IMPACT OF ENTREPRENEURSHIP IN ACHIEVING THE COMPETITIVE ADVANTAGE, AN EMPERICAL RESEARCH IN PRIVATE HOSPITALS IN ,

by Mohammad Fayez Mohammad Abu Zaid

A Thesis Submitted in

Partial Fulfillment of the

Requirements for the Degree of

Master in Business Administration

at

The University of Petra

Amman-Jordan

October /2013

I

Authorization

I am Mohammad Fayez Mohammad Abu Zaid. I authorize the University of Petra to make hard or soft copies of my thesis to libraries, institutions, and people when asked.

Name: Mohammad Fayez Mohammad Abu Zaid

Signature: ------

Date: ------

II

IMPACT OF ENTREPRENEURSHIP IN ACHIEVING THE COMPETITIVE ADVANTAGE, AN EMPERICAL RESEARCH IN PRIVATE HOSPITALS IN AMMAN, JORDAN

by

Mohammad Fayez Mohammad Abu Zaid

A Thesis Submitted in

Partial Fulfillment of the

Requirements for the Degree of

Master in Business Administration

at

The University of Petra

Amman-Jordan

October /2013

Major Supervisor Name Signture Prof. Najim Al- Azzawi ------Examination Committee Name Signture 1. Prof. Musa Al- Lozi ------

2. Dr. Sabah Hameed Agha ------

3. Dr. Ahmed El- Qasem ------

III

ABSTRACT

IMPACT OF ENTREPRENEURSHIP IN ACHIEVING THE COMPETITIVE ADVANTAGE, AN EMPERICAL RESEARCH IN PRIVATE HOSPITALS IN AMMAN, JORDAN

by

Mohammad Fayez Mohammad Abu Zaid

at

University of Petra, 2013

Under the supervision of Prof. Najim Al Azzawi

The main objective of this research is to investigate the impact of entrepreneurship in achieving the competitive advantage in private hospitals in Amman, Jordan.

The research population consists of private hospitals in Amman, Jordan. The number is

(38) hospitals according to the last annual statistics, in the year (2011), of the Jordanian

Health Ministry.

The research sample contains (8) private hospitals in Amman which obtained "Joint

Commission International Accreditation" (JCI), these hospitals are: (,

Specialty hospital, Istiklal hospital, Al Khalidi hospital, Essra hospital, Istishari hospital,

Arab medical center, and Luzmila hospital).

IV

In order to achieve the desired objective, the researcher has adopted a questionnaire consisting of (31) items, and some of them were reformulated to become more consistency with the research requirements. The copies of the questionnaire were distributed to the unit of analysis which consisted of (160) managers. Those managers were at (top management, middle management, and heads of departments), and worked at the selected private hospitals. The number of returned questionnaires were (131), equivalent to (81.87%) of all the questionnaires distributed. Only (102) questionnaires were suitable for statistical analysis with a percentage of (77.86%).The Statistical

Package for Social Sciences (SPSS) was used. Furthermore, the researcher used a descriptive and analytical method to test the hypotheses.

The research results showed that there was a positive impact of the entrepreneurship dimensions: (innovation, creativity, risk-taking, and pro-activity) in achieving the competitive advantage (service quality) in the private hospitals in Amman.

Key Words: Entrepreneurship, Competitive Advantage, Creativity, Innovation, Risk-Taking, Pro-activity, Service Quality, Private hospitals, Amman, and Jordan.

Major Professor Signature

Prof. Najim Al Azzawi ------

Date ------

V

الملخص باللغة العربية

أثر الريادة في تحقيق الميزة التنافسية، بحث ميداني في المستشفيات الخاصة في عمان، األردن

إعداد

محمد فايز أبوزيد

إشراف

أ.د. نجم العزاوي

هدف هذا البحث إلى دراسة أثر الريادة في تحقيق الميزة التنافسية في المستشفيات الخاصة في عمان، األردن.

تكون مجتمع البحث من المستشفيات الخاصة في عمان، األردن والتي عددها )83( مستشفى وفقا لإلحصاءات

السنوية األخيرة، لعام )1122(، لوزارة الصحة األردنية.

احتوت عينة البحث على المستشفيات الخاصة في عمان الحاصلة على إعتماد اللجنة المشتركة لالعتماد الدولي

(JCI)، وعددها )3( مستشفيات والتي تتمثل في :)مستشفى األردن، مستشفى التخصصي، مستشفى اإلستقالل،

مستشفى الخالدي، مستشفى اإلسراء، المستشفى اإلستشاري، المركز العربي الطبي، ومستشفى لوزميال(.

من أجل تحقيق هدف البحث، اعتمد الباحث استبيانا تكون من )82( فقرة. وقد وزعت تلك االستبيانات على وحدة

التحليل التي تتألف من )261( مديرا من المستويات اإلدارية )العليا، الوسطى، ورؤساء االقسام( العاملين في

المستشفيات الخاصة المحددة في البحث. وقد كان عدد االستبيانات المسترجعة هو )282( استبيانا، أي ما يعادل

)32.38٪( من عجمي االستبيانات الموزعة. وكان عدد االستبيانات المناسبة للتحليل اإلحصائي هو )211( استبيانا

بنسبة )88.36٪( من جميع االستبيانات المسترجعة.

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تم استخدام في هذا البحث الحزمة اإلحصائية للعلوم االجتماعية برنامج )SPSS).

أظهرت نتائج التحليل أن هناك تأثير إيجابي ألبعاد الريادة : )اإلبتكار، اإلبداع، أخذ المخاطرة، واإلستباقية( في تحقيق

الميزة التنافسية )جودة الخدمة( في المستشفيات الخاصة في عمان، االردن.

الكلمات الرئيسية : الريادة، الميزة التنافسية، اإلبداع، اإلبتكار، أخذ المخاطرة، اإلستباقية، جودة الخدمة،

المستشفيات الخاصة، عمان، واألردن.

VII

Acknowledgment

At first, may all the praises and thanks be to "Allah" for this work could never have been completed without His blessing.

I would like to extend my whole hearted and sincere gratitude to Professor Najim Al

Azzawi for his guidance, time, and patience, in supporting me. I am so grateful to him for his support both morally and intellectually on this thesis throughout the year and in every stage of its progress.

I would also like to extend my deepest and special thanks to my family (father, mother, brothers, and sisters) .Without their encouragement and support, my work on this study could never have been completed.

I am also so grateful to all hospital managers who responded favorably to my questionnaires and made the process of data collection the easiest and the fastest possible.

This thesis is only the beginning in my quest towards the fulfillment of my goals and ambitions. To all those mentioned above, I extend my deepest appreciation and gratitude.

Sincerely yours,

Mohammad Fayez Mohammad Abu Zaid

VIII

Dedication

I am pleased to dedicate this thesis to:

My beloved best father,"Mr. Fayez Abu Zaid" who has supported me throughout my life and who has assured me that even the hardest of all tasks can be accomplished, if it is done one step at a time. Also for believing in me and for always being there whenever I needed him to help me achieve my dreams.

To the dearest of all, my mother “Nada Al-Sharif", for her endless love, support, guidance, and encouragement throughout my life.

To my brothers "Abdullah and Rayan" and my sisters "Mariam and Bushra" who gave me all the love, support and encouragement I needed for my success.

To all my relatives who have stood by me all along the way to success.

To all the doctors who taught and directed me in my master program and also guided me to success at the University of Petra.

To all my friends in Jordan, K.S.A, and other countries, who always have encouraged and supported me.

IX

Table of Contents

Subject Page

AUTHORIZATION II

APPROVAL PAGE III

ABSTRACT IV

ACKNOWLEDGEMENT VIII

DEDICATION IX TABLE OF CONTENT X LIST OF TABLES XlV

LIST OF FIGURES XVI

CHAPTER ONE No. INTRODUCTION, SCOPE, AND OBJECTIVE

1-1 Introduction 2

1-2 Purpose of the Research 4

1-3 Context and Scope of the Research 4

1-4 Problem Statement 5

1-5 Significance of the Research 5

1-6 Research Objectives 7

1-6-1 Main Objective 7

1-6-2 Sub-Objectives 7

1-7 Research Questions 8

1-7-1 Major Research Question 8

X

1-7-2 Minor Research Questions 8

1-8 Definitions of Terms (Terminologies) 9

1-8-1 Entrepreneurship 9

1-8-2 Competitive Advantage 10

1-9 Research Hypotheses 11

1-9-1 Hypothesis 1 11

1-9-1-1 First Sub–Hypothesis 11

1-9-1-2 Second Sub–Hypothesis 11

1-9-1-3 Third Sub–Hypothesis 11

1-9-1-4 Fourth Sub–Hypothesis 11

1-10 Research Model 12

1-11 Delimitations of the Research 13

1-12 limitations of the Research 14 CHAPTER TWO

REVIEW OF THE RELATED LITERATURE AND PREVIOUS STUDIES

2-1 Introduction 17

2-2 Literature Review 17

2-2-1 Entrepreneurship 17

2-2-2 Competitive Advantage 46

2-3 Previous Study 62

2-3-1 Arabic Studies 62

2-3-2 International Studies 69

2-4 Contribution of the Study 91

2-5 Health Care and Hospital Sector in Jordan 92

XI

CHAPTER THREE

METHODLOGY

3-1 Introduction 98

3-2 Research Method 98

3-3 Research Design 98

3-4 Statistical Techniques in Data Analysis 99

3-5 Population and Sample 100

3-5-1 Population 100

3-5-2 Sample and Sampling Method. 100

3-6 Procedure for Data Collection 103

3-7 Research Instrument 103

3-8 Validity and Reliability 104

3-8-1 Validity 104

3-8-2 Reliability 104 CHAPTER FOUR

PRESENTATION OF RESULTS, DISSCUSSION AND INTERPRETAION

4-1 Introduction 107

4-2 Demographic Profile of Respondents 107

4-3 Descriptive Analysis of Research Variables 110

4-4 Research Hypotheses Test 120 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5-1 Introduction 130

5-2 The Research Summary 130

XII

5-3 Research Conclusions 132

5-4 Research Recommendations 133

5-5 Suggestions for Further Research 135

References 136

APPENDICES 155

Appendix Questionnaire (A) 155

Appendix It Summarizes the items of questionnaire and shows the (B) source of references which were taken from it 161

XIII

List of Tables No. Tables Page

A List of the 12 Greatest Entrepreneurs and Corporate 2-1 22 Entrepreneurships of Our Time Differences Between an Entrepreneur and a Small Business 2-2 24 Owners The Relation Between Entrepreneurship and Competitive 2-3 26 Advantage as Reflected by Number of authors’ Studies The Dimensions of Entrepreneurship as Reflected by 2-4 30 Number of authors’ Studies The Dimensions of Competitive Advantage as Reflected by 2-5 50 Number of Researchers Studies No. of Hospitals According to Health Ministry (in Jordan), 2-6 93 2011 No. of Hospitals According to Health Ministry (in Amman), 2-7 93 2011 Summarizes the Information about Selected Private 2-8 94 Hospitals in the Research Sample No. of Private Hospitals According to Health Ministry (in 3-1 100 Amman), 2011 3-2 Selected Private Hospitals in the Research Sample 101 No. of Questionnaires Distributed, No. of Questionnaires 3-3 102 Returned, and No. of Questionnaires Fit for Analysis 3-4 Reliability of Questionnaire Dimensions 105 Distribution of the Research Sample Due to Gender, Age, 4-1 Qualification, Years of Experience, Working Years in the 108 Hospital, and Job Position Arithmetic Mean, SD, Item Importance and Level of 4-2 111 Innovation Arithmetic Mean, SD, Item Importance and Level of 4-3 113 Creativity Arithmetic Mean, SD, Item Importance and Level of Risk 4-4 115 Taking

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Arithmetic Mean, SD, Item Importance and Level of Pro- 4-5 117 activity Arithmetic Mean, SD, Item Importance and Level of Service 4-6 119 quality Simple Regression Analysis Test Results of the Impact of 4-7 Innovation on Achieving the Competitive Advantage (Service 121 Quality) in Hospitals in Amman Simple Regression Analysis Test Results of the Impact of 4-8 Creativity on Achieving the Competitive Advantage (Service 122 Quality) in Hospitals in Amman Simple Regression Analysis Test Results of the Impact of 4-9 Risk-Taking in Achieving the Competitive Advantage 124 (Service Quality) in Hospitals in Amman Simple Regression Analysis Test results of the Impact of Pro- 4-10 activity on Achieving the Competitive Advantage (Service 125 Quality) in Hospitals in Amman Multiple Regression Analysis Test Results of the 4-11 Entrepreneurship Dimensions on Achieving the Competitive 127 Advantage (Service Quality) in Hospitals in Amman

XV

List of Figures

No. Figures Page

1-1 Research Model 12 An Integrative Model of Entrepreneurial Inputs and 2-1 28 Outcomes 2-2 Creativity in Entrepreneurship 35

2-3 Typology of Entrepreneurship Styles 43

2-4 Perceived Service Quality 55 2-5 Service Quality Gap Model 57

XVI

3B3BCHAPTER ONE INTRODUCTION, SCOPE, AND OBJECTIVE

(1-1): Introduction

(1-2): Purpose of The Research

(1-3): Context and Scope of The Research

(1-4): Problem Statement

(1-5): Significance of The Research

(1-6): Research Objectives

(1-7): Research Questions

(1-8): Definitions of Terms

(1-9): Research Hypotheses

(1-10): Research Model

(1-11): limitations of The Research

(1-12): Delimitations of The Research

1

(1-1): Introduction:

The ever growing increase in the global competition, scientific and technological development in the modern business organizations, has encouraged organizations, in many fields of business, goods and service, to become an organization that attains more of the dimensions of entrepreneurial orientation. According to Burgelman et al.,(1984),

Covin & Miles,(1999), Ferrira, (2002), Dess et al., (2003), and Christensen, (2004)," An entrepreneurship orientation enhances the innovative and creative abilities of organizations employees and leads the organizations to strengthen their internal environment, strategies, processes, operations, resources, products, and services in order to increase their success through creating new ventures, exploiting new opportunities in the market and improving their competitiveness. In addition, an entrepreneurship orientation may distinguish an ability to take risk to make maximum earnings in the market". Furthermore, Antoncic and Hisrich, 2003 state that: "entrepreneurship activities are aimed towards creating new business ventures and developing new products, services, technologies, and administrative techniques within established organizations to extend their activities in related or unrelated fields and areas to the current domain of competence".

Moreover, Mojica, (2009), Bashir, (2011), and Ogbo, (2012), affirm that:

"Entrepreneurship orientation is important for accelerating economic growth and development. It plays an important role in helping reduce unemployment and poverty by increasing of employment opportunities, create an environment of entrepreneurship and encourage entrepreneurial activities. Furthermore, supporting already existing

2 entrepreneurs and avoiding death of organizations". Therefore, a better understanding of entrepreneurship orientation becomes more and more important to know the relevance of entrepreneurship dimensions to economic development (Mojica, 2009). In addition to that, entrepreneurship orientation has a significant impact on achieving competitive advantages (Al-Sakarnh, 2005). It can be achieved through using modern technology, encouraging innovativeness and creativity to introduce new ideas, products, services, and exploiting new market opportunities (Yilmas, 2008) and (Talks, 2011). Organizations continuously attempt to implement entrepreneurial orientations in order to enhance their chances of achieving competitive advantages (Jackson & Sculer, 1987).

Competitive advantage is an important objective for any organization to insure its continuity and sustainability (Javadi, 2011). It is the organization’s ability to compete and provide sustainable value for its customers. Any organization with a sustainable competitive advantage is able to increase and maintain its market share. There are many scholars who have explained and discussed competitive advantage. For instance, Porter,

1985 elucidates that: "competitive advantage is an organization’s ability to create a defensible position over its competitors". Competitive advantage means that one organization is able to compete with its competitors, when two or more organizations compete within the same market (Grant, 1998). Competitive advantage is an organization's ability to perform in one or more ways that rivals cannot match (Kotler,

2000). Furthermore, to generate competitive advantage a company must provide high and sustainable values for customers. An organization seeks to have a competitive advantage when it is implementing a value creating strategy that is not being implemented by any other competitor at the same time (Clulow, 2003).

3

In recent years, the private hospitals have found themselves in a highly competitive environment. To attract more customers, hospitals have to put customer satisfaction first.

Therefore, hospitals should strengthen their competitive advantage by ensuring providing high service quality to customers. Therefore, this research aims to investigate the potential impact of entrepreneurship in achieving the competitive advantage in private hospitals, in Amman, Jordan.

(1-2) Purpose of the Research

The purpose of the research is to investigate the impact of entrepreneurship through the following dimensions (creativity, innovation, risk-taking, and pro-activity) in achieving the competitive advantage (service quality) in the private hospitals, in Amman, Jordan.

Consequently this will facilitate finding new results and providing recommendations to help the private hospitals in solving their problems and improving their efficiency to become entrepreneurial in the market.

(1-3) Context and Scope of the Research

This research aims to investigate the impact of entrepreneurship in achieving the competitive advantage. An empirical research was conducted in private hospitals in

Amman, Jordan, which obtaind "Joint Commission International Accreditation" (JCI).

These hospitals are: (Jordan hospital, Specialty hospital, Istiklal hospital, Al Khalidi hospital, Essra hospital, Istishari hospital, Arab medical center, and Luzmila hospital).

The analysis unit within the research consisted of the managers who work at the selected private hospitals at (top management, middle management, and heads of departments).

4

The Statistical Package for Social Sciences (SPSS) was used. In addition to that, the researcher used a descriptive and analytical method to test the hypotheses.

(1-4) Problem Statement:

The increase in competition among private hospitals due the continuous change in economics, resources, technology, customer demand and expectations, the cost of labor and equipment and the limited opportunities. Consequently, this leads the management of the private hospitals in Amman to inquire how to strengthen their resources, identify and exploit new opportunities, finding more creative ways and taking appropriate steps toward offering new and high-service quality in order to increase customer satisfaction.

This process in turn reflects positively on achieving competitive advantage.

Based upon the above, the research investigates the impact of entrepreneurship dimensions (creativity, innovation, risk-taking, and pro-activity) in achieving the competitive advantage (service quality).

(1-5) Significance of the Research:

The significance of this research comes from the importance of impact of entrepreneurship dimensions in achieving the competitive advantage for the hospitals in private sector in Amman. This leads to increase the hospitals efficiency through strengthening their resources, using modern technology and research and development

(R&D) for the purpose of increasing their ability to identify and exploit new opportunities. Furthermore, this can also be achieved through providing new and high-

5 service quality that commensurate with the needs and expectations of customers. This reflects positively on customers' loyalty and achieving competitive advantage.

