Global Advanced Research Journal of Social Science (GARJSS)
July 2015 Vol. 4(1), pp. 006-010
Copyright © 2015 Global Advanced Research Journals

 

Full Length Research Paper

The Relationship between Intrapreneurial Orientation and Firm Performance

Sylvia Manjeri Aarakit and Francis Keneth Kimbugwe

Department of Entrepreneurship, Makerere University Business School

*Corresponding Author E-mail: kimayoka@gmail.com

Accepted 13 July 2015

Abstract

Literature shows that, the impressive contribution of big firms in developed economies stems from intrapreneurship, a term used to refer entrepreneurship within an existing organization. Intrapreneurial orientation is the key factor for survival and competitiveness for both big and small firms. Successful firms develop various intrapreneurial capabilities to support their business strategies, and then obtain outstanding firm performance. However, despite this, Ugandan firms do not perform well despite. Many close business in their first five years of operation. And yet, not much scholarly efforts have been invested in investigating how intrapreneurial orientation influences firm performance in Uganda.  This study was aimed at examining the relationship intrapreneurial orientation and firm performance in Uganda. The study adopted a cross sectional design, this involved descriptive studies to describe characteristics. Correlation and Regression approaches were used to investigate the relationships between the variables of study and the extent to which the independent variable explained firm performance the dependent variable. The study covered 117 firms operation in Kampala, out of a total of 144 firms in bakery and beverages registered in Kampala. Data were collected using questionnaires and analyzed using descriptive, correlation and regression statistical methods. The results reveal that there exists a significant and positive relationship between intrapreneurial orientation and firm performance (r= .494**, p<.01). Even components of Intrapreneurial orientation were positively related to firm performance with the following parameters; proactiveness (r=.303**, p<.01), innovativeness (r=.234**, p<.01) and risk taking propensity (r=.332**, p<.01). These results imply that the higher the level of intrapreneurship among the employees, the higher the level of the firm performance that is likely to be realized. The results further show that Intrapreneurial orientation is weak predictor of firm performance (Beta=.205, Sig=.015). This implies that, the intrapreneurial capabilities need to be improved in small manufacturing firms if they are to improve firm performance greatly. Since there is a significant positive relationship between intrapreneurial orientation and firm performance, policies and programs to support intrapreneurs should be put into place that aim at strengthening pro-action, innovation and risk taking these build a base for more improved firm performance. These programs and policies should also aim at creating a positive feeling towards intrapreneurship such that, it’s seen as a career option. Such programs could take the form of project startup and/ innovation incentives, idea generation competitions and rewards as well as intrapreneurial training at the lower levels.

Keywords: Intrapreneurial Orientation, Firm Performance, Intrapreneurship, Uganda

 

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