Being thesis submitted in the department of business administration and marketing, school of management

HUMAN RESOURCE MANAGEMENT PRACTICES AND CORPORATE ENTREPRENEURSHIP IN SELECTED PUBLIC AND PRIVATE SECTOR INSTITUTIONS IN LAGOS AND OGUN STATES, NIGERIA
AKINTUNDE, SAMUEL OYEBANJI

PG/11/0215

HND (Ado Ekiti), MILR (UI), PGDE, MEd (OOU), MCIPM (Lagos)

BEING THESIS SUBMITTED IN THE DEPARTMENT OF BUSINESS ADMINISTRATION AND MARKETING, SCHOOL OF MANAGEMENT

SCIENCES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF

DOCTOR OF PHILOSOPHY

BABCOCK UNIVERSITY

ILISHAN-REMO

OGUN STATE

NIGERIA
2017

CERTIFICATION

This thesis titled, HUMAN RESOURCE MANAGEMENT PRACTICES AND CORPORATE ENTREPRENEURSHIP IN SELECTED PUBLIC AND PRIVATE SECTOR INSTITUTIONS IN LAGOS AND OGUN STATES, NIGERIA, prepared and submitted by AKINTUNDE, SAMUEL OYEBANJI in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY in Business Administration, is hereby accepted.

_________________________________________

Prof. O. U. Asikhia

Supervisor

________________________________________

Ass. Prof. O. A. Adegbuyi

Co-Supervisor

Accepted as partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY in Business Administration

______________________________________________

Provost, College of Postgraduate Studies

Prof. Yacob Haliso

DEDICATION
This thesis is dedicated to God and my brother, Julius Adewale Soyinka

AKNOWLEDGEMENTS

I acknowledge and bless God, the Almighty for another expression of His Glory in my life through the successful completion of this doctorate programme. I am immensely grateful to my supervisor, Professor O. U. Asikhia and Co-supervisor Dr. O. A. Adegbuyi for their valuable guidance and encouragement towards the successful completion of this work. I experienced a rich, challenging, transforming and unforgettable Babcock experience in my interactions with Professor O. U. Asikhia in the course of this programme. To me, he is an anointed intellectual and mentor. I am immeasurably grateful to Dr. T. A. Soetan. May God richly bless him. Prof. R.I, Akintoye, Prof. A. J. Akinwande and Dr. F. F. Adegbie, are most gratefully appreciated.

I want to specially thank the Vice Chancellor, Babcock University, Prof. A. S. Tayo and the Provost, College of Postgraduate Studies, Prof. Y. L Haliso, the Deputy Provost. Prof. M. O. Akpa, the Secretary of College of Post graduate School Mrs. T. Owolabi, the Dean of the School of Management Sciences, Prof. E.P, Enyi as well as my programme coordinator (PG), Dr (Mrs.) O. G. Makinde for their zeal and faithfulness to the Babcock Spirit, as manifested in their leadership, support and kind encouraging words and actions.
I want to specially thank Prof. S. A. Adebola for his encouragement and support. I appreciate the kind words and disposition of Dr. I. Abolarin. I am indebted to the wonderful team of the department of Business Administration and Marketing. It is an honor to meet them and enjoy their services. Worthy of special mention are Prof. J. Egwuakhe.; Dr. O. O. Oduyoye; Dr. T. K. Egwuonwu; Dr. C. A. Onu; Dr. A.D. Adefulu; Dr. A. O. Binuyo; Dr. (Mrs) V.O. Akpan; Dr. S. Akinsumi, Dr. (Mrs) N. Magaji; Dr. E.O. Ajike; Dr. (Mrs) M. N. Kabuoh. I want to thank the immediate past head of service of Ogun State, Mrs A. Adekunle as well as the Office of the Head of Service of Lagos State for their encouragement and assistance in facilitation the collection of the primary data for this study.I thank Mr Adebiyi for his assistance in the process of conducting my pilot study.
My appreciation also goes to the Management of Moshood Abiola Polytechnic, Abeokuta for giving me the opportunity and support to undertake the programme through the TETFUND financial support. I am particularly grateful to the Rector, Professor O. Itiola, for his support, encouragement and sincere effort to empower the staff and transform MAPOLY. I appreciate the former Rector, Mr. T. Fowode, the former Registrar, Mr A. Olumide as well as the Director of Academic Planning, Dr. O. Odedeyi for their assistance and encouragement.