In addition to that, the importance of the research can be realized within the following points:

1. Developing a model to clarify the impact of entrepreneurship in achieving the

competitive advantage. Conducted to analyze the interaction between these variables.

2. Proposing some solutions for the private hospitals, in particular, to eliminate the

problems and increase their ability to take appropriate actions to achieve competitive

advantage.

3. Proposing new ideas for researchers who are working within the same realm, and it

addresses new aspects dealing with organization entrepreneurship and competitive

advantage.

4. Providing some conclusions and recommendations for future researchers and

decision-makers.

6

(1-6) Research Objectives:

(1-6-1) Main Objective:

The main objective of this research is to investigate the impact of entrepreneurship in achieving the competitive advantage in the private hospitals in Amman-Jordan.

(1-6-2) Sub-Objectives:

In order to achieve the main objective, the following sub-objectives are taken into consideration:

1. Investigating the impact of creativity in achieving the competitive advantage in the

private hospitals in Amman;

2. Investigating the impact of innovation in achieving the competitive advantage in the

private hospitals in Amman;

3. Investigating the impact of risk-taking in achieving the competitive advantage in the

private hospitals in Amman;

4. Investigating the impact of pro-activity in achieving the competitive advantage in the

private hospitals in Amman.

7

(1-7) Research Questions:

The researcher illustrates the research problem using the following questions:

(1-7-1) Major Research Question:

Is there a positive impact of the entrepreneurship dimensions (creativity, innovation, risk- taking, and pro-activity) in achieving the competitive advantage (service quality) in the private hospitals in Amman?

(1-7-2) Minor Research Questions:

1. Is there a positive impact of creativity in achieving the competitive advantage (service

quality) in the private hospitals in Amman?

2. Is there a positive impact of innovation in achieving the competitive advantage

(service quality) in the private hospitals in Amman?

3. Is there a positive impact of risk-taking in achieving the competitive advantage

(service quality) in the private hospitals in Amman?

4. Is there a positive impact of pro-activity in achieving the competitive advantage

(service quality) in the private hospitals in Amman?

8

(1-8) Definitions of Terms (Terminologies):

(1-8-1) Entrepreneurship:

Entrepreneurship refers to proactively identifying opportunities to gain advantage through, innovation, creativity, and then holding the responsibilities of delivering what the markets and customers need, via the effective management of risk, to optimize outcomes for both organizations and customers (Talks, 2011).

Entrepreneurship Dimensions:

 Creativity:

Creativity is the ability to develop new ideas for the purpose of exploiting opportunities and solving problems (Batey, 2011).

 Innovation:

Innovation is embodied in a strong organization commitment to engage in and support new and creative ideas and novelty that may result in new products, services, technological systems and processes (Kreiser & Davis, 2008).

 Risk-Taking:

Risk-taking is the degree to which organizations are willing to make risky commitments in implementing projects that involve high uncertainty level, but might also present an opportunity for a positive outcome (Kreiser & Davis, 2008).

9

 Pro-activity:

Pro-activity refers to those organizations that are the first movers to enter new markets, introduce new products or services, seize new opportunities, implement new administrative techniques and adopt new operating technologies (Abdul Razak, 2011).

(1-8-2) Competitive Advantage:

Competitive advantage can be manifested through the organization’s ability to create a defensible position over its competitors by providing superior value to customers in comparison with competitors’ offer (Porter, 1985).

Competitive advantage dimension

 Service Quality:

Service quality can be realized through the characteristics and features that enhance the ability of an organization to satiate and satisfy the stated and implied desires and needs of customers (Kotler, 2006).

10

(1-9) Research Hypotheses:

In this research, the following hypotheses were drafted based on the research problem.

This research has a major hypothesis followed by sub- hypotheses.

(1-9-1) Major Hypothesis:

Ha: There is a positive impact of entrepreneurship dimensions: (innovation, creativity, risk-taking and pro-activity) in achieving the competitive advantage (service quality) in the private hospitals in Amman at the level (  0.05).

(1-9-1-1) First Sub – Hypothesis: Ha1: There is a positive impact of innovation in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (α ≤ 0.05).

(1-9-1-2) Second Sub – Hypothesis: Ha2: There is a positive impact of creativity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (α ≤ 0.05).

(1-9-1-3) Third Sub – Hypothesis: Ha3: There is a positive impact of risk taking in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (α ≤ 0.05).

(1-9-1-4) Fourth Sub – Hypothesis: Ha4: There is a positive impact of pro-activity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (α ≤ 0.05).

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(1-10) Research Model:

(Independent Variable) (Dependent Variable) (Impact)

Entrepreneurship Competitive Advantage

Creativity H: a1

Innovation H: a2

Service Quality Risk - Taking H:a3

Pro - activity H: a4 H:a

Figure (1-1)

Research Model

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(1-11) Delimitations of the Research:

The research scope deals with the following:

Human:

The managers who work at the selected private hospitals in the research. Those managers were at (top management, middle management, and heads of departments).

Place:

The private hospitals in Amman which obtaind "Joint Commission International

Accreditation (JCI)" are: (Jordan hospital, Specialty hospital, Istiklal hospital, Al Khalidi hospital, Essra hospital, Istishari hospital, Arab Medical Center, and the Luzmila hospital).

Time:

The researcher started work on this research in January/ 2013 and finished in October/ 2013.

Scientific:

1. Entrepreneurship & competitive advantage:

There are many authors who have focused on the relation between entrepreneurship and competitive advantage like:

(Rungwitoo, 2012), (Wingwon, 2011), (Adam et al., 2011), (Ong et al., 2007),

(Alsakarneh, 2005), (Covin &Miles, 1999), (Jackson & Sculer, 1997).

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2. Entrepreneurship & its dimensions:

The researcher depends on the authors for the determination of the independent variable

“entrepreneurship” and its dimensions (creativity, innovation, risk-taking, and pro- activity):

(Adam et al., 2011), (Kreiser & Davis, 2008), (Yilmas, 2008), (Alskarnh, 2005), (Ireland et al., 2003), (Ferreira, 2002), (Druid&Nelson, 2001) and (Lumpkin& Dess , 2001,1996).

3. Competitive advantage & its dimension:

The researcher depends on the authors for the determination of the dependent variable

“competitive advantage” and its dimension (service quality):

(Abu Mahfouz, 2011), ( Epetimehin, 2011), (Amro, 2009) , (Slack, 1998), (Mintzberg &

Quinm, 1997), (Krajewski & Ritzman, 1996), (Evans, 1993), (Hill & Jones, 1989) and

(Schuler & Jackson, 1987).

(1-12) limitations of the Research (Difficulties):

Difficulties and constraints facing the researcher during his research were:

1. Having difficulty getting all the data and information related to the research

because the managers are so preoccupied with their work, which requires follow-

up on the part of the researcher to complete the process of distributing and getting

back the questionnaires.

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2. Lack of seriousness on the part of some managers when answering the

questionnaires as inaccurate and incorrect answers may lead the researcher to

cancel their responses so as to reach to more accurate answers.

3B3B

15

CHAPTER TWO REVIEW OF THE RELATED LITERATURE AND PREVIOUS STUDIES

(2-1): Introduction

(2-2): Literature Review

(2-3): Previous Studies

(2-4): Contribution of the Study to Knowledge

(2-5): Health Care and Hospital Sector in Jordan

16

(2-1) Introduction

In this chapter the researcher will describe in details the literature review and the previous studies, that he will rely on to enrich the scientific part of the study.

Next, the researcher will clarify the differences between this study and the previous ones.

Finally, the researcher will clarify some information about the health care and the hospitals in Jordan.

(2-2) Literature Review

(2-2-1) Entrepreneurship

The ever growing increase in global competition, scientific and technological development in the modern business organizations has encouraged organizations in many areas of business to be entrepreneurial in the market in order to increase their market share and achieving their competitive advantage.

A company will be an entrepreneurial when it becomes: innovative, creative, pro-active, and risk taking. These elements should be combined with some very important resources, such as modern technology which facilitates the procedures and processes and reduces the time and costs of using equipment. This leads to increase quality and productivity of the organization and human resource (Howard, 2007). Entrepreneurship can be defined as “the process of creating value for business and social communities by bringing together unique combinations of public and private resources to exploit opportunities in an environment of change” (fillis, 2010). According to Block, 1985, "Entrepreneurship

17 refers to the study of the processes and characteristics that are involved in the innovation of new products and services that can identify and fulfill opportunities within existing businesses, or that one that may create and build products or services forming new businesses". An Entrepreneurship contributes to the developing of economics, from the organizational level to the entire region. In addition to that, it contributes to the competition of new ideas, innovation and creativity. It also increases the amount of diversity (Audretsch, 2007). Entrepreneurship is the integral factor of business culture in the country specifically that it is an engine and an essential motivation for the creation of new jobs and the growth of the national economy (Sobel, 1931). It is also a process through which a new firm is created (Dobrev & Barnett, 2005). And is an act of organizational creation, innovation, or renewal that occurs within or outside an existing organization (Sharma & Chrisman, 1999). It refers to proactively identifying opportunities to gain advantages through creativity, innovation, market understanding and holding the responsibilities of delivering what customers need via the effective management of risk. This is needed to optimize the outcomes for both the organizations and customers (Talks, 2011).

Research and development R&D benefit from the technological development and advancement that help in the process of creativity, innovation and differentiation, as well as the increasing intensity of competitiveness in markets. This has actually revealed the important role of entrepreneurship in developing and maintaining its competitive advantage (Yilmaz, 2008). Therefore, the main purpose of corporate entrepreneurship is to create competitive organization in order to deal with high market competition.

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Entrepreneurship Organization

Organizations are capable of achieving creativity and innovation through strengthening their resources, using research, development strategies and keeping up with development in technology in order to achieve stronger competitive advantages.

Recently, entrepreneurship organizations are becoming interested in improving their processes, operations and activities to enhance their ability and sustainability (Dess et al.,

2003). Corporate entrepreneurship is a process of innovation and an objective of rejuvenating organizations, industries or markets to create and sustain competitive advantage (Covin & Miles, 1999). Furthermore, it is a process of extending the corporate domain of competence and ability to exploit opportunities through internally generating new and strong resources (Burgelman et al., 1984). This leads to extend the organization’s competitive advantage through generating innovation within the industry and market or creating entirely new industries (Ferreira, 2002). Moreover, it can achieve organizational rejuvenation through implementing novel ideas of employees. As a matter of fact, many studies focus on how to be an innovative and risk-taking pioneer. Also they focus on explaining various organizational phenomena such as ways of how managing, process, strategy and innovation can contribute to the strategic value and the financial performance of organizations (Christensen, 2004).

Corporate entrepreneurship has been attached to multiple distinct organizational phenomena. Covin and Miles, 1999 argue that there are three common organizational phenomena including situations where an:

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(1) "Entrepreneurial" philosophy permeates an entire organization's outlook, process, and operations.

(2) "Established": an organization enters a new business, market, and industry;

(3) Individuals highly value and support new products and service ideas within a corporate context.

In addition, There are other scholars who argue that there are two types of corporate entrepreneurship phenomena: (1) changes within the corporate itself using (innovation and venturing), and creating new businesses through market development, undertaking and adopting new products, services, processes, administrative and technological innovations; (2) changing the corporate itself that is (corporate renewal). This includes redefining the organizational concept and introducing system-wide changes to innovation activities that can enhance an organization’s ability to compete with its competitors in the marketplace (Belousova et al., 2010), (Sathe, 1989), (Ferreira, 2002), (Miller, 1983),

(Block, 1985).

According to Druid & Nelson, 2001, define an entrepreneur as the person who possesses the ability to take risk, adventurous competitiveness. They also note that the entrepreneurship organization must have three elements:

1. Entrepreneurial Staff who have creative and innovative capacity, skills and competencies. 2. Organizational dimension that is associated with vision, purpose and entrepreneurial strategy. 3. Interest in the environmental dimension associated with the market’s diversity.

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Who are Entrepreneurs?

Entrepreneurs have lots of features, abilities and skills that make them leaders.

Documented studies about entrepreneurship find some of the features that are associated with entrepreneurial businesspeople:

 The entrepreneur as a person who is driven by the need to accomplish something and

an intense desire to add something to life. (McClelland, 1961)

 Entrepreneurs are fans of new ideas, thinkers, planners and they behave positively.

They are opportunity takers and creative (Bird, 1992).

 Every good entrepreneur, in order to be good, should possess top 10 qualities which

are: honesty, ability to delegate, communication, sense of humor, confidence,

commitment, positive attitudes, creativity, intuition, and ability to Inspire (Prive,

2012).

 An entrepreneur is an individual who is characterized by innovative ideas, utilizing

new combinations of means of production (Schumpeter, 1934).

 Entrepreneurs are individuals who exploit market opportunities through technical and

organizational innovation (Schumpeter, 1965).

 An entrepreneur is a risk taker individual who is motivated to create innovation and

focus on proactive actions which result in new products, new services or new

processes which in turn lead to business sustainability (Wingwon, 2011).

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The 12 Greatest Entrepreneurs and Corporate Entrepreneurship (CE) of Our Time

According to the “Fortune Magazine” which has published the list of the greatest

entrepreneurs and corporate entrepreneurship of our time in terms of innovation, idea,

organization, sales, market, value and number of its employees.

Here is Fortune’s rationale for the list:

The list is prepared having in mind social and economic impacts, world changing

vision of the entrepreneurs ability to motivate their employees, innovation and their

actual results (Vadlamani, 2012), (Byrne, 2012). As shown in Table (2-1)

Table (2-1):

The list of the 12 greatest entrepreneurs and corporate entrepreneurship of our time

Market Rank Entrepreneur CE Sales Employees Advice Value

1 Steve jobs Apple $108.2 billion $546 billion 63,300

Find very smart people 2 Bill Gates Microsoft $69.9 billion $273.5 billion 90,000 and create small teams. Rely on "first- 3 Fred Smith FedEx $39.3 billion $30 billion 255,573 level" managers. Take regular 4 Jeff Bezos Amazon $84.0 billion $48.1 billion 56,200 mini-retreats.

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Spare no Larry Page and 5 Google $37.9 billion $203.2 billion 32,500 expense on Sergey Brin innovation Always 6 Howard Schultz Starbucks $11.7 billion $40 billion 149,000 challenge the old ways. $75 billion- Embrace 7 Mark Zuckerberg Facebook $3.71 billion 3,200 $100 billion paranoia. Purpose Whole 8 John Mackey $10.1 billion $15.5 billion 56,200 inspires Foods people. Make your Southwest 9 Herb Kelleher $15.6 billion $6.4 billion 45,392 employees No. Airlines 1 Sacrifice 10 Narayana Murthy Infosys $6.0 billion $32 billion 145,088 todays, cash in tomorrow Wal-Mart 2.0 Give people 11 Sam Walton $446.9 billion $36.5 billion Stores million what they want Small gifts can Muhammad Grameen 12 - - - equal big Yunus Bank impacts

Source: Byrne.J.,2012,"The 12 greatest entrepreneurs of our time", Online available: http://money.cnn.com

Source: Vadlamani,S.,2012,"12 Greatest Entrepreneurs of our time – Narayana Murthy, Muhammad Yunus make the cut". (Online), available: http://asiancorrespondent.com

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Differences between an Entrepreneur and a Small Business Owner (Teoh, 2011) Table (2-2) shows the differences, objectives & views between an entrepreneur and a small business owner

Table (2-2):

Differences between an Entrepreneur and a Small Business Owner

Objectives & Views Small Business Owner Entrepreneur

To Make a Change and 1 Primary Motivation To Make a Living Impact Personal Financial Increase the Value of 2 Regular Income Goal Company 3 Career Objective Self-Employment Financial Freedom 4 Financing Strategy Bank Loans Investors 5 Business Strategy Creating More Sales Providing Value

6 View of Assets Real Estate and Inventory Employees & Customers 7 Risk Taking Profile Stability Willing To Fail Employee 8 Market Rate or Below Well Pay for Top Talented Compensation Fast Paced and Growth 9 Work Environment Extension of Owner’s Home Focused Main Investor/Owner of Investor/Involvement in 10 Investment Profile Company Different Businesses Strategy, Growth and 11 Daily Actions Day to Day Manager Collaboration Long-Term and Enjoys Short-Term and a Serial 12 Work Style Repetitive Tasks Innovator/Inventor Source: Teoh,L., 2011," Difference Between an Entrepreneur and a Small Business Owner", Online available: http://www.biztechday.com

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Table (2-2) explores the differences between the entrepreneurship company and the small business owner in terms of company environment, vision, mission, strategic, objective, and way of dealing with its resources such as: (financial, and employees). This mean if any company wants to be entrepreneurial in the market it must develop its environment, and strengthen its resources, and provide vision, mission, strategies, objectives, and plans consistent with the entrepreneurship orientations.

Entrepreneurship & competitive advantage:

The main challenge facing a company to ensure its sustainability and survival is the establishment of a competitive advantage. The way to achieve this is through continuous developments of new ideas and innovation of new products, services, processes, operations, and taking the risk by seizing new opportunities and joining new markets.

The answer to today’s hyper-competitive environments is one word: “entrepreneurship”

(Christensen, 2004). Therefore, there are many scholars who have focused in their studies on the relation between the entrepreneurship and the competitive advantage, as shown in Table (2-3).

