congress presentation 2009 intrapreneurship

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European Association of Work and Organizational Psychology (EAWOP). Congress: Santiago de Compostela - Spain, May 13-16, 2009

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  • 1. Juan A. Moriano and Antonio J. Adn Department of Social and Organizational Psychology Universidad Nacional de Educacin a Distancia (UNED)
  • 2.
    • Intrapreneurship is term used to describe entrepreneurial behavior inside established midsized and large organizations ( Morris & Kuratko, 2002; Pinchot, 1985),
    • Intrapreneurial Behavior (IB) aims at increased profitability (Zahra, 1991), strategic renewal (Guth & Ginsberg, 1990) fostering innovativeness (Baden-Fuller, 1995) and international success (Birkenshaw, 1997).
    • Several studies have revealed a significant relationship between intrapreneurship and favorable business results in terms of sales and profit ( Krauss, Frese, Friedrich & Unger, 2005; Morris & Kuratko, 2002; Zahra & Covin, 1995; Lumpkin & Dess, 1996).
  • 3.
    • Intrapreneurship has been commonly associated with innovation.
    • Both concepts entail processes in which resources are combined to create something new and the purpose of both is to achieve profits or avoid substantial losses.
    • Innovation usually refers to radical or incremental changes in a product, service or process (Lumpkin, 2007).
    • Without the presence of some form of intrapreneurial activities to exploit opportunities as they arise within organizations, innovation remains little more than an aspiration rather than a tangible destination (Drucker, 1985; Pinchot, 1987).
  • 4.
    • An array of internal and external variables that drive intrapreneurship has been identified, such as:
  • 5.
    • The objectives of this study are:
      • To analyze the influence of Organizational Culture on employees Intrapreneurial Behavior (IB).
      • To study the moderating role of Organizational Identification (OI) .
  • 6.
    • Organizational culture is defined in terms of core values, behavioral norms, artifacts, and behavioral patterns, which govern the ways people in an organization interact with each other and invest energy in their jobs and the organization at large (Van Muijen, Koopman, Dondeyne, De Cock, & De Witte, 1992, p. 555).
    • The Quinns Competing Values Model (1988) consists of two dimensions with contrasting poles:
      • The first dimension represents the viewpoint of the organization and focuses on the internal processes and employees of the organization, or on the external environment.
      • The second dimension contrasts the extremes of flexibility and control.
    • Combinations of these two dimensions result in four organizational culture orientations: Support , Innovation , Rules and Goals .
  • 7. Hypothesis 1 . The organizational culture of innovation will have a positive impact on employees IB. External Focus Internal Focus Flexibility Stability and Control Innovation orientation Goal orientation Support orientation Rules orientation
  • 8.
    • According to the Social Identity Theory , OI is that part of an individuals self-concept which derives from their knowledge of their membership of an organization together with the value and emotional signicance attached to that membership (Haslam, 2001; van Dick, 2001)
    • To the degree to which employees identify more with their organization, it is more likely for them to adopt the interests and goals of the organization as their own. In addition, they will make extra efforts for the benefit of the organization (Doosje, Spears, & Ellemers, 2002; Mael & Ashforth, 1992).
    • Previous research has found a positive correlation between OI and Job Satisfaction , Organizational Citizenship Behavior (OCB) , Proactive Behavior , and IB (Haslam, Jetten, O'Brien & Jacobs, 2004; Haslam & Platow, 2001; van Knippenberg, 2000; Moriano, Topa & Lvy, 2009).
  • 9. The higher the employees OI , the greater the impact of OCI on the employees IB . Organizational Culture of Innovation (OCI) Predictor Moderator Organizational Identification (OI ) Predictor X Moderator Outcome Variable Intrapreneurial Behavior (IB) H1 + H2 + H3 +
  • 10.
    • 246 employees from a variety of Spanish organizations in the Public (40.7%) and Private (49.6%) Sectors.
    • 56.1% were women and the average age was 35 (SD=8.82).
    • The average organizational tenure was 6 (SD=6.26)
    • Most of the participants had a university degree (57.7%)
    Table 1 . Organization Size n % 1- Micro (less than 10 employees) 11 4.47 2- Small (from 10 to 49 employees) 38 15.45 3- Medium (between 50 and 250 employees) 93 37.80 4- Big (more than 250 employees) 104 42.28
  • 11.
    • 1. Organizational Culture
      • FOCUS (First Organizational Climate/Culture Unified Search) (Van Muijen et al., 1999).
      • 40 items ranged on a 7 point Likert scale from 1- Nobody / Never to 7-Everyone / Always
    • 2. Organizational Identification
      • A single-item graphic scale for the measurement of organizational identification (Shamir & Kark, 2004)
      • 3 items from the scale of Van Dick, Wagner, Stellmacher and Christ (2004). 7 point Likert scale from 1- Completely agree to 7-Completely disagree
    • 3. Intrapreneurial Behavior
      • 12-item scale based on previous studies (Covin y Slevin, 1986; Lumpkin y Dess, 1996; Lyon et al., 2000; Miller, 1983; Stull, 2005).
      • Example: In the course of my work, I generate useful new ideas
  • 12. Variables M DT 1 2 3 4 5 6 7 8 9 10 1. Sector (Public or Private) 1.69 .64 1 2. Organization size 1.82 .85 -.26** 1 3. Organizational tenure 6.69 6.26 -.37** .03 1 4. Professional level 3.83 1.76 -.08 .15* .17** 1 5. OC Support 3.83 1.10 .73 .15* -.33** -.09 -.04 1 6. OC Innovation 3.81 1.60 .84 .47** -.06 -.37** -.29** .56** 1 7. OC Rules 4.54 1.21 .59 -.03 -.22** -.02 -.10 .57** .41** 1 8. OC Goals 3.98 1.18 .88 .21** -.19** -.21** -.15* .67** .73** .63** 1 9. OI 4.90 1.39 .81 .15* -.33** .02 .11 .48** .29** .45** .42** 1 10. IB 4.27 1.44 .95 .54** -.23** -.19** -.04 .33** .54** .17** .41** .37** 1 *p < .05; ** p < .01
  • 13. Predicting Intrapreneurial Behavior F R 2 R 2 1. OC Support .06 26.92*** .30*** OC Rules -.13 OC Goals .09 OC Innovation .50*** 2. OI (moderator) .31*** 29.13*** .37*** .07*** 3. OC Support x OI -.12 18.34*** .40** .03** OC Rules x OI .10 OC Innovation x OI .24** OC Goals x OI -.03 ** p < .01; *** p < .001
  • 14. Low OC Innovation High OC Innovation Low Identification Organizational Culture of Innovation x Organizational Identification
  • 15.
    • The results suggest that the Organizational Culture of Innovation encourages employees intrapreneurial behavior and that this relationship is moderated by Organizational Identification .
    • This study is an initial attempt to advance the field of intrapreneurship by shifting the focus of inquiry to include the interaction between organizational and psychosocial factors .
    • These findings provide tentative insight into why some employees pursue entrepreneurial activities while others do not, despite their exposure to the same organizational culture .
    • Our study results suggest that it is not sufficient for managers to provide resources or rewards to facilitate intrapreneurship, but that they also need to focus on promoting an innovation-oriented organizational culture and to boost employees organizational identification through, for example, socialization practices and training.