I want to thank my colleagues at the Moshood Abiola Polytechnic, Abeokuta who have played one role or the other in facilitating the successful completion of my programme. I want to specially mention Mr. S. Sobande for the many insights I got from his presentations at the Conferences of the Ogun State branch of the chartered Institute of Personnel Management of Nigeria. Also worthy of special mention are the Sub-Dean (SBMS) and my dear friend, Mr. Aliu Odunmbaku, and Mr. Somoye, the school officer (SBMS). Prince T. A. Olatunji, Mrs B. Akinlua, Mr. A. Oyeniran, Mr. A. Aderonmu, (HOD. BAM), Dr. K. Oyefesobi, (HOD, Marketing), Dr T.A Kasali, Mrs. F. Oyebolu, (HOD, Banking and finance); Hon. M.S. Ajayi (HOD, Accountancy), Dr. M. A. Adesola, Mr. A Abiodun, Mr.K. Ogunweinde, Mr. Q. Oni, Mr D. O. Aninkan are gratefully appreciated. I also want to specially thank Mr A. Oyelowo, Mrs. B. Adeboye and Mrs. T. Sobande, who rendered assistance to me in many ways.

Also, special appreciation is due to all the respondents without whom the work would not have been completed. I also want to thank Mr. H. Akinlabi and Taofic for their assistance in the analyses of my data. Special thanks go to my research assistants; Mr. Oyewole, T. Boboye, S. Lawal and A. Ajibola. Special appreciation is also due to my brother, Mr. J.A Soyinka for pointing to the way, the truth and life by words and deed. God bless him. My special appreciation goes to my dear wife, soul-mate and special gift of God to me, Mrs. C.O Akintunde for her love and force of balance in my life. Special appreciation goes to my children; Jumoke, Adetoun, Adekemi, Toluwalade, Esther and Enoch. May God bless them and manifest His glorious Glory in their lives. Amen.

ABSTRACT

Human resource management has always been conceived as inconsistent with the requirements of entrepreneurship, in or out of formal corporate settings. The focus of public policies on entrepreneurship development in Nigeria is mainly on self-employment. However, the observed high cost of doing business and the failure of many businesses have been traced to the inability of many founding entrepreneurs and senior managers to attract, motivate and retain workers who would work entrepreneurially like themselves. This study therefore examined the relationship between Human Resource Management Practices (HRMPs) and Corporate Entrepreneurship (CE), as well as the influence of the internal Environment of Human Resource Management (EHRM) on the relationship between HRMPs and CE in Lagos and Ogun States, Nigeria.

The study adopted a survey research design. The population of the study comprised 10, 947 middle-level managers in the civil and banking services sub-sectors of Ogun and Lagos States, Nigeria. Taro Yamane’s formula was used to determine the sample size of 939 respondents. Multi-stage sampling techniques were used to select the sample size. Firstly, stratified sampling technique was used to group the population according to states and sub-sectors. Secondly, random sampling technique was used to select the sample size from each of the sampling units. A structured questionnaire was used to generate data. The questionnaire which was partly developed and partly adapted was validated with Cronbach’s Alpha test for the constructs of the variables yielding between 0.761 and 0.896, respectively. A response rate of 85% was obtained. Descriptive, correlation and regression statistical techniques were used to analyze the relationship between CE and components of HRMPs such as recruitment and selection, training and development, performance appraisal, job design, compensation management, and industrial relations.
The findings revealed that there was a significant positive relationship between recruitment and selection and CE (r = 0.506, p = 0.000); training and development had a significant positive effect on CE (R² = 0.433, p = 0.000); performance appraisal was significantly and positively related to CE (r = .542, p = .000); job design had a positive and significant effect on CE (R² = 0.453, p =.000); compensation practices had a significant and strong positive relationship with CE (r = .618, p = .000), and industrial relations had a positive influence on CE (r =.584, p = .000). Also, the internal EHRM had a significant moderating effect on the relationship between HRMPs and CE (EHRM on HRMPs/CE, R² = 0.572, p = 0.000).
It was concluded that HRMPs are alternative tools of promoting entrepreneurship. It was therefore recommended that organizations and human resource management professionals should focus on, develop and apply the skills to use HRMPs to stimulate CE. Organizational and complementary social policies should be directed at promoting entrepreneurship in Nigeria through the use of HRMPs to develop entrepreneurial workforce. Such workforce can become a source of more successful self-employed entrepreneurs in future than most of the school-to-business entrepreneurs, being currently promoted, and thereby reduce the current high failure rate of small scale businesses.
Keywords: Human resource management, Entrepreneurship, Corporate entrepreneurship, Environment of HRMPs, Entrepreneurial Workforce, Entrepreneurial, Organization