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Table (2-3):

The relation between entrepreneurship and competitive advantage as reflected by the number of authors’ studies

Scholar Year Study Title

Facilitating Entrepreneurship to Gain Competitive Jackson & Sculer 1987 Advantage: Implications for Human Resource Management Practices Corporate Entrepreneurship and the Pursuit of Covin & Miles 1999 Competitive Advantage

Entrepreneurship Strategies and its Role in Achieving Alskarnh 2005 Competitive Advantage (A study on Telecommunication Companies in Amman)

The Competitive Advantage of Small and Medium Ong et al, 2007 Enterprises (SMEs): The Role of Entrepreneurship and Luck

The Impact of Entrepreneurial Orientation and Marketing Adam et al, 2011 Innovation on Sustained Competitive Advantage of Female SMEs in Egypt: A conceptual Framework Effects of Entrepreneurship, Organization Capability, Wingwon 2011 Strategic Decision Making and Innovation Towards the Competitive Advantage of SMEs Enterprises The Simultaneous Effect of Individual Entrepreneurial Rungwitoo 2012 Competencies on SMES Competitive Advantage Prepared by the researcher

Entrepreneurship plays a very important role in obtaining sustainable competitive

advantages (Barclay & Boston, 1989). Entrepreneurship has long been recognized as

potentially viable for encouraging and sustaining corporate competitiveness (Covin &

Miles, 1999). Therefore, organizations keep attempting to design and implement

26 entrepreneurial dimensions in order to enhance their ability and be effective in order to achieve competitive advantage (Jackson & Sculer, 1987). Entrepreneurship orientation can be used in improving the competitive position (Lumpkin & Dess, 1996), (Covin &

Miles, 1999). In addition to that, there is a strong relation between the organization entrepreneurship orientation and the organizational performance (Michaels & Gow,

2008), (Nguyen et al., 2008), (Wingwon, 2011). Therefore, entrepreneurship is important for achieving the competitive advantage. Entrepreneurship refers to the quality of the entrepreneurs from the perspective of: personality, sociological and cognitive traits

(Ong et al., 2007). Entrepreneurship uses innovation to be effective and gain the competitive advantage (Jackson & Sculer, 1987). The entrepreneur is a risk taking person who takes risk to activate innovation and often takes proactive measures that result in the generation of new products or services leading to a long term sustainable competitive advantage (Porter, 2008), (Wingwon,2011).

Figure (2-1) shows the entrepreneurial process from inputs to outcomes which indicates that positive results will be generated when the company supports the entrepreneurial environment and entrepreneurial process.

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Figure (2-1)

An Integrative Model of Entrepreneurial Inputs and Outcomes

Source: Michael, H.& Morris, P.& Lewis, & Donald L. &Sexton, 1994, “Reconceptualizing Entrepreneurship: An Input-Output Perspective,” SAM Advanced Management Journal 59(1), pp: 21–31.

Finally, entrepreneurship is an important goal for organizations in order to achieve the competitive advantage in the market. This occurs when an organization competes by offering something of a value that is not offered by its competitors. This gives the customer a better reason to choose its products and services. Without this advantage, an organization will be beaten out of the market by competitors.

Entrepreneurship orientation refers to companies that want to be entrepreneurs in the market through innovation, creativity, pro-activity and risk taking. However, the companies will face aggressive competition from other competitors who operate in the same filed. Therefore, the companies need to improve their competitive advantage to face the aggressive competition and gain a market share.

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According to the authors previously mentioned, there is a strong positive relation between entrepreneurship and the competitive advantage. This confirms that entrepreneurship dimensions (Innovation, Creativity, Proactive, Risk-taking), positively impact in achieving competitive advantage.

Entrepreneurship Dimensions:

Entrepreneurship orientations encourage organizations to adopt innovation, creativity, pro-activity, uniqueness and risk-taking, as well as, encouraging employees to make decisions and take responsibility for these decisions (Histrich et al., 2005).

The main purpose of corporate entrepreneurship is to create dynamic, flexible and competitive organizational structure, as well as, culture to deal with competition and high market dynamism. Corporate entrepreneurship is conceptualized as the sum of dimensions including innovation, risk taking, pro-activity and competitive aggressiveness dimensions (Yilmas, 2008), (Ireland et al., 2003).

A popular model of entrepreneurial orientation suggests that there are five dimensions which include: autonomy, innovation, risk taking, pro-activity and competitive aggressiveness (Lumpkin &Dess, 1996).These entrepreneurship orientations provide and sustain the competitive advantage through strengthening the capacity to innovate. In addition to that, entrepreneurship dimensions include creativity, innovation, risk taking and flexibility (Ireland et al., 2003). Entrepreneurship dimensions include risk-taking, innovation, pro-activity and autonomy (Ferreira, 2002). Entrepreneurship has four

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central underlying dimensions which are: creativity, innovation, risk-taking and pro-

activity (Fillis, 2010).

According to the authors who have focused on entrepreneurship dimensions, as shown in

Table (2-4), the independent variable in this research is the entrepreneurship and its

dimensions which are (creativity, innovation, risk-taking and pro-activity).

Table (2-4):

The dimensions of entrepreneurship as reflected by the number of authors’ studies

Scholar Year Study Title Dimensions

(Innovation, Pro- activness, Risk- Clarifying the entrepreneurial orientation construct Lumpkin & Dess 1996 taking, Competitive and linking it to performance Aggressiveness and Autonomy) an Interface Between Entrepreneurship & (Innovation and Druid & Nelson 2001 Innovation. (New Zeland SMES Perspective) Creativity) (Innovation, Pro- Linking Two Dimensions of Entrepreneurial activness, Risk- Orientation to the Firm Performance; The Lumpkin & Dess 2001 taking, Moderating Role of Environment and Industry Life Competitiveness and Cycle Aggressiveness) (Innovation, Pro- Ferreira Corporate Entrepreneurship: A strategic and activness , Risk- 2002 Structural Perspective taking and Autonomy) Ireland & Hitt A Model of Strategic Entrepreneurship: The (Innovation and 2003 & Sirmon Construct and its Dimensions Creativity) (Innovation, Pro- Entrepreneurship Strategies and its Role in activness, Risk- Alskarnh 2005 Achieving Competitive Advantage (Study on taking, Creativity and Telecommunication Companies in Amman ) Uniqueness) (Innovation, Innovative Performance Impacts of Corporate Proactivness, Risk- Yilmaz 2008 Entrepreneurship: an Empirical Research in Turkey taking, Competitive and Aggressiveness)

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The Relationship between Firm-level (Innovation, Pro- Entrepreneurship and Firm Performance: The Kreiser & Davis 2008 activness and Risk- Unique impact of (innovativeness, Pro-activeness, taking) and Risk taking). The Impact of Entrepreneurial Orientation and (Innovation, Pro- Adam &Mahrous Marketing Innovation on Sustained Competitive 2011 activness and Risk- &Kortam Advantage of Female SMEs in Egypt: A conceptual taking) Framework Prepared by the researcher

1. Creativity:

The continuous increase in globalization and technology development has resulted in

more market opportunities, but the marketplace has also become more competitive

(McMullan , 2006). Creativity enables the entrepreneur to act on these opportunities in

such ways that can result in the competitive advantage for the organization. It can also

provide the basis for innovation and business growth, as well as positively influencing

society in general (Fillis, 2010). So what is creativity? Creativity is the ability to develop

new ideas for the purpose of exploiting opportunities and solving problems (Batey,

2011). Creativity is a state of mind that tends to find new ideas. Moreover, it is the

ability to merge old and new opinions for the purpose of establishing new ventures or

doing something new, either tangible or intangible, in a unique way for the purpose of

solving problems and exploiting opportunities. In recent years, creativity has become

more important than ever before, as a critical factor of success for organizations

(Basadur & Hausdorf, 1996). Therefore, understanding attitudes towards creativity and

promoting creative thinking within the organization is a pre-requisite to facilitating

creativity in all employees. Although effectiveness and efficiency have been viewed as

31 central to organizational requirements, yet creativity is also deemed as a core success factor. Organizational creativity leads to higher levels of quality and customer satisfaction. Fillis and Rentschler, 2006 view creativity as: “one being able to do imaginative and non-routine things while building on traditions for the purpose of achieving profitable outcomes". It is also viewed as a central element in problem solving and there is a number of ways in which creative thinking can facilitate decision-making.

(Fillis, 2010). Moreover, creativity is the ability to collect information in such ways that develop new ideas (Daft& Note, 2001). In addition to that, fans of creative and new ideas, thinkers, planners, and those who behave positively are opportunity takers and creative (Bird, 1992). Creativity includes cognitive activities such as decision making, critical thinking and met cognition (Feldhusen & Goh, 1995). In addition to that, creativity can be defined as a core organizational competency (Palus & Horth, 2002). It is the generation and implementation of new and appropriate ideas to establish a new venture. (Amabile, 1997; Fills, 2010). Creativity plays important role in achieving competitive advantage (Epteimehin, 2011). How can individuals have an access to creativity? Creative thinking and creative problem solving are aspects of human cognition and behavior that can be accessed through a number of strategies that are often incorporated in training programs. These programs focus on one or more of the following personality factors: motivation, met cognitive styles and skills and the manipulation of environmental conditions that encourage flexibility and openness for stimulating creative processes and behaviors (Feldhusen & Goh, 1995). Therefore, Creativity has linked itself to genius thinking, science, business and art. A number of individuals have attained heroic status through their creative philosophies, discoveries, practices and products

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(Puccio, 1991; Eysenck, 2008). In addition to being a personality characteristic, creativity has strongly grounded itself sociologically, thereby acknowledging its human rather than scientific input. (Fillis, 2010). Lee, 2004, notes that “entrepreneurial activity not only requires both supportive and productive business climate, but also it needs an environment where creativity and innovation can flourish and progress". Having a strong and diverse knowledge base, well developed business and social networks as well as an ability to identify opportunities also contribute to successful entrepreneurial behavior

(Harryson, 2008; Ko & Butler, 2007; Kijkuit et al., 2007; Rosa, 2008 ; Fillis , 2010).

Creativity is the set of creative new ideas that result in improving the effectiveness of processes and systems (Settles, 2009). Furthermore, a successful integration of creativity and technology can lead to commercialization of the idea, product or service as well as leading to the competitive advantage.

Creativity and Innovation

When we innovate, we work with the creative ideas we have developed and put them into practice (Naiman, 2013).

How Creativity and innovation are related?

Trautmann, 2010 & Batey, 2011 & Naiman, 2013, state that: “Innovation relies on creativity. You cannot innovate without first developing some ideas. Creativity is the source of innovation. If we do not use our creativity to develop a range of ideas and potential solutions, we cannot select the most promising ideas and put them into practice.

Creativity is the act of turning new and imaginative ideas into reality. It involves two processes: thinking, then producing. Innovation is the production or implementation of

33 an idea. If you have ideas, but don’t act on them, you are imaginative but not creative”.

There are two important aspects of creativity which manifest in: (Settles, 2009)

• Process: The process is goal oriented; it is designed to attain a solution to a problem.

• People: The resources determine the solution.

The creative process is visualized as one that involves a number of stages:

(Amabile 1997 & Settles, 2009 & Fillis, 2010).

- The first stage is problem identification (Ideas), during this stage, the

problem solvers recognize, define and attempt to understand the problem or the

opportunity facing them.

- The second stage is preparation. During this stage, the problem-solvers gather

information and other resources that are necessary to tackle the problem or pursue

the opportunity.

- The third stage is response generation, during this stage; various ideas for

solving the problem or pursuing the opportunity are designed.

- The fourth stage entails evaluation, communication and implementation. This

stage involves the consideration of the ideas that are generated; selecting among

them, formalization or communication of the selected approach, then starting

implementation.

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Creativity in Entrepreneurship: Figure (2-2) shows the relation between entrepreneurship, creativity, the factors which influence this relation and finally the results which will generate from this relation.

Figure (2-2)

Creativity in Entrepreneurship

The Entrepreneur

Opportunity focused, innovative, open to change, personality driven, operating under resource constraints, informal knowledge exploitation and entrepreneurial networking

Impact of cognitive skills (learned and Entrepreneurial competencies: situational personality characteristics):Idea Energy, zeal, commitment, generation, flexibility, originality, motivation, determination, persistence, unafraid of failure, opportunity focused, opportunity focused, open to risks, exploitation of networks, analytical skills, need for achievement and control intuition, judgment, determination, innovation, unrestrained thought, self-belief, ability to work with change, ambition and visualization skills

Social and other environmental influences:

Educational impact, openness to new experiences, encouragement of creativity, seeing things differently, curiosity, independent thinking and persistence

Creativity as Competitive advantage, strategic weapon, embedded philosophy, contributing to employer and employee motivation, problem solving and improved performance

Source: Fillis . I., 2010," The Role of Creativity in Entrepreneurship", Journal of Enterprising Culture (JEC), 18(1), page: 46

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Figure (2-2) shows if any company seeks to provide a creative idea in order to solve its problems, exploit new opportunities and achieve its competitive advantage integration should exist between the entrepreneur (objective, characteristic and capabilities) and other environmental influences.

Creativity and Competitive Advantage:

Creativity is the heart of development. It can be accomplished through encouraging all workers to be open to new opportunities and empowering them to solve problems (Batey,

2011). The development of creativity involves the interaction amongst three key variables. These are: people, environment, and process. The interaction amongst these variables leads to the creation of new products, services and problem solving. This can improve the competitive advantage (Selden &Vardis, 2006), (Epteimehin, 2011).

Individual creativity within an organization contributes to the overall competitive advantage and organizational innovation, while teams or groups of creative individuals increase this advantage further more (Fillis, 2010). Creativity takes place when individuals combine information to identify an opportunity or to help shape competitive advantages. In general, a function of entrepreneurial alertness of creativity leads to the recognition of entrepreneurial opportunities often after periods of mental incubation.

Following a conscious and sequential process of reasoning and experimentation, creativity can contribute to the development and usage of innovations that in turn produce competitive advantages (Ireland et al., 2003).

Creativity is a core competence for any individual or organization that seeks to be an entrepreneurship in the market. Moreover, Creativity plays a major role in building a strong competitive advantage through good human resources, ability, skills,

36 entrepreneurship environment and resources such as (technology).This encourages employees to be more creative, generate new ideas and solve problems. Furthermore, it results in improving efficiency to exploit opportunities, which in turn increases the organizational ability in introducing new products, services, technology, etc, in terms of

(quality, features, price...etc) for the purpose of satisfying customer demands. This, in turn, leads to the increase in competitiveness and the maintaining of market share.

According to the authors previously mentioned, there is a strong positive relation between creativity and competitive advantage. This confirms that entrepreneurship dimension (Creativity), positively impacts in achieving competitive advantage.

2. Innovation:

The Increased intensity in competitiveness in various markets has made both competing organizations and academics to identify and explore the innovative consequences of the actions of competitive organizations, particularly those entrepreneurship organizations

(Yilmaz, 2008).

The word innovation is derived from the Latin word (innovates), which is the noun form of inovus which means (to renew or to change) stemming from I "into" + novus "new".

Diffusion of innovation research was started in 1903 by the researcher "Tarde", who was the first to plot the S-shaped diffusion curve.

He defined the innovation-decision process as one that has a series of steps (Tarde,

1903).

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These steps include:

1. First knowledge. 2. Forming an attitude. 3. A decision to be adopted or rejected. 4. Implementation and usage. 5. Confirmation of the decision.

Innovation is the application of a creative idea to give rise and create a new product, service or process for delivering something new and better to all customers and all markets in the world (Batey, 2011). An innovative organization is an organization that innovates new services, ideas, procedures and processes within groups who work together under the social context of the organization, which consists of individuals and groups, in order to influence the innovative behavior that determines the organizational innovation of the organization (Weaver, 2002). Innovation is the heart of entrepreneurship (Stevenson & Gumpert, 1985). (Merlo & Auh, 2009). Innovation refers to the introduction of a new product, process, technology, system, technique and resources through using R&D for the purpose of improving the capability of the organization (Burgelman et al., 1988) (Hughes & Morgan, 2007) (Yilmas, 2008)

(Merlo & Auh, 2009). Innovation is embodied by a strong organizational commitment to engage in and support new and creative ideas and novelty that may result in new products, services or technological processes (Kreiser & Davis, 2008). Innovation reflects the tendency and willingness of organizations to engage in and support new ideas and processes that are creative and may as well result in introducing new products, services or processes (Adam et al., 2011). These novel combinations of the available resources may result in new goods, services and new processes that are going to be used in creating or manufacturing goods, service and new supplies of raw materials, new

38 means of distribution, or the creation of a new organization. Innovations that result from new combinations of production factors are critical to the firms’ efforts to create wealth

(Ireland et al., 2003). In addition, innovation refers to the use of new business practices or methods for introducing new products and services through responding to new technology which has its influences on the organizational market share and can increase its competitive advantage (Epetimehin, 2011). However, the new innovative products need entrepreneurial orientation which consists of (1) a business drive with organizational capability (2) application of innovation to increase the competitive advantage and (3) overcoming competitors utilizing strategic management (Wingwon,

2011).

Sources of Innovation:

Sources of innovation are different in the market, in the industrial sector, in human perception, in the amount of the available scientific knowledge, as well as, in technology development and in the local and global demographics.

Innovation in businesses can be achieved in many ways, with much attention on research and development (R&D). R&D helps in spurring on patents and other scientific innovations which can lead to productive growth in such areas as industry, medicine and government (Mark et al., 2008). Innovation can be developed by the provision of an appropriate environment in terms of: modifications of practice, through less formal on- the-job and through combinations of professional experience and the provision of modern technology. Furthermore, the famous robotics engineer Joseph F. Engelberger asserts that innovation requires only three things: (Engelberger, 1982).

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1. A recognized need, 2. Competent people with relevant technology, and 3. Financial support.

The creation of novel and new administrative systems, products and services will influence the overall organizational performance by enhancing the organizational capacity to innovate (Yilmaz, 2008).

Innovation and Competitive Advantage:

Innovation is an important factor in explaining the level of the firms' performance and competitiveness. It refers to the use of advanced technology and implementing creative ideas to introduce new potential operations, tools and strategies for the purpose of gaining sustainable competitive advantage. Organizations with a stronger degree of innovation can effectively perceive stronger organizational performance and can also achieve competitive advantage (Phapruke, 2007). Innovation can be linked to positive changes in efficiency, productivity and market share which reflect positively on the competitive advantage. (Salge & Vera, 2009, 2012). There is a significant impact of innovation, intention and infrastructure on achieving the competitive advantage (Al Mutairi, 2012).

Innovation is more likely to have positive and direct influence on the competitive advantage (Phapruke, 2007). Companies that are adopting innovation are likely to be entrepreneurs in the market for a long time. This can be possible through continually innovating new products, services, processes, operations, tools, strategies and technology that can lead to sustaining and keeping the firm in the market with high performance and competitiveness. According to the authors previously mentioned, there is a strong positive relation between innovation and competitive advantage. This confirms that

40 entrepreneurship dimension (Innovation), positively impact in achieving competitive advantage.

