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Organizational Entrepreneurship and the Organizational Performance, Bi-Variate Correlations (Tables 4.7 and 4.10) and Multiple Regression Analyses Were Explored ORGANIZATIONAL ENTREPRENEURSHIP AND THE ORGANIZATIONAL PERFORMANCE LINKAGE IN UNIVERSITY EXTENSION DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Julie M. Fox, BS, MBA * * * * * The Ohio State University 2005 Dissertation Committee: Approved by Joseph A. Gliem, Ph.D., Advisor Keith Smith, Ph.D. Advisor Human & Community Resource Development Nikki Conklin, Ph.D. Graduate Program Copyright by Julie M. Fox 2005 ABSTRACT Entrepreneurial actions are viewed as critical pathways to improved performance in organizations of all types, sizes, and ages. Within the growing body of literature there is a need to investigate entrepreneurship in order to provide theoretical and practical applications for existing organizations. This study examined the relationship between Organizational Entrepreneurship and Organizational Performance within the Cooperative Extension System, a national educational network extending the research-based knowledge of land-grant colleges and universities. This study measured both Entrepreneurial Orientation, based on Covin and Slevin’s scale (1989), and Entrepreneurial Management, based on a scale developed by Brown, Davidsson, and Wiklund (2001) that operationalized Stevenson’s (1983) conceptualization of entrepreneurship as a set of opportunity-based management practices. Extension Directors in the United States and territories were invited to respond to a questionnaire, reporting on Organizational Entrepreneurship and Organizational Performance based on both financial and non-financial indictors. Seventy percent of the Extension directors responded and results were aggregated by regional categories. Substantial Organizational Entrepreneurship was evident in Extension organizations in all four region. This study measured Organizational Performance based on a five year funding trend, as well as on non-financial indicators through a Performance Satisfaction ii index. Results from multivariate data analysis indicated that risk taking and tenure accounted for the highest relative contribution to the dependent variable Performance Satisfaction. Strategic orientation and risk taking accounted for the highest relative contribution to the dependent variable, percent change in total funding. As Extension organizations nationwide address more diverse audiences, an increasingly complex funding mix, and rapidly evolving technologies, the field of entrepreneurship offers principles to continuously improve performance. This study contributed to the field of entrepreneurship and to organizational development in university Extension. iii ACKNOWLEDGMENTS I thank my advisor, committee members, and professors for their professional support and personal encouragement throughout this endeavor. I extend a very special thank you to my classmates and colleagues for their camaraderie over the years. I also extend my appreciation to my parents and other family members who taught me faith and perseverance; my teachers who encouraged my love of learning; and my friends who kept me smiling throughout my many years of higher education. iv VITA 30 May 1962 . .. Born – Ohio, USA 1992 . Bachelor of Specialized Studies Ohio University 2000 . Master of Business Administration (MBA) Global Management, University of Phoenix 1998 - present . .Direct Marketing Specialist (current position) The Ohio State University South Centers 1993 - 1997 . .Executive Director (int’l trade association) Association of Craft & Creative Industries 1987 - 1992 . .Marketing Manager Lions-Quest International PUBLICATIONS 1. Fox, J., Nyange, D., Erbaugh, M., Worley, C.T., & Mbiha , E. (2005). Economic development through entrepreneurship in Tanzania’s agricultural sector. Proceedings of the 50th World Conference for the International Council for Small Business, Washington, DC. 2. Fox, J., & Boulay, D. (2003). Emerging online learning communities impact rural development. Proceedings of the Community Development Society (CDS) Annual Conference, Ithaca, NY. 3. Fox, J. (2003). Technology enhanced learning for new and emerging rural entrepreneurs, poster presentation. Proceedings of the Galaxy Conference for the Joint Council of Extension Professionals, Salt Lake City, UT. v 4. Fox, J., & McFeeters, D. (2002). Utilizing partnerships, technology & innovative programming for rural agri-business entrepreneurship. Proceedings of the National Small Farm Conference, Albuquerque, NM. 5. Lindner, J. R., Fox, J., & Chizari, M. (1999). Building rural communities through business incubators and partnerships: some lessons learned in southern Ohio. Proceedings of the 31th Annual International Conference of the Community Development Society. Spokane, WA. FIELDS OF STUDY Major Field: Human & Community Resource Development Dissertation research fields: business management, organizational behavior, public administration vi TABLE OF CONTENTS Page Abstract ……………………………………………………………………………… ii Acknowledgments …………………………………………………………………… iv Vita …………………………………………………………………………………... v List of Figures ……………………………………………………………………….. ix List of Tables ………………………………………………………………………... x Chapters: 1. Introduction ………………………………………………………………….. 