Word Count: 496

TABLE OF CONTENTS

Content Page

Title Page i

Certification ii

Dedication iii

Acknowledgements iv

Abstracts vi

Table of Contents vii

List of Tables xii

List of Figures xiv

List of Abbreviations xv
CHAPTER ONE: INTRODUCTION

1.1. Background to the Study 1

1.2. Statement of the Problem 3

1.3. Objective of the Study 5

1.4. Research Questions 5

1.5. Hypotheses 6

1.6. Rationale for Hypotheses 6

1.7. Operationalization of Variables 9

1.8. Scope of the Study 12

1.9. Significance of the Study 13

1.10. Operational Definition of Terms 15
CHAPTER TWO: REVIEW OF LITERATURE

2.0. Introduction 17

2.1. Conceptual Review 17

2.1.1 Human Resource Management 17

2.1.1.1 Overview of Human Resource Management 17

2.1.1.2 Human Resource Management Practices 21

2.1.1.2.1. Recruitment and Selection Function 22

2.1.1.2.2. Training and Development Function 24

2.1.1.2.3. Performance Appraisal Function 26
Content Page

2.1.1.2.4. Compensation Management Function 29

2.1.1.2.5. Job Design Function 31

2.1.1.2.6. Industrial Relations Function 32

2.1.1.2.7. Internal Environment of Human Resource Management 35

2.1.2. Corporate Entrepreneurship 38

2.1.2.1. Overview of Corporate Entrepreneurship 38

2.1.2.2. Scope of Corporate Entrepreneurship 40

2.1.2.3. Levels of Corporate Entrepreneurship 41

2.1.2.4. Intrapreneurship 43

2.1.2.5. Dimensions of Intrapreneurship 43

2.1.2.6. Need for Intrapreneurship 47

2.1.2.7. Environment of Corporate Entrepreneurship 49

2.1.2.7.1. Overview of Environment of Corporate Entrepreneurship 49

2.1.2.7.2. Entrepreneurship in the Public Sector Environment 52

2.2. Theoretical Review 55

2.2.1. Human Capital Theory 55

2.2.2. Resource Based View 57

2.2.3. Agency Theory 59

2.2.4. Stewardship Theory 60

2.2.5. Trait Theory of Entrepreneurship 60

2.2.6. Behavioral Theory of Entrepreneurship 62

2.2.7. Models of Human Resource Management (HRM) 64

2.2.8. Models of Corporate Entrepreneurship 68

2.2.9. The Main Theoretical Base of the Study 77

2.3. Empirical Review 78

2.3.1. Human Resource Management Practices and 78

Corporate Entrepreneurship 78

2.3.2. Recruitment and Selection and Corporate Entrepreneurship 86

2.3.3. Training and Development and Corporate Entrepreneurship 87

2.3.4. Job design and Corporate Entrepreneurship 89

2.3.5. Compensation and Corporate Entrepreneurship 90

2.3.6. Performance Appraisal and Corporate Entrepreneurship 92

2.3.7. Industrial Relations and Corporate Entrepreneurship 93

Content Page

2.3.8. Human resource management and innovative work behavior 96

2.3.9. Human Resource Management and Proactive Work Behavior 96

2.3.10. Human Resource Management and Risk Taking Behavior. 97

2.3.11. Empirical Studies in the Public Sector Environment 106

2.4. Summary and Gaps in the Literature. 111

2.4.1. Summary of Literature 111

2.4.2. Gaps in Literature 112

2.4.3. Research Model Summary 115
CHAPTER THREE: METHODOLOGY

3.0. Introduction 116

3.1. Research Design 116

3.2. Population 116

3.3. Sample size and sampling Technique 119

3.4. Instrumentation 124

3.4.1. Description of Instrument 124

3.4.2. Validation of Instrument 126

3.4.3. Reliability of Research Instrument 128

3.5. Data Collection Procedure 128

3.6. Method of Data Analysis 129

3.7. Research Model Specification 130

3.8. Research Model Summary 133

3. 9. A Priori Expectation 133

3.10. Ethical Considerations 134

CHAPTER FOUR: DATA ANALYSIS, RESULTS

AND DISCUSSION OF FINDINGS

4.0 Introduction 135

4.1 Data presentation 135

4.2 Data Analysis, Interpretation and Discussion 136

4.2.1. Restatement of Research Objective, Question and Hypothesis on the 136

Relationship between Recruitment practices and Corporate Entrepreneurship 136

Content Page

4.2.1.1. Test of Hypothesis One 143

4.2.1.2. Discussion 144

4.2.2. Restatement of Research Objective, Question and Hypothesis on the effect of 146

Training practices on Corporate Entrepreneurship 146

4.2.2.1. Test of Hypothesis Two 149

4.2.2.2. Discussion 151

4.2.3. Restatement of Research Objective, Question and Hypothesis on the effect of 154

Job design practices on corporate entrepreneurship 154

4.2.3.1. Test of Hypothesis Three 155

4.2.3.2. Discussion 158

4.2.4. Restatement of Research Objective, Question and Hypothesis on the effect of 160

performance appraisal practices on corporate entrepreneurship 160

4.2.4.1. Test of Hypothesis Four 162

4.2.4.2. Discussion 163

4.2.5. Restatement of Research Objective, Question and Hypothesis on the effect of 164

compensation practices on corporate entrepreneurship 164

4.2.5.1. Test of Hypothesis Five 166

4.2.5.2. Discussion 168

4.2.6. Restatement of Research Objective, Question and Hypothesis on the 170

relationship between industrial relations practice and corporate entrepreneurship 170