3. Risk-Taking:

Risk-Taking is the degree to which organizations tend to operate in such a way that has potential physical harm or financial loss, but might also present an opportunity for a positive outcome. Risk-taking refers to the tendency to behave in a way that has the potential to cause harm or danger. At the same time, risk taking may provide the opportunity that can be seen and perceived as a positive outcome (Aman Allah &

Nakhaie, 2011). The purpose of risk taking is to outperform the rivals by implement new market strategies such as: competing on price, increasing promotion and competing for the distribution channels in order to improve their own competitive position in the market. (Yilmas, 2008). Risk-taking is the degree to which managers are willing to make large and risky commitments in implementing projects that involve high uncertainty level for the likely outcomes (Kreiser & Davis, 2008). On the other hand, organizations that do not take risks in dynamic environments will lose their market share and will not be able to face tough competitors (Kreiser & Davis, 2008). Therefore, “entrepreneurship is a process in which the entrepreneur establishes new firms and new creative organizations, associated with risk-taking by new and creative ideas. This results in introducing new products or services to the market and customers (Aman Allah & Nakhaie, 2011).

Moreover, organizations tend to adopt risk-taking to provide superior values for customers and to satisfy their needs and receive an outstanding competitive advantage.

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Risk taking behaviors acquires best practices which in turn reflect on the competitive markets (Avlonitis & Salavou, 2007), (Phapruke, 2007).

Entrepreneurs face a number of different types of risks. They can be grouped into four basic areas. (Kuratko & Hodgetts, 2004), (Aman Allah & Nakhaie, 2011),

(Settles, 2009).

1. Financial risk: In most new ventures, the entrepreneur puts a significant portion of his or

her saved money, house, and other resources at stake with the possibility that his or

her money resources or other resources will be lost if the venture fails.

2. Career risk: Loss of employment security. It is the ability of the entrepreneurs to return

to their old jobs or find new jobs if their investments fail. This is a major concern of all

managers who have secured jobs with high salaries.

3. Social and family risk: it is competing commitments of work and family. An

entrepreneur uses much of his or her energy and time to start a new venture.

Consequently, his or her other commitments may suffer as a result.

4. Psychic or mental risk: it is the psychological impact that failure might have on the

well-being of entrepreneurs. Money can be substituted or replaced, spouse and children

can usually adapt, but some entrepreneurs who have suffered financial crisis are usually

unable to recover, at least not immediately.

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Typology of entrepreneurship style:

This typology highlights the need to explore, in economic theory, the styles of entrepre- neurial motivations that deviate from the styles mostly characterizing the rational person

Figure (2-3)

Typology of entrepreneurship styles

Level of personal financial risk

Low High

Risk avoiding Risk accepting Low Activity Seeking Activity seeking

Level motiveof profit Risk avoiding Risk accepting High Profit Seeking Profit seeking

Source: Monroy,T. & Folger,R.,1993 “A Typology of Entrepreneurial Styles: Beyond Economic Rationality,” Journal of Private Enterprise 9(2): pp:71

Finally, Risk taking is a process which allows the entrepreneurship company to be proactive in exploiting all opportunities, taking into accounts the potential risks and uncertainties. Consequently, this leads to increasing the company competitiveness and maintaining its market share. According to the authors previously mentioned, there is strong positive relation between risk taking and competitive advantage. This confirms that entrepreneurship dimension (Risk taking), positively impact in achieving competitive advantage.

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4. Pro-activity

Pro-activity refers to the firms that are seizing the new opportunities and are the first movers in the competitive market to take the benefit of these opportunities. Therefore, the organizational goals seize market opportunities by being the first mover in the competitive market (Yilmas, 2008). Pro-activity refers to the seeking of new opportunities and aiming to be entrepreneur, thus, it is anticipated that pro-activity will facilitate and enhance innovation (Adam et al., 2011). Pro-active behavior takes the initiative and first step in improving current products and services, or creating new ones

(Joo & Lim, 2009). Pro-activity is seeking new opportunity and forward-looking. This, of course, involves introducing new products or services and acting in anticipation of future demand for the purpose of creating change and shaping the environment (Kreiser

& Davis, 2008). In addition, firms with a higher level of pro-activity seem to better understand the current and future environments and operate effectively with better performance (Knight, 2000), (Phapruke, 2007).

The Impact of Pro-activity on Individual and Organizational benefits (Bateman & Crant, 1999):

- Individual benefits: proactive behavior predicts career success. It also predicts

career outcomes including salary, promotions and satisfaction.

- Organization benefits: At the strategic level, these benefits can be observed in the

number of new products introduced, services and processes. Also they can be seen in

the amount of resources devoted to innovation, their impact on the organizations

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performance and competitive advantage as well as in how often the firm is a first

mover.

Pro-activity and Competitive advantage:

Pro-activity refers to how organizations seize market opportunities in the marketplace through market research and first mover actions (Lumpkin & Dess, 2001). Pro-activity plays a major role in achieving competitive advantage. It involves a wide variety of activities including identifying and assessing the strengths and weaknesses of opportunities in the competitive markets and also gaining more benefits, rewards and advantages from the markets (Phapruke, 2007). Pro-activity is viewed as the firm's response to market opportunities and this implies an opportunity-seeking perspective through introducing new products and services ahead in order to increase the competitive positioning in relation to other firms (Abdul Razak, 2011).

According to the authors previously mentioned, there is a strong positive relation between pro-activity and competitive advantage. This confirms that entrepreneurship dimension (pro-activity), positively impact in achieving competitive advantage.

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(2-2-2) Competitive Advantage:

In a world where there is an increasing intensity in business competition, firms have to strengthen their operations, resources, processes and strategies in order to build and enhance the competitive advantage. In addition, changes in business phenomena and competitive situations, nowadays, greatly influence corporations to create unique competitiveness or the competitive advantage (Thompson et al., 2008), (Rungwitoo,

2012). Sustaining and keeping competitive advantage is one of the deepest interests of organizations in order to compete with competitors for the goal of attracting new customers (Javadi, 2011). Competitive advantage is an organizations ability to create a defensible position over its competitors (Porter, 1985). Competitive advantage means that one firm is able to compete with its rivals, when at the same time, two or more firms compete within the same market (Grant, 1998). Competitive advantage is the comprised capabilities that allow an organization to differentiate itself from its competitors and is an outcome of critical management decisions (Tracey et al., 1999), (Li et al., 2004). It is the thing that distinguishes your company from its competitors in the minds of customers.

A business company or an employer needs to have a clear competitive advantage and to communicate its advantage to its customers and to markets (Amadeo, 2012). The competitive advantage is an organization's ability to operate, perform, innovate and introduce new products and services in such ways that competitors cannot match with

(Kotler, 2000). In addition to generating the competitive advantage, a company must provide sustainable values for customers. An organization is said to have a competitive advantage when it is implementing a value creating strategy that is not being implemented by any current or potential competitors at the same time (Clulow, 2003).

46

Competitive advantage stems fundamentally from an organization’s ability to create value while offering lower prices than competitors for equivalent or unique benefits

(Porter, 1985). The competitive advantage is the integration between performance and capability to create superior value for a customer better than competitors (Rungwitoo,

2012). A competitive advantage is an advantage over competitors which is gained when an organization is able to provide greater services, benefits and values at higher prices or providing the same value as its competitors but at lower prices (Riley, 2012). It results from satisfying the customer by creating long-term value added to the system (Wingwon,

2011).

The competitive advantage is achieved when the organization develops attributes that allow it to outperform its competitors. These attributes can include valuable resources, such as: modern technologies and human resources with high skills and capabilities.

Moreover, it takes place when a company introduces goods and services that are differentiated in (quality, design, reputation, benefits, prices and flexibility). According to

Hasan, 2012, "A competitive advantage exists when an organization is able to deliver the same benefits as competitors do, but at lower prices, or when it delivers benefits that exceed those of competing products at higher prices". The outcome of superiority in production, resources and in performance reflects positively on the company’s competitive advantage (Lau, 2002). As a result, organizations must continuously search for developing its goods and services through creativity and innovation; this leads to achieving the competitive advantage (Epetimehin, 2011). Organizations that are trying to work on strategies with proper innovation and creativity in products and services aim to

47 satisfy the needs of consumers and create new opportunities for organizational investment (Javadi, 2011).

According to Alaihar, 2005, the elements which should be available in the organization to achieve a competitive advantage, are:

1. Providing the best level of quality for their products and services.

2. Innovation and creativity in products and services are aimed to satisfying the needs of consumers, and creating new opportunities for investment.

How can the competitive advantage be sustainable? (Lioukas & Voudouris, 2012)

1. The firm must seek the competitive advantage in combining resources & capabilities.

- Develop resources and capabilities, which are rare, valuable and non-tradable,

- Make those resulting competences sustainable by precluding imitation or

substitution by competitors.

2. The firm must offer competitive products and services.

The main elements of competitive products and services that should exist are:

- Quality as mainly presented in customer service (which in turn is reflected on

employees’ skills);

- Design, reflects on aesthetic quality, innovation and customization;

- Reputation as provided by social responsibility and environmental posture

constitute elements of competitive products and services.

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The Competitive advantage characteristics are: (Abu Mahfouz, 2011)

1. Continuity and sustainability: the competitive advantage should be continuous and

sustainable to allow the organization to achieve its goals, market share and

outperform its competitor for a long time.

2. Relativity: the competitive advantage should be relative to be able to be consistent

with the current situation and competition.

3. Flexibility: the competitive advantage should be flexible to allow the organization to

change and renew its competitive strategy in order to adapt to the new environment,

as well as new organization resources, capabilities and goals.

4. The competitive advantage should be consistent with the organizational goals and results for both the short and the long run.

Finally, organizations seek to achieve the competitive advantage. This is because the competitive advantage allows the organization to outperform its rivals and maintain its market share for a long time by providing valuable and sustainable products and services with high quality benefits and adaptable prices. The outcomes of achieving the competitive advantage allow the organization to earn excess returns for its shareholders, customer satisfaction, sustainable growth and outcomes, as well as, increasing and maintaining its market share (Dess & Robinson, 1984), (Wingwon, 2011).

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The Competitive Advantage Dimensions:

According to those authors who have focused on the competitive advantage dimensions,

as shown in Table (2-5), the dependent variable in this study is the competitive advantage

and its dimension (the service quality).

Table (2-5):

The dimensions of the competitive advantage as reflected by the number of authors’ studies

Scholar Year Dimensions

Schuler & Jackson 1987 Innovation, Quality enhancement and Cost reduction

Hill & Jones 1989 Quality, Innovation, Responding to customers and Efficiency

Evans 1993 Cost, Quality, Flexibility, Delivery and Creativity

Krajewski & Ritzman 1996 Quality, Flexibility and Cost

Mintzberg & Quinm 1997 Quality, Reputation, Price and Design

Slack 1998 Design , Quality, Flexibility, Ease of use, Aesthetic and Creativity

Amro 2009 Innovation, Creativity, Quality and Aesthetic design Efficiency ,Quality of products and services and Customer Epetimehin 2011 satisfaction Abu-Mahfouz 2011 Quality of Service Prepared by the researcher

The researcher selected the services quality, because it is consistent with the research requirement.

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Services Quality:

Service: An individual uses many services throughout his life, such as health, education services and communications. Furthermore, the customer has his own expectations and perception of the service provided by the organizations in terms of quality and sustainability. Therefore, an organization seeks to improve its services quality to meet with customer’s expectations and wants. In addition to that, the organization aims at increasing its customer loyalty, market share, and achieving the competitive advantage

(Qaddura, 2011).

Quality is a strategic weapon for any organization because it helps in sustaining growth and achieving the competitive advantage of the organization in the field of its activities.

Quality improvement has become a highly desired objective of any company’s work in the intensively competitive market. Moreover, quality is considered as the only factor that ensures the performance of the organization and leads to improving productivity and services (Deming, 1982). Therefore, in recent years there have been many authors who have underlined the importance of quality improvement as resulting from sustainable competitive advantage.

According to Garvin, 1988, if an organization adopts quality as one of the competitive advantage’s tools, it should identify the following five elements:

The company:

1. Must determine the quality of the customer’s point of view.

2. Must link quality together with profitability taking into account the cost and other

market requirements.

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3. Must view quality as a competitive tool of the organizations.

4. Must build quality in the strategic planning process of the organization.

5. Must allow quality to get full commitment from the organization.

ISO 8402-1986, defines quality as “the totality of standards, features, and characteristics of a product and a service that bears its ability to satisfy needs" (http://iso.org). Quality focuses on the benefits that are created and provided to customers (lovelock, 2007). It refers to the good products and services that meet customer requirements, expectations and wants regardless of high or low prices (Abu Mahfouz, 2011). Quality can be realized when a company is highly interested in providing an outstanding customer value. This would be expected in a culture that reinforces high quality. Therefore, the management and measurement of service quality are important for the survival and growth of service companies (Suuroja, 2003).

Service Quality: is one of the strategies that organizations try to achieve by working on it with appropriate drives and resources to sustain the competitive advantage (Javadi,

2011). According to ISO 9000:2000, service quality is manifested through the characteristics, which exists in services that are provided to customers (Qaddura, 2011).

Furthermore, Service quality is the totality of characteristics and features that enhance the ability to satiate and satisfy stated and implied desires and needs of customers (Kotler,

2006). Companies can use technology for the purpose of enhancing the service quality, gathering market demand and achieving competitive advantage (Parasuraman et al.,

1991). Those services that the business operates often assess the service quality provided and delivered to their clients in order to: improve their services, better identify problems and better assess customer satisfaction (http://businessdictionary.com). Service quality

52 is the ability to fulfill the requirements of customers and satisfy their needs through providing services that meet customers’ expectations (Abu Mahfouz, 2011). Service quality is an assessment of how a delivered service confirms to customers' expectations.

It is the level of performance that is expected by customers (Dennis, 1992). Moreover, a business with a high service quality will meet customers' needs and expectations and increases economic competitiveness. (http://asq.org). Service quality is not only involved in the final products and services, but it is also involved in services functions, operations and processes (Kumra, 2008).

Quality objective:

A quality objective is something that companies seek to achieve. They are generally based on the organization’s quality policy and must be consistent with it. They are usually designed and formulated at all relevant levels in organizations and for all relevant functions.

There are five quality objectives: (Abu Mahfouz, 2011), (Kumra, 2008)

1. External company performance objective: This includes: environment, markets

and communities.

2. Service and product performance objective: it addresses the needs and the

expectations of customers and competition.

3. Operations objective: it addresses the operations adaptability to change, ability

and efficiency.

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4. Internal company performance objective: it addresses the company’s ability,

efficiency and to what extent the company responds to actual changes in the

environment.

5. Employees' performance objective: it addresses the employee’s capabilities skills,

incentives, and staff development.

According to Change, 2008, "Service quality should be based on the customers’ point of view because they may have different needs, expectations, and different types of assessment". In addition to that, customers evaluate and expect the service quality according to their experience, personal needs and communication (Parasuraman et al.,

1990).

Criteria used by customers to evaluate the service quality (Parasuraman et al.,

1985-1994)

1. Tangibles: Appearance of physical facilities, elements, equipments, personal

communications and materials that are used to provide services.

2. Reliability: Performing promised services dependably and accurately.

3. Responsiveness: Is the readiness and willingness to help customers and provide

prompt services.

4. Service assurance: is realized through competency, creditability, security and the

ability to convey confidence.

5. Empathy: can be understood as being easy to access, caring, good

communications and understanding of customer needs.

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Perceived Service Quality (Fitzsimmons. J & Fitzsimmons. M, 2006), (lovelock,

2007)

Figure (2-4) shows how customers evaluate the perceived service quality based on their

expectations.

Figure (2-4)

Perceived Service Quality

Word -of-mouth Personal needs Past experience Communications

Service Quality Assessment

Reliability Expected service 1. Expectations exceeded (ES) Responsiveness ES

3. Expectations not met ES>PS (Unacceptable quality), (poor quality)

Source: Fitzsimmons. ,J. & Fitzsimmons, M., 2006, "Service Management:Operations, Strategy, and Information Technology, 5th ed., Boston: McGraw hill, pp 128

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Service Quality Gap Model:

Service quality is the evaluation of the processes and the outcomes that are compared with the customer's own expectations and desired benefits (Suuroja, 2003). The Service quality gap model is developed by, Parasuraman, Zeithaml, and Berry between (1985 and

1994), to highlight the main requirements for delivering high service quality.

Furthermore, it identifies five gaps between customers' perceptions of services that are actually received and customer expectations that cause unsuccessful delivery. As shown in the figure (2-5).

 The main goal is to close the service gap between customers’ expectations and

perceptions.

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Figure (2-5)

Service Quality Gap Model

Word-of-mouth Personal needs Past experience Communications

Customer Expected service Gap5

Perceived service

------

Provider Service delivery (including External communication to pre- and post-contacts) Gap4 consumer

Gap3 Translation of perceptions into Gap1 service quality specifications

Gap 2 Management perceptions of consumer expectations

Source: Parasuraman, A. & Berry, L. & Zeithaml, V., 1985, "A Conceptual Model of Service Quality and its Implications for Future Research". Journal of Marketing 49, PP.41-50.

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Gap 1: between customer expectations and management perceptions (the knowledge gap):

In this gap, management may not understand the things that consumers expect, want and how the customers formulate their expectations from their experience and communication with their (family and friends).

To eliminate this gap, management should be able to:

1. Understand customer expectations.

2. Improve market research.

3. Upward communications between front line employees and management.

4. Reduce the number of management levels.

Gap 2: between management perception and service quality specifications (standards gap):

In this gap, management knows the things that customers want and expect, but those in management may not set very clear services, quality and performance standards or they might set clear but unrealistic ones.

To eliminate this gap, management should:

1. Set service quality, performance and goal and communication standards for all work

units.

2. Measure managers’ and employees’ performance and provide them with feedback.

3. Provide rewards for managers and employees.

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Gap 3: between service quality specifications and Service delivery (delivery gap)

In this gap, management sets service quality, performance and goals standards, but the delivery of services itself cannot meet with the standards developed by management.

To eliminate this gap, management should:

1. Improve teamwork skills.

2. Perform an appropriate employee selection.

3. Conduct adequate training for employees.

4. Introduce an appropriate job design and clarify employees' roles.

5. Provide rewards for employees.

Gap 4: between service delivery and external communication with the consumer

(communication gap):

Customers' expectations are influenced by the promises and statements that are usually made by organizations, representatives and advertisements.

This gap arises when organizations are not able to deliver what an organization promises and states.

To eliminate this gap, management should:

1. Make sure that promises and statements are realistic.

2. Provide accurate information to the organization representatives about its

services to give customers accurate promises.

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3. Allow service providers and representatives to preview advertisements before

displaying them to customers.

Gap 5: between customers’ expected services and perceived services (service gap):

This gap refers to the differences between customers’ expectations and their perceptions of the services that are actually received.