1 1.1 Background and setting ……………………………………………… 1 1.2 Problem statement …………………………………………………… 5 1.3 Purpose of the study………………………………………………….. 6 1.4 Objectives of the study ………………………………………………. 6 1.5 Definition of terms .………………………………………………….. 7 1.6 Significance of the study ……………………………………………. 13 2. Review of Literature………………………………………………………… 15 2.1 Historical perspectives on entrepreneurship ………………............... 16 2.2 Entrepreneurial individuals and teams ……………………………… 20 2.3 Entrepreneurial organizations ………………………………………. 25 2.4 Entrepreneurship in public organizations ………………………….. 28 2.5 Opportunity-based view of entrepreneurship ………………………. 33 vii 2.6 The entrepreneurial process ………………………………………... 35 2.7 Entrepreneurial Orientation ………………………………………… 46 2.8 Entrepreneurial Management ……………………………………….. 53 2.9 Organizational Performance ………………………………………… 63 2.10 Summary of the literature review …………………………………… 65 3. Procedures …………………………………………………………………... 67 3.1 Research design ……………………………………………………... 68 3.2 Population and sampling ……………………………………………. 68 3.3 Instrumentation ……………………………………………………… 69 3.4 Data collection ………………………………………………………. 79 3.5 Data analysis ………………………………………………………… 81 4. Findings ……………………………………………………………………… 83 4.1 Respondents and non-respondents…………………………………… 84 4.2 Organizational Entrepreneurship ……………………………………. 88 4.3 Organizational Performance ………………………………………… 93 4.4 The relationship between Organizational Entrepreneurship and Organizational Performance in Extension ………………………. 99 4.5 Summary of findings ………………………………………………... 105 5. Summary, Conclusions, and Recommendations ……………………………. 106 5.1 Summary and conclusions ………………………………………….. 107 5.2 Recommendations ………………………………………………….. 110 Appendices …………………………………………………………………………. 128 A Questionnaire ……………………………………………………….. 129 B Panel of experts ……………………………………………………... 135 C Cooperative Extension System Regions ……………………………. 137 D Exemption from human subjects committee review ……………….. 139 References ………………………………………………………………………….. 141 viii LIST OF FIGURES Figure Page 1.1 Entrepreneurship overview ………………………………………………… 8 1.2 Funding mix in Extension organizations – percentages of federal, state, local, and other funding …………………………...………………………………. 12 2.1 Stakeholder-driven entrepreneurial process …………………………………. 36 3.1 Indicators of Organizational Entrepreneurship …………………………….. 71 3.2 Indicators of Organizational Performance …………………………………. 72 3.3 Schedule of contacts ………………………………………………………. 80 4.1 Respondents by region ……………………………………………………… 84 4.2 Entrepreneurial Orientation in Extension by region ………………………… 89 4.3 Entrepreneurial Management in Extension by region ……………................. 90 4.4 Organizational Entrepreneurship in Extension by region …………………… 92 4.5 Percent change in total funding by region …………………………………… 94 4.6 Percent change in appropriated and non-appropriated funding by region …… 96 4.7 Percent change in non-appropriated funding as a percentage of total funding change …………………………………………………………. 97 4.8 Performance Satisfaction by region ………………………………………….. 98 5.1 Sub-dimensions of Organizational Entrepreneurship ……………………….. 108 ix LIST OF TABLES Table Page 2.1 Summary of organizational entrepreneurship scales ………………………. 27 2.2 Types of organizational change .……………………………….………...… 45 2.3 Strategic Orientation continuums ………………………………………….. 56 3.1 Cronbach’s alpha for the dimensions of Organizational Entrepreneurship and Performance Satisfaction ………………………………………………. 78 4.1 Respondent tenure by region (number of years as an Extension director) ..... 85 4.2 Respondents - percent state population change by region ………………….. 86 4.3 Director and supervisor responses ………………………….……………… 87 4.4 Non-respondents by region …………………………………………………. 87 4.5 Sub-dimensions of Entrepreneurial Orientation in Extension ……………… 89 4.6 Sub-dimensions of Entrepreneurial Management in Extension ……………. 91 4.7 Summary data for independent variables and dependent variable, Performance Satisfaction (n = 38) ………………………………………….. 100 4.8 Variance summary: Regression of Performance Satisfaction on selected variables (n=38) (Hierarchical Entry) ………………….…………………… 101 4.9 Regression coefficients: Regression of Performance Satisfaction on selected variables (n=38) (Hierarchical Entry) ………….…………………………… 101 4.10 Summary data for independent variables
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