The influence of human and social capital on the strategic entrepreneurial behaviour of businesswomen

Date
2012-03
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The purpose of this study was to determine the type of decision-making approaches used by businesswomen, both intrapreneurs and entrepreneurs, under conditions of uncertainty, and how the human and social capital they possess influence their strategic entrepreneurial behaviour (SEB). Entrepreneurial decision making often takes place under uncertain conditions, in which rational models provide little guidance for decision makers. Effectuation is proposed as an alternative decision model to rationality, particularly for emerging opportunities. Although some exploratory work has been conducted on this school of thought, research gaps remain. Particularly, there is a lack of research on businesswomen, despite the fact that they are an important group of entrepreneurs within the economy with great potential to contribute to economic growth, development and employment generation. The study population was South African businesswomen, and the membership register of the South African Businesswomen's Association (BWA) was used as a sampling frame. An online survey was sent to all members and a total of 269 usable responses were obtained. Data were analysed with SPSS using descriptive and inferential statistical techniques. The findings indicate there are no significant differences between the decisionmaking approaches of intrapreneurs and entrepreneurs, and that they use both effectuation and causation when shaping and implementing new initiatives, while the literature argues that these two approaches are distinct and dichotomous. In using a causal approach, the respondents value planning and a systematic approach to new, uncertain projects, although they realise the benefit of flexibility and of limiting the downside loss to their decisions; therefore they also incorporate elements of effectual logic. Furthermore, businesswomen's ability to cultivate relationships plays an integral role in the SEB process for both effectuation and causation, with businesswomen emphasising their relationships with key stakeholders. Concerning businesswomen's human capital, the study finds that self-efficacy plays an important role in terms of businesswomen's confidence, and that it has an impact on both SEB decision-making approaches. Several theoretical, practical and educational implications arise from these findings. Theoretically, this study contributes to the decision-making literature by showing that businesswomen utilise both decision-making styles and do not merely rely on one or the other. Furthermore, it also shows that relationship cultivation and self-efficacy are significantly related to both SEB approaches. Practically, both businesswomen and other stakeholders, such as financial institutions, should recognise the relevance and importance of using both styles and not stress causation above effectuation, as is the case currently. Furthermore, entrepreneurial self-efficacy, which is relevant for both approaches to SEB, can be raised through investing in targeted training and education in female entrepreneurship. For entrepreneurship educators, these findings emphasise that courses should incorporate both decision-making styles and that these skills should be developed in students. Business management students should be taught that, while logical, planned and prediction-based causal approaches are appropriate under stable conditions, effectuation provides resources to approach uncertain conditions more effectively. In addition, entrepreneurial initiatives with a low degree of innovativeness also would be more suited to a predictive, casual approach, while initiatives with a higher degree of innovativeness would benefit from using effectual principles.
AFRIKAANSE OPSOMMING: Die doel van hierdie studie was om die besluitnemingsmetodes van sakevroue, beide intrapreneurs en entrepreneurs, onder omstandighede van onsekerheid te bepaal en te bestudeer hoe die menslike en sosiale kapitaal wat hulle besit hul strategiese entrepreneuriese gedrag (SEG) beïnvloed. Entrepreneuriese besluitneming vind dikwels onder onsekere omstandighede plaas waar rasionele modelle min leiding aan besluitnemers verskaf. Effektuasie ("effectuation") word voorgestel as 'n alternatiewe besluitnemingsmodel tot rasionaliteit, spesifiek vir ontluikende geleenthede. Hoewel daar reeds verkennende navorsing in die veld gedoen is, is daar steeds navorsingsgapings. Daar is veral 'n tekort aan navorsing oor sakevroue ten spyte van die feit dat hulle een van die belangrikste groepe entrepreneurs binne die ekonomie is, met groot potensiaal om 'n bydrae tot ekonomiese groei, ontwikkeling en werkskepping te lewer. Die studiebevolking was Suid-Afrikaanse sakevroue, en die lederegister van die Suid-Afrikaanse Sakevrouevereniging (BWA) is as steekproefraamwerk gebruik. 'n Aanlynopname is aan al die lede gestuur en 'n totaal van 269 bruikbare antwoorde is ontvang. Data is ontleed met behulp van SPSS deur gebruik te maak van beskrywende en inferensiële statistiese tegnieke. Die bevindinge dui aan dat daar geen betekenisvolle verskil tussen die besluitnemingsbenaderings van intrapreneurs en entrepreneurs is nie en dat beide effektuasie ("effectuation") en kousaliteit ("causation") in die vorming en implementering van nuwe inisiatiewe gebruik word. Volgens die literatuur is hierdie twee besluitnemingsbenaderings egter duidelik onderskeibaar. In die gebruik van 'n kousale ("causal") benadering heg die respondente waarde aan beplanning en 'n sistematiese benadering tot nuwe, onseker projekte. Hulle besef egter die voordeel van buigsaamheid en die beperking van besluite wat met kousaliteit gepaard gaan; hulle neem dus ook elemente van effektuasie-logika in ag. Verder speel sakevroue se vermoë om verhoudings te kweek 'n integrale rol in die SEG-proses vir beide effektuasie ("effectuation") en kousaliteit ("causation"), met sakevroue wat hulle verhoudings met sleutel rolspelers beklemtoon. Met betrekking tot sakevroue se menslike kapitaal het die studie gevind dat self-doeltreffendheid 'n belangrike rol in terme van sakevroue se vertroue speel en dat dit 'n impak op beide SEGbesluitnemingsbenaderings het. Verskeie teoretiese, praktiese en opvoedkundige implikasies ontstaan uit hierdie bevindinge. Teoreties het hierdie studie bygedra tot besluitnemings-literatuur deur aan te toon dat sakevroue gebruik maak van albei besluitnemingstyle en nie net op een staatmaak nie. Die studie het ook gevind dat die kweek van verhoudings, asook selfdoeltreffendheid, beduidend verband hou met beide SEG-benaderings. Prakties moet sakevroue en ander belanghebbendes, soos finansiële instellings, die toepaslikheid en belangrikheid van die gebruik van beide style herken, en nie op kousaliteit klem lê bo effektuasie nie. Verder kan entrepreneuriese selfdoeltreffendheid, wat vir beide benaderings tot SEG relevant is, verhoog word deur in geteikende opleiding en onderrig oor vroulike entrepreneurskap te belê. Vir entrepreneurskapopvoeders beklemtoon hierdie bevindinge dat kursusse beide besluitnemingstyle in ag moet neem en dat hierdie vaardighede in studente ontwikkel moet word. Ondernemingsbestuurstudente moet leer dat hoewel logiese, beplande en voorspellingsgebaseerde kousaliteitsbenaderings onder stabiele omstandighede toepaslik is, effektuasie maniere bied om onsekere situasies meer effektief te benader. Entrepreneuriese inisiatiewe met 'n lae graad van innovasie is meer geskik vir 'n voorspellende, kousale benadering, terwyl inisiatiewe met 'n hoër mate van innovasie voordeel sal trek uit die gebruik van effektuasiebeginsels.
Description
Thesis (MComm)--Stellenbosch University, 2012.
Keywords
Businesswomen -- Attitudes, Entrepreneurship -- Decision making, Women-owned business enterprises -- Management, Dissertations -- Business management, Theses -- Business management
Citation