4.2.6.1. Test of Hypothesis Six 173

4.2.6.2. Discussion 174

4.2.7. Restatement of Research Objective, Question and Hypothesis on the influence 176

of the environment of HRMP on the relationship between HRM practice and 176

CE 176

4.2.7.1. Test of Hypothesis Seven 178

4.2.7.2 Discussion 183

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATIONS

Content Page

5.0 Introduction 188

5.1 Summary 188

5.2 Conclusion 190

5.3 Recommendations 191

5.4 Implications of Findings 193

5.4.1. Implications for Managerial Practice 194

5.4.2 Implication for Professional Practice 194

5.4.3 Implication for Industry 194

5.4.4 Implication for Government and Policy Makers 194

5.5. Contribution to Knowledge 195

5.5.1. Conceptual Knowledge 195

5.5.2. Theoretical Knowledge 196

5.5.3. Empirical Knowledge 196

5.6. Limitations of the Study 197

5.7. Suggestion for Further Studies 198

References 200

Appendices 235

Appendix I: Questionnaire 235

Appendix II: Respondents Demographic Information 243

Appendix III: Validity and Reliability of Instrument 245

Appendix IV Research Advisor 264

Appendix IV: Letter of Permission and Introduction by Head of Service 265

(Ogun State) 265

Appendix V: Letter of Permission and Introduction by Head of Service 266

(Lagos State) 266

Apendix VI: Letters of Introduction to the Head of Service (Ogun State) 267

Appendix VII: Letters of Introduction to the Head of Service (Lagos State) 268

Appendix VIII: Turn-it-in Report 269

LIST OF TABLES

Table Page

2.1. Differences between Private and Public Sectors 52

2.2. Concept of Entrepreneurial Functions in Public and Private Sector 74

2.3. A Framework for Studying Public Entrepreneurship 76

2.4. Intersection between HRM and CE 80

2.5. HRMP /CE studies in the Private Sector 99

2.6. Summary of HRMP/CE Studies in the Public Sector 107

2.7. Summary and Gaps in literature 113

3.1. Public Sector Sample Frame 117

3.2. Private Sector Sample Frame 118

3.3. Distribution of Sample 121

3.4. Distribution of Sample (Ministries) 122

3.5 Distribution of samples (banks) 123

3.6 Measurement of variables 125

3.7. Output of the Construct Validity Testing 127

3.8. Reliability statistics for all variables 128

3.9. Interpretation of correlation 130

3.10. Table of A Priori Expectations 134

4.1. Respondent Response Rate 135

4.2. Type of Establishment 136

4.3. Respondent responses on the level of recruitment practices 137

4.4. Respondents Opinion on the Level of Corporate Entrepreneurship (CE) 139

4.5. Pearson product moment correlation on the relationship between 143

Recruitment and selection practices and corporate entrepreneurship 143

4.6. Respondents responses on the level training and development practices. 146

