Key factor intrapreneurship : the development of a systems model to facilitate the perpetuation of entrepreneurship in the larger South African organisation

Goosen, Christiaan Johannes (2002-12)

Thesis (PhD)--University of Stellenbosch, 2002.

Thesis

ENGLISH ABSTRACT: This study focuses on corporate entrepreneurship or intrapreneurship. Current research on the subject focuses on traditional theory of intrapreneurship in which the creation, structure and focus of business ventures feature prominently. Central to an intrapreneurship inquiry however, are the people who make up the organisation and their interaction within the organisation through structures and processes. Many members in an organisation can initiate and be involved in entrepreneurial activities, but the lack of autonomy and access to resources can restrict them from doing so. This study proposes a solution to these problems by focusing inwards into organisations and examining ways to foster intrapreneurship. It also emphasises the influence of executive leadership on organisational outcomes. In addition it proposes an answer to the question of how internal structures and processes can facilitate intrapreneurship and how management's relationship with staff can promote intrapreneurship. Through this the study adds to the current understanding of intrapreneurship. The study examines the relationship of a proposed intrapreneurship model to organisational performance, particularly financial performance. Lastly it examines intrapreneurship in context. Once an organisation behaves intrapreneurially, positive results could follow, therefore the relationship between one of the possible results, that of improved financial performance and intrapreneurship is researched in this study. Financial data form the basis of the calculation of many measures of performance. Organisations, however, are generally not willing to supply researchers with hard financial data. A possible way to overcome this problem is to measure financial outcomes through the interpreted views of management, for example that sales increased or decreased, rather than stating the absolute value. However, this is a subjective measure and the researcher decided to overcome this problem by concentrating the study on a sector of the Johannesburg Stock Exchange for which published financial data is available. The published financial data forms the basis for the calculation of an index that is used to discriminate between better and weaker financial performance of organisations. The study identifies nine dimensions of the construct Intrapreneurship, which were factorised into three key factors. Two of the key factors focus externally and one internally. The final intrapreneurship model that emerges from the study represents the organisation's innovativeness, proactiveness, and management's influence on organisational structures, processes and internal relations. This model represents product lines and changes, research and development leadership, new techniques employed in the organisation, the organisation's competitive posture and its risktaking propensity, its environmental boldness and the decision-making style of management in terms of external opportunities. The model also addresses internal structures and processes, as well as relations in terms of intrapreneurial goal setting - a system that promotes, facilitates and manages creativity and innovation. It addresses an intracapital system for supplying resources and it facilitates communication. The model allows for staff input to management, a degree of intrapreneurial freedom, a problem-solving culture and empowered staff. Finally, it provides for the championing of intrapreneurs hip by management. In the study, hypotheses are set to establish if a relationship exists between intrapreneurship and financial performance and to examine intrapreneurship in context. The influence of organisational age, organisational size and the organisation's share Beta on intrapreneurship, is examined. The conclusions of the study can be summarised as follows: There is a relationship between financial performance and intrapreneurship as represented by the key factor management. The key factor management is a significant predictor of financial success. Organisations with higher levels of intrapreneurship are therefore more likely to be financially successful than those organisations with lower levels of intrapreneurship. The key factors that represent the proposed model each correlates moderately with the financial index. The key factor added by this study to the traditional model of intrapreneurship, improve the correlation and enrich the model. The study confirms the view that organisations can be intrapreneurial, regardless of size, which is measured by both employee count and annual turnover. This finding dispenses with the popular view that only small organisations can be entrepreneurial. The study furthermore confirms the view that older organisations could be less intrapreneurial. The study finds that younger organisations tend to be more proactive in their approach in the areas of new techniques, competitive posture, risk-taking propensity and environmental boldness, as well as in respect of decisions to exploit opportunity. The study also indicates significant correlation between organisations' share Beta coefficient and two of the three key factors that comprise intrapreneurship. This confirms the notion that intrapreneurial organisations could be more prone than their counterparts, to volatile market movements of their shares. The study does not propose a definitive model, but presents a practical model that can be implemented - a model that could improve organisations' results, specifically in the area of financial performance.

