Abstract

The objectives of the study were to explore the management characteristics that are related to organisational entrepreneurship in not-for-profit organisations (NPOs) in Gauteng, South Africa as well as the relationship between organisational entrepreneurship and the organisational performance. The methodology involved a quantitative approach of collecting and analysing research data. A field study was conducted in Johannesburg, South Africa whereby research data were collected from 257 NPO managers from voluntary organizations. Using the SPSS 22 and the AMOS 22 software program, Structural Equation Modeling (SEM) was performed to analyze the research data. The study noted implications for NPO management teams, including the renovation of business model structures to incorporate continuous learning and constructive risk-taking in order to take advantage of the performance benefits derived from organisational entrepreneurship. The study also recommends further research into potential citizenship bodies for NPO management teams to foster commitment to their occupation in the non-profit sector. The research makes a significant contribution by providing a framework in which management's commitment to NPOs can be measured and analysed.

Highlights

  • Entrepreneurship as a field of study has attracted a great deal of attention over the years (Amezcua, Grimes, Bradley, & Wiklund, 2013 and Miller, Steier& Breton‐Miller, 2016)

  • Entrepreneurship can be applied to organisations that are driven by a profit motive, which can be identified as for-profit organisations, and those motivated to address social needs, which can be identified as non-profit organisations (NPOs) (Weerawardena & Sullivan-mort, 2001).Whether an organisation’s core objective is to make financial profit or serve social needs, the key ingredient for operating in a market is the ability to offer value to consumers (Kotler & Keller, 2012)

  • Probability sampling was adopted for the present research and was deemed appropriate as it assumes every respondent in the population had an equal chance of being included in the research, and reduced bias toward certain respondents (Galpin, 2013).A list of the members of this population was available in the directory of Non-profit Organisations, which was accessed on the website of the South African Department of Social Development (DSD) (Department of Social Development, 2014)

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Summary

Introduction

Entrepreneurship as a field of study has attracted a great deal of attention over the years (Amezcua, Grimes, Bradley, & Wiklund, 2013 and Miller, Steier& Breton‐Miller, 2016). Entrepreneurship can be applied to organisations that are driven by a profit motive, which can be identified as for-profit organisations, and those motivated to address social needs, which can be identified as non-profit organisations (NPOs) (Weerawardena & Sullivan-mort, 2001).Whether an organisation’s core objective is to make financial profit or serve social needs, the key ingredient for operating in a market is the ability to offer value to consumers (Kotler & Keller, 2012) Both NPOs and forprofit enterprises engage in exchanges with other entities so as to benefit themselves and the other entities. Organisations tend to attempt to prevent unethical behaviour in organisations through ethics management interventions as this is believed to keep organisations in compliance with rules and regulations (Van Vuuren & Crous, 2005)

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