4.7. Model Summary Result on Training and Development practices 149

4. 8 F-statistics Result of effect of training practices on corporate 149

Entrepreneurship 149

4.9 Coefficients of Training and Development on corporate entrepreneurship 149

4.10 Respondents Responses on the level of Job Design Practices 154

4.11 Model Summary 156

4. 12 F Statistic 156

Table Page

4.13 Coefficients 156

4. 14 Respondents’ Responses onthe Level of Performance Appraisal 160

4. 15 Pearson’s Product Moment Correlations (PPMC) Of Compensation 162

Practices & Corporate Entrepreneurship 162

4.16 Respondents’ Responses on Compensation Practices 164

4.17 Pearson product moment correlation on the relationship between 167

Compensation practices and corporate entrepreneurship 167

4. 18 Respondents Responseson Industrial Relations Practices 170

4.19 Pearson product moment correlation on the relationship between 173

Industrial relation practices and corporate entrepreneurship 173

4.20. Respondents’ Responses on the Internal Environment of Human Resource 176

Management 176

4.21 Hierarchical Regression Model of environment of the human resource 179

management practices, human resource management practices and 179

corporateentrepreneurship 179

4.22 Comparison of the levels of HRMP and CE in the Banking and Civil 181

Service Sectors of Ogun and Lagos States 181

4.23 Independent Samples t-Test of the level of HRMP and CE in the Banking 182

and Civil Service of Ogun and Lagos States 182

5.1 Correlation Test Result Summary table 190

5.2 Regression Test Result Summary Table 190


LIST OF FIGURES

Figure Page

1.1 Research Model Summary 12

2.1 Human Resource Management Practices 21

2.2 Level of Corporate Entrepreneurship 42

2 3 Entrepreneurship in Different Sectors and Spheres in Society 50

2.4. Work/ Entrepreneur Continnum 56

2.5 HRMP and Enterpreneurial Capacities 57

2.6 Dimensions of Attributes of Entrepreneurial Organization 63

2.7 Entrepreneurial Extension of HRM Business partner model 67

2.8 Guth and Ginsberg (1990) Model 69

2.9 Covin & Slevin (1991) Model 70

2.10 Lumpkin and Dess (1996) Model 71

2.11 Barrett and Weinstein (1998) Model 71

2.12 Goosen, De Conning and Smith (2002) Model 72

2.13 Shah and Bhutta (2013) Model of Public Entrepreneurship 73

2.14 Dimensions of Corporate Entrepreneurship and Financial Performance 79

2.15 Theoretical relationship between internal factors and the corporate 81

entrepreneurship capability 81

2.16 Human Resource Management and Corporate Entrepreneurship 83

2.17 HRM Practices Encouraging Corporate Entrepreneurship 84

2.18 The Relationship between HRM practices, Corporate 85

Entrepreneurship and organizational performance 85

2.19 Researcher’s Conceptual 115

3.1 Research Model Summary 133