Characteristics of subsidiary entrepreneurial culture in a post-acquisition environment : the case of Libstar

de Nobrega, Mischa (2015-04)

Thesis (MA)--Stellenbosch University, 2015.

Thesis

ENGLISH ABSTRACT: The research set out to prove that subsidiary entrepreneurial culture in a postacquisition environment is different from entrepreneurial culture in an independently owned company. Whereas independently owned companies focus on their own successes and failures, acquired companies are constantly required to take into consideration the parameters and objectives set by headquarters. Little is known about what occurs within the subsidiary post-acquisition, and how managerial structures and processes either stimulate or hinder the entrepreneurial culture, which is an aspect often neglected during the acquisition process. This study aims to address the uncertainty regarding which key characteristics constitute subsidiary entrepreneurial culture in a post-acquisition environment, and aims to expand the currently inadequate body of knowledge on subsidiary entrepreneurial culture. Based on the theoretical frameworks of intrapreneurship, multinational subsidiary entrepreneurship and international entrepreneurship, an interview guide was developed and used as the primary research instrument. Data was collected by means of semistructured interviews and data analysis was conducted using ATLAS.ti. The qualitative, exploratory nature of the study necessitated a case study research design, which was based on a non-probability sample of five subsidiaries competing in the private-label food and beverage industry. Findings suggest that the components of subsidiary entrepreneurial culture in a postacquisition environment are: new businesses and ventures, product innovativeness, process innovativeness, self-renewal, risk-taking, proactiveness, competitive aggressiveness and subsidiary autonomy. Furthermore, entrepreneurial culture is enhanced by a subsidiary-driven locus of control and through headquarters’ support in the form of financial stability, structure and a future-oriented approach for long-term success. A framework of subsidiary entrepreneurial culture was developed with the aim of providing managers with an outline of the relevant determinants that can enhance subsidiary entrepreneurship. Managers should take note that although the locus of control may vary within each subsidiary, granting the subsidiary decision-making autonomy and the autonomy to manipulate its entrepreneurial orientation are key to nurturing the pre-established entrepreneurial culture. Future research agendas could incorporate perspectives from both the subsidiary and the headquarters. Analysis can also be done regarding the extent to which disruptive entrepreneurial culture may be diminished before it impacts negatively on business performance.

AFRIKAANSE OPSOMMING: Die doel van hierdie navorsing was om te bewys dat filiaal-entrepreneurskultuur in ’n na-verkrygingsomgewing verskil van entrepreneurskultuur in ’n maatskappy in onafhanklike besit. Terwyl maatskappye in onafhanklike besit op hulle eie suksesse en mislukkings fokus, word daar gedurig van verkrygde maatskappye vereis om die parameters en doelwitte wat deur die hoofkantoor gestel word, in ag te neem. Min is bekend oor wat ná verkryging binne die filiaal plaasvind, en oor hoe bestuurstrukture en -prosesse die entrepreneurskultuur daar óf stimuleer óf verhinder. Dít is ’n aspek wat dikwels tydens die verkrygingsproses verwaarloos word. Hierdie studie is daarop gemik om die onsekerheid aan te spreek oor wat ’n doeltreffende filiaal-entrepreneurskultuur in ’n na-verkrygingsomgewing behels, asook om die ontoereikende bestaande kennis oor filiaal-entrepreneurskultuur uit te brei. Deur gebruik te maak van die teoretiese raamwerke van intrapreneurskap, multinasionale filiaal-entrepreneurskap en internasionale entrepreneurskap is ’n onderhoudsgids ontwikkel en as die primêre navorsingsinstrument gebruik. Die data is met behulp van semi-gestruktureerde onderhoude ingesamel, en die data-ontleding is met ATLAS.ti gedoen. Die kwalitatiewe, verkennende aard van die studie het ’n gevallestudie-navorsingsontwerp genoodsaak, wat gebaseer was op ’n niewaarskynlikheidsteekproef van vyf filiale wat meeding in die voedsel-en-drankbedryf vir privaat handelsmerke. Die bevindinge dui daarop dat die komponente van filiaal-entrepreneurskultuur in ’n na-verkrygingsomgewing die volgende is: nuwe besighede en ondernemings, produkinnovering, proses-innovering, selfvernuwing, risiko’s, proaktiwiteit, mededingende aggressie en filiaal-outonomie. Verder word entrepreneurskultuur versterk deur ’n filiaalgedrewe beheerlokus en deur die hoofkantoor se ondersteuning in die vorm van besigheidstelsels, -strukture en finansiële hulp. ’n Raamwerk vir filiaalentrepreneurskultuur is ontwikkel met die doel om bestuurders van ’n oorsig van die relevante determinante wat filiaal-entrepreneurskultuur kan versterk, te voorsien. Bestuurders behoort daarop te let dat alhoewel die beheerlokus binne elke filiaal mag wissel, die outonomie van ’n filiaal om besluite te neem en om hulle entrepreneursoriëntering te manipuleer van kardinale belang is om ’n voorafgevestigde entrepreneurskultuur te koester. Toekomstige navorsingsagendas sou sowel die filiaal as die hoofkantoor se perspektiewe kon inkorporeer. Daar is ook ruimte vir ’n ontleding van die mate waartoe ontwrigtende entrepreneurskultuur verminder kan word voordat dit die maatskappy se prestasie negatief beïnvloed.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/97004
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