In: Accounting
Can I get a sample of a journal article evaluation on the journal entitled Entrepreneurial and Intrapreneurial Skills of Managers as Determinant of Organizational Performance of Small and Medium Enterprises in Davao Region, Philippines?
Electronic copy available at: https://ssrn.com/abstract=2927916 Entrepreneurial and Intrapreneurial Skills of Managers as Determinant of Organizational Performance of Small and Medium Enterprises in Davao Region, Philippines Michael Eugene Carter II* Adrian M. Tamayo** *Professional School, University of Mindanao, Davao
The growing need to determine intrapreneurship and entrepreneurship gained sizable attention in the field of business administration. This study surveyed a total of 400 Small and Medium Enterprise managers chosen from Southern Mindanao, Philippines. The results of the study revealed that the indicators of entrepreneurial and intrapreneurial skills of managers were very evident, while the organizational performance seemed to be another thing that need attention by the managers themselves. There was a significant relationship between entrepreneurial skills and organizational performance. In the same way, the intrapreneurial skills of managers had significant bearing on organizational performance as well. Likewise, both entrepreneurial and intrapreneurial skills bear impact on organizational performance. Keywords: entrepreneurial, intrapreneurial, organizational performance, small and medium enterprise, managers INTRODUCTION There are a number of problematic situations that plague an organization‟s performance. These are the way in which individuals utilize their entrepreneurial skills, and also their intrapreneurial skills as well. Researchers such as Cassiman and Electronic copy available at: https://ssrn.com/abstract=2927916 Veugelers, (2006) Abor and Quartey (2010), Man, Lau & Chan, (2002) identified problems that could possibly affect an organization‟s performance and although limited studies have been done on small medium enterprises‟ organization performance. It has been seen that the problems stem from internal and external factors (Cassiman and Veugelers, 2006). Abor and Quartey (2010) stated that 91 percent of formal business entities in a particular country are SME‟s and that they also make up between 52 to 57 percent of the country‟s GDP and employ 61 percent of the country‟s people. All sounds well but the problem that plagues them is lack of access to appropriate technology, limited access to international markets, and the countries existing laws, rules, and regulations (external factors). Other factors that contribute include weak institutional capacity, lack of management skills and training, and most importantly finance and capital (internal factors). The problems here hurt both internal and external progress of the business. The biggest factor that impedes SME growth as revealed by Man, Lau, and Chan (2002) is unhealthy competition. In all businesses one will have to deal with competitors but some new market entries lack the entrepreneurial know how and experience to compete at a high level against other well known brand names and this can really impact the growth of the SME. Rahman (2001) states that the absolute most important component in an SME‟s success is Total Quality Management, or TQM, and because this is predominantly an entrepreneurial asset, companies that have not mastered its use will likely not succeed. Fry (1987) identified that one of the core main problems in dealing with intrapreneurship was the idea of being able to convey his or her vision to the company or to a team. Seeing as though many companies are usually set in their ways the introduction of new ideas maybe be met with apprehension and therefore impede company growth. Because intrapreneurship is entrepreneurship within existing organizations, the person holding said position does not have full rights to make any decisions without the approval of their „boss,‟ unlike entrepreneurs who are their own boss. The idea of having ideas be dismissed or ignored will likely produce a far less enthusiastic intrapreneur and therefore have an effect on the company‟s overall performance. According to Lytvynenko (2014) another issue that affects intrapreneurship and its skills is the insurance of successful implementations of intrapreneurial strategies. If too many strategies are proven to be ineffective this could lead to future company problems and loss of jobs. Many studies and researches have highlighted the importance of organizational performance to Small and Medium enterprise success, (Olszak, and Ziemba, 2012; Muller, 2012; Wynarczyk et al., 2016), but one process that has been unfortunately neglected as it relates to organizational performance is the combined use of the entrepreneurial and intrapreneurial skills. Does it necessarily have to be that