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

Abstract

There is an abundant literature on Entrepreneurship within organization, but the evidence on how it is caused, is still dispersed. Moreover, it still lacks a proper theoretical framework. Brettelet. al. (2015) used Competing Values Model in explaining the effect of organisational 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 likert scale type questionnaire. The data was collected from 325 employees working in different organisations in Karachi. Data was 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, 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

DOI: 10.7176/RHSS/10-11-02

Publication date:June 30th 2020