Abstract
Background: The entrepreneurial climate in organisations is often seen as an important antecedent to innovation and organisational success. Assessing the nature of the climate in a reliable and valid manner is essential, as this will guide the implementation of appropriate interventions where necessary as well as assessing the effects of such interventions.Aim: The aim of this research was to evaluate the psychometric properties of a measure of entrepreneurial climate. Entrepreneurial climate was measured using a shortened version of the Hornsby, Kuratko and Zahra (2002) instrument, called the Corporate Entrepreneurship Assessment Instrument (CEAI). Making information on the psychometric properties of the instrument available directly relates to its utility.Setting: The setting was medium to large South African companies. A random sample of employees was drawn from 53 selected companies across South Africa, with 60 respondents per company (N = 3 180).Methods: A cross-sectional survey design was used. Several instruments were administered, including the shortened version of the CEAI. Cronbach’s alpha was used to test for reliability and several methods were used to test for validity. Correlation analysis was used to test for concurrent validity, convergent validity and divergent validity. Principle component factor analysis was used to test for factorial validity and a t-test to test for known-group validity.Results: The results showed that the reliability for the total score of the shortened version of the CEAI was acceptable at 0.758. The results also showed some evidence of concurrent validity, as well as homogeneity among the items. With regard to factorial validity, all items loaded in accordance with the subscales of the instrument. The measure was able to distinguish, as expected, between government organisations and private business entities, suggesting known-group validity. Convergent validity and divergent validity were also assessed. Interesting to note was that entrepreneurship climate correlates more with general employee attitude (e.g. employee engagement; R= 0.420, p < 0.001 and organisational commitment, R = 0.331, p < 0.001) than with self-reported innovation (R = 0.277, p < 0.001 and R = 0.267, p < 0.001).Contribution: This paper not only provided information on the reliability and validity of the shortened version of the CEAI in the South African context but also provides norms to be used when researchers or consultants work with smaller groups. Recommendations on the appropriate use of the instrument are offered and this contributes to the responsible use of the instrument.
Highlights
Though some confusion exists on the exact meaning of innovation in the workplace (Hind & Steyn 2015), definitions of the concept are abundant. García-Morales, Lloréns-Montes and VerdúJove (2008) describe innovation as new ideas, methods or devices, or acts of creating new products, services or processes
It is not surprising that innovation is perceived by many scholars as one of the most important determinants of firm performance (Adegoke, Walumbwa & Myers 2012; DuránVázquez, Lorenzo-Valdés & Moreno-Quezada 2012; Grant 2012)
As far as functions are concerned, the findings showed that 46.6% indicated that they were involved in the core business of the company, with 52.8% reporting that they fulfil supportive roles
Summary
Though some confusion exists on the exact meaning of innovation in the workplace (Hind & Steyn 2015), definitions of the concept are abundant. García-Morales, Lloréns-Montes and VerdúJove (2008) describe innovation as new ideas, methods or devices, or acts of creating new products, services or processes. Though some confusion exists on the exact meaning of innovation in the workplace (Hind & Steyn 2015), definitions of the concept are abundant. García-Morales, Lloréns-Montes and VerdúJove (2008) describe innovation as new ideas, methods or devices, or acts of creating new products, services or processes. Overstreet et al (2013) describe innovativeness as the propensity of an organisation to deviate from conventional industry practices by creating or adopting new products, processes or systems. Irrespective of the differences in the exact definition of innovation, it is seen as important and considered to be an essential component for competitiveness and survival, embedded in organisational structures, processes, products and services within the organisation (Gunday et al 2011). The entrepreneurial climate in organisations is often seen as an important antecedent to innovation and organisational success. Assessing the nature of the climate in a reliable and valid manner is essential, as this will guide the implementation of appropriate interventions where necessary as well as assessing the effects of such interventions
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