Antecedents of Employees’ Entrepreneurial Orientation: The Role of Organizational Culture and Enabling Environment

39 Pages Posted: 3 Sep 2020 Last revised: 9 May 2023

See all articles by Kulsoom Arif Hahsmi

Kulsoom Arif Hahsmi

Karachi University Business School

Danish Ahmed Siddiqui

University of Karachi - Karachi University Business School

Date Written: August 26, 2020

Abstract

There is abundant literature on Entrepreneurship within the organization, but the evidence on how it is caused is still dispersed. Moreover, it still lacks a proper theoretical framework. Brettel et. al. (2015) used the Competing Values Model in explaining the effect of organizational culture on Entrepreneurial Orientation. We modified this model, including enabling environment factors, as well as more enriched dimensions of Entrepreneurial Orientation. Hence we hypothesized that organizational culture (Clan, Hierarchical, Developmental, Rational, and Open Culture), and enabling environment (Flexibility/ support, Open Communication, External Orientation, and Team Work) affect Employees’ Entrepreneurial Orientation measured by new product innovation, new organizational practice, proactivity, and risk-taking. We applied this model by conducted a survey using a Likert scale type questionnaire. The data was collected from 325 employees working in different organizations in Karachi. Data were analyzed using confirmatory factor analysis and structured equation modeling. The results showed that new product innovation was positively influenced by Rational Culture, Open Culture, Flexibility, and External Orientation. And negatively affected by Clan Culture. Similarly, the risk-taking ability is positively influenced by Developmental Culture, External Orientation, and Team Work. Proactivity is positively affected by Rational Culture and External Orientation. Unlike Innovation, which was negatively affected by Clan culture, New Organizational Practice got positively affected along with Open Communication.

Keywords: Clan Culture, Hierarchical Culture, Developmental Culture, Rational Culture, Open Culture, Flexibility, Open Communication, External Orientation, Team Work, New Product Innovation, New Organizational Practice, Proactivity, Risk-Taking

Suggested Citation

Hahsmi, Kulsoom Arif and Siddiqui, Danish Ahmed, Antecedents of Employees’ Entrepreneurial Orientation: The Role of Organizational Culture and Enabling Environment (August 26, 2020). Available at SSRN: https://ssrn.com/abstract=3681265 or http://dx.doi.org/10.2139/ssrn.3681265

Kulsoom Arif Hahsmi

Karachi University Business School ( email )

Karachi
Pakistan

Danish Ahmed Siddiqui (Contact Author)

University of Karachi - Karachi University Business School ( email )

University Road
Karachi, Sindh 75270
Pakistan
3333485884 (Phone)

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