require any form of structured work experience, it was necessary to use students and graduates from other educational institutions; for example, higher professional education (called HBO in the

Netherlands). Finally, both Dutch and non-Dutch students and graduates are approached, because there are many foreigners that study in the Netherlands. So in order to draw a reliable sample from this population, we needed to ensure all aforementioned sub-groups are represented. Therefore, a purposive sampling method was used.

The sample size was intended to be as large as possible; because the larger the sample size, the better the results can be generalized (Saunders et al., 2012). However, because of time and money constraints, a large sample as is used in previous studies (Hergert, 2009; Mason, et al., 2009) could not be drawn. According to Saunders and colleagues (2012), a sample size of 30 or more will usually result in a sampling distribution for the mean that is very close to a normal distribution. Stutely’s

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27 advice (2003, in Saunders, et al., 2012) is to use a minimum number of 30 respondents in each

category within your overall sample. Thus concerning internship experience, at least 30 students with and 30 students without internship experience are needed. It was strived however to reach a larger sample in order to better generalize the research. The final sample consisted of 133 respondents, of which 97 fully completed the questionnaire.

4.4 Data collection

The primary method to collect data was internet-mediated. A useful tool for this is the website

www.qualtrics.com. Besides that it can be used to develop questionnaires, it is easy to use for

respondents. It saves time for both the respondents and the researcher, since the data do not have to be entered manually (Saunders, et al., 2012). There are also no printing costs needed, which saves money. Furthermore, it can reach a lot of respondents in a relatively short time. Other ways I used to approach people online were by e-mail or through Facebook, for which I used my personal network. Because most students use the internet (CBS, studenten, 2014), this method proved to be effective. One drawback, however, is that people can engage in self-selection. They choose whether or not to participate or ignore the invitation (Saunders, et al., 2012). This might lead to a systematic bias. Therefore, I used another method; handing out the questionnaire in public. To ensure the respondents are business students, I approached multiple businesses (where students serve as interns) and business schools (both UvA and HvA). I used two privately owned tablets for this, in case they did not have a laptop, computer or tablet available. If they did, I sent them the link of the survey by email. Surprisingly, most of the interns working at the approached companies decided to fill in the survey. At the HvA, people were also willing to fill it in. Unfortunately, it was more difficult to reach people at the university. This was partly because most did not have the time to fill in a survey that takes 15 to 20 minutes.

The questionnaire is written in English, because the sample consists of both Dutch participants as well as foreigners who currently do an internship or study in the Netherlands, or who are graduated and searching for a job here. The questionnaire is divided into subsections, to make the process easier for respondents (Saunders, et al., 2012). Furthermore, it includes an introduction which explains the purpose of the study, states participants’ anonymity and thank them for their contribution. Besides, participating is made more attractive by providing the participants a chance to win one of the seven prizes of 10 Euros. To qualify for this opportunity, participants are able to fill in their email address. This is done at the end to ensure that they complete the whole questionnaire.

4.5 Measures

Three types of variables (attribute, opinion and behavioural) are represented in this study (Dilmann, 2007). They measure peoples’ opinion about their chance of success when they enter the labour market (opinion) and what they do to increase that chance, for example, by internships (behavioural).

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28 Furthermore, age, gender and occupation are also included (attribute). These attributes are important to check whether the sample represents the total population, but they also serve as control variables. This section describes the measures used for the variables in the order in which they appear in the

questionnaire; starting with their internship experience, followed by measuring their ability to solve problems and finally the measurement for their self-perceived employability. For a copy of the questionnaire, see appendix A.

4.5.1 Internship experience

In this study, internship experience represents the independent variable. Internship experience measures if participants followed or have followed any official or formal program that provides them with practical experience in an occupation or profession (Gault, et al., 2000). This variable is measured by asking participants: Do you have internship experience within your field of study? The following four answer option were provided: 1) I am currently doing an internship; 2)I have done an internship in the past; 3)I haven’t done an internship so far, but I would consider it in the future; and 4)I haven’t done an internship so far and I am not interested in doing it.

If the participants answered option 1 or 2, three other questions followed: 1) How many

internship have you done by now? 2) How many months of internship experience have you in total? 3) In how many different organizations have you worked so far? These questions are irrelevant to test the

hypotheses, but can be taken into account when describing the characteristics of internship experiences among business students. By this, we examine if the duration of the internship, the number of

internships or the number of organizations worked for affect their perception of their chance of success when entering the labor market.

4.5.2 Problem solving skills

The second variable that needs to be measured is participants’ ability to solve problems. Solving problems is the process of using reasoning and analysis to look beyond the surface of a problem to the underlying concepts that need to be part of the solution (Barkman, & Machtmes, 2002). As mentioned in the literature section, effective problem solving usually involves working through a number of steps or stages, which are captured in the Problem Solving Cycle: define, analyze, design, intervene,

evaluate and learn (van Aken, et al., 2012). A questionnaire of Barkman and Machtmes (2002) is used to measure problem solving. Their 20-item scale assesses people’s problem-solving ability by

examining the frequency of use of the following skills that are needed to engage in problem-solving. The measure uses a 5-point rating scale, ranging from 1 (Strongly disagree) to 5 (Strongly agree). This questionnaire is proved to be reliable and valid in the previous studies (α=0.76). All stages of the problem solving cycle are represented in the questionnaire, by which participants were asked how they handle each stage of the cycle. In addition, it makes use of counter indicative wording, which changes the direction of the scale by asking the question in a negative voice (instead of consistently positive).

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