The main objective of any company is to close the gap between the expected services and the perceived ones to achieve highly serviced quality and customer satisfaction.

 This gap takes place when one or more of the previous gapes occur.

 To eliminate this gap, management should identify the causes and solutions for each

gap and develop strategies to close the previous gaps.

Based on the mentioned above, a service quality is the characteristics and features that enhance the ability to fulfill and achieve requirements and satisfy customer needs through providing services that confirms customers’ expectations. Furthermore, service quality is a strategic goal of organizations because it helps to improve the organizational performance, ensure and sustain growth and achieve customer satisfaction in terms of achieving competitive advantage. Furthermore, good service quality results from strong planning, strategies, process, operations, equipments, performance, control and staff.

There are three types of service quality based on customer assessment:

1. Highly serviced quality: It is customers’ perceptions of the services that are

actually received more than their expected services.

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2. Satisfactory quality: It is the customers’ perceptions of the services that are

actually received equal their expected service.

3. Poor service quality: It is the customers’ perceptions of the services are that

actually received less than their expected service.

In addition, customers' expectations are influenced by the promises and statements that are made by organizations representatives and advertisements. Therefore, an organization should be able to deliver its promises and ensure providing services that meet and comply with customers’ expectations. Finally, service quality has a strong impact on the reputation of the organization and customer loyalty which is positively reflected on sustainable growth and competitiveness.

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(2-3) Previous Studies

(2-3-1) Arabic Studies

1. (Alaihar, 2005) Study

 Study Title:

The Role of Quality in Achieving Competitive Advantage of the Institution

 Importance of the study:

According to the researcher, this study derives its importance from the requirements of the competition which is imposed by economic markets on the current status and pushed the institutions to apply modern trends to face competition in order to achieve competitive advantage.

Furthermore, the importance of this study arises from:

1. Increasing attention towards quality requirements and its variables.

2. Increasing competition amongst institutions.

3. The pursuit on the part of institutions towards achieving the competitive advantage in

their fields.

 Objective of the study:

This study aimed to:

1. Clarify the concepts of quality and competitive advantage dimensions.

2. Emphasize the importance of achieving quality and building competitive advantage.

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3. Explain how to achieve competitive advantage through quality.

 Study Analysis and Methodology:

The researcher has based his analysis on the analytical approach by explaining and analyzing specific variables such as: quality competitive advantage.

 The Study Conclusions:

The researcher has found out that:

1. Quality is achieved before, during and after the production process.

2. The quality of products and services influences the reputation of the institution, the

degree of confidence on the part of customers, production costs, profitability and the

market share.

3. The goal of the institution is to create competitive advantages in order to create new

marketing opportunities, achieve customer satisfaction, increase profitability, improve

performance, enhance its competitive position and ensure its survival and continuity.

4. To ensure multiple sources of competitive advantage that are owned by the

corporation to avoid detection and imitation by competitors.

5. To build a competitive advantage for the institution which is based on tangible

resources such as :( raw materials, production equipments and financial resources).

As well as intangible resources such as: (quality, technology, information, vigilance

competitiveness, flexibility, knowledge, know how to work and cost of time).

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 The Study Recommendations:

Based on the study conclusions the researcher has provided the recommendations:

1. Adopt international standards specifications for the products, and developing national

standards to govern institutions in the local markets, with an emphasis on the need to

provide special hand control on the application of these specifications.

2. Create a private association with the consumer protection to ensure the quality of

products and services that meet their needs and satisfy the expectations of consumers.

3. Work towards achieving customer satisfaction, because it is the only way to ensure

the profitability of the enterprise, as well as its survival and continuity.

2. (Alskarnh, 2005) Study

 The Study Title:

Entrepreneurship Strategies and its Role to Achieve Competitive Advantage (Study on telecommunication companies in Amman)

 Importance of the study:

According to the researcher, this study has generated its importance from:

1. The role which is played by entrepreneurship strategies in the management of

business organizations. Therefore, managers can achieve competitive advantage.

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2. The role of entrepreneurship strategies in achieving competitive advantage for

business organizations and in how to deal with other organizations through creativity,

innovation, uniqueness and risk-taking.

3. The importance of the telecommunication sectors in Amman (the study population)

and its positive impact on the Jordanian economy.

 The Study Objective:

This study aims to state the role of entrepreneurship strategies to achieve the competitive advantage in telecommunication companies in Amman. It has the following objectives:

1. A clear definition of the concept of entrepreneurship strategies, its elements and

characteristics.

2. A definition of the concept of entrepreneurship, entrepreneurial organizations

characteristics and skills that ought to be enjoyed by workers in these organizations.

3. Highlighting and emphasizing the role of entrepreneurship strategies in enhancing the

competitive advantage in companies.

4. Developing a model of entrepreneurship strategies and their role in achieving

competitive advantage for telecommunication companies in Amman.

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 The Study Population and Sample:

The data were collected from (109) managers working in (4) Jordanian communication companies after submitting (140) questionnaires. The researcher selected (50) questionnaires randomly after preparing a pilot study including (12) questionnaires and finding the same results proceeding analysis.

 The Study Conclusions:

The researcher found out that:

1. In communication companies, there are positive relations between entrepreneurship

strategies and the competitive advantage.

2. In communication companies, there are positive relations between elements of

entrepreneurship strategies and the competitive advantage.

3. In communication companies, there are positive effects between the change in

entrepreneurship strategies and the competitive advantage.

 The Study Recommendations:

Based on the study conclusion the researcher provided the following recommendations:

1. Conducting future related studies in entrepreneurship strategies in many sectors such

as (industry, services, education, health, agriculture and banks).

2. Emphasizing the role of innovation and creativity for employees through participating

in meetings, conferences and decision-making.

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3. Emphasizing risk taking and pro-activeness through taking opportunities in markets

and making alliances with other companies for the sake of developing better services

to customers.

4. Emphasizing uniqueness in technology and human resources in order to be more

successful and to achieve customers’ satisfaction.

3. (Al-Mutairi, 2012) Study

 The Study title:

The Impact of Innovation Orientation on Achieving the Competitive Advantage, an Applied Study in Kuwaiti Commercial Banks

 Importance of the Study:

According to the researcher, this study generates its importance from the subject of the study in terms of strategic and organizational aspects. This study will help decision- making centers and banks to face the problems and challenges surrounding emergency situations as well as making the right decisions and use the innovation strategy to reach competitive advantages.

 The Study Objective:

According to the researcher, this study aims to investigate the impact of innovation orientation on achieving competitive advantage in the Kuwaiti Commercial Banks.

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 The Study population and sample:

The researcher has designed a questionnaire consisting of (30) paragraphs to gather the primary data from a study sample which has consisted of (102) individuals. The researcher has used SPSS to analyze and examine the hypotheses. The researcher has also used many statistical methods to achieve the study objectives, such as Multi & Simple

Regression.

 The Study Conclusions:

This research has found out that:

1. There has been a significant impact of innovation on achieving the competitive

advantage in the bank.

2. There has been a significant impact of the innovation infrastructure on achieving the

competitive advantage in the bank.

3. There has been a significant impact of innovation influence on achieving competitive

advantage in the bank.

 The Study Recommendations:

Based on the study conclusion, the researcher provided the following recommendations:

1. Policy maker in the Kuwaiti commercial banks must adopt contemporary new styles

in the management of operational processes in order to achieve excellence and

superiority over foreign banks operating in the Kuwaiti State.

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2. Policy maker in the Kuwaiti commercial banks must focus on the involvement of

their employees in the comments, opinions and the course of meetings or seminars

held by the bank.

(2-3-2) International Studies

1. (Jackson & Sculer, 1987) Study

 Study Title:

Facilitating Entrepreneurship to Gain Competitive Advantage: Implications for Human Resource Management Practices

 Importance of the study:

According to the researcher, the importance of this study comes from the importance of

entrepreneurship itself in gaining or achieving the competitive advantage. Its impact on

human resource practices and on exploring the important role of the human resource in

achieving the competitive advantage is of the essence.

 Objective of the study:

The main objective of this study is to find results or answers for this question: (What

Impact does the use of entrepreneurial strategies have on human resource management

practices?).

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 The Study Sample and population:

According to the researcher, the study sample included the human resource managers and top line managers respondents from 139 different firms.

 Study Conclusion:

The researcher found out that his pursuit for a highly entrepreneurial strategy can have a significant impact on HRM practices.

 Study Recommendations:

Based on the study conclusion the researcher has provided the following recommendations:

1. The firm's efforts to gain a competitive advantage by pursuing an entrepreneurial

competitive strategy may have significant and predictable effects on its human

resource management practices.

2. Business units that are seeking to gain a competitive advantage through using an

entrepreneurial strategy, utilize human resource practices to encourage, facilitate and

reward appropriate behaviors and attitudes including cooperation, acquisition of

immediate useful skills, a sense of ownership and commitment, as well as a concern

for long-term performance.

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2. (Covin &Miles, 1999) Study

 Study Title

Corporate Entrepreneurship and the Pursuit of Competitive Advantage

 Importance of the study:

According to the researcher, this study presents or provides a theoretical exploration of the construction of the corporate entrepreneurship. It also seeks to contribute to the literature of the corporate entrepreneurship in two ways:

1. This study will attempt to clarify what it is meant for the organization to be

entrepreneurial;

2. This study will propose a typology of the common forms of entrepreneurship

organization.

 Study Methodology:

The researcher has put four forms of corporate entrepreneurship which are presented below to elucidate the characteristics of what would seem to be some of the most common firm-level manifestations of entrepreneurial processes.

1. Sustained Regeneration.

2. Organizational Rejuvenation.

3. Strategic Renewal.

4. Domain Redefinition.

Then the researcher used criteria that were suggested for the development of acceptable classification schemata to evaluate this typology. For a classification schema to be

71 optimally strong, one should be able to answer most of the following five questions in an affirmative manner:

1. Is the schema specifying the phenomenon to be classified?

2. Is the schema specifying the properties or characteristics that will be used for

doing the classifying?

3. Is the schema consisting categories that are mutually exclusive?

4. Is the schema consisting categories that are collectively exhaustive?

5. Is the schema useful?

 The Study Conclusion:

The researcher concluded that while the proposed four-form typology is not far from criticism, it enjoys many of the properties that make a classification schema theoretically sound and useful. Thus, the current typology represents a reasonable starting point in an attempt to bring some order and concreteness to how the construction of a firm-level entrepreneurship might be depicted in theory and observed in practice.

 The Study Recommendations:

Based on the study conclusion, the researcher provided the following recommendations:

1. Corporate entrepreneurship should be viewed as more than simply one of the most

recent panaceas in a long string of managerial quick fixes that have surfaced over the

years.

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2. The manager and the researcher should identify the entrepreneurial processes that

lead to various forms of entrepreneurship organizations. Then they should

theoretically predict and empirically verify the forms of this phenomenon which

produces the best results for firms in various business and industry contexts.

3. ( Ong et al., 2007) Study

 The Study Title:

The Competitive Advantage of Small and Medium Enterprises (SMEs): The Role of Entrepreneurship and Luck

 Importance of the Study:

According to the researcher, this study has provided two very important indicators

related to long-term success of small and medium-sized enterprises. These are

entrepreneurship and luck. It has also explained the role of these indicators on the

competitive advantage.

 Objective of the Study:

This paper aims to explain the role of entrepreneurship and luck on the competitive

advantage of small and medium enterprises firms (SMEs).

 The Study Sample and Population:

All the study population consists of small and medium enterprises firms (SMEs) which

are listed in the Malaysian multimedia development corporation (MSC Malaysia)

database.

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The results from 356 usable survey responses that were collected from Malaysian SMEs were analyzed.

 The Study Conclusions:

The researcher concluded that the findings had provided important indicators to formulate a robust framework to explain the competitive advantage of SMEs.

Furthermore, he concluded that this study could provide guidelines for policy makers and entrepreneurs to strengthen the development of SMEs, which would eventually benefit the country as a whole.

 The Study Recommendations:

Based on the study conclusion the researcher provided the following recommendations:

1. The policy makers in Malaysia should recheck the curriculum of the national

education system to make balance between both knowledge-based learning and

personality development of the students to enhance and promote the entrepreneurship

culture in the country.

2. SMEs should adopt a flexible and loose organizational culture to benefit from the

uncertainties in the environment and nurture and feed creativity within the firm.

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4. (Yilmaz, 2008) Study

 Study Title:

Innovative Performance Impacts of Corporate Entrepreneurship: an Empirical Research in Turkey

 Importance of the Study:

According to the researcher, this study has generated its importance from the increasing

competitiveness in markets which has made for both competing organizations and

interested academics to explore and identify innovative consequences of competitive

firms actions, particularly for corporate entrepreneurship.

 Objective of the Study:

This study aims to examine the effects of dimensions of corporate entrepreneurship on

the innovative performances of firms which are located in Turkey.

 The Study Sample and Population:

According to the researcher, the study sample included 2032 respondents from

312 different firms from a multitude of different industries.

 Study Conclusion:

The study results indicated that the entrepreneurship dimensions of innovativeness and

pro-activeness were strong drivers of the innovative performance, but risk-taking and

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competitive aggressiveness did not seem to relate in a significant manner to

innovativeness.

5. (Wingwon, 2011) Study

 The Study Title:

Effects of Entrepreneurship, Organization Capability, Strategic Decision Making and Innovation toward the Competitive Advantage of Small and Medium Enterprises SMEs

 Importance of the Study:

According to the researcher, this study has focused on SMEs business analysis and

survey methodology to explain the effect of entrepreneurship, organization capability,

strategic decision making and innovation as the variable factors towards the competitive

advantage in the competition of the SMEs enterprises.

 Study objectives:

1. To study the level of importance of entrepreneurship, organization capability,

strategic decision making and innovation that have affected the competitive

advantage in the competition of SMEs businesses.

2. To explain the effect of entrepreneurship, organization capability, strategic decision

making and innovation variable factors towards the competitive advantage in the

competition of SMEs businesses.

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 The Study Population, Sample and Methodology:

The research methodology was conducted by using survey method on small and medium enterprises firms (SMEs) which have over 5 years experience in the market and which were registered in the four Offices of Commercial Affairs represented in: (Lampang,

Lamphun, Chiangmai and Chiangrai). This has resulted in the founding of 596 SMEs in

Thailand. The quota sampling survey method was used in accordance with the population proportion of each province.

 The Study Conclusions:

The researcher has found out that:

1. The respondents have valued the importance of entrepreneurship, strategic decision-

making, organizational capability, as well as innovation and competitive advantage

variables at high levels on all factors.

2. The outcomes of the study revealed that the entrepreneurship had direct effects

towards the organizational capability.

3. Whenever the organizational capability was abandoned and with no innovation, the

business would not be able to maintain its sustainability.

4. Innovation had direct effects towards the competitive advantage.

 The Study Recommendations:

Based on the study conclusions, the researcher has provided the following recommendations:

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1. Entrepreneurs should benchmark their businesses with relevant industries in other

regions through focusing on the related variables and successful factors as the best

practice over the owned businesses.

2. Since the competitive environment is increasingly severe with a prolonged basis, the

small and medium entrepreneurs must consider applying various strategies to enhance

the competitive advantages of their businesses.

6. (Bashir, 2011) Study

 The Study Title:

A spatial Analysis of the Role of Entrepreneurship in the Economic Development in Northeast Region of the United States

 Importance of the Study

According to the researcher, this study has generated its importance from the

identification of the most appropriate means to encourage entrepreneurship, especially in

rural areas, because it faces the problem of death of firms. This is especially true with the

increasing difficulty in economic conditions, new technology and knowledge, as well as

the increase in information economy over time among states. In addition, enhancing

economic growth is a challenging task for private and public decision makers. To

encourage entrepreneurship, it is essential to learn about the dynamics between the needs

of entrepreneurship, economic conditions and growth in the region.

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 The Study Objective:

The main objective of this study is to provide policy makers with information about the role of entrepreneurship in economic development in the Northeast region. The specific objectives are to:

1. Develop a database of socio-demographic and economic variables for the Northeast

region.

2. Identify and estimate the impact of entrepreneurship on the economic development of

the Northeast region.

3. Identify the spatial distribution of entrepreneurship in the economic development

process.

4. Draw policy implications for the economic development of the region based on the

research findings.

 The Study Analysis and Methodology:

This study has used the non-spatial simultaneous equations model to estimate the relationship using (3SLS).

This study has focused on 299 counties of the Northeast region of the U.S. The secondary data that was used in this study was dated from the 1993 to 2008 period. All endogenous variables that were formulated as growth rates were from the 1993 to 2008 period. It has provided the description of the endogenous variables, initial condition variables and cited the sources of data. The data for population employment per capita income and entrepreneurship were taken from the U.S. Census Bureau, Bureau of Economic

79

Analysis, Regional Economic Information System (REIS), and County and City Data

Book (C&CDB) within the period from 1993 to 2008.

 The Study Conclusion:

The empirical results of this study on the relationship between entrepreneurship and economic development are as follows:

1. An extension that incorporates the simultaneous relationships of new firm formation

and self-employment in the economic development of the region.

2. A new firm formation as a measure of entrepreneurship that plays a significant role

in the economic development of the Northeast region of the Unites States.

3. Self-employment also contributes to the process of economic development. New firm

formation has a stronger impact on economic development than self-employment.

 The Study Recommendations:

Based on the study conclusion, the researcher has provided the following recommendations:

1. Policy makers should identify and develop policies that enhance entrepreneurship

especially in rural areas of the region.

2. Policy makers can help to develop and implement policies that can provide

information about the use and management of resources for transportation.

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7. (Epetimehin, 2011) Study:

 Study title:

Achieving Competitive Advantage in Insurance Industry: The Impact of Marketing Innovation and Creativity

 Importance of the study:

According to the researcher, in order for organizations to achieve new gains for their stakeholders and fulfill their needs and requirements, especially in the insurance industry, they must continuously search for the development of their products and services through marketing innovation and creativity. This will play an important role in achieving competitive advantage through the forces of change into industry by consolidation and recapitalization.

 The Study Objective:

The study aimed to find out whether marketing innovation and creativity have an impact on achieving competitive advantage in the insurance industry or not.

 Study population and sample:

The population targeted by the study was the adult group (18 years and over), residing in

Lagos Nigeria, who were insurance service users or employees in the selected 20 insurance companies. The researcher chose a random sample of the population from the insurance companies and their branches. 240 questionnaires were distributed to the

81 insurance companies and their branches and 240 questionnaires were given to the insurance clients as well.

