Intrapreneurial orientation in small and medium-sized enterprises: An exploration at the employee level

Abstract

Orientation: The South African economy and, in particular, small and medium-sized enterprises (SMEs) have shown uninspiring performance, reflected in low levels of job creation, worryingly low levels of total early-stage entrepreneurial activity and entrepreneurial employee activity (EEA). As SMEs are the innovation and growth engine of an economy, the poor EEA levels (0.7%) indicate lacklustre levels of innovation and intrapreneurial activity.

Research purpose: This study aims to fill the void by assessing the effect of intrapreneurial orientation (IO) at the employee level on internal SME growth.

Motivation for the study: Despite this bleak outlook, to date no study has attempted to determine the influence of an IO on SME growth metrics.

Research design, approach and method: The study is quantitative in nature, using an adapted questionnaire and employing a random sampling approach. Data were analysed by means of factor, correlation and regression analyses. A total of 290 responses were received from SME employees across South Africa.

Main findings: The empirical study showed that only risk-taking, innovativeness, personal control, self-esteem and certain managerial factors positively relate to the growth of an SME.

Practical/managerial implications: The findings provide insights for managers within SMEs on improving employee entrepreneurial activity and growth rates, by means of focusing on growth-supportive IO interventions.

Contribution/value-add: The findings of this research are beneficial to academia and industry as the framework and measuring instrument offer additional insights into IO within SMEs.