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 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: (Jordan hospital, 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، اﻷردن 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، اﻷردن. تكون مجتمع البحث من المستشفيات الخاصة في عمان، اﻷردن والتي عددها )83( مستشفى وفقا لﻹحصاءات السنوية اﻷخيرة، لعام )1122(، لوزارة الصحة اﻷردنية. احتوت عينة البحث على المستشفيات الخاصة في عمان الحاصلة على إعتماد اللجنة المشتركة لﻻعتماد الدولي (JCI)، وعددها )3( مستشفيات والتي تتمثل في :)مستشفى اﻷردن، مستشفى التخصصي، مستشفى اﻹستقﻻل، مستشفى الخالدي، مستشفى اﻹسراء، المستشفى اﻹستشاري، المركز العربي الطبي، ومستشفى لوزميﻻ(. من أجل تحقيق هدف البحث، اعتمد الباحث استبيانا تكون من )82( فقرة. وقد وزعت تلك اﻻستبيانات على وحدة التحليل التي تتألف من )261( مديرا من المستويات اﻹدارية )العليا، الوسطى، ورؤساء اﻻقسام( العاملين في المستشفيات الخاصة المحددة في البحث. وقد كان عدد اﻻستبيانات المسترجعة هو )282( استبيانا، أي ما يعادل )32.38٪( من جميع اﻻستبيانات الموزعة. وكان عدد اﻻستبيانات المناسبة للتحليل اﻹحصائي هو )211( استبيانا بنسبة )88.36٪( من جميع اﻻستبيانات المسترجعة. VI تم استخدام في هذا البحث الحزمة اﻹحصائية للعلوم اﻻجتماعية برنامج )SPSS). أظهرت نتائج التحليل أن هناك تأثير إيجابي ﻷبعاد الريادة : )اﻹبتكار، اﻹبداع، أخذ المخاطرة، واﻹستباقية( في تحقيق الميزة التنافسية )جودة الخدمة( في المستشفيات الخاصة في عمان، اﻻردن. الكلمات الرئيسية : الريادة، الميزة التنافسية، اﻹبداع، اﻹبتكار، أخذ المخاطرة، اﻹستباقية، جودة الخدمة، المستشفيات الخاصة، عمان، واﻷردن. 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.