 The Study Conclusions:

The researcher found out that:

1. The insurance industry can improve its businesses and achieve a competitive

advantage through innovation and creativity.

2. There is a statistical relation between innovation and creativity and achieving

competitive advantage.

3. The Pearson's correlation coefficient for innovation, creativity, quality products and

services was 0.694 which showed a positive correlation.

 The Study Recommendations:

Based on the study conclusions the researcher provided the following recommendation:

In order to attract and satisfy new customers the insurance industry should provide new creative and innovative services with innovation in pricing, promotion and distribution.

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8. (Rungwitoo, 2012) Study

 The Study Title:

The Simultaneous Effect of Individual Entrepreneurial Competencies on Small and Medium Enterprises SMES Competitive Advantage

 Importance of the study:

According to the researcher, this study has classified the dimensions of competitive advantage to investigate entrepreneurial competencies in terms of skills and knowledge.

Moreover, it examines the simultaneous effects of entrepreneurial competencies towards the competitive advantage, specifically for established SMEs.

 Objective of the Study:

This study aims to explore the roles of entrepreneurial competencies on the competitive advantage particularly for small and medium enterprises.

 The Study population and sample:

The study particularly gives emphasis to small and medium-sized enterprises that are with less than 200 employees or fixed assets less than 200 million Baht. The enterprises are firms which operate in various sectors both goods and services such as: food and beverage, hotels and restaurants, apparel and jewelry, furniture and decoration, tourism, culture, and entertainment, logistics and industrial product. In addition, the overall sample size of this study in, Thailand, is 248 SMEs in.

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 The Study Conclusions:

The key conclusions of this study are:

1. Knowledge and skills significantly influence competitive advantage yet their

interaction with competitive advantage do not exhibit.

2. The five dimensions of competitive advantage are influenced by different roles of

entrepreneurial competencies, compounding of strategic marketing knowledge,

operations knowledge, interpersonal skills, executing skills, analytical skills,

organizing skills and responding skills.

 The Study Recommendations:

The researcher provided practical recommendations for the following three parties:

1. Government Organizations:

Government or related organizations can provide research or budget training or support for improving or boosting up managers with entrepreneurial competencies that significantly influence the competitive advantage.

2. Academic Institutions:

Academic organizations should give emphasis to developing entrepreneurial skills including: organizing, responding, executing, interpersonal activities and analytics. This would be beneficial to students who need to succeed in becoming entrepreneurs.

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3. Small and Medium Enterprises:

Owner managers should improve their competencies and abilities by taking courses to be knowledgeable in strategic marketing management, operations management and participating activities to develop entrepreneurial skills.

9. (Ogbo, 2012) Study

 The Study Title:

The Role of Entrepreneurship in Economic Development: The Nigerian Perspective

 Importance of The study:

According to the researcher, small and medium enterprises in Nigeria occupy an important position in the Nigerian economy. Their significance is derived from the following considerations:

1. SMEs account for a very high percentage of the total number of business

establishments in Nigeria.

2. Although SMEs contribution to value added is disproportionately low, more value

added is retained locally in the case of small scale enterprises than in the case of large

scale firms.

From the mentioned above, the development of small and medium enterprises can be seen as one of the necessary conditions for economic development and growth.

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 Objective of the Study:

According to the researcher, the main objective of this study is to identify ways which will establish and sustain the vibrancy for the Nigerian small and medium enterprises, so

SMEs can play important roles in the growth of our economic development. In order to achieve this objective, the researcher attempts to achieve the following objectives:

1. Ascertaining the influence of managerial capacity in the development and growth of

SMEs in Nigeria.

2. Identifying the major constraint between the managerial capacity and the access to

finance in the development of SMEs in Nigeria.

3. Evaluating the extent of accessing finance, managerial capacity and the extent of the

infrastructure influence on the development of SMEs in Nigeria.

 The Study Sample and analysis:

A total of 100 SMEs were randomly selected from a cross section of the population of all

SMEs that spread around some states of Nigeria. The responses to the questionnaires were complemented with personal interviews of some SME administrators. The responses of the participants were analyzed using (SPSS).

 The Study Conclusion:

This study found out that:

1. The access to financing was not the greatest problem facing SMEs in Nigeria.

2. The greatest problem facing SMEs in Nigeria was managerial capacity.

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3. Access to financing is necessary but not a sufficient condition for successful

entrepreneurial development.

 The Study Recommendations:

To succeed in reinventing the future of SMEs and to contribute to the making of Nigeria better than when Nigerian entrepreneurs first met it, they:

1. Should extend the current reforms to their educational system to make it more

functional.

2. There should be emphasis on modern technology.

3. There should be emphasis on entrepreneurial studies aiming to produce entrepreneurs.

10.(Tribbitt, 2012) Study

 The Study Title:

The Moderating Role of Environment on the Relationship between Corporate Governance and Corporate Entrepreneurship

 Importance of the Study:

According to the researcher, the existing research that is related to corporate governance and corporate entrepreneurship focused on how the mechanisms of the corporate governance had influenced the development of corporate entrepreneurship. While this study has been initiating itself in the process of developing a separate stream of research, the existing empirical study has largely been cross-sectional. Thus, the dynamic relationships between the two constructs have been spurious. Furthermore, the research in

87 this area, while crucial, is to some extent incomplete. Specifically that, the current analysis has not taken into consideration the impact of the exogenous factors on the relationship between corporate governance and corporate entrepreneurship.

 Objective of the Study:

This study aims to build on the current studies by addressing gaps in them.

1. This study attempts to utilize the longitudinal analytical techniques to improve our

understanding of the dynamic relationship between corporate governance and

corporate entrepreneurship.

2. This study expands the existing studies models by injecting the moderating impact of

exogenous variables between the corporate governance and the corporate

entrepreneurship relationship.

 Sample of the Study:

The researcher listed all the public firms within the same information and manufacturing industry sectors as classified by the North American industry classification system

(NAICS). These two sectors are represented by a total of 1216 firms. The information sector is composed of 261firms and the remaining 955 firms represent the manufacturing sector. Furthermore, 247 distinct NAICS codes comprise this sample of the firms. All data collected will be within the period of 15-years from1995 to 2010.

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 The Study Conclusions:

According to the researcher, this study addresses several gaps in the literature itself through injecting the moderating influence of the characteristics of the external environment into the relationship between corporate governance and corporate entrepreneurship.

In addition to that,

1. This study deepens our understanding of the dynamic relationships between

corporate governance and corporate entrepreneurship through utilizing a

longitudinal analytical approach.

2. This work steps aside from managerial perceptions when measuring corporate

entrepreneurship towards the archival measures of the construct.

 The Study Recommendations:

1. The researcher recommends that the market for corporate control, as measured by the

level of anti takeover provisions, will moderate the relationships between the

structure of the board, the corporate entrepreneurship, the executive ownership and

the corporate entrepreneurship.

2. The researcher also recommends that the different characteristics of the competitive

environment will moderate the relationship between short and long-term institutional

ownerships and corporate entrepreneurship.

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11. (Mac, 2012) Study

 The Study Title:

Improving the Service Quality of Vluna Hospital

 Importance of the Study:

According to the researcher, this study focuses on the service quality of the Victoriana

Luna hospital, in order to improve the delivery of healthcare to the officers, enlisted personnel and authorized civilians. This study seeks to find the current level and efficiency of service quality. Therefore, appropriate actions should be taken in order to improve the existing delivery of healthcare services to the hospital.

 The Study objectives:

This study aims to improve the quality service of the Victoriana Luna general hospital in terms of administrative and clinical services.

 The Study Population and Sample and Methodology:

The researcher has used the descriptive method of research and Slovin’s formula in deciding on the sample size. The sample has included patients who were used as respondents. The overall number of respondents was 254. They were divided into three categories:

1. 14 officers.

2. 88 enlisted personnel.

3. 152 authorized civilians.

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 The Study Conclusion:

The researcher found out that the current level of service quality is generally “excellent”.

Moreover, the current service quality in the hospital is also “very efficient” and “very effective”. Meanwhile, the zero hypothesis turned out to be that “there is a significant difference in the perception regarding the service quality of the hospital when patients are categorized as officers, enlisted personnel and authorized civilians”.

 The Study Recommendations:

Based on the study conclusion, the researcher provided the following recommendations:

1. Hospital management should strictly follow the provisions of the health ministry.

2. The management should also utilize on: repairs, renovations, service improvement

processes, delivery practices and implementing integration information systems.

(2-4) Contribution of the study

 The dimensions used in this research to achieve the research objectives are:

(creativity, innovation, risk-taking and pro-activity) for entrepreneurship and (service

quality) for the competitive advantage.

 The empirical work of this research involves a very important service sector that is

the private hospitals sector in Amman, Jordan. There have been no studies that

applied the impact of entrepreneurship on private hospitals in Amman, in spite of the

importance of this sector to the community and its great impact on health in this

country.

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(2-5) Health care and hospital sector in Jordan.

Jordan has an advanced health care system. Government figures have shown that the total spending on health services in 2011 is about 6.3% of the total government budget

(Health Ministry, 2011). The number of human force working in the Ministry of Health in all regions of Jordan is about 29149 in public sector. Moreover, the number of human force working in the private sector in all regions of Jordan is about 13691 (Health

Ministry, 2011).

According to a recent study that was conducted by the Jordan private hospitals association (PHA), in 2008, around 250,000 patients sought treatment in the Jordan hospitals including Palestinians, Sudanese, Libyans, Iraqis, Syrians and Egyptians.

Jordan has generated more than $1 billion dollars in the year 2008 from medical tourism

(PHA, 2008). Jordan’s competitive pricing and high quality health service have been attracting patients from many countries. The country’s health care sector is divided into both public and private sectors. In the public sector, the Ministry of Health operates 31 hospitals and accounting for 38, 1% of the total number of hospital beds in Jordan; Royal

Medical Services runs 12 hospitals, providing 20, 2 % of total number of beds in the country, The Jordan University Hospital accounts for 3 % of the total number of beds in

Jordan. The private sector operates 61hospitals, providing for 32, 7% of all hospitals beds in the country (Health Ministry, 2011). As shows in Table (2-6):

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Table (2-6)

No. of hospitals according to health ministry (in Jordan), 2011

2011 Health Sector Number of Number of % hospital beds Ministry of Health 31 4572 38,1 Royal Medical Services 12 2428 20,2 Jordan University hospital 1 547 4,6 Public King Abdullah University Universities 1 526 4,4 hospital Private hospital sector 61 3918 32,7 Total 106 11991 100

Source: Jordanian Ministry of Health, 2011, "Annual Statistical Book", Amman, Jordan

Table (2-7) shows the number of public and private hospitals specifically in Amman, which provides 53 % of all hospitals beds in Jordan

Table (2-7)

No. of hospitals according to health ministry (in Amman), 2011

2011 Hospital sector in % of all % of all beds in Number of (Amman) hospitals in Number of beds Jordan hospital Jordan Public hospital 14 13% 3727 31% sector Private hospital 38 36% 2609 22% sector Total 52 49% 6336 53%

Source: Jordanian Ministry of Health, 2011, "Annual Statistical Book", Amman, Jordan

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Selected private hospitals in the research sample:

The researcher has selected a sample from the private hospitals in Amman which had obtained "Joint Commission International Accreditation (JCI). This accreditation is given to hospitals that have achieved most of the quality standards. Table (2-8), illustrates the names and accreditation of the selected private hospitals in the research sample.

Table (2-8)

Information about selected private hospitals in the research sample

NO Hospital Name (JCI)

1 The Jordan hospital X

The Specialty hospital 2 X The Istiklal hospital 3 X Al Khalidi hospital 4 X Essra hospital

5 X Istishari hospital

6 X Luzmila hospital 7 X Arab Medical center 8 X Prepared by the researcher

To ensure the validity of information, the researcher:

1. Visited the Jordanian Health Ministry to ask about all the accredited private

hospitals in Amman.

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2. Visited the Jordanian Private Hospitals Association to ask about all accredited

private hospitals in Amman.

3. Visited the private hospitals to see and ask the quality department managers in

each hospital about whether the hospital had any accreditation.

Moreover, the researcher visited the websites of these hospitals.

JCI hospital accreditation standards: JCI sets groups of standards that should be applied in any hospital to obtain accreditation.

The quality will be measured in all hospitals based on the application of these standards.

Joint Commission International (JCI), (JCI, 2011)

JCI focuses on patients, safety and quality improvements in the global community. It was created in 1994 by the joint commission. JCI has presence in more than 90 countries today.

JCI mission: it is to continuously improve the safety and quality of care in the international community through the provision of education and advisory services, as well as, international accreditation and certification.

According to JCI, there are certain standards that must be available in any hospital in order to obtain accreditation.

 The standards that should be available in a hospital to obtain JCI accreditation are

divided into two categories:

Category 1: Patient-Centered Standards, which includes 8 groups of standards:

1. International Patient Safety Goals.

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2. Access to Care and Continuity of Care.

3. Patient and Family Rights.

4. Assessment of Patients.

5. Care for Patients.

6. Anesthesia and Surgical Care.

7. Medication Management and Use.

8. Patient and Family Education.

Category 2: Health Care Organization Management Standards, which includes 6 groups of standards:

1. Quality Improvement and Patient Safety.

2. Prevention and Control of Infections.

3. Governance, Leadership and Direction.

4. Facility Management and Safety.

5. Staff Qualifications and Education.

6. Management of Communication and Information.

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CHAPTER THREE

4B4BMETHODLOGY

(3-1): Introduction

(3-2): Research Method

(3-3): Research Design

(3-4): Statistical Techniques in Data Analysis

(3-5): Population and Sample

(3-6): Procedure for Data Collection

(3-7): Research Instrument

(3-8): Validity and Reliability

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(3-1): Introduction

In this chapter, the researcher will describe, in details the methodology used, the research population and its sample.

Afterwards, the researcher will explain the research tools and methods of data collection.

After that, the researcher will explain the statistical methods which are used in analysis of the collected data.

In the final stage, the validation of the questionnaire and the reliability analysis that have been applied will be clearly stated.

(3-2): Research Method

The researcher used a descriptive and analytical method which involved collecting data in order to test the hypotheses.

(3-3): Research Design

This research aims to investigate the impact of entrepreneurship on achieving the competitive advantage. An empirical research has been conducted in private hospitals in

Amman, Jordan.

In order to achieve the desired objective, the researcher has adopted the questionnaire survey of entrepreneurship variable by (AL-sakarnah, 2005), (Awang et al., 2009), and

(Mahmood& Hanafi, 2012), and competitive advantage variable by (Abu-Mahfouz,

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2011) and (Mahmood& Hanafi, 2012). Some of its items were reformulated to become more consistency with the research requirements.

(3-4): Statistical Techniques in Data Analysis

The data collected from all the respondents of the research questionnaire were treated using Statistical Package for Social Sciences (SPSS) version (20), for the purpose of analysis. Finally, the researcher used suitable statistical methods that consisted of:

. Percentage and Frequency

. Cronbach Alpha Reliability (α) to measure the strength of correlation and

coherence between questionnaire items.

. Arithmetic Mean to identify the level of response of the research sample

individuals to the research dimensions.

. Standard Deviation to measure the responses spacing degree about Arithmetic

Mean.

. Multiple & Simple Regression Analysis to measure the impact of research

variables.

. Relative importance, assigning due to: (Sekaran, 2003)

The Low degree is from 1 to less than 2.33.

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The Medium degree is from 2.33 to 3.66.

The High degree is from 3.67 and above.

(3-5): Population and Sample

(3-5-1): Population

The research population consists of private hospitals in Amman, Jordan. The number is

(38) hospitals according to the last annual statistics, in the year (2011), of the Jordanian

Health Ministry, and the Jordanian Private Hospitals Association, as shown in Table (3-1)

Table (3-1)

No. of private hospitals according to health ministry (in Amman), 2011

2011 Hospital sector in % of all % of all beds in Number of (Amman) hospitals in Number of beds Jordan hospital Jordan Private hospital 38 36% 2609 22% sector

Source: Jordanian Ministry of Health, 2011, "Annual Statistical Book", Amman, Jordan

(3-5-2): Sample and the Unit of Analysis

(3-5-2-1): Sample

The research sample contains private hospitals in Amman which obtained "Joint

Commission International Accreditation (JCI)", as shown in Table (3-2).

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Table (3-2)

Selected private hospitals in the research sample

2013

NO Hospital Name Number of beds (JCI) accreditation

1 The Jordan hospital 300 X

2 Specialty hospital 267 X

3 Al Khalidi hospital 160 X

4 The Istiklal hospital 150 X

5 Essra hospital 200 X

6 Istishari hospital 108 X

7 Luzmila hospital 58 X X 8 Arab medical center 146 Total 1389 8

Source: Jordanian Ministry of Health, 2011, "Annual Statistical Book", Amman, Jordan

(3-5-2-2): The Unit of Analysis:

The unit of analysis consisted of 160 managers to whom 160 copies of the questionnaire were distributed. Those managers were at (top management, middle management, and heads of departments), and worked at the selected private hospitals. The number of returned questionnaires were (131), equivalent to 81.87% of all questionnaires distributed. Finally, the number of questionnaires that fitted the analysis was (102), equivalent to 77.86% of all the returned questionnaires, as shown in Table (3-3):

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Table (3-3)

No. of questionnaires distributed, No. of returned questionnaires, and No. of questionnaires fit for analysis

No. of Questionnaires No. of Returned No. of Questionnaires No. Hospital Name Distributed Questionnaires that Fitted the Analysis

1 The Jordan hospital 20 18 16

2 Specialty hospital 20 16 10

3 The Istiklal hospital 20 20 17

4 Al Khalidi hospital 20 11 17

5 Essra hospital 20 11 9

6 Istishari hospital 20 11 16

7 Luzmila hospital 20 11 8

8 Arab Medical center 20 11 9

Total 160 131 102

Percent 100% 81.87 77.86

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(3-6): Procedure for Data Collection:

The researcher relied on the following sources for data collection:

1. Secondary sources: the researcher used books, journals and theses in writing the theoretical framework of the research.

2. Primary source: a structured questionnaire was adopted from some of the previous studies, and some of its items were reformulated to reflect the research objectives and questions.

