Individual-level intrapreneurial orientation and organisational growth in small and medium enterprises

Abstract: Small and Medium-sized Enterprises (SMEs) are viewed as instrumental in alleviating many of the socio-economic woes South Africa faces, particularly with regard to joblessness and poverty. Yet, rates of entrepreneurship, innovation and new venture creation have been of concern in the South African context, with the Global Entrepreneurship Monitor, in particular, highlighting the low rates of entrepreneurial activity. These phenomena manifest themselves in high discontinuation rates of SMEs, a small number of high-growth SMEs, low levels of Total Early-Stage Entrepreneurial Activity (TEA) as well as exceedingly low rates of Entrepreneurial Employee Activity (EEA). While the entrepreneurial orientation of organisations, of various sizes, has been extensively explored from an organisational and growth perspective, no study has investigated intrapreneurial orientation and its effect on growth, particularly in South African SMEs. The overarching aim of this study was therefore to explore the effects of an employee’s Intrapreneurial Orientation on internal growth levels of South African SMEs. The study followed a six-stage approach. Firstly, a literature review was conducted, examining the concepts of Entrepreneurial Orientation (EO) and Intrapreneurial Orientation (IO) as well as on the status quo of SMEs in South Africa. Stage 2 took the form of a narrative review of underlying EO and IO constructs, followed by Stage 3 which consisted of a qualitative study consisting of semi-structured interviews with employees of SMEs and a Delphi study of subject-matter experts. Stage 4 comprised a conceptual study linking the results of Stages 2 and 3. Stage 5 entailed a systematic review of the use of piloting methodology in South African small business research. The final stage, Stage 6, consisted of a quantitative study piloting an adapted instrument to explore the effects of IO on SME growth metrics. A narrative review was conducted in Stage 2 to determine underlying EO and IO constructs as applied in past studies. Based on the review, a construct map was created, indicating commonalities between the EO, Entrepreneurial Attitude Orientation (EAO) and Intrapreneurial Orientation (IO) concepts. Following the narrative review, interviews with employees of high-growth SMEs were conducted, supplemented by a Delphi study with South African subject-matter experts. A total of...Ph.D. (Business Management