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To build students' IEO, an appropriate learning approach is necessary to obtain the results optimally. This study focused on how PBL effects on students’ IEO and was limited on the theoretical application to the occurring condition, according to constructivist learning. This study aims to determine and analyze Problem Based Learning (PBL) on Economic Theory course in building students’ IEO. The population was 112 UNESA students who took Economic Theory course with 86 students as the participants. The sampling used purposive simple random sampling and Partial Least Square for its statistic technique. The results indicated that PBL on Economic Theory course was proved to significantly effect on students’ IEO, despite considered as week due to several conditions. Corresponding author: Jun Surjanti Email addresses for corresponding author: junsurjantiunesa2018@gmail.com First submission received: 19th January 2018 Revised submission received: 24th April 2018 Accepted: 18th June 2018 Introduction University, as an educational institution has responsibility to build students moral and characters. Ülger, Yiğittir, and Ercan (2014) stated that character building is important for teachers to achieve their educational goals. It is supposed to be applied every knowledge learned. Bogomaz, Litvina, Kozlova, and Atamanova (2015) argued that to build character, a role of sociocultural environment is required. Surjanti et al (2018a) argued that Indonesian teachers should improve their teaching competence especially leading to Continuous Professional Development (CPD) and those should own by lecturers on Economic Theory course in Universities. Before conducting learning process, lecturer should understand students’ interest, as it affects learning outcomes (Surjanti et al, 2018b). Educational institutions need to facilitate students to increase learning outcomes (Surjanti, 2012). Harasym, Tsai, and Munshi (2013) mentioned that the design of curriculum or learning strategies was possible to maximize the Program Based Learning (PBL). As it has appropriate method to improve students moral and character. Gwee (2009) believed that PBL offered thourough approach, additional values, and qualified education to encourage students to learn in 21st century. PBL is able to develop habitual thought, behaviors, and actions, so it contributes to improve profesionalism. Kemp in Learning Academy defined constructivism as a theory influencing teaching approaches in PBL Meaning that PBL is a form of constructivist learning. This study focused on how PBL affects the Individual Entrepreneurial Orientation (IEO) of students during Economic Theory course. Bolton (2012) stated that IEO or individual entrepreneurship orientation is used to measure students’ orientation and other individuals enterpreneurship. Besides, IEO provably contributes as important factor in organizational success through many individual empirical studies and it is a behavior to determine business prospects as well (Rauch et al., 2009 in Bolton, 2012). Journal of Business and Retail Management Research (JBRMR), Vol. 13 Issue 2 December 2018 www.jbrmr.com A Journal of the Academy of Business and Retail Management (ABRM) 130 Harasym et al. (2013) stated that PBL improved a decision making. As supported by Gwee (2009), he mentioned that a successful PBL implementation possibly encourage students in developing the “habits of thoughts, behavior, and actions” to obtain professionalism. Since this study focused on PBL role in building students’ IEO, experts who analyzed objectives and learning strategies are important. As mentioned by Hmelo-silver (2011) to understand goals and strategies, an expert facilitator in supporting a collaborative learning was needed and the analysis was performed through interaction using video data and stimulated recall to test PBL on two groups meetings (Muafi, 2016) According to Schmidt and Bouhuijs (1980) in (Major, Savin-baden, and Major, 2004), they determined typology that distinguished types of materials into 5, namely: 1) problems; 2) strategic task; 3) tasks; 4) discussion task; and 5) learning task. Three of five of IEO basic dimensions of Lumpkin and Dess (1996) in Bolton (2012) were used to measure students’ IEO after performing learning activity using PBL approach. This study was conducted to carry on the effort of the institution in facilitating learning process using PBL method. This study was limited to PBL especially on the theoretical application to the occuring conditions occurring according to contructivist learning. Literature Review Previous Research Hmelo-silver, Derry, Bitterman, and Hatrak (2009) mentioned PBL approach as a collaborative learning which provides deep understanding of hybrid computer learning. They found that PBL applied in Graduate School of Business resulted on additional stucture more culturally individually appropriate adjusting to emerging problem. As supported by Hung and Loyens (2012), PBL with the 3C 3R model focused on