AFRIKAANSE OPSOMMING: Hierdie studie fokus op korporatiewe entrepreneurskap of intrapreneurskap. Huidige navorsing oor die onderwerp konsentreer op tradisionele teorieë waarin die skep, strukturering en fokus van besigheidsondernemings prominent is. Die werklike fokus van intrapreneurskap behoort egter die mense waaruit die organisasie bestaan, asook hulle interaksie deur middel van strukture en prosesse in te sluit. Baie individue in organisasies kan moontlik entrepreneuriese aktiwiteite inisieër of kan betrokke raak daarin, maar kan aan bande gelê word deur die gebrek aan bemagtiging en deur gebrekkige toegang tot hulpbronne. Hierdie studie het 'n oplossing vir die probleem ten doel deur organisatories na binne te fokus, asook deur voorstelle gerig daarop om intrapreneurskap te bevorder. Die studie poog voorts om die vraag te beantwoord hoe interne strukture en prosesse intrapreneurskap kan fasiliteer en hoe intrapreneurskap bevorder kan word deur te fokus op die verhouding tussen bestuur en personeel. Hierdeur word 'n bydrae gelewer ten opsigte van intrapeneurskapsnavorsing. Die studie ondersoek ook die verwantskap tussen 'n voorgestelde model vir intrapreneurskap en finansiële prestasie. Die studie ondersoek verder kontekstuele intrapreneurskap. Intrapreneurskap in 'n organisasie behoort positiewe resultate tot gevolg te hê. Die verwantskap tussen een van die positiewe resultate, naamlik finansiële prestasie en intrapreneurskap word daarom in die studie ondersoek. Finansiële data vorm die basis van baie metings van organisatoriese prestasie. Dit is egter baie moeilik om spesifieke finansiële inligting van maatskappye te bekom en daarom maak navorsers soms gebruik van uitvoerende personeel se siening van finansiële inligting, byvoorbeeld ten opsigte van die vermeerdering of vermindering van verkope. Dit is egter 'n subjektiewe oordeel en gevolglik fokus hierdie studie eerder op 'n sektor van die Johannesburgse Effektebeurs, omdat gepubliseerde inligting aangaande genoteerde maatskappye geredelik beskikbaar is. Hierdie inligting word gebruik as basis vir die berekening van 'n indeks sodat organisasies wat swakker en beter finansieel presteer, onderskei kan word. Die studie identifiseer nege dimensies van die konstruk Intrapreneurskap. Hierdie dimensies is deur middel van faktoranalise gereduseer tot drie dimensies, waarvan een na binne en twee na buite projekteer. Die finale model vir intrapreneurskap behels proaktiwiteit, innovasie, en bestuur se invloed op stelsels, procedures en verhoudinge. Die model verteenwoordig die uitgangspunt ten opsigte van 'n aantal produkte en die veranderinge aan produkte, navorsing en ontwikkelingsleierskap, die organisasie se mededingende posisionering, risiko neming, die omgewingsdurf en bestuur se besluitnemingsprofiel ten opsigte van benutbare geleenthede. Die model verteenwoordig verder bestuur se invloed op interne strukture en prosesse asook verhoudinge wat betrekking het op die insluiting van intrapreneurskap in die daarstel van doelwitte en 'n stelsel wat kreatiwiteit bevorder, fasiliteer en bestuur. Dit skep 'n sisteem van intrakapitaal wat hulpbronne verskaf, en verteenwoordig oop en nie-territoriale kommunikasie. Die model maak voorsiening vir personeel se insette en laat intrapreneuriese vryheid toe. Dit stel 'n oplossingskultuur ten opsigte van probleme, asook personeelbemagtiging, voor. Laastens stel dit voor dat bestuur die voorstanders van intrapreneurskap moet wees. In die studie word twee hipoteses daargestelom die verwantskap tussen finansiële prestasie en intrapreneurskap, asook kontekstuele intrapreneurskap te ondersoek,. Die resultate van die hipoteses kan as volg opgesom word: Daar is 'n verwantskap tussen finansiële prestasie en intrapreneurskap soos voorgestel deur die sleutelfaktor bestuur. Die sleutelfaktor bestuur is dus 'n betekenisvolle voorspeller van finansiële prestasie. Organisasies met hoër vlakke van intrapreneurskap kan daarom moontlik beter presteer as hulle eweknieë met laer vlakke van intrapreneurskap. Die drie sleutelfaktore van die voorgestelde model toon elk ook 'n positiewe korrelasie met die finansiële indeks. Die faktor wat by die tradisionele intrapreneurskapmodel gevoeg is, verbeter die korrelasie met die indeks. Die studie bevestig die standpunt dat die grootte van 'n organisasie, soos gemeet deur omset en aantal werknemers, nie 'n invloed op intrapreneurskap het nie. Hierdie bevinding is in teenstelling met die wanvoorstelling dat slegs klein organisasies intrapreneuries kan wees. Die studie bevestig ook dat ouer organisasies waarskynlik minder intrapreneuries sal wees. Jonger organisasies sal waarskynlik meer proaktief wees deur gebruik te maak van nuwe tegnieke, deur mededinging, riskoneming en deur omgewingsdurf. Die studie wys ook op die betekenisvolle korrelasie tussen organisasies se Beta (B) waarde van hul aandele en twee van die drie sleutelfaktore waaruit intrapreneurskap bestaan. Die gevolgtrekking is dus dat organisasies wat meer volatile relatief tot die mark is, 'n groter skommelingstendens het wanneer hulle met die totale mark vergelyk word. Die studie probeer nie om 'n allesomvattende model vir intrapreneurskap voor te stel nie, maar probeer eerder om 'n prakties implimenteerbare model daar te stel wat moontlik positiewe resultate kan lewer, veral in die area van finansiële prestasie.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/52907
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