Corporate entrepreneurship and organisational performance in the Department of Basic Education, KwaZulu-Natal, South Africa

Abstract

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.