Corporate Entrepreneurship Interventions and Employee Performance - Research Proposal Example

HOW DOES ORGANSIATIONAL APPROACH TO CORPORATE ENTREPRENEURSHIP INTERVENTIONS IMPACT EMPLOYEE PERFORMANCE? By Name Institution Lecturer Course Date Table of Contents CHAPTER 1: INTRODUCTION AND STATEMENT OF THE PROBLEM 2 1.1 Introduction 2 1.2 Problem Statement 5 1.3 Conceptual Framework 5 1.4 Purpose(s) of the Study 6 1.4 Research Questions 6 1.5 Definitions of Terms 6 1.6 Organisation of the Study 7 CHAPTER 2: LITERATURE REVIEW 7 2.1 Entrepreneurship 7 2.2 Relationship between CE and Organisational Performance 9 2.3 Literature Review Summary and Identification of Research Gap 11 CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY 11 3.1 Introduction 11 3.2 Population and Sample 12 3.3 Instrumentation and Data Collection 13 3.4 Pilot Test 13 3.5 Data Analysis 13 Bibliography 14 APPENDICES 16 Appendix 1: Questionnaire 16 CHAPTER 1: INTRODUCTION AND STATEMENT OF THE PROBLEM 1.1 Introduction Corporate entrepreneurship (CE) has been identified as one of the drivers of organisational performance, economic development and wealth creation. CE is defined as the undertaking of entrepreneurial activities at an organisational level as opposed to entrepreneurship, which is more of an individualised process and undertaking (Kumar & Haran 2006). CE not only results to the creation of new business ventures, but also results to the development of new products, services, technologies, competitive postures, strategies, and administrative techniques (Burns 2013). All these are aimed at enhancing organisational performance and hence organisational competitiveness. However, the main products of CE include the creation of new ventures, within or outside the business, new product/service development and development of new technologies (Kuratko 2007). The last product of CE, new technologies, is somehow debatable as to whether it is the final desired product or a means to getting the final desired products. In some cases, the new technology, such as a new communication gadget, is a new product for a company while in other cases, the new technology, such as a new processing machine, is only meant to enhance the process. Nevertheless, the common goal of CE is improved performance be it through enhanced processes, new products and services, market expansion or creation of new ventures. The concept of CE is four decades or so old. It has been gaining increasing important and research attention. Some researchers have been concerned about the role of CE and innovation in organisational performance (for example Hisrich & Kearney 2012). Others are interested in the factors affecting or promoting CE (for example Damanpour & Schneider 2006; Hashomoto & Nassif 2014; Luke 2012). Upon the realisation that CE and innovation are crucial factors for organisational performance and success, CE and innovation have become more and more common. This is evidenced by the huge financial and non-financial resources organisations are spending on Research and Development (R&D) and innovation. Indeed, as Morris, Kuratko and Covin (2011) note, R&D has become an extremely important organisational function especially in highly competitive industries. The result has been major breakthroughs in different aspects especially technologically. These developments and advancements are very often spearheaded by organisations. Another widely evidenced product of CE is globalisation whereby firms are seeking to expand their markets through new venture creation. In short, organisations are always in search for new opportunities that they can exploit to leverage their market competitiveness. This is the simplest definition of CE. There is a strong relationship between human resource management (HRM) and CE (and innovation). HRM is outlined as a crucial antecedent of CE (Guiyao et al. 2015). Indeed, CE is a human resource-related activity that requires a strong human resource in terms of creativity and ability to explore new opportunities. According to Morris, Kuratko and Covin (2011), crucial HRM activities that promote CE and innovation include employee motivation, training, empowerment, and supporting creativity. Wang (2005) asserts that CE and innovation are high in organisations that create an entrepreneurial culture through undertaking baseline entrepreneurial activities including entrepreneurial training, encouraging entrepreneurship among employees, supporting and promoting employee creativity, employee empowerment and employee engagement. 1.2 Problem Statement This study will investigate the impact of CE activities on employee performance. Research on the relationship between HRM and CE seems to be one-sided (investigating how HRM activities promote CE). However, understanding the impact of CE activities (namely entrepreneurial training, encouraging entrepreneurship among employees, supporting and promoting employee creativity, employee empowerment and employee engagement) on employee performance is important. Such an understanding will help organisations to promote CE in such a way that does not hurt employee performance. 1.3 Conceptual Framework Human resource management has been determined to be fundamental to the implementation of entrepreneurial activities and the realisation of an organisation’s objectives with respect to CE. This study wishes to examine whether CE activities affect HR performance. Therefore, HR factors will be considered as the dependent variables while CE activities will be considered as independent variables. 