entrepreneurial skills affect organizational performance or intrapreneurial skills? The lack of studies promoting the combined use of these skills may show lack of understanding of how to interconnect or oversight. According to Kacperczyk (2012), there is definitely a direct between the two skills but showing of how these skills directly affect organizational performance has yet to be studied. This study was initiated in order to obtain prescriptive analysis of the businessmen in Davao Region, Philippines, and how they relate entrepreneurial attitudes towards performance improvement. METHOD study employed the descriptive-correlation method, or a type of study in which information is collected without making any changes to the study subject, to describe the level of entrepreneurial skills of managers of SME‟s in Region XI and provided information and explanation that were adequate enough to also measure the level intrapreneurial skills of managers of SME‟s, using these as determinates of organizational performance in the current market. This method was used to find which of the indicators mentioned in the skills above, greatly influenced the level of business productivity of SME‟s in Region XI. The study used a quantitative survey to gather the necessary information from the managers and obtain the probable outcome. DATA The study employed an 87-question survey tool administered to 400 respondents. The study employed a convenience sampling given that it is assumed that all managers of small and medium enterprise incorporate the use of entrepreneurial and/or intrapreneurial skills within their work. The survey tool is a 5-point Likert-type scale with 5 indicating the use of certain skills are always evident, while 1 indicates that skills are found very seldom. FINDINGS Profile of respondents All respondents are managers of small and medium enterprise businesses. Most respondents are centered in and around Davao City because it consists of 691 of the 1,072 registered small and medium enterprises in Region XI. The registered small and medium enterprises in Davao City made up 64.46 percent of the overall number. There are 126 registered in Davao Del Norte that make up 11.75 percent, 108 in Davao Del Sur that make up 10.07 percent, 84 in Davao Oriental that make up 7.84 percent, and 63 in Compostela Valley that make up 5.88 percent. By using these percentages made up in each major area in Region XI, the researcher was able to determine that 258 respondents came from Davao City area, 47 came from Davao Del Norte area, 40 came from Davao Del Sur area, 31 came from Davao Oriental area, and 24 came from Compostela Valley. Table 1 Level of Entrepreneurial Skills of Small and Medium Enterprise Mangers in Region XI Indicator SD Mean Descriptive Level OPPORTUNITY COMPETENCY 0.34 4.47 Very High RELATIONSHIP COMPETENCY 0.27 4.49 Very High CONCEPTUAL COMPETENCY 0.35 4.52 Very High OPERATIONAL COMPETENCY 0.39 4.55 Very High HUMAN COMPETENCY 0.24 4.37 Very High STRATEGIC COMPETENCY 0.24 4.49 Very High COMMITMENT COMPETENCY 0.31 4.51 Very High OVERALL 0.17 4.49 Very High Entrepreneurial skills The data on entrepreneurial skills found in the analysis section organized the indicators from highest mean ratings to lowest mean ratings with their corresponding means and standard deviations, but here the data was organized by their descriptive level: Very High description for the manager‟s opportunity competency; Very High for the manger‟s relationship competency; Very High for the manager‟s conceptual competency; Very High for the manager‟s operational competency; Very High for the manager‟s human competency; Very High for the manager‟s strategic competency; and Very High for the manager‟s commitment competency. Moreover, the overall result on entrepreneurial skills is Very High. This signifies that the manager‟s of small and medium enterprises in Davao Region has entrepreneurial skills that are always evident. The indicator that received the highest mean rating as mentioned before was operational competency. This would indicate that the manager is keen on all operational (day to day and long term) procedures that are needed to ensure that the business is operating at a high level regardless of its status (small medium enterprise). Table 2 The level of Intrapreneurial Skills of Small and Medium Enterprise Managers in Region XI Indicator SD Mean Descriptive Level ENCOURAGEMENT BY MGT AND 0.18 4.55 Very High ORGANIZATION INDIVIDUAL MOTIVATION 0.31 4.59 Very High TRANSPARENCT, OPENNESS, 0.23 4.49 Very High AND COMMUNALITY INDIVIDUAL COMPETENCY 0.22 4.59 Very High ENABLING WORK 0.24 4.58 Very High ENVIRONMENT ENCOURAGMENT TO 0.20 4.62 Very High INNOVATIONS DEVELOPMENT 0.29 4.59 Very High OVERALL 0.24 4.57 Very High Intrapreneurial Skills The level of intrapreneurial skills is very high. This means that the intrapreneurial skills found in