INFLUENCE OF CORPORATE ENTREPRENEURSHIP ON PERFORMANCE OF STATE CORPORATIONS IN KENYA

Authors

  • Dr.Bruno Mugambi Linyiru Jomo Kenyatta University of Agriculture and Technology
  • Dr.Kabare Karanja Jomo Kenyatta University of Agriculture and Technology
  • Dr.Kabare Karanja Jomo Kenyatta University of Agriculture and Technology
  • Dr.Robert Gichira Jomo Kenyatta University of Agriculture and Technology
  • Dr.Robert Gichira omo Kenyatta University of Agriculture and Technology

DOI:

https://doi.org/10.47941/jepm.82

Keywords:

Corporate entrepreneurship, performance, state corporations in Kenya

Abstract

Purpose: The purpose of this study was to establish the influence of corporate entrepreneurship on performance of state corporations in Kenya.

Methodology: The study adopted an explanatory research design.  The population of the research consists of the 187 state corporations in Kenya as at 2013. The unit of analysis was the state corporation. A purposive sample of 55 commercial state corporations was included in the study. The study used primary data gathered using questionnaires. Statistical Package for Social Sciences (SPSS) was used in the analysis of data. Reliability and validity tests were conducted to determine the internal consistencies of the variables under investigation. The data was analyzed by use of descriptive and inferential statistics. Descriptive statistics produced frequencies, trends, means and percentages while inferential statistics produced regression and correlation results which showed the causal relationship among the variables. Results were presented on frequency tables and charts.

Results: The study findings indicated that there was improved firm performance which was linked to corporate entrepreneurship. Results showed that companies initiated actions to which competitors responded to, the firms had a tendency to be ahead of other competitors in introducing novel idea or products and the companies strived in identifying new markets to sale products. Results indicated that risk taking, innovativeness, competitive aggressiveness and organizational factors were key determinants of firm performance for commercial state corporations in Kenya. The study findings also indicated that the companies had a strong tendency to increase the market share by reducing competitors through competitive marketing strategies, the companies spent substantial amount of financial resources in sales promotion and the companies actively searched for significant opportunities to improve market share.

Policy recommendation: The study recommends to the management of firms that corporate entrepreneurship should be pursued as a competitive and performance improvement strategy by all firms regardless of size. This is because corporate entrepreneurship influences firm performance positively. For corporate entrepreneurship to thrive, firms need to put in place an environment with support systems, structures and resources that encourage employees to behave entrepreneurially. The management should therefore ensure that they engage all the employees as they embrace corporate entrepreneurship to ensure that all staffs are working towards achieving the same objective and company goal. The study is a justification of the fact that an organization with competitive innovativeness skills has a deep understanding of the business enterprises which catapults their growth to a large extent. The study recommends that the management should use technology in controlling the production cost while maintaining competitive prices as it results in continued profitability of a firm and therefore growth. Managers should be efficient time managers with a control on the firm cost of operation to help provide a working schedule and competitive prices which fit the client needs.

Downloads

Download data is not yet available.

Author Biographies

Dr.Bruno Mugambi Linyiru, Jomo Kenyatta University of Agriculture and Technology

Doctorate student

Dr.Kabare Karanja, Jomo Kenyatta University of Agriculture and Technology

Lecturer

Dr.Kabare Karanja, Jomo Kenyatta University of Agriculture and Technology

Lecturer

Dr.Robert Gichira, Jomo Kenyatta University of Agriculture and Technology

Lecturer

 

Dr.Robert Gichira, omo Kenyatta University of Agriculture and Technology

Lecturer


 

References

Agca, V. Topal, Y. and Kaya, H. (2009). Linking Intrapreneurship activities to multidimensional firm performance in Turkish manufacturing firms: an empirical study, International Entrepreneurship and Management Journal, 1-19

Aghion, P. and Howitt, P., (1992), A Model of Growth through Creative Destruction. Econometrica 60: 323 - 351

Black, P. J., &Wiliam, D. (2004). Towards coherence between classroom assessment and accountability: 103rd yearbook of the National Society for the Study of Education (part 2) (20-50). Chicago: University of Chicago Press.

Borg, D., & Gall, R. (2007). Educational research: An introduction. Boston: Pearson Education.

Bowling, A. (1997). Research Methods in Health. Open University Press, Buckingham.

Broadbent M. & Cullen J. (2005). Managing Financial Resources. Oxford: Elsevier Butterworth-Heinemann.

Bryman, A. & Cramer, D. (1997). Quantitative Data Analysis with SPSS for Windows. Routledge, London

Burns, A., & Groove, B. (2003). The Practice of Nursing Research: Conduct, critique & utilization. 4th edition. W. B. Saunders Company.

