Factors affecting business graduates' employability–empirical evidence using partial least squares (PLS)

PurposeThe purpose of this paper is to examine the relationship between skills and employability of business graduates. The study also examines the moderating effect of ‘social mobility factors’ in the ‘skills–employability’ relationship.Design/methodology/approachA quantitative positivist approach was undertaken to test the hypotheses. Business graduates from two universities in a developing country responded to a questionnaire about their perceptions of different sets of employability factors. Partial least squares (PLS)-based structural equation modelling (SEM) was used to examine the relationships between skills and employability of business graduates.FindingsThe findings show that both soft skills and technical skills are positively related to employability, which is consistent with prior studies. The findings also indicate that social mobility factors play a significant role in employability.Research limitations/implicationsThe study is based on data from two public universities, and its findings need to be interpreted with care as universities differ in their size, area of concentration and ownership structure.Practical implicationsThe findings advance the evidence of graduate employability of business students. Based on these results, university authorities, policymakers, teachers and business graduates will benefit from the findings related to students preparedness for the competitive global job market.Originality/valueThe study's findings contribute to business graduates' skill set development in the developing countries that share a similar education system, culture and values.