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Faculty of Management Sciences

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    The relationship between entrepreneurial orientation, organisational orientation and innovation performance of manufacturing small and medium enterprises in KwaZulu-Natal province
    (2019-03-24) Kankisingi, Gustave Mungeni; Dhliwayo, Shepherd
    This study was conducted to investigate the relationship between entrepreneurial orientation, organisational orientation, and innovation performance of manufacturing small and medium enterprises (SMEs) in KwaZulu Natal province. To instil innovation culture, an organisational architecture of SMEs should accommodate both organisational and entrepreneurial factors in order to create a synergy that is likely to achieve innovation objectives of SMEs. The empirical investigation was based on a quantitative study and used a cross-sectional survey design to collect data from owner-managers of 308 small and medium firms in the manufacturing sector. The provincial SMEs database from the Kwa-Zulu Natal Department of Economic Development and Tourism was used and it contained an estimate population of 1255 SMEs. This study found that there was a positive and significant correlation between entrepreneurial orientation and organisational orientation dimensions. It further established that organisational and entrepreneurial dimensions were correlated with innovation performance dimensions in the SMEs. An aptly entrepreneurial orientation is proven to be grounded in a related organisational orientation. This implies that an organisational strategy, its culture, structure, systems and the management style in SMEs strengthen the entrepreneurial strategy leading to improvements in the standard of the product, the process, the market position and the business model of SMEs. In the same context, other organisational factors such as available rewards, SMEs’ age, size and ownership provided another dimension and an insight into the innovation performance of SMEs. Based on the findings, the researcher suggests two models: the proximity model of the correlation between entrepreneurial orientation and organisational orientation and the new model of innovation performance for SMEs. The managerial implication is that the success of an entrepreneurial strategy of an SME is rooted into organisational orientation dimensions: culture, structure, strategy, systems and management style of owner-managers. However, an organisational orientation is proven to be driven by a mindset which, if entrepreneurial, leads to an entrepreneurial orientation and consequently achieve an innovation performance of SMEs. With such variables, the study recommends new approaches in line with the suggested models in support of manufacturing SMEs and the manufacturing sector in terms of managerial decision-making about firms’ innovation performance and competitiveness at organisational and sectorial levels.
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    Corporate entrepreneurship and organisational performance in the Department of Basic Education, KwaZulu-Natal, South Africa
    (2019-05) Thabethe, Michael Msawenkosi; Dhliwayo, Shepherd
    Entrepreneurship has been hailed as the new engine of economic growth in both developed and developing countries. It is described as the process of innovatively exploring and exploiting opportunities in the midst of risk and uncertainty, by synthesising resources to create novel output, often within the context of new organisation formation. Exalted as the driving force of innovation, entrepreneurship offers the benefits of increased economic efficiencies, alleviation of poverty, bringing innovation to the market, and creating jobs and sustained employment. Traditionally, entrepreneurship was associated with the private sector and for-profit organisations, with entrepreneurial innovations considered to be those directed towards generating profits. The practice initially received marginal attention in public sector organisation management. Public sector organisations are state-owned suppliers of a service funded by the government; and are considered to be nationalised organisations; therefore their survival is seldom in doubt. However, public sector organisations are operating in an environment of increasing uncertainty. This uncertainty stems from their openness and consequent exposure to rapid environmental changes. This study, through researching the literature and quantitative empirical research, focused on establishing the levels at which corporate entrepreneurship was practised in the Department of Education in KwaZulu-Natal province, South Africa; and the effects this has had on organisational performance. In addition, the relationship between entrepreneurial orientation and performance was explored. Factors measuring entrepreneurial orientation were extracted from the literature review, and identified as innovativeness, proactiveness and risk taking. Grade 12 university entrance passes and through-put rates were used to measure organisational performance. Data was collected using a structured questionnaire from a sample of 426 Department of Education senior executives in the province of KwaZulu-Natal. The study found that positive and significant relationships exist between all corporate entrepreneurship elements: management support for corporate entrepreneurship; organisational tolerance; work discretion; rewards/reinforcement; discretionary time; and organisational boundaries. It also found that positive and significant relationships existed between entrepreneurial orientation factors (innovativeness, proactiveness, and risk taking) and organisational performance measures (university entrance performance and output performance). In addition, age was found to significantly influence perceptions of innovativeness, proactiveness and management support for corporate entrepreneurship. Younger executives felt that there was no management support for corporate entrepreneurship in the Department of Education in KZN. However, irrespective of age, participants did not believe that the Department of Education was promoting action- and results-oriented behaviour in its employees. All criteria were met to ensure that the research was conducted according to ethical research principles. Through this research, education and other public sector departmental managers in South Africa can gain insight into the generation of entrepreneurial success, as well as the measurements of organisational performance, in order to create sustainability and a competitive advantage. It is recommended that future research on the relationship between corporate entrepreneurship and peformance should include poor performing districts in other provinces and even other public sector organisations in South Africa.