student cognitive processes and problem-solving skills. Moreover, Hung and Loyens (2012) explained Barrows (1986) and Norman and Schmidt (1992) ideas about the main goal of PBL is to develop contextual knowledge structure, to develop skills on problem solving and reasoning, to assist students on self-learning skills, to encourage learning motivation, and to develop collaboration skills. Besides, Henry, Tawfik, Jonassen, and Winholtz (2012) mentioned that PBL should adjust learners’ needs to solve various problems. Therefore, PBL is possibly applied on Micro Theory course to provide in-depth learning. Bolton (2012) explained according to Rauch (2009) EO study consisted of five that behaviors including innovativeness, risk-taking, proactiveness, competitive aggressiveness, and autonomy. This study showed in initial research that multidimensional construction commonly used in PBL occurred after variable tendency moved in most contexts, so it was possible to apply PBL on IEO context. Another study conducted by Lee et al. (2006) found that school and education system has important role to estimate and to develop entrepreneurial skills... The understanding of the sources of entrepreneurship intentions at student level is very important for policy makers to develop appropriate educational policies to strengthen entrepreneurial performance (Jorge-Moreno et al., 2012; Muafi, 2016; Muafi, 2009). The PBL on Economic Theory course was expected to affect students’ IEO and became one of goal on business education in the Faculty of Economics Universitas Negeri Surabaya. Problem Based Learning (PBL) According to Barrows and Tamblyn (1980, in Major et al. (2004), PBL improved reasoning skills of medical students in McMaster Medical School, Canada. They found that PBL applied in McMaster Medical School was able to not only improve problem-solving skills on students, but also develop metacognitive skills due to their ability in reasoning when handling complex problems. Thus, the rationalist study emerged an impulse connecting emotion and intelligence. Those proved that PBL was able to maintain stability and creation of obscure norms and values in community. According to Forsythe (2002) in The Handbook of Economics Lecturers mentioned that the PBL basis is on a student’s learning by doing, meaning that this system focused on small group of students working together to respond or solve particular problems or task. Boud and Feletti (1997 in Major et al. 2004) divided PBL stages into: 1) presenting problems to students (such as case, research paper, or video recording), (2) grouping students into fixed group, where they allow to organize ideas and prior knowledge, 3) carrying out discussion where students are given problem learning need to be determined and analyzed, 4) determining the problems solved and their level Journal of Business and Retail Management Research (JBRMR), Vol. 13 Issue 2 December 2018 www.jbrmr.com A Journal of the Academy of Business and Retail Management (ABRM) 131 of difficulty and necessity; both students and teachers discuss to determine the learning issues, and 5) exploring prior issues and integrating knowledge to the problem contexts. Therefore, students need to continually define learning problems, as those problems remain changing and exist. So, learning is defined as continuous process where new problems are occurred and need to be explored. This study employed five stages referring to stages defined by Boud and Felleti, as: stage 1, determining problem orientation; stage 2, organizing learning problems; stage 3, assisting the study/group survey; stage 4, developing and presenting result of study/group survey; and stage 5, analyzing and evaluating process of problem-solving. Entrepreneurial Orientation (EO) According to Bolton (2012), Entrepreneurial Orientation (EO) in Organizational level was defined as a process of strategy making which provides organization with entrepreneurial decisions and actions. Rauch et al (2009) stated that EO developed into a set of three to five behaviors generated from business entrepreneurial literature and business strategy (in Bolton, 2012). Those behaviors are innovativeness, risk-taking, proactiveness, competitive aggressiveness, and autonomy. Three of five behaviors are mostly used in study of EO, namely innovativeness, risk-taking, and proactiveness, whether two of five behaviors, autonomy and competitive aggressiveness are less used (Rauch et al, 2009; Lyon et al, 2000 in Bolton et al., 2012). EO dimension is used to measure individual behavior. Risk-taking and proactiveness are not only useful in organization but also in other activities. Individual risk-taking and proactiveness are clearly seen from one action, whether one is risk-taker or not and whether one is innovative or not. Some students prefer to work individually, and others prefer to work in group. In classroom activity, some students show aggressiveness and competitiveness to obtain

Antecedents individual entrepreneurial orientation (IEO): problem based learning (PBL)