1.4 Purpose(s) of the Study The purpose of this study is to increase knowledge on the relationship between HR and CE by examining the impact of CE activities on employee performance 1.4 Research Questions Do CE activities namely entrepreneurial training, encouraging entrepreneurship among employees, supporting and promoting employee creativity, employee empowerment and employee engagement improve employee productivity, creativity, loyalty, work engagement, work motivation and teamwork? 1.5 Definitions of Terms Entrepreneurship: identification and exploitation of new opportunities resulting to new venture creation, new product/service development, new technologies and strategies (Jockenhofer 2013) Corporate entrepreneurship: conducting entrepreneurial activities as an organisation (Morris, Kuratko & Covin 2011) Research and Development: organisational work that is directed towards the creation of new products and services, improvement of existing products and services, innovation and creation of new technologies (Guiyao et al. 2015) Employee performance: how well the human resource is aligned to organisational goals and activities (Jockenhofer 2013) 1.6 Organisation of the Study Chapter 1 of the proposal has presented the introduction to the study, problem statement, research objectives, research questions and definitions of terms. Chapter 2 contains literature review on entrepreneurship and relationship between CE and organisational performance. Summary of literature review is presented alongside the identification of the research gap that this research study seeks to close. Chapter 3 presents the research design and methodology. The chapter describes the research design to be used, study population and sample, data collection instrumentation and process, pilot testing and data analysis method and tools to be used. The questionnaire to be used for collecting data is presented in appendix 1. CHAPTER 2: LITERATURE REVIEW 2.1 Entrepreneurship Entrepreneurship is one of the most widely researched areas of business and economic growth. Entrepreneurship is a major driver for economic growth and propensity all over the world. Authors and researchers have all along tired to define the term entrepreneurship. In his book, Mohanty defines entrepreneurship as the process of “uniting all the factors of production and finding value of the products generated through the employment of capital” (2005: 1). According to Morrison, entrepreneurship involves growing something valuable from virtually nothing, which begins with finding an opportunity followed by dedicated pursuit of the opportunity (2006). Heilbrunn asserts that entrepreneurship is applicable to all firms and individuals irrespective of their size and capacity so long as firms or individuals have the capability to identify opportunities and then organise resources towards exploiting the opportunities (2005). Based on these definitions of entrepreneurship, it is apparent that entrepreneurship is about exploiting opportunities to create value. Initially, the concept of entrepreneurship was thought to be an individual undertaking resulting to creation of new business ventures, goods and services. However, for the last four decades or so, the concept of CE has gained increasing research attention owing to its role in organisational growth and performance (Bierwerth et al. 2015; Kuratko, Hornsby & Hayton 2015). CE refers to the willingness of organisations to explore new opportunities. Indeed, Jockenhofer (2013) defines CE as any type of entrepreneurial activity within an organisation. According to Morris, Kuratko and Covin (2011), CE is one way organisations rejuvenate and revitalise. It is a modern tool for improving business profitability, development, revenue growth and enhancing business sustainability through product/service improvement, new product/service development, market expansion and improvement of business efficiency (Morris, Kuratko & Covin 2011). Therefore, CE is one of the business factors that affect the competitiveness of businesses. It is therefore a crucial business issues worth investigation especially in the modern world of business characterised by stiff market competition. Research into the factors that affect CE and determine the success of CE activities in any business is wide with a number of factors having been identified to greatly affect CE. According to Kumar and Haran (2006), the following factors stimulate CE emergence in any organisation: corporate structure and culture, financial resources, managerial resources and the company’s strategies. Corporate culture has been identified as the primary barrier towards CE in modern firms (Morris, Kuratko & Covin 2011). Corporate culture is defined as “the set of shared attitudes, value, goals, practices, and expectations that characterise an organisation” (Szycher 2015: 27). Kumar and Haran (2006) assert that culture is the most important ingredient of CE and innovation. According to Kumar and Haran (2006), CE cannot occur in organisations that do not support internal innovation by promoting creativity. Therefore, creating an entrepreneurial culture is the first step towards CE. Jockenhofer (2013) argues that the senior management plays a fundamental role in the definition of a company’s corporate culture. An entrepreneurial culture encourages the identification of opportunities, aligns its human resource management especially recruitment and selection with entrepreneurship, which results to the selection of