The influence of organisational behavior variables on corporate entrepreneurship

Abstract

Comprehensive research has been done on organisational behaviour, entrepreneurial spirit, entrepreneur, entrepreneurship and corporate entrepreneurship. Literature is however less clear on which organisational behaviour components influence corporate entrepreneurship. This creates a problem for managers and business leaders when they want to influence the entrepreneurial spirit within an organisation. This study summaries the literature on organisational behaviour variables and corporate entrepreneurship, as well as the limited findings linking the two concepts. The empirical study focuses four areas: testing validity and reliability of the measurements used in the study; the correlation between organisational behaviour components and corporate entrepreneurship; the ability of organisational behaviour components to predict corporate entrepreneurship; and finally testing if the grouping of organisational behaviour variables is justified. This cross sectional study was done in 12 non-listed and 5 listed companies in South Africa. Randomly selected employees completed 862 questionnaires. They represented all the local ethnic groups, both genders, and were from all organisational levels. The results of the empirical study indicated that the measurements used in the study were all acceptable being reliable and valid. The correlation between the selected organisational behaviour components and corporate entrepreneurship were all strong and significant, with goal setting the strongest, followed by performance management, then transformational leadership, and communication. The correlation with shared decision making, organisational culture, and power were less strong but still significant. The organisational behaviour components together declare a 46.5% variance in corporate entrepreneurship with organisational culture and goal setting contributing significantly and uniquely. Grouping the organisational behaviour variables in individual level, group level and organisational level, as suggested by many authors, did not provide a satisfactory solution. Suggestions to managers on where to focus when they want to foster corporate entrepreneurship were made. The limitations as well as suggestions for future research were discussed in the final instance.