the managers was always evident. Specifically, this was found to be the most accurate in terms of the manager‟s ability to enable the work environment which was also Very High and the highest amongst all other indicators under intrapreneurial skills. This means that the managers have the ability to carry out their authority, understand their own responsibilities as well as the employees, but still remain fair and firm to everyone. The data on intrapreneurial skills found in the analysis section organized the indicators from highest mean ratings to lowest mean ratings with their corresponding means and standard deviations, but here the data was organized by their descriptive level: Very High description for encouragement by management and organization; Very High for the manager‟s ability to motivate each and every individual; Very High for the manager‟s transparency, openness, and communality; Very High for the manager‟s individual competency; Very High for the manager‟s enabling work environment; Very High for the manager‟s ability to encourage towards new innovations; and Very High for the manager‟s ability to develop. Moreover, the overall result on intrapreneurial skills is Very High. This signifies that the manager‟s of small and medium enterprises in Davao Region has intrapreneurial skills that are always evident. The indicator that received the highest mean rating as mentioned before was the ability to enable the work environment. This would indicate that the manager has what it takes to see to it that the jobs and duties of everyone, including themselves, is able to get done in a timely manner. This also indicates that managers are not always being scrutinized by the owner, if they are not the ones, so it gives them a sense of empowerment and trust from the owner to be able to do things on their own and help the business be a success. It is stressed and important the workplace environment be a safe one and also one wherein employees can talk to management without problem and it is seen that the managers have provided such a workplace for their employees; they have found a way to make the workplace work for them and do so willingly. Table 3 The level of Organizational Performance of Small and Medium Enterprise Managers in Region XI Indicator SD Mean Descriptive Level SALES GROWTH 0.52 3.95 High PROFITABILITY 0.21 3.96 High OVERALL 0.25 3.95 High Organizational Performance The level of organizational performance amongst the managers was labeled as high. This means that the overall organizational performance here in Region XI is often observed. Because the organizational performance consisted of two main indicators (Sales Growth and Profitability) both will be discussed in this section. Under sales growth, the indicator that received the highest mean rating was the satisfaction of sales growth position relative to principle competitors which was also rated as high and considered to be often observed. This means that the managers are genuinely satisfied with how they are able to compete with others in their respective industries and their ability to “keep up” with the competition overall. Under the profitability indicator of organizational performance, the indicator that received the highest mean rating was the satisfaction with the return on sales which was also rated as high and considered to be often observed. This means that the managers are genuinely satisfied with earnings they were able to obtain from the investments put into the business overall, because they felt that they were able to compete in their respective industries overall. The data on organizational performance found in the analysis section organized the indicators from highest mean ratings to lowest mean ratings with their corresponding means and standard deviations, but here the data was organized by their descriptive level for both sales growth and profitability. For sales growth, the descriptive levels read: High description for sales growth position relative to our principle competitors; High for company‟s overall sales growth rate; and High for market share gains relative to principle competitors. Under the profitability indicator the descriptive levels read as follows: High for return on investment position relative to principle competitors; High for the return on initial investment; High for return on sales; High for net profits position relative to competitors; and High for the financial liquidity position relative to principle competitors. Moreover, the overall result on organization performance for both indicators is high. This signifies that the manager‟s of small and medium enterprises in Davao Region have been able to observe often their organizational performance outputs. The indicator that received the highest mean rating for sales growth, as mentioned before, was the satisfaction of sales growth position relative to