people capable of identifying and exploiting opportunities and codifies the process of initiating, developing and introducing opportunities (Morris, Kuratko & Covin 2011). Szycher (2015) outlines ways through which the top management can encourage entrepreneurship by creating an entrepreneurial culture. These ways include: Promoting and rewarding innovation, creativity and entrepreneurial spirit Empower employees to pursue their dreams Support for entrepreneurial spirit and innovation Tolerate failure through reduced (or elimination of) dismissal and penalties; this way, organisations encourage employees to pursue their dreams and creative ideas Encourage and support brainstorming through use of cross-functional teams Provide necessary training aimed at improving employee skills and competence, which in turn open up employees’ minds to identify new opportunities Focus on long-term goals more than short-term goals 2.2 Relationship between CE and Organisational Performance Research into the role of CE in improving organisational performance has documented sufficient evidence showing that CE promotes organisational performance and competitiveness (for example Szycher 2015). A study conducted by Bierwerth and colleagues found that corporate venturing has a strong positive impact on organisational performance. Corporate venturing could be internal and/or external. External corporate venturing occurs when an organisation creates semi-autonomous entities (spin-outs) that are separate from the main organisation (Kumar & Haran 2006). Spin-offs also include mergers, acquisitions, and divestitures (Kumar & Haran 2006). Internal venturing involves creating new entities within an organisation such as divisions owing to the introduction of new services and/or products (Morris, Kuratko & Covin 2011). Corporate entrepreneurship spurs organisational growth and development in the areas of profitability, revenue, and business sustainability through vertical and horizontal diversification (Drucker 2015). However, while research into the relationship between CE and organisational growth and development creates a strong link between the two, the investigation into the relationship between CE and employee performance is currently under-investigated. In any organisation, the human resource is the most crucial organisational resource that determines the success or failure of the organisation. According to Guiyao et al. (2015), failure to include human resource management (HRM) as part of strategic management poses a major risk to any organisation because the human resource is fundamental to the achievement of a company’s strategic objectives. This being the case, it is crucial to investigate how CE affects employee performance. Such an understanding would aid in engineering CE in such a way that it optimises employee performance, which would in turn assure improved organisational performance. Research evidence shows that effective HRM is a crucial ingredient of CE. Indeed, a research by Guiyao and colleagues using 201 Chinese manufacturing companies found that strategic HRM (SHRM) fundamentally promotes CE with devolved management style acting as a mediator between the two corporate issues (Guiyao et al. 2015). These findings were in line with Kumar and Haran’s (2006) argument that CE and organisational innovation are high among companies where HRM is considered part of strategic management considering that CE and innovation are widely used competitive strategies. This relationship stresses on the importance of creating a culture of entrepreneurship and innovation if CE is to be successful. 2.3 Literature Review Summary and Identification of Research Gap Literature review has highlighted important issues in the field of CE especially factors that affect CE and its role in improving organisational performance. The literature review has also highlighted the relationship between CE and HRM although the relationship established is one-sided; how HRM promotes CE. Research on how CE promotes employee performance is lacking. To seal this gap, this research will investigate whether and how CE promotes employee performance. CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY 3.1 Introduction Research design is defined as the overall plan that connects the conceptual research questions to empirical research (Bryman & Bell 2015). As a plan, research design outlines the required data to answer the research questions as comprehensive as possible, the methods to be used to collect the required data and the analysis to be done on the collected data to get as much insight as possible from the collected data (Marczyk, DeMatteo & Festinger 2005). According to Mitchell and Jolley (2013), the research design and methodology is a crucial chapter in every dissertation because research design and methodology fundamentally determines the success of the research project undertaken. Indeed, Bryman and Bell (2015) note that the research topic may be extremely interesting but due to use of inappropriate research methodology, wrong data is collected and/or wrong analysis is done such that the research project becomes useless. The current research will use quantitative primary data to answer the research questions. Therefore, the research will be quantitative research. A cross-sectional research design will be used. Cross-sectional research involves collecting data on a number of variables at a single point in time (Bryman & Bell 2015). Cross-sectional research design is very common in business-related research studies because in most cases (if not all), it is impossible to manipulate the variables under interest (Bryman & Bell 2015). Therefore, the risk of the research instruments to be used disrupting the natural behaviour will be minimal. 