(3-7): Research Instrument

This research used a structured questionnaire that adopted from some of the previous studies like (AL-Sakarnah, 2005), (Awang et al., 2009), and (Mahmood& Hanafi, 2012) for entrepreneurship variable, and (Abu-Mahfouz, 2011) and (Mahmood& Hanafi, 2012) for competitive advantage variable. Some of its items were reformulated to become more consistency with the research requirements. It consisted of three sections.

*The Demographic Variables: The demographic information was collected using close- ended questions, through (6) factors (Gender; Age; Qualification; Years of Experience;

Working years at the hospital and Job Position).

*The Entrepreneurship Variable: This section measured the entrepreneurship through

(4) dimensions (innovation, creativity, risk-taking, and pro-activity); (22) items in total.

(7) for innovation, (5) for creativity, (5) for risk-taking and (5) for pro-activity on a Five type scale (Likert,1932).

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*The Competitive Advantage (service quality) Variable: This section measured the competitive advantage “service quality” through (9) items on a Five type scale as follows

(Likert, 1932):

Strongly Strongly Agree Agree Neutral Disagree Disagree

5 4 3 2 1

(3-8): Validity and Reliability

(3-8-1): The Research Validity:

This research is based on some of the previous studies, which related to its subject and/or variables. Consequently, the research instrument included the most important and related items in many studies. See appendix (B). Some of its items were reformulated to become more consistent with the research requirements.

(3-8-2): The Study Reliability:

The reliability analysis that was applied to the level of Cronbach Alpha (α) is the criteria for internal consistency which is at the minimum acceptable level (Alpha ≥ 0.60) as suggested by (Sekaran, 2003).

These results are shown in Table (3-4):

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Table (3-4)

Reliability of Questionnaire Dimensions

No. Dimensions No. of Items Alpha Value (α)

1 Entrepreneurship 22 0.887

1 – 1 Innovation 7 0.870

1 – 2 Creativity 5 0.858

1 – 3 Risk taking 5 0.798

1 – 4 Pro-activity 5 0.808

2 Competitive Advantage 9 0.897

All Questionnaires 31 0.936

C6B6B

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CHAPTER FOUR PRESENTATION OF RESULTS, DISSCUSSION AND INTERPRETAION

(4-1): Introduction

(4-2): Demographic Profile of Respondents

(4-3): Descriptive analysis of Research variables

(4-4): Research Hypotheses Tests

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(4-1): Introduction:

According to the purpose of the research, this chapter describes the results of the demographic variables analysis as well as statistical analysis for the data collected according to the research questions and research hypotheses. The data analysis includes a description of the Means and Standard Deviations of the questions of the research.

Multiple and Simple Linear Regression analysis are used.

(4-2): Demographic Profile of Respondents:

Table (4-1) shows the results of demographic variables of the research sample (gender, age, qualification, years of experience, working years in the hospital, and job position).

Table (4-1)

Distribution of the research sample due to gender, age, qualification, years of experience, working years in the hospital, and job position

Variables Categorization Frequency Percent

Male 64 7.26 Gender Female 38 3623

Total 102 100

30 years or less .. ..27

From 30 – 40 Years 67 7.27 Age From 41 – 50 Years . 62.

51 Years above . .

Total 102 100

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Bachelor or Less 63 6.27

High Diploma 7 925 Qualification Master .5 ..27

PhD 4 325

Total 102 100

5 years or less .5 ..27

From 6 – 10 Years .. ..27

Years of Experience From 11 – 15 Years .9 .429

From 16 – 20 Years .9 .426

21 Years above .. .727

Total 102 100

5 years or less 47 352.

From 6 – 10 Years 3. 3724 Working Years in the From 11 – 15 Years .. .727 Hospital From 16 – 20 Years . 62.

21 Years above . .

Total 102 100

General Manager . .

Hospital Manager . .

Job Position Director .. ..27

Assistant Director 5 .2.

Head of department 75 7627

Total 102 100

Table (4-1) shows that (62.7%) of the respondents are males and (37.3%) are females.

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It also shows that (68.6%) of the respondents’ age ranged between (30) and (40) years,

(21.6%) of the respondents’ age ranged about (30) years or less, (7.8%) of the respondents’ age ranged between (41) and (50) years and (2%) of the respondents’ age ranged (51) years or above. Furthermore, the respondents’ qualifications represent all the study samples that have a scientific qualification, which is a good sign when adopting the high educational qualifications to accomplish the work. In addition, the table shows that

(23.6%) of the workers experience was 5 years or less, (12.6%) of the workers had experience ranging from 6 to 10 years, (1..2%) of the workers had experience ranging between 11 and 15 years, (2..8%) of the workers had experience ranging between 16 and

20 years and (11.6%) had experience of (21) years and above.

Descriptive analysis of the working experience years in the private hospitals clarifies that

(8..1%) of them were with 5 years or less, (81..%) of the working experience years ranged from 6 to 10 years, (11.6%) of the working experience years ranged from 11 to 15 years, (7.8%) of the working experience years ranged from 16 to 20 and (2%) of the working experience years was (21) years and above

Finally, the analysis of the job position revealed that (1%) of the research respondents were general managers, (1%) were hospital managers, (12.6%) were directors, (3.3%) of the respondents of the research were assistant directors and (68.6%) were heads of department.

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(4-3): Descriptive analysis of the Research variables:

(4-3-1): Entrepreneurship (Innovation):

The researcher has used the: arithmetic mean, standard deviation, item importance and level as shown in Table (4-2).

Table (4-2) clarifies the level of innovation. It shows that the arithmetic means ranged between (3.85 and 4.28) compared to the general arithmetic mean which amounts to

(4.05). We observed that the highest mean was for the item “for the last 3 years, our hospital has provided many new services" with an arithmetic mean of (4.28), and a standard deviation of (0.65). The lowest arithmetic mean was for the item "Our hospital emphasizes strongly on research and development R&D and innovation instead of focusing on marketing of current services” with an average of (3.85) and a standard deviation of (0.87). In general, it appears that the level of innovation in the private hospitals of Amman was high.

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Table (4-2)

Arithmetic mean, SD, item importance and level of Innovation t- value Item No. Innovation Mean St.D Sig level importance Calculate

1 For the last 3 years, our hospital has provided 4.28 0.65 19.93 72777 1 High many new services Our hospital strongly emphasizes research . and development R&D and innovation instead 3.85 0.87 9.87 72777 7 High of focusing on marketing of current services

The changes in services in our hospital are 3 4.06 0.74 14.42 72777 3 High quite dramatic

The senior management philosophy in the 4 hospital emphasizes the development of 3.96 0.87 11.05 72777 6 High services regardless of the costs

Our hospital provides training courses for 9 4.01 0.90 11.43 72777 4 High employees to reach innovation and excellence

Our hospital seeks to benefit from technology 7 4.17 0.72 16.42 72777 2 High in order to provide better services

Our hospital priorities which are taken into 6 4.00 0.78 12.89 72777 5 High account are at continuous growth and stability

General Arithmetic mean and standard deviation 4.05 0.61

t- Value Tabulate at level (  0.05) (1.660)

t- Value Tabulate was calculated based on Assumption mean to item that (3)

Table (4-2) shows that the private hospitals strongly encourage the innovation dimension

to be entrepreneurship in the market, and their managers know the importance of

innovation in order to achieve the competitive advantage.

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(4-3-2): Entrepreneurship (Creativity):

The researcher has used the arithmetic mean, standard deviation, item importance and level as shown in Table (4-3).

Table (4-3) clarifies the level of creativity, where the arithmetic means ranged between

(3.65 and 3.92) compared to the general arithmetic mean amount of (3.80). We observed that the highest mean was for the item "Our hospital is keen on research and development R&D and provides services that comply with the customer needs" with an arithmetic mean of (3.92) and a standard deviation of (0.71). The lowest arithmetic mean was for the item "Our hospital encourages new ideas from any worker regardless of his/her status in the hospital” with an average of (3.65) and a standard deviation of

(0.92). In general, it appears that the level of creativity in the private hospitals of Amman was high.

112

Table (4-3)

Arithmetic mean, SD, item importance and level of Creativity

t- value Item No. Creativity Mean St.D Sig level Calculate importance

The hospital benefits from the ideas of 1 3.79 0.92 8.65 0.000 3 High workers in solving problems

Our hospital encourages new ideas from . any worker regardless of his/her status in 3.65 0.92 7.14 0.000 5 Median the hospital

Our hospital gives great attention to 3 3.79 0.78 10.18 0.000 3 High devise services and new processes

The hospital encourages the teamwork 4 3.88 0.85 10.36 0.000 2 High approach to produce new ideas

Our hospital is keen on research and 9 development R&D and provides services 3.92 0.71 13.05 0.000 1 High that comply with the customer needs

General Arithmetic mean and standard deviation 3.80 0.68

t- Value Tabulate at level (  0.05) (1.660)

t- Value Tabulate was calculated based on Assumption mean to item that (3)

Table (4-3) shows that the private hospitals strongly encourage creativity dimension to

become entrepreneurship in the market and their managers know the importance of

creativity in order to achieve the competitive advantage.

113

(4-3-3): Entrepreneurship (Risk-Taking):

The researcher has used the arithmetic mean, standard deviation, item importance and level as shown in Table (4-4).

Table (4-4) clarifies the level of risk taking, where the arithmetic means ranged between

(3.05 and 3.66), compared to the general arithmetic mean amount of (3.40). We observed that the highest mean was for the item "Our hospital is risk-taking with the opportunities associated with risks" with an arithmetic mean of (3.66) and a standard deviation of (0.82). The lowest arithmetic mean was for the item "In general, our hospital has a strong emphasis on high risk projects with uncertain returns” with an average of (3.05) and a standard deviation of (1.00). In general, it appears that the level of risk taking in the private hospitals of Amman was Median.

114

Table (4-4)

Arithmetic mean, SD, item importance and level of Risk taking

t- value Item No. Risk taking Mean St.D Sig level Calculate importance

Our hospital is a risk taker through 1 expanding the opportunities which are 3.66 0.82 8.16 0.000 1 Median associated with risk.

Our hospital decisions are risky in spite . 3.29 0.97 3.05 0.003 4 Median of the uncertainty of outputs.

The hospital seeks to seize opportunities 3 3.52 1.03 5.18 0.000 2 Median and look for new markets.

In general, our hospital strongly 4 emphasize high risk projects with 3.05 1.00 2.59 0.013 5 Median uncertain returns.

We practice “wait and see” position to 9 3.46 0.75 6.17 0.000 3 Median minimize risk.

General Arithmetic mean and standard deviation 3.40 0.68

t- Value Tabulate at level (  0.05) (1.660)

t- Value Tabulate was calculated based on Assumption mean to item that (3)

Table (4-4) shows that the attitude level of risk-taking in the private hospitals of Amman

is median. The reason behind these results is that the nature of the work, as being the

health institutions, does not accept risk in decisions.

115

(4-3-4): Entrepreneurship (Pro-activity):

The researcher has used the arithmetic mean, standard deviation, item importance and level as shown in Table (4-5).

Table (4-5) clarifies the level of pro-activity, where the arithmetic means ranges between

(3.63 and 3.93), compared to the general arithmetic mean amount of (3.75). We observed that the highest mean is for the item "Our hospital works on providing services, including new features and different improvements more than competitors" with an arithmetic mean of (3.93) and a standard deviation of (0.97). The lowest arithmetic mean was for the item "In general, our hospital is the first mover in introducing new services” with an average of (3.63) and a standard deviation of (0.75). In general, it appears that the level of pro-activity in the private hospitals of Amman was high.

116

Table (4-5)

Arithmetic mean, SD, item importance and level of Pro-activity

t- value Item No. Pro-activity Mean St.D Sig level importance Calculate

The hospital seeks to provide new 1 3.64 0.76 8.52 0.000 4 Median services before competitors

In general, our hospital is the first . 3.63 0.75 8.52 0.003 5 Median mover in introducing new services

The hospital seeks customers- 3 satisfaction in a way beyond the size 3.68 0.73 9.48 0.000 3 High of the possibilities available

Our hospital works on providing services including new features and 4 3.93 0.97 9.62 0.013 1 High different improvements more than its competitors

The hospital is fast-growing to 9 3.86 1.15 7.56 0.000 2 High achieve its main objectives

General Arithmetic mean and standard 3.75 0.67 deviation

t- Value Tabulate at level (  0.05) (1.660)

t- Value Tabulate was calculated based on Assumption mean to item that (3)

Table (4-5) shows that the private hospitals strongly encourage pro-activity dimension to

become entrepreneurship in the market and their managers know the importance of pro-

activity in order to achieve the competitive advantage.

117

(4-3-5): Competitive Advantage (Service quality):

The researcher has used the: arithmetic mean, standard deviation, item importance and level as shown in Table (4-6).

Table (4-6) clarifies the level of service quality, where the arithmetic means ranges between (3.65 and 4.03) compared to the general arithmetic mean amount of (3.79). We observed that the highest mean is for the item "The hospital seeks to provide new services" with an arithmetic mean of (4.03) and a standard deviation of (0.84). The lowest arithmetic mean is for the item "The hospital provides its services with competitive prices” with an average of (3.65) and a standard deviation of (0.86). In general, it appears that the level of service quality in the private hospitals of Amman was high.

118

Table (4-6)

Arithmetic mean, SD, item importance and level of Service quality

t- value Item No. Service quality Mean St.D Sig level importance Calculate

The hospital provides its services with 1 3.65 0.86 7.57 72777 9 Median competitive prices

Hospital services and prices are . adaptable according to supply and 3.72 0.76 9.48 72777 5 High demand

The hospital provides offers on its 3 3.91 0.77 11.93 72777 2 High prices of services.

The hospital seeks to provide new 4 4.03 0.84 12.41 72777 1 High services

The hospital evaluates the quality of its services with constant 9 3.90 0.96 9.49 72777 3 High development to improve its competitive position in the market

The hospital works to provide 7 services which include new additional 3.72 0.83 8.76 72777 5 High features

The hospital is entrepreneur in 6 3.69 0.78 8.85 72777 8 High providing services before its rivals

The hospital quickly responses to 8 3.80 0.69 11.77 72777 4 High customer complaints

The hospital works to stimulate the research and development R&D to 9 3.72 0.50 14.60 72777 5 High provide services in accordance with the customers’ needs

General Arithmetic mean and standard 3.79 0.64 deviation

t- Value Tabulate at level (  0.05) (1.660)

t- Value Tabulate was calculated based on Assumption mean to item that (3)

119

Table (4-6) shows that the private hospitals seek to provide high service quality for its customers to increase its customer satisfaction in order to achieve the competitive advantage.

(4-4): The Research Hypotheses Test:

The researcher, in this part, has tested the main hypotheses, using one sample t-test, multi and simple linear regression analysis with (F) testing using ANOVA table.

To ensure the impact of each dimension of entrepreneurship in achieving the competitive advantage (service quality) in the private hospitals in Amman the researcher divides the main hypothesis into four sub hypotheses. The researcher uses the simple regression analysis to test each sub-hypothesis as a follows:

First Sub-Hypothesis:

Ha1: there is a positive impact of innovation in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (α ≤ 0.05).

To test this hypothesis, the researcher uses the simple regression analysis to ensure the impact of innovation in achieving the competitive advantage (service quality) in the private hospitals in Amman. As shown in Table (4-7).

120

Table (4-7)

Simple Regression Analysis test results of the impact of innovation in achieving the competitive advantage (service quality) in the private hospitals in Amman

2 F T (R) (RPP PP) DF Sig* Β Sig* Calculate Calculate

1 competitive advantage 727.6 72463 942794 100 0.000 7247. 62353 0.000 (service quality) 101

* the impact is significant at level (  0.05)

From table (4-7) the researcher observed that there is a significant impact of innovation in

achieving the competitive advantage (service quality) in the private hospitals in Amman.

The R is (1.638) at level (  0.05) whereas the R2 is (1..88). This means that the (1..88)

of the competitive advantage (service quality) in the private hospitals in Amman

changeability’s resulted from the changeability in innovation. As β is (1..63) this means

that the increase in one unit of innovation will increase the competitive advantage

(service quality) in the private hospitals in Amman by the amount of (1..63). This

confirms the significant effect F calculated which is (2..62.) and its significance at the

level (  0.05), and that confirms the validity of the first sub-hypotheses, and acceptance

of the hypothesis:

There is a positive impact of innovation in achieving the competitive advantage (service quality) in the private hospitals in Amman at level (  0.05).

121

Second Sub-Hypothesis:

Ha2: there is a positive impact of Creativity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (α ≤ 0.05).

To test this hypothesis, the researcher uses the simple regression analysis to ensure the

impact of creativity in achieving the competitive advantage (service quality) in the

private hospitals in Amman. As shown in Table (4-8).

Table (4-8)

Simple Regression Analysis test results of the impact of creativity in achieving the competitive advantage (service quality) in the private hospitals in Amman

2 F T (R) (RPP PP) DF Sig* Β Sig* Calculate Calculate

1 competitive advantage 729.7 72.66 .323.. 100 0.000 72993 42.37 0.000 (service quality) 101

* the impact is significant at level (  0.05)

From table (4-8) the researcher observes that there is a significant impact of creativity in

achieving the competitive advantage (service quality) in the private hospitals in Amman.

The R is (1.216) at the level (  0.05) whereas the R2 is (1.188). This means that the

(1.188) of the competitive advantage (service quality) in the private hospitals in Amman

changeability’s resulted from the changeability in creativity. As β is (1.228), this means

that the increase in one unit of creativity will increase the competitive advantage (service

122 quality) in the private hospitals in Amman by the value (1.228). This confirms that the significant effect F calculated is (18.813) and its significance at level (  0.05), and that confirms the validity of the second sub-hypotheses, and acceptance of the hypothesis:

There is a positive impact of Creativity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at level (  0.05).

Third Sub-Hypothesis:

Ha3: there is a positive impact of Risk-taking in achieving the competitive advantage

(service quality) in the private hospitals in Amman at level (α ≤ 0.05).

To test this hypothesis the researcher uses the simple regression analysis to ensure the impact of risk taking in achieving the competitive advantage (service quality) in the private hospitals in Amman. As shown in Table (4-9).

123

Table (4-9)

Simple Regression Analysis test results of the impact of Risk taking in achieving the competitive advantage (service quality) in the private hospitals in Amman

2 F T (R) (RPP PP) DF Sig* Β Sig* Calculate Calculate

. competitive advantage 72977 72.97 .72... 100 0.000 7294. 42973 0.000 (service quality) 101

* the impact is significant at level (  0.05)

From table (4-9) the researcher observed that there is a significant impact of risk taking in

achieving the competitive advantage (service quality) in the private hospitals in Amman.

