2.4. Summary and Gap in the Literature
2.4.1. Summary of Literature
The review undertaken so far reveals that the development of literatures on corporate entrepreneurship as a function of the extent and quality human resource management has been influenced by the conception of entrepreneurship which spread around four strands: what happens, why it happens, how it happens and where it happens? What happen issues are about the outcome of entrepreneurship such as new venture, products, processes, organisation. Why it happens relates to who the entrepreneur is and factors causing entrepreneurship. How it happens is about the behaviour constituting entrepreneurship. Where it happens concerns the contextual factors determining the extent to which HRMP can influence the practice of entrepreneurship. Most of the earlier studies reviewed focused on who the entrepreneurs are based on the trait theory, and not what they do as in the behaviourial theory (Stephenson & Jarillo; 1990). However, the more recent studies now focus on what they do and agree that these are mainly pro-active, innovative and risk-taking behaviors (Madsen & Borch, 2011; Wilklund & Shepherd, 2005; Rattanawong & Suwanno, 2014; Karacaoglu, Bajakdaroghu & Batan-San, 2013).
The trait approach limits the role of human resource management and justifies the direct profit generation for HR, while the behavioral approach expand this role and stresses the abilities development sub-strands of the entrepreneurial development role model of HR respectively. While the direct profit making sub-strand of this line of thought was criticized for externalizing the HR and stagnates, the entrepreneurial profit abilities development focus (of HRM) segment has been associated with entrepreneurial characteristics (proactivity, innovation and risk taking) behaviour development and has been advancing steadily.
Studies in this direction (into HRMP/CE linkages) are scattered into three strands. Initial set of studies in this direction discusses the linkage of organization environmental factors that are only remotely related to HRMP to CE (Hazlina, 2012; Alpeza, 2011; Scheepers, Hough & Bloom, 2008; Hayton, 2005; Kuratko 2005). The second group relates factors that are directly related to HRMP but in a disjointed manner and hence inconclusive for the purpose of developing a model that explain the relationship between HRMP and CE (Madu, 2011; Hayton, 2009; Scheeper, 2009; Edralin, 2007). The third set of studies discusses the linkage between comprehensive and direct set of HRMP and CE (Dizgah et al, 2010; Edralin, 2010; Ubaldo, 2008). However, this are few and mostly conducted outside of Africa. The forth issue in the CE/HRMP relationship is the context of its applications. While some believe that HRMP can influence CE only in the private sector (Schneider, Teske & Mintrom, 1995), others believe that HRMP can have the same influence on CE in the public as in the private sector (Eggers et al 2013; Lundstrom, Zhou, Friedrichs & Sundim, 2014).
2.4.2.Gaps in Literature
Though studies on HRMP/CE are now increasing, most of them address only one dimension of HRMP which is inadequate for a conclusive position on the subject matter. The importance of the comprehensive approach is that no one HRM practice could be effective without the other aspects as shown in de-Jong, Parker, Wennekers and Wu (2011). There is therefore the need for a comprehensive study of the relationship for a valid conclusion.
Secondly, while most of the studies exclude recruitment and industrial relations, few recent studies are now pointing to their importance in influencing CE. The findings from the studies on the dimensions of CE ( innovativeness, proactive and risk taking behaviour) that are most responsive to the influence of HRMP are not conclusive. In addition, the extent to which the relationship between human resource management practices and corporate entrepreneurial work behavior is influenced by the environment in which the practice is operating is not yet conclusive, thus requiring more comprehensive studies. Most of these studies are carried out outside Africa. The chart summarizing these gaps is presented below:
Table 2.7: Summary and Gaps in Literature
Studies on Relationship between Human Resources Management Practices and Corporate Entrepreneurship
SN
|
Authors
|
Focus of Studies
|
Conclusions
|
Limitations/Gap
|
1
|
Schumpeter (1983); McCleland (1961); Christensen (2005), Garbir (1989); Jaana (2001); Zahra, Nelsen & Bogner (1999); Carland, Hoy, Boulton & Carland (1983); Carland Hoy & Carland (1988).
|
Are entrepreneurial characteristics products of nature or nurture, and are they subject to the influence of HRMP intervention?
|
Inconclusive
|
Need more empirical validation
|
2
|
Aktan & Bulut (2008); Kwatko (2005); Zahra, Hagton & Salvation (2004); Balkin et al., (2000); Hough & Bloom, (2008); Hazlina (2010).
|
The impact of factors that are only remotely related to HRM (such as Magmt Support, culture, e.tc.) on Corporate Entrepreneurship
|
These factors ( that are only remotely related to HRM)
promote Corporate Entrepreneurship
|
These factors only indirectly relate to HRM and hence, not sufficient for a conclusion on the relationship between the core HRMP and CE
|
3
|
Elradin (2007); Madu (2011); Sanyeeu & Mathapati (2015); Delesy & Doty (1996); Kahkha, Kahrazel & Aramesh (2014)
|
The impact of directly related but individual, Stand-Alone factors (such as Training, Compensation, e.t.c.) and Corporate Entreprenurship
|
These directly related but Stand-Alone factors like Training, Compensation are related to Corporate Entreprenurship
|
However, only the effect of a synergetic combination of HRMPs would be sufficient for a valid conclusion on the HRMP/CE relationship
|
4
|
Haylon (2005); Kaija – Nihet (2006); Tang, Wei, Snape & chung (2015); Brizek (2014); Edralin (2010).