Clark, N. D. (2010). Innovation Management in SMMEs: Active Innovators in New Zealand, Journal of Small Business and Entrepreneurship, 23 (4), 601-619

Clark, N. D. (2010). Innovation Management in SMMEs: Active Innovators in New Zealand, Journal of Small Business and Entrepreneurship, 23 (4), 601-619

Coates, B. (2007). Equity Bank, a Microfinance Service: Center for Social Innovation. Stanford, CA: Stanford University, Graduate School of Business.

Dinopoulos, E. & Thompson, P. (1998). Schumpeterian growth without scale effect Journal of Economic Growth 3, 313-35.

Drejer, I. (2004). Identifying innovation in surveys of services: a Schumpetarian perspective. Research Policy 33, 2004, p. 551-562.

Guralnik and David B. (2004). Webster's New World College Dictionary, New York: A Simon &Schusteer Macmillan Company.

Haniffa, R., &Hudaib, M. (2006). Corporate Governance Structure and Performance of Malaysian Listed Companies. Journal of Business Finance & Accounting, 33, 7/8, 1034- 1062.

Hornsby, J. S.; Naffziger, D. W.; Kuratko, D. F. &Montagno, R. V. (1993). An interactive model of corporate entrepreneurship process. Entrepreneurship: Theory and practice, 29 - 37.

Huse, M. Neubaum, D. O. and Gabrielsson, J. (2005). Corporate Innovation and Competitive Environment, International Entrepreneurship and Management Journal, 1(3), 313-333

Jessen, J. R. (1978). Statistical survey techniques. Wiley. Retrieved 2nd January 2011

Kaplan, R. S. & Norton D. P. (2000). Having trouble with your strategy? Then map it. Harvard Business Review, (Sep-Oct), 167-176.

Kothari, C. (2004). Research Methodology: Methods & Techniques, 2nd edition. New age International Publishers, New Delhi, India

Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance. The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451.

Lwamba, N.M, Bwisa, H &Sakwa, M. (2014). Exploring the Effect of Corporate Entrepreneurship on Financial Performance of Firms: Evidence from Kenya's Manufacturing Firms. International Journal of Academic Research in Business and Social Sciences.

Manderlier, A., Bacq, S., Giacomin, O. & Janssen, F. (2009). The Impact of South Asian Microfiance Institutions' Corporate Governance Mechanisms on thier Social and Financial performance: An Exploratory Study. Louvian: Centre for Reserch in Entreprenuerial Change & Innovation Strategies.

Morris, M. H. &Kuratko, D. F. (2002). Corporate Entrepreneurship. Mason, OH: South-Western College Publishers

Mugenda, O.M. & Mugenda, A.G. (2003). Research Methods: Quantitative and QualitativeApproaches. Nairobi: African Centre for Technology Studies.

Romero-Martínez, A.M, Fernández-Rodríguez, Z., and Vázquez-Inchausti, E. (2010). Exploring corporate entrepreneurship in privatized firms. Journal of World Business, 45, 2-8.

Särndal, C., Swensson, B., &Wretman, J. (1992). Model Assisted Survey Sampling. Southport, United Kingdom: Springer-Verlag Publication.

Saunders, M., Lewis, P. & Thornhill, A. (2009). Research methods for business students. (5th Edition). London: Prentice Hall.

Swedberg, R. (2000). Entrepreneurship. The Social Science View. Oxford: Oxford University Press.

Venkataraman, S. (1997). The distinctive domain of entrepreneurship research: An editor's perspective. In J. Katz & J. Brockhaus (Eds.), Advances in entrepreneurship, firm emergence, and growth (pp. 119-138). Greenwich, CT: JAI Press.

Venter, A. Rwigema, H. and Urban, B. (2008). Entrepreneurship: theory in practice, 2nd edition, Oxford University Press Southern Africa (Pty) Ltd, Cape Town.

Wu, M.-C., Lin, H.-C., Lin, I.-C. & Lai, C.-F. (2009). The effects of Corporate Governance on the Firm Performance. Changua: National Changua University of Eductaion.

Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40, 2, 185-211.

Zahra, S. A. &Garvis, D. M. (2000). International Corporate Entrepreneurship and Firm Performance: The Moderating Effect of International Environment Hostility, Journal of Business Venturing 15, 469-49.

Downloads

Published

2017-02-06

How to Cite

Linyiru, D. M., Karanja, D., Karanja, D., Gichira, D., & Gichira, D. (2017). INFLUENCE OF CORPORATE ENTREPRENEURSHIP ON PERFORMANCE OF STATE CORPORATIONS IN KENYA. Journal of Entrepreneurship and Project Management, 2(1), 20–45. https://doi.org/10.47941/jepm.82

Issue

Section

Articles