principle competitors. This would indicate that the managers have strived to go above and beyond to see to it that they are able to compete when it comes to sales growth of their respective businesses because they know or least have the knowledge to be able to keep the business striving towards organizational success which is seen in its overall performance. Because the entrepreneurial and intrapreneurial skills (dependent variables) were used to see if they had any direct relationship or affect on organizational performance (independent variable) it can be noted that due the ratings of very high received by both dependent variables lead to a rating of high received by the independent variable. Considering that the independent variable was based solely on the satisfaction level given by the management themselves there were no actual quantifiable data obtained. CONCLUSION Based on the findings of the study the following conclusion is derived. The results of the study confirm the researcher‟s initial framework anchored on the two propositions that, entrepreneurial experience positively affects business growth and organizational performance (Barkham, 1994; Davidsson, 1989), and that intrapreneurship has a positive impact on organizational growth and profitability (Antoncic and Hisrich, 2001). The result reveals that the level of entrepreneurial skills of managers in Region XI, or the respondents in this study, is very high with an overall rating of 4.49. Likewise the respondents exhibit also a high level use of intrapreneurial skills, with a descriptive level of very high, in relevance to overall organizational performance. Furthermore, there is a significant relationship between entrepreneurial skills and organizational performance of small and medium enterprise managers in Region XI. Besides, there is also a significant relationship between intrapreneurial skills and organizational performance. Lastly it is concluded that the entrepreneurial skills and intrapreneurial skills have influenced the overall organizational performance of small and medium enterprise managers in Region XI. These dependent variables have helped managers to achieve unparalleled levels of success in their respective fields that are seemingly satisfactory to all parties involved and participants in this study, with an overall satisfaction result of 3.95, for organizational performance. All have made assumptions that more work is needed to be done to ensure continued growth but as it stands within this study they are overall satisfied with their performances and do credit learned and attained, entrepreneurial and intrapreneurial, skills for that success. REFERENCES Abor, J., & Quartey, P. (2010). Issues in sme development in ghana and south africa. International Research Journal of Finance and Economics,39(6), 215-228. Antoncic, B., & Hisrich, R. D. (2001). Intrapreneurship: Construct refinement and crosscultural validation. Journal of business venturing, 16(99), 495-527. Barkham, R.I. (1994). Entrepreneurial characteristics and the size of the new firm: A model and an econometric test. Small Business Economics,6, 117-125 Cassiman, B., & Veugelers, R. (2006). In search of complementarity in innovation strategy: Internal R&D and external knowledge acquisition. Management Science, 52(1), 68-82. Davidsson, P. (1989). Continued entrepreneurship and small firm growth. Doctoral dissertation, Stockholm School of Economics, The Economic Research Institute. Fry, A. (1987). The post-it note: An intrapreneurial success. SAM Advanced Management Journal, 52(3), 4. Kacperczyk, A. J. (2012). Opportunity structures in established firms entrepreneurship versus intrapreneurship in mutual funds. Administrative Science Quarterly, 57(3), 484-521. Lytvynenko, L. L. (2014). Adaptation of the eu experience of implementing intraprepeneurial strategies by ukranian enterprises. Problems of Improving the Efficiency of Infrastructure, (39). Man, T. W., Lau, T., & Chan, K. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing, 17(2), 123-142. Muller, E. (2012). Innovation interactions between knowledge-intensive business services and small and medium-sized enterprises: an analysis in terms of evolution, knowledge and territories (Vol. 11). Springer Science & Business Media. Olszak, C. M., & Ziemba, E. (2012). Critical success factors for implementing business intelligence systems in small and medium enterprises on the example of upper Silesia, Poland. Interdisciplinary Journal of Information, Knowledge, and Management, 7(12), 129-150. Rahman, S. U. (2001). Total quality management practices and business outcome: evidence from small and medium enterprises in western australia. Total Quality Management, 12(2), 201-210. Wynarczyk, P., Watson, R., Storey, D. J., Short, H., & Keasey, K. (2016).Managerial labour markets in small and medium-sized enterprises. Routledge.