The R is (1.211) at the level (  0.05) whereas the R2 is (1.121). This means that the

(1.121) of the competitive advantage (service quality) in the private hospitals in Amman

changeability’s resulted from the changeability in Risk-taking. As β was (1.2.1), this

means that the increase in one unit of risk-taking will increase the competitive advantage

(service quality) in the private hospitals in Amman by the value of (1.2.1). This confirms

that the significant effect F calculate is (11.132) and its significance at level (  0.05).

This confirms the validity of the third sub-hypotheses, and acceptance of the hypothesis:

There is a positive impact of Risk-taking in achieving the competitive advantage

(service quality) in the private hospitals in Amman at level (  0.05).

124

Fourth Sub-Hypothesis:

Ha4: there is a positive impact of Pro-activity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at level (α ≤ 0.05).

To test this hypothesis, the researcher uses the simple regression analysis to ensure the

impact of Pro-activity in achieving the competitive advantage (service quality). As shown

in Table (4-10).

Table (4-10)

Simple Regression Analysis test results of the impact of Pro-activity in achieving the competitive advantage (service quality) in the private hospitals in Amman

F T 2 (R) (RPP PP) DF Sig* Β Sig* Calculate Calculate

. competitive advantage 72975 723.4 .52.99 100 92475 72.9. 92475 0.000 (service quality) 101

* the impact is significant at level (  0.05)

From table (4-10) the researcher observes that there is a significant impact of Pro-activity

in achieving the competitive advantage (service quality) in the private hospitals in

Amman. The R is (1.26.) at the level (  0.05) whereas the R2 is (1.81.). This means

that the (1.81.) of the competitive advantage (service quality) in the private hospitals in

Amman changeability results from the changeability in Pro-activity. As β is (1.123), this

125 means that the increase in one unit of Pro-activity will increase the competitive advantage

(service quality) in the private hospitals in Amman the value of (1.123). This confirms that the significant effect F calculated is (1..122) and its significance at level (  0.05) and that confirms the validity of the fourth sub-hypotheses, and acceptance of the hypothesis:

There is a positive impact of Pro-activity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at level (  0.05).

Finally, to ensure the impact of entrepreneurship dimensions in achieving the competitive advantage (service quality) in the private hospitals in Amman, the researcher uses the multiple regression analysis to test the main hypothesis, as a follows:

Main Hypothesis:

Ha: there is a positive impact of entrepreneurship dimensions (innovation,

creativity, risk-taking and Pro-activity) in achieving the competitive advantage

(service quality) in the private hospitals in Amman at level (α ≤ 0.05).

To test this hypothesis, the researcher uses the multiple regression analysis, as shown in

Table (4-11).

126

Table (4-11)

Multiple regression analysis test results of the entrepreneurship dimensions on achieving the competitive advantage (service quality) in the private hospitals in Amman

2 F T (R) (RPP PP) DF Sig* Β Sig* Calculate Calculate

4 Innovation 0.342 6.357 0.000 competitive advantage Creativity 72379 9249. 72777 0.881 0.776 83.941 97 0.000 (service Risk-taking 72.4. 32969 7277. quality) 101 Pro-activity 0.145 3.930 0.000

* the impact is significant at level (  0.05)

From table (4-11), the researcher observes that there is a significant impact of

entrepreneurship dimensions in achieving the competitive advantage in the private

hospitals in Amman. The R is (0.881) at the level (  0.05) whereas the R2 is (0.776).

This means that the (0.776) of competitive advantage - service quality - in the private

hospitals in Amman changeability results from the changeability in entrepreneurship

dimensions. As β is: (Innovation = 0.342; Creativity = 0.305; Risk-taking = 0.141 and

Pro-activity = 0.145), this means that the increase in one unit of entrepreneurship

dimensions will increase the competitive advantage (service quality) in hospitals in

Amman value (Innovation = 0.342; Creativity = 0.305; Risk-taking = 0.141 and Pro-

activity = 0.145). This confirms the significant impact F calculated which is (83.941) and

its significance at the level ( 0.05) and that confirms the validity of the main

hypothesis, and acceptance of the hypothesis:

127

There is a positive impact of entrepreneurship dimensions (innovation, creativity, risk-taking and Pro-activity) in achieving the competitive advantage (service quality) in the private hospitals in Amman at level (  0.05).

128

CHAPTER FIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

(5-1): Introduction

(5-2): The Research Summary

(5-3): The Research Conclusions

(5-4): The Research Recommendations

(5-5): Suggestions for Further Research

129

(5-1): Introduction:

In this chapter, the researcher will clarify the research results and set some conclusions.

In the next step, the researcher will set some recommendations to private hospitals managers in Amman, and for future studies.

(5-2): The Research Summary:

The current research has raised a set of questions. Moreover, it has also constructed hypotheses related to the positive impact between the study variables. The research has reached many results that can contribute to the solving of the research problem, answering the research questions and its hypotheses. The main results can be summarized as follows:

1. The attitude level of innovation in the selected private hospitals in Amman was (high)

with a general arithmetic mean amount of (4.05) and a standard deviation of (0.61).

2. The attitude level of creativity in the selected private hospitals in Amman was (high)

with a general arithmetic mean amount of (3.80) and a standard deviation of (0.68).

3. The attitude level of risk-taking in the selected private hospitals in Amman was

(median) with a general arithmetic mean amount of (3.40) and a standard deviation

amount of (0.68).

130

4. The attitude level of pro-activity in the selected private hospitals in Amman was

(high) with a general arithmetic mean amount of (3.75) and a standard deviation

amount of (0.67).

5. The attitude level of service quality in the selected private hospitals in Amman was

(high) with a general arithmetic mean amount of (3.79) and a standard deviation

amount of (0.64).

6. There is a positive impact of entrepreneurship dimensions: (innovation, creativity,

risk-taking and pro-activity) in achieving the competitive advantage (service quality)

in the private hospitals in Amman at the level (  0.05).

7. There is a positive impact of innovation in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (  0.05).

8. There is a positive impact of creativity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (  0.05).

9. There is a positive impact of risk-taking in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (  0.05).

10. There is a positive impact of pro-activity in achieving the competitive advantage

(service quality) in the private hospitals in Amman at the level (  0.05).

131

(5-3): The Research Conclusions:

On the basis of the research results, the researcher concludes the following:

1. The attitude level of the three dimensions of entrepreneurship: (innovation, creativity,

and pro-activity) in the selected private hospitals in Amman was (high). This

confirms that the private hospitals seek to have a more entrepreneurial orientation and

their managers know the importance of the applying of the entrepreneurship

dimensions in order to achieve the competitive advantage.

2. This research has shown showed that the attitude level of risk-taking in the selected

private hospitals in Amman was (median) with a general arithmetic mean amount of

(3.40). The reason behind this result is that the nature of the work (as being the health

institutions) does not accept risk in decisions. This indicates that the private hospitals

in Amman do not seek to take the risk dramatically in terms of decision making, in

spite of the uncertainty of the outputs and seizing new opportunities associated with

risks.

3. This research has shown that the private hospitals in Amman do not strongly

encourage new ideas represented by their employees as shown in the table (4-3) with

an arithmetic mean amount of (3.65) and a standard deviation amount of (0.92).

4. This research has shown that the private hospitals in Amman do not strongly

encourage this item of pro-activity dimension " The hospital seeks to provide new

132

services before the competitors” as shown in the table (4-5) with an arithmetic mean

amount of (3.64) and a standard deviation amount of (0.76).

5. This research has shown that the private hospitals in Amman do not strongly

encourage this item of pro-activity dimension " In general, our hospital is the first

mover in introducing new services” as shown in the table (4-5) with an arithmetic

mean amount of (3.63) and a standard deviation amount of (0.75).

6. This research has shown that the private hospitals in Amman do not strongly

encourage this item of service quality dimension “The hospital provides its services

with competitive prices” as show in table (4-6) with an arithmetic mean amount of

(3.65) and a standard deviation of (0.86).

(5-4): The research Recommendations:

On the basis of the research conclusions, the researcher suggests the following recommendations for the private hospitals managers in Amman-Jordan:

1. They should continuously focus on creating appropriate internal environment within

the hospital to assist in motivating the employees to be more creative and innovative.

2. They should increase their focus on allowing the employees to share their ideas and

opinions. Furthermore, they should encourage their employees to be creative in the

hospital in order to solve problems and develop the hospitals.

133

3. They should continuously focus on enhancing creativity, innovation by holding

seminars, meetings, discussing work-related issues and benefit from the employees’

ideas, opinions and participation in the decision-making processes.

4. They should continuously focus on hiring talented and experienced staff for the right

places and providing them with training to improve their skills and motivate them to

be creative and innovative.

5. They should continuously strongly emphasize research and development R&D to

have access to new and creative ideas to develop and provide new services to satisfy

customers-needs which will increase their loyalty and enhance the competitive

advantage.

6. They should continuously utilize modern technology within the hospitals which in

turn will facilitate the procedures and encourage the research and development

process, as well as motivate the employees to be more creative and innovative.

7. They should continuously reward the employees for their creative ideas and their

participation in solving problems and hospital development which will motivate them

to be more creative.

134

8. They should continuously be more committed to providing continuous superior

service quality to its customers, which will in turn increase customers’ loyalty and

competitive advantage.

9. They should continuously evaluate the service quality which is provided to customers

to ensure that the promised service quality is accessible to customers.

(5-5): Suggestions for Further Research

1. Apply the proposed research model in other sectors.

2. Apply the comparison study among hospitals in order to find new and important

results.

3. Applying additional entrepreneurship dimensions such as: (autonomy, uniqueness,

etc), and competitive advantage dimensions such as: (price, etc), in future studies in

the same sector in order to find new results.

135

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APPENDICES

APPENDIX (A): Questionnaire

155

Questionnaire

University of Petra

Faculty of Administrative and Financial Sciences.

Dear Mr. / Ms ...... Greetings,

The researcher aims to explore the “Impact of Entrepreneurship in Achieving the Competitive Advantage, an Emperical Research in Private Hospitals in Amman, Jordan”, this study has been prepared by Mohammad Abu-Zaid, a graduate student / University of Petra, for Graduate Studies, under the supervision of Prof. Dr. Najim Al- Azzawi in partial fulfillment of the Master Degree in Business Administration.

This questionnaire was adopted to gather the required data for this study from the entrepreneurial private hospitals in Jordan. These data will be treated confidentially and will be used for academic purposes only. I would be so grateful if you could kindly answer all questions as complete and accurate as possible.

Your assistance in answering these questions will be highly appreciated.

With all gratitude,

Researcher Supervisor

Mohammad Abu Zaid Prof.Dr.Najim Al Azzawi

156

First Section: Demographic Information

Please put a tick (√) in the appropriate box below:

Age 30 Years or less □ From 31– 40 Years □

From 41– 50 Years □ From 51 – More □

Gender

Male □ Female □

Education level BSc or less □ High Diploma □

Master □ PhD □

Experience 5 years or less □ From 6 – 10 Years □

From 11 – 15 Years □ From 16 – 20 Years □

More than 20 Years □

Years of working in the hospital 5 years or less □ From 6 – 10 Years □

From 11 – 15 Years □ From 16 – 20 Years □

More than 20 Years □

Position General manager □ Hospital manager □ Director □

Assistant director □ Head of department □

157

Second section: the Questionnaire:

This Questionnaire is adopted to obtain data about the subject matter of the study "Impact of Entrepreneurship in Achieving the Competitive Advantage”. This questionnaire is divided into two parts:

The first part consists of entrepreneurship measurements. It is measured by asking (22) questions on four dimensions (innovation, creativity, risk taking and pro-activity) on five- point scale ranging from "strongly agree" to "strongly disagree" (Likert,1932).

Kindly put a tick (√) in the appropriate box

Answer alternatives No Item Strongly Strongly Disagree Neutral Agree disagree agree Innovation For the last 3 years, our hospital has provided 1 many new services Our hospital strongly emphasizes research and 2 development R&D and innovation instead of focusing on marketing of current services The changes in services in our hospital are quite 1 dramatic Senior management philosophy in the hospital 4 emphasizes the development of services regardless of their costs Our hospital provides training courses for 5 employees to reach innovation and excellence Our hospital seeks to benefit from technology in 6 order to provide better services Our hospital priorities which are taken into 7 account are in continuous growth and stability Creativity The hospital benefits from the ideas of workers in 1 solving problems Our hospital encourages new ideas from any 2 worker regardless of his/her status in the hospital Our hospital gives great attention to devise 3 services and new processes The hospital encourages the teamwork approach 4 to produce new ideas

158

Our hospital is keen on research and development 5 R&D, and provides services that comply with customer needs Risk-taking Our hospital is a risk taker with the opportunities 1 associated with risks Our hospital’s decisions are risky in spite of the 2 uncertainty of outputs The hospital seeks to seize opportunities and 3 search for new markets In general, our hospital emphasizes high risk 4 projects with uncertain returns

We practice “wait and see” position to minimize 5 risk Pro-activity The hospital seeks to provide new services before 1 its competitors In general, our hospital is the first mover in 2 introducing new services

The hospital seeks for customers-satisfaction in a 3 way beyond the size of the possibilities available Our hospital works on providing services that 4 include new features and different improvements more than competitors The hospital is fast-growing towards achieving 5 its main objectives

159

The second part consists of the competitive advantage measurement. It is measured by asking (9) questions about one dimension (service quality) on five-point scale ranging from "strongly agree" to "strongly disagree" (Likert, 1932).

Kindly put a tick (√) in the appropriate box

Answer alternatives No Item Strongly Strongly Disagree Neutral Agree disagree agree Service quality The hospital provides its services with 1 competitive prices hospital services and prices are adaptable 2 according to supply and demand The hospital provides offers on its services 1 prices 1 The hospital seeks to provide new services The hospital evaluates the quality of its 5 services with constant development to improve its competitive position in the market The hospital works to provide services which 6 include new additional features The hospital is an entrepreneur in providing 7 services before its rivals The hospital quickly responses to customer 8 complaints

The hospital stimulates the research and 9 development R&D to provide services in accordance with the customers’ needs

Your cooperation is deeply appreciated.

Thank you for your time and assistance

160

APPENDIX (B):

It summarizes the items of questionnaire and shows the source of references which they were taken from.

161

The First Section:

This section summarizes the items of entrepreneurship dimensions and shows the source of references which they are taken from.

Item Authors Entrepreneurship dimensions

Innovation 1 For the last 3 years, our hospital has provided many new services. (Mahmood & Hanafi, 2012) Our hospital strongly emphasizes research and development R&D (Mahmood & Hanafi, 2012) 2 and innovation instead of focusing on marketing of current services. 1 The changes in services in our hospital are quite dramatic. (Mahmood & Hanafi, 2012) Senior management philosophy in the hospital emphasizes on the (AL-sakarnah, 2005), (Awang &Yusof 4 development of services regardless of the costs. &Ismail & Zain & Madar, 2009) Our hospital provides training courses for employees to reach (AL-sakarnah, 2005) 5 innovation and excellence. Our hospital seeks to benefit from technology in order to provide (AL-sakarnah, 2005) 6 better services. Our hospital’s priorities which are taken into account are in 7 (AL-sakarnah, 2005) continuous growth and stability. Creativity The hospital benefits from the ideas of workers in solving 1 (AL-sakarnah, 2005) problems. Our hospital encourages new ideas by any worker regardless of 2 (AL-sakarnah, 2005) his/her status in the hospital. Our hospital gives great attention to devise services and new 3 processes. (AL-sakarnah, 2005) The hospital encourages the teamwork approach to produce new 4 ideas. (AL-sakarnah, 2005) Our hospital is keen on research and development R&D and 5 provides services that comply with the customer needs. (AL-sakarnah, 2005) Risk taking Our hospital is a risk taker through expanding the opportunities that are (AL-sakarnah, 2005) 1 associated with risks. Our hospitals decisions are risky in spite of the uncertainty of 2 (AL-sakarnah, 2005) outputs. The hospital seeks to seize opportunities and search for new 3 (AL-sakarnah, 2005) markets. In general, our hospital strongly emphasizes on high risk projects 4 (Mahmood & Hanafi, 2012) with uncertain returns. We practice “wait and see” position to minimize risk. (Awang & Yusof & Ismail & Zain & 5 Madar, 2009)

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Pro-activity The hospital seeks to provide new services ahead of the 1 (AL-sakarnah, 2005) competitors. In general, our hospital is the first mover in introducing new 2 services. (Mahmood & Hanafi, 2012)

The hospital seeks to achieve customers’ satisfaction in a way (AL-sakarnah, 2005) 3 beyond the size of the possibilities available. Our hospital works on providing services including new features (AL-sakarnah, 2005) 4 and different improvements more than competitors. 5 The hospital is fast-growing in achieving its main objectives. (AL-sakarnah, 2005)

The Second Section:

This section summarizes the items of competitive advantage dimension and shows the source of references which they are taken from.

Item Authors Competitive advantage dimension Service quality 1 The hospital provides its services with competitive prices (Abu-Mahfouz, 2011) The hospital services and prices are adaptable according to 2 (Abu-Mahfouz, 2011) supply and demand 1 The hospital provides offers on its services prices (Abu-Mahfouz, 2011) 1 The hospital seeks to provide new services (Abu-Mahfouz, 2011) The hospital evaluates the quality of its services with constant 5 (Abu-Mahfouz, 2011) development to improve its competitive position in the market The hospital works to provide services which include new 6 (Abu-Mahfouz, 2011) additional features The hospital is entrepreneur and it provides services before its 7 (Abu-Mahfouz, 2011) rivals The hospital quickly responses to customer complaints 8 (Mahmood & Hanafi, 2012)

The hospital works to stimulate research and development 9 R&D to provide services in accordance with the customers’ (Abu-Mahfouz, 2011) needs

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The Third Section:

This section summarizes and shows the source of references that the items are taken from.

Authors Year Study title Entrepreneurship Strategies and its Role in Achieving Competitive AL-Sakarnah 2005 Advantage

Entrepreneurial Orientation and Performance Relations of Malaysian Awang et al, 2009 Bumiputera SMEs: The Impact of Some Perceived environmental factors The Impact of Strategic Intelligence and Knowledge Management on Abu-Mahfouz 2011 Achieving the Competitive Advantage

Entrepreneurial Orientation and Business Performance of Women- Mahmood & 2012 Owned Small and Medium Enterprises in Malaysia: Competitive Hanafi Advantage as a Mediator

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