3.2 Population and Sample The study will be done using manufacturing firms in Queensland, Australia. According to the Queensland Government (2015), the manufacturing sector comprises of about 28% of the state’s industry activity. There are over 3000 manufacturing firms employing about 190,000 people. The Queensland manufacturing industry is highly diversified ranging from automotive, mining, electronics and electrical to mention just but a few. Owing to the large size of the manufacturing industry, it is a prime research target especially so because it is highly diversified. In addition, according to the Queensland Government (2015), the manufacturing sector is the largest spender in R&D in Queensland, spending about $405.9 million annually. Therefore, high levels of entrepreneurship and innovation are expected, which also make it an excellent area of focus for research. In their study, Antoncic and Zorn (2004) used a sample size of 2086 firms of which only 477 responses qualified for analysis. Owing to this low rate of valid responses, the study will use a large sample size of 2000 firms. A list of registered manufacturing companies will be obtained from the registrar of companies from which a random sample will be obtained. 3.3 Instrumentation and Data Collection Mailed questionnaires will be used, which will be sent to managers of selected companies. Mail addresses of the selected companies will be obtained from the registrar of companies. It is expected that mail addresses available at the registrar of companies are all working. Managers will be requested to fill these questionnaires and send them back to the researcher. The questionnaire is shown in appendix 1. Data collection will take place within two months. Mailing of surveys will be done within 2 days. A pre-stamped envelope shall be included that respondents will use to send back the questionnaire. Follow up calls shall be made one week after the surveys have been mailed. Two more follow-up calls shall be made in two weeks intervals. The collection of data shall be closed two months after surveys are sent. 3.4 Pilot Test In order to ensure that the research instrument will help the researcher to collect the required data as efficiently as possible, a pilot test will be conducted using a sample of 100 manufacturing companies that will not be in the selected sample. The questionnaires will be mailed to the companies’ managers who shall be requested to fill and send them back to the researcher via a pre-stamped envelope. The pilot test will help to ensure that the questions are valid and clear. 3.5 Data Analysis Regression analysis will be conducted to test the relationship between the dependent and independent variables outlined in the conceptual framework. Regression analysis compares two or more variables simultaneously. In doing so, the researcher tries to establish whether there is a relationship between the two variables and tests the strength of the relationship (Katz 2011). Bibliography Antoncic, B. & Zorn, O 2004, The Mediating Role of Corporate Entrepreneurship in the Organizational Support–Performance Relationship: An Empirical Examination. Managing Global Transitions, vol. 2, no. 1, pp. 5-14. Bierwerth, M., Schwens, C., Isidor, R. & Kabst, R 2015, Corporate Entrepreneurship and Performance: A Meta-analysis. Small Business Economics, vol. 45, no. 2, pp. 255-278. Bryman, A. & Bell, E 2015, Business Research Methods (4th ed.). Oxford, UK: Oxford University Press. Burns, P 2013, Corporate Entrepreneurship: Innovation and Strategy in Large Organizations (3rd ed.). New York, NY: Palgrave McMillan. Damanpour, F. & Schneider, M 2006, Phases of the adoption of innovation in organizations: Effects of environment organization and top managers. British Journal of Management, vol. 17, pp. 215–236. Drucker, PF 2015, Innovation and Entrepreneurship (2nd Ed.). New York, NY: Routledge. Guiyao, T., Wei, L., Snape, E. & Ng, YC 2015, How effective human resource management promotes corporate entrepreneurship: evidence from China. International Journal of Human Resource Management, vol. 26, iss. 12, pp. 1586-1601. Hashimoto, M. & Nassif, VM 2014, Inhibition and Encouragement of Entrepreneurial Behaviour: Antecedents Analysis from Managers’ Perspectives. Brazilian Administration Review, vol. 11, no. 4, pp. 385-406. Heilbrunn, S 2005, The impact of organizational change on entrepreneurship in community settings. Journal of Small Business and Enterprise Development, vol. 12, no. 3, pp. 422-436. Hisrich, R. & Kearney, C 2012, Corporate Entrepreneurship: How to Create a Thriving Entrepreneurial Spirit throughout your Company. McGraw-Hill. Jockenhofer, M 2013, How to Promote Entrepreneurship within Established Companies? Human Resource Management and Corporate Entrepreneurship. Anchor Academic Publishing. Kumar, A. & Haran, H 2006, Corporate Entrepreneurship- Strategic Imperative for Growth. ICFAI University Press. Kuratko, DF, 2007, Corporate Entrepreneurship. Foundations and Trends in Entrepreneurship, vol. 3, no. 2, pp. 151-203. Kuratko, D., Hornsby, J. & Hayton, J 2015, Corporate Entrepreneurship: The Innovative Challenge for a New Global Economic Reality. Journal of Product Innovation Management, vol. 30, no. 5, pp. 937-955. Katz, MH 2011, Multivariable