The Relationship between Entrepreneurial Culture and Sustainable Competitive Advantage in the Banking Sector
Abstract
Business sustainability of services-rendering organisations is one of the major concerns for those at managerial levels world-wide. This paper offers explanations on how best to achieve sustainable competitive advantage by communicating entrepreneurial values through human resource development programmes in the banking industry. The research reported in this paper adopted a non-experimental research design of ex post facto type, utilising a correlational approach with advanced explanatory design. Based on the principle of convenience sampling, 380 questionnaires were distributed to employees of two Nigerian banks. Three hypotheses were formulated and tested using inferential statistics via two statistical software packages: the IBM Statistical Package for Social Science (SPSS) version 23 and the IBM SPSS Analysis of Moment Structure (AMOS) version 23. The results show that human resource development partially mediates the relationship between entrepreneurial culture and sustainable competitive advantage in the Nigerian banking sector. The results suggest an enhancement of entrepreneurial values through continuous learning and development programmes toward sustainable competitive advantage. It is recommended that sustainability of banks operating in Nigeria could be enhanced by communicating and managing entrepreneurial orientations through effective learning and development programmes. Ambidextrous banks will require creativity, innovation and proactive capabilities in the process of exploiting and exploring both current and future business opportunities for sustained competitive advantage.Downloads
References
Aaker, D. (2012). Four Strategies for Staying Relevant. Harvard Business Review. https://hbr.org/2012/05/four-strategies-for-staying-re Anderson, K. (1992). The purpose at the heart of management. Harvard Business Review, 70(3), 52-62.
Armstrong, M. (2009). Armstrong’s handbook of human resource management, (11th ed.). London: Kogan Page.
Atiku, S. O., Chitakunye, P. & Fields, Z. (2014a). Consensual and Entrepreneurial Culture: Insights from Organisational Culture and Human Resource Development Policy in Nigerian Banks. Mediterranean Journal of Social Sciences, 5(20), 101-113. DOI: https://doi.org/10.5901/mjss.2014.v5n20p101
Atiku S. O., Chitakunye, P. & Fields, Z. (2014b). Influence of Organisational Learning and Human Resource Outcomes on Commercial Banks’ Performance in Nigeria. J Soc Sci, 40(1), 9-20. Atiku S. O. (2014). The Relationship between Organisational Culture and Performance: A case of the Banking Sector in Nigeria. PhD Thesis, Unpublised. Durdan: University of KwaZulu-Natal.
Baker, W. E. & Sinkula, J. M. (1999). Learning Orientation, Market Orientation, and Innovation: Integrating and Extending Models of organizational Performance. Journal of Market Focused Management, 4(4), 295-308. DOI: https://doi.org/10.1023/A:1009830402395
Beugelsdijk, S. (2007). Entrepreneurial Culture, Regional Innovativeness and Economic Growth. Journal of Evolutionary Economics, 17(2), 187-210. Bhatt, G. D. (2000). An Empirical Examination of the Effects of Information Systems Integration on Business Process Improvement. International Journal of Operations & Production Management, 20(11), 1331-1359. DOI: https://doi.org/10.1007/s00191-006-0048-y
Boso, N., Story, V. M. & Cadogan, J. W. (2013). Entrepreneurial Orientation, Market Orientation, Network Ties, and Performance: Study of Entrepreneurial Firms in a Developing Economy. Journal of Business Venturing, 28, 708-727 DOI: https://doi.org/10.1016/j.jbusvent.2013.04.001
Cameron, K. S., Quinn, R. E., DeGraff, J. & Thakor, A. V. (2006). Competing Values Leadership: Creating Value in Organizations. MA: Elgar Northampton. DOI: https://doi.org/10.4337/9781847201560
ÄŒerne, M., JakliÄ, M. & Å kerlavaj, M. (2013). Decoupling Management and Technological Innovations: Resolving the Individualism–Collectivism Controversy. Journal of International Management, 19(2), 103-117.
