Impact Of Corporate Entrepreneurship Environment On Entrepreneurial Intentions, Organisational Commitment, And Self-Efficacy Of Private Sector Employees In UAE

Abstract

The aim of this thesis is to assess the effects of corporate entrepreneurship (CE) environment on entrepreneurial intentions (EI), self-efficacy (SE), and organisational commitment (OC) of private sector professionals in Abu Dhabi. The phenomenon of corporate entrepreneurship, when employees working for a corporation are given projects that they are allowed to run as their own business has gained popularity in the Western developed countries but is only gaining momentum in emerging economies of the Middle East. This study is set in the context of Abu Dhabi, one of the least diversified emirates highly dependent on the production of oil, where most of the local residents are employed in the public sector. The study intends to raise interest in the private sector development in Abu Dhabi and explore the ways that can effectively facilitate this development through nurturing corporate entrepreneurship and entrepreneurial orientation. The aim of the thesis is pursued using the method of multiple linear regression analysis applied to primary data gathered in a survey of private sector managers and employees working in Abu Dhabi. Out of 3,000 questionnaires distributed, the final number of 497 usable responses has been attained. The questionnaire items are based on previously validated scales, which allows for measuring the constructs of CE environment, EI, SE and OC. The Confirmatory Factor Analysis (CFA) with Cronbach’s alpha is applied to for internal reliability testing and the latent factors derived from the measurement model are then analysed using multiple linear regressions. The findings show that the direct effects of CE environment on EI, OC and SE are supported in this study, which confirms previous theories. Work Autonomy is the only component of CE environment that significantly and positively affected EI, OC, and SE. In contrast, Rewards in the CE environment produced a significant positive impact only on SE, which can be explained by the psychological treatment of Rewards as measures of one’s performance at work by employees. Management Support may facilitate greater commitment to the organisation and even the growth EI, but employees would treat excessive Management Support as a sign of their own inability to work and resolve tasks independently, which is why it hurts SE. The research has also evidenced a statistically significant mediating role played by entrepreneurial orientation in channelling the effects from CE to OC, EI, and SE. Furthermore, individual characteristics such as well-being and hyperactivity produce significant effects on the links between CE and the outcome variables. Among the individual characteristics, only fear of failure was not supported as a valid moderator. These findings are important for policy makers and corporate decision-makers as they shed light on how to improve the commitment of employees to the company. Furthermore, the findings may help organisations to understand how they can raise future leaders and entrepreneurs by nurturing greater work autonomy, providing supporting to employees and offering more time availability. The results are limited by the focus on a single emirate and the private sector only, which limits the generalisability of results. Future studies are recommended to expand the scope of the research and test the relationships in new contexts, to use structural equation modelling (SEM) technique, and to address potential endogeneity issues.