Analysis: A Practical Guide for Clinicians and Public Health Researchers (3rd ed.). New York, NY: Oxford University Press. Luke, M 2012, Supporting Entrepreneurial Behavior and Innovation in Organizations. Central European Business Review, vol. 1, no. 2, pp. 29-36. Marczyk, G., DeMatteo, D. & Festinger, D 2005, Essentials of Research Design and Methodology. Hoboken, NJ: John Wiley & Sons, Inc. Mohanty, SK 2005, Fundamentals of Entrepreneurship. New Delhi, India: Prentice-Hall of India Private Limited. Morris, MH., Kuratko, DF. & Covin, JG 2011, Corporate Entrepreneurship and Innovation: Entrepreneurial Development within Organizations (3rd ed.). Mason, OH: South-Western Cengage Learning. Morrison, A 2006, A contextualization of entrepreneurship. International Journal of Entrepreneurial Behaviour & Research, vol. 12, no. 4, pp. 192-20. Mitchell, ML. & Jolley, JM 2013, Research Design Explained (8th ed.). Belmont, CA: Wadsworth Cengage Learning. Szycher, MS 2015, The Guide to Entrepreneurship: How to Create Wealth for your Company and Stakeholders. Broken Sound Parkway NW, Suite 300: CRC Press. Queensland Government 2015, Investing in Queensland’s Other Advanced Manufacturing Industry. [Online] Retrieved from [Accessed October 27, 2015]. Wang, Z 2005, Organizational Effectiveness through Technology Innovation and HRM Strategies. International Journal of Manpower, vol. 25, no. 6, pp. 481-487. APPENDICES Appendix 1: Questionnaire Dear Respondent, The researcher wishes to investigate the impact of corporate entrepreneurship activities on employee performance. Therefore, the researcher kindly requests you to assist in the undertaking of the current research study by providing him with the required data to facilitate analysis and consequent investigation of possible relationships. Kindly fill this questionnaire as truthfully as possible. The researcher wishes to assure you that the information you provide will be used for the purpose of this research only. To protect your privacy, the researcher will treat your responses with anonymity and will not refer to your organisation anywhere in the research report. Thank you in advance. What is the industry sector in which your company operates? ___________________________ Do you consider your firm small, medium or large sized? ___________________________ How many employees have you employed in your firm? __________________________ Do you consider your company to be entrepreneurial? ____________________________ If yes, how many entrepreneurial activities have your firm carried out in the last one year? ___________________ How many are currently in progress? ______________________ Kindly show how much you agree or disagree with the following. 1 = strongly disagree; 2 = disagree; 3 = not sure; 4 = agree; 5 = strongly agree 1 2 3 4 5 1 Entrepreneurial training in my firm has resulted to increased employee productivity 2 Entrepreneurial training in my firm has resulted to increased employee creativity 3 Entrepreneurial training in my firm has resulted to increased employee loyalty 4 Entrepreneurial training in my firm has resulted to increased employee work engagement 5 Entrepreneurial training in my firm has resulted to increased employee work motivation 6 Entrepreneurial training in my firm has resulted to increased teamwork 7 Encouraging entrepreneurship in my firm has resulted to increased employee productivity 8 Encouraging entrepreneurship in my firm has resulted to increased employee creativity 9 Encouraging entrepreneurship in my firm has resulted to increased employee loyalty 10 Encouraging entrepreneurship in my firm has resulted to increased employee work engagement 11 Encouraging entrepreneurship in my firm has resulted to increased employee work motivation 12 Encouraging entrepreneurship in my firm has resulted to increased teamwork 13 Supporting and promoting employee creativity in my firm has resulted to increased employee productivity 14 Supporting and promoting employee creativity in my firm has resulted to increased employee creativity 15 Supporting and promoting employee creativity in my firm has resulted to increased employee loyalty 16 Supporting and promoting employee creativity in my firm has resulted to increased employee work engagement 17 Supporting and promoting employee creativity in my firm has resulted to increased employee work motivation 18 Supporting and promoting employee creativity in my firm has resulted to increased teamwork 19 Employee empowerment in my firm has resulted to increased employee productivity 20 Employee empowerment in my firm has resulted to increased employee creativity 21 Employee empowerment in my firm has resulted to increased employee loyalty 22 Employee empowerment in my firm has resulted to increased employee work engagement 23 Employee empowerment in my firm has resulted to increased employee work motivation 24 Employee empowerment in my firm has resulted to increased teamwork 25 Employee engagement in my firm has resulted to increased employee productivity 26 Employee engagement in my firm has resulted to increased employee creativity 27 Employee engagement in my firm has resulted to increased employee loyalty 28 Employee engagement in my firm has resulted to increased employee work engagement 29 Employee engagement in my firm has resulted to increased employee work motivation 30 Employee engagement in my firm has resulted to increased teamwork 31 Corporate entrepreneurship activities in my firm have resulted to increase in employee performance Read More