Cheung, S. O., Wong, P. S. P. & Lam, A. L. (2012). An Investigation of the Relationship between Organizational Culture and the Performance of Construction Organizations. Journal of Business Economics & Management, 13(4), 688-704. Covin, J. G. & Miles, M. P. (1999) Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice, 24(1), 47-63. Daneshvar, P. & Ramesh, H. N. (2011). Gaining Competitive Advantage through Quality of Internet Banking Services -- An Empirical Study in the Indian Private Bank Sector. Journal of Marketing & Communication, 6(3), 34-43. Della Corte, V. & Aria, M. (2016). Coopetition and sustainable competitive advantage. The case of tourist destinations. Tourism Management, 54, 524-540.
Deshpande, R. & Farley, J. U. (1999). Corporate Culture and Market Orientation: Comparing Indian and Japanese Firms. Journal of International Marketing, 7(4), 111-127. DOI: https://doi.org/10.1177/1069031X9900700407
Deshpande, R. & Farley, J. U. (2004). Organizational Culture, Market Orientation, Innovativeness, and Firm Performance: An International Research Odyssey. International Journal of Research in Marketing, 21(1), 3-22. Dess, G. G., Lumpkin, G. T. & McGee, J. E. (1999). Linking corporate entrepreneurship to strategy, structure and process: suggested research directions. Entrepreneurship Theory and Practice, 24(1), 85-102. Engelen, A. (2010). Entrepreneurial Orientation as a Function of National Cultural Variations in two Countries. Journal of International Management, 16(4), 354-368. Evans, N. G. (2016). Sustainable competitive advantage in tourism organizations: A strategic model applying service dominant logic and tourism's defining characteristics. Tourism Management Perspectives, 18, 14-25.
Ezirim, C. B., Nwibere, B. M. & Emecheta, B. C. (2010). Organisational Culture and Performance: The Nigerian Experience. International Journal of Business & Public Administration, 7(1), 40-56.
Ezirim, C. B., Nwibere, B. M. & Emecheta, B. C. (2012). The Influence Of Corporate Culture on Organisational Commitment: The Nigerian Experience. International Journal of Business & Public Administration, 9(3), 155-180.
Fayolle, A., Basso, O. & Bouchard, V. (2010). Three Levels of Culture and Firms' Entrepreneurial Orientation: A Research Agenda. Entrepreneurship & Regional Development, 22(7/8), 707-730. Floyd, S. W. & Wooldridge, B. (1999). Knowledge creation and social networks in corporate entrepreneurship: the renewal of organizational capacity. Entrepreneurship Theory and Practice, 24(1), 123-143. DOI: https://doi.org/10.1080/08985620903233952
George, D. & Mallery, P. (2003). SPSS for Windows Step by Step: A Simple Guide and Reference 11.0 update (4th ed.). Boston: Allyn & Bacon.
Goel, A., Rana, G. & Rastogi, R. (2010). Knowledge Management as a Process to Develop Sustainable Competitive Advantage. South Asian Journal of Management, 17(3), 104-116.
Grant, R. M. (1996). Toward a Knowledge-Based Theory of the Firm. Strategic Management Journal, 17, 109–122. Harrington, J. (1991). Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity and Competitiveness. NewYork, USA: McGrawHill. Huang, S. K. & Wang, Y. L. (2011). Entrepreneurial Orientation, Learning Orientation, and Innovation in Small and Medium Enterprises. Procedia-Social and Behavioral Sciences, 24, 563-570.
Hung, R. Y. Y., Yang, B., Lien, B. Y. H., McLean, G. N. & Kuo, Y. M. (2010). Dynamic Capability: Impact of Process Alignment and Organizational Learning Culture on Performance. Journal of World Business, 45(3), 285-294. DOI: https://doi.org/10.1016/j.jwb.2009.09.003
Katou, A. A. & Budhwar, P. S. (2010). Causal Relationship between Human Resource Management Policies and Organisational Performance: Evidence from the Greek Manufacturing Sector. European Management Journal, 28(1), 25-39. DOI: https://doi.org/10.1016/j.emj.2009.06.001
Keh, H. T., Nguyen, T. T. M. & Ng, H. P. (2007). The Effects of Entrepreneurial Orientation and Marketing Information on the Performance of SMEs. Journal of Business Venturing, 22(4), 592-611. DOI: https://doi.org/10.1016/j.jbusvent.2006.05.003
Li, Y. H., Huang, J. W. & Tsai, M. T. (2009). Entrepreneurial Orientation and Firm Performance: The Role of Knowledge Creation Process. Industrial Marketing Management, 38(4), 440-449. DOI: https://doi.org/10.1016/j.indmarman.2008.02.004
Lisboa, A., Skarmeas, D. & Lages, C. (2011). Entrepreneurial Orientation, Exploitative and Explorative Capabilities, and Performance Outcomes in Export Markets: A Resource-Based Approach. Industrial Marketing Management, 40(8), 1274-1284. DOI: https://doi.org/10.1016/j.indmarman.2011.10.013
Liu, Y. (2013). Sustainable Competitive Advantage in Turbulent Business Environments. International Journal of Production Research, 51(10), 2821-2841. Lumpkin, G. T. & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172. DOI: https://doi.org/10.1080/00207543.2012.720392
Macfarlane, M. A. (2014). Sustainable Competitive Advantage for Accountable Care Organizations. American College of Healthcare Executives, 59(4), 263-271. Mahadea, D. & Youngleson, J. (2013). Entrepreneurship and small business development. Cape Town: Pearson Education South Africa (Pty) Ltd DOI: https://doi.org/10.1097/00115514-201407000-00006
Martin, B. C., McNally, J. J. & Kay, M. J. (2013). Examining the Formation of Human Capital in Entrepreneurship: A Meta-Analysis of Entrepreneurship Education Outcomes. Journal of Business Venturing, 28(2), 211-224. Mashhadi, F., Azar, A. & Shahin, A. (2015). Proposing a Method for Implementing Business Process Re-Engineering. International Journal of Services and Operations Management, 20(4), 123-141. DOI: https://doi.org/10.1016/j.jbusvent.2012.03.002
Mello, J. A. (2011). Strategic Management of Human Resources (3rd ed.). Canada: Nelson Education Ltd.
Mondy, R. W. (2010). Human Resource Management (11th ed. ed.). Upper Saddle River, New Jersey: Pearson/Prentice Hall. Moreno, A. & Casillas, J. C. (2008). Entrepreneurial orientation and growth of SMEs: a casual model. Entrepreneurship and Theory in Practice, 32(3), 507-528 DOI: https://doi.org/10.1111/j.1540-6520.2008.00238.x
Mundra, N. Gulati, K. & Vashisth, R. (2011). Achieving Competitive Advantage Through Knowledge Management and Innovation: Empirical Evidences from the Indian IT Sector. IUP Journal of Knowledge Management, 9(2), 7-25. Nkosi, T. (2011). Corporate entrepreneurship and organisational performance in the Information and Communications Technology Industry. University of the Witwatersrand: Masters disseration.
Nwibere, B. M. (2013). The Influence of Corporate Culture on Managerial Leadership Style: The Nigerian Experence. International Journal of Business & Public Administration, 10(2), 166-188.
Pallant, J. (2011). SPSS Survival Manual: A Step by Step Guide to Data Analysis using SPSS (4 ed.). Australia: Allen & Unwin.
Pérez-Luño, A., Wiklund, J. & Cabrera, R.V. (2011). The Dual Nature of Innovative Activity: How Entrepreneurial Orientation Influences Innovation Generation and Adoption. Journal of Business Venturing, 26(5), 555-571. Pollitte, W. A., Miller, J. C. & Yaprak, A. (2015). Returns to US Firms from Strategic Alliances in China: A Knowledge-Based View. Journal of World Business, 50(1), 144–148. Principia Group. (2011). Why Banks Should Focus on Culture, Now More Than Ever. http://www.theprincipiagroup.com