|
Impact of core ( i.e. directly related) and comprehensive HRMPs on CE
|
Directly related (core) and comprehensive HRMPs like Recruitment, Training, Performance. appraisal, Reward, Job design & Industrial relations influence CE:
|
These studies are few, especially in Africa context.
|
5
|
Basu & Careen (1997); Amobite & Gheek (1988); Goosen (2002); Rhoades & Eldenberger (2002); Aretin (2015); Snape & Redman (2010); Jaw & Lin (2003).
|
HRM and sub-dimensions of CE (innovation, Proactivity and Risk Taking Behaviour)
|
HRMP promote different sub-dimensions of CE such as innovation, Proactivity and Risk Taking work Behaviours respectively
|
Provide insight into how HRMP influence only different individual aspects of corporate entreprenurship and hence inadequate for a valid conclusion on the HRMP/CE relationship.
|
6
|
Ozutku & Ozturkler (2009); Becker, Huselid & Ulrich (2001); Tubey, Rotich & Kurgat (2015); Olaofe 2010; Oludare (2013).
|
Relevance and relative applications of HRMP and CE in different environments (the public sector and private sector).
|
More theoretical reviews and suggest that the level of HRMP and CE is higher in private sector than in public sector.
|
There is the need for more and local empirical studies
|
Source: Compiled by researcher (2016)
Environment of HRMP (Z)
Performance
Appraisal x4
Compensation, x5
Recruitment and Selection x1
Training and Development x2
Job design x3
H6
H5
H4
H3
H2
H1
Y (Corporate Entrepreneurship)
Industrial Relations x6
X(Human Resource Management Practices)
X(HRMP)
H7
2.4.3. Research Model Summary
Figure 2.19
Source:Researcher’s Conceptual Model (2016)
CHAPTER THREE
METHODOLOGY
3.0. Introduction
This chapter discusses the research design, target population, the research sample and sampling techniques, instrumentation, data collection procedure as well as the method adopted in analyzing the data generated for the study.
3.1. Research Design
This work employed a cross sectional survey research design to find the relationship between human resource management practices and corporate entrepreneurial work behavior intensity in selected private and public institutions workers in Lagos and Ogun States of Nigeria. The survey design was preferred because the population for the study is large, heterogeneous and spread over a large geographical area. Studies, such as Ogunyomi, Shadare and Chidi (2011); Nazlina, et al., (2011); Asikhia (2010); Beatrice, et al., (2010) and Edralin (2010), have found this approach suitable for similar situations. This is because under such condition, the design would enable the researcher to collect more primary data and facilitate in-depth analysis of the relationship between human resource practices and corporate entrepreneurship.
3.2. Population
The population for this study comprised all middle level managers in the civil services and banks operating in Lagos and Ogun States of Nigeria as at 2014. The two States were focused for the study because they are the most industrialised in States in Nigeria. In addition, together they constitute the most significant commercial centers in the country. Also, both the civil services and banks traditionally play key roles in facilitating economic activities of countries; directly and indirectly (Olopa, 2012, Ekpenyong & Acha 2011). The middle managers include officers on grade levels between 09 and 14 in the Civil Service, and those on middle manager’s cadre (mainly managers, assistant managers, and senior bank executive grades) in the banks. This is in line with the common usage in each of these sub-sectors respectively. Thus, the total population for the study consisted of 10,947 middle managers from both civil services and the banks operating in the two states as presented in Tables 3.1 and 3. 2.
Table 3.1: Public Sector Sample Frame (Core Ministries Sub- Sector.
S/N
|
Ministries
|
Ogun
|
Lagos
|
1
|
Ministry of Agriculture
|
314
|
559
|
2
|
Ministry of Budget and Planning
|
69
|
244
|
3
|
Ministry of Commerce and Industry
|
106
|
368
|
4
|
Ministry of Community/Rural Development and Cooperative
|
139
|
157
|
5
|
Ministry of Culture and Tourism/ Home Affairs & Culture
|
34
|
531
|
6
|
Ministry of Education, Science and Technology
|
359
|
190
|
7
|
Ministry of Education
|
NA
|
359
|
7
|
Ministry of Environment
|
40
|
475
|
8
|
Ministry of Finance
|
71
|
111
|
9
|
Ministry of Forestry
|
188
|
NA
|
10
|
Ministry of Health
|
663
|
700
|
11
|
Ministry of Housing
|
135
|
183
|
12
|
Ministry of Information and Strategy
|
124
|
233
|
13
|
Ministry of Local Government and Chieftaincy Affairs
|
47
|
120
|
14
|
Ministry of Special Duties
|
30
|
128
|
15
|
Ministry of Women Affairs
|
59
|
148
|
16
|
Ministry of Justice
|
128
|
368
|
17
|
Ministry of Youth
|
134
|
405
|
18
|
Ministry of Water Resources/ Waterfront Infrastructure
|
38
|
72
|
19
|
Ministry of Transportation
|
NA
|
435
|
20
|
Ministry of Physical Planning and Urban Development
|
NA
|
639
|
21
|
Ministry of Works and Structure
|
NA
|
663
|
22
|
Ministry of Energy and Mineral Resources
|
NA
|
56
|
|
Total
|
2678
|
7144
|
|
Total For Lagos And Ogun State
|
9822
|
Source: Bureau Of Statistics (Ogun State); Bureau Of Statistics (Lagos State)
NA= Not Applicable
Table 3.2: Private Sector Sample Frame; Bank (Sub Sector) Operating In Lagos and Ogun State): Middle Managers In The Banks As At 2014.
-
Banks
|
Number
| -
Access Bank Plc
|
47
| -
Citibank Ltd
|
37
| -
Diamond Bank Nigeria Plc
|
60
| -
Ecobank Nigeria Plc
|
69
| -
Enterprise Bank Plc
|
42
| -
Fidelity Bank of Nigeria
|
49
| -
First Bank Nigeria Plc
|
58
| -
First City Monument Bank
|
39
| -
Guaranty Trust Bank
|
65
| -
Keystone Bank Plc
|
41
| -
Mainstreet Bank Limited
|
46
| -
Skye Bank
|
72
| -
Stanbic IBTC Bank of Nigeria Limited
|
64
| -
Standard chartered Nigeria Plc
|
51
| -
Sterling Bank Plc
|
59
| -
Union Bank of Nigeria
|
70
| -
Unity Bank Plc
|
62
| -
United Bank for Africa Plc
|
65
| -
Wema Bank Nigeria Plc
|
60
| -
Zenith Bank of Nigeria
|
69
|
Total
|
1125
|
Source: Central Bank of Nigeria (2013)
Summary (from the two tables above)
Private Sector (Banks) 1125
Public Sector (Civil Services) 9822
Total Population 10,947
This cadre (middle level managers) of staff was chosen as the focus of the study because they play catalytic role in organizations (Edralin, 2007; Kuratko, 2005). According to Ireland (2009) and Kuratko (2005), the extent of entrepreneurship within the firm is dependent on the attitude and perception of individuals within the firm, just below the level of the top management group. In addition, the middle managers, by their education, experience and status, are likely to comprehend the issues and respond more accurately as pointed out by Burgelman, (1984b). Also, by their location in the hierarchy, they represent the top management and deal more closely with (and hence likely to know) and influence the lower level workers’ attitude and perspectives (Mustafa, Richard & Ramos, 2013; Edralin, 2007; Kuratko, 2005). Their perspectives are therefore likely to more closely reflect the scenario in their respective organizations.
3.3. Sample size and sampling Technique
Sample Frame
The sample frame for the study comprises 1125 middle managers in the banking sub-sector of the private sector and the 9822 managers in the civil service sub sector of the public service as shown in Tables 3.1 and 3.2 respectively.
Sample Size Determination
The sample for the study is one thousand, one hundred and eleven (1111) middle managers from the selected private and public sector institutions in the above mentioned two states. This was scientifically determined, using Yamane (1967) formular, as used in Stovin and Serakan (1992), for sample size determination:
n =
Where;
n = desire sample size
N = population size
e = desired margin of error =3%
n = 1110.908 rounded up to 1111
The figure was rounded up to 1111 as not doing so would lead to having to find a fraction of human being which is the unit of our sample.
Sampling Technique
Multi-stage and multiple sampling techniques were used to determine the selection of the sample. First, Lagos and Ogun States were chosen in Nigeria. This is because the two States are the most industrialised in Nigeria. Secondly, the two states were thereafter divided into two strata; the public sector and the private sector. Thirdly, the civil service sub-strata were selected from the public sector (thus excluding estra-ministrial agenges and departments) and banking services sub-strata were selected from the private sector strata. The ministries operate under the same or similar public service rules. The operations of the banks are also uniformly guided by the Company and Allied Matters Decree 1992 and the Central Bank of Nigeria.
Fourthly, respondents from the public and private sectors were treated as different populations due to the large differences in their respective sizes and levels of homogenueity. That is, the civil service subsector of the public sector, which is larger but are under only two (2) Managements and similar conditions of service, coordinated by the national council on establishment (NCE) as against the more heterogeneous character of the banking subsector of the private sector, which is smaller but having twenty (20) different Managements and varying conditions of service. The Research Advisor (2006) sample size table was therefore used to determine the proportion of the size of the sample from each of the sub grougs as recommended by Research Advisor (2006). Based on this, 622 were selected from the civil service sub sector (of sub population 9822), while 489 were selected from the banking sub sector (to complete the overall sample size of 1111) at 99 % level of confidence. These numbers were thereafter distributed proportionally according to the pattern of the distribution of the respondents’ population by State and as well as by the units within each of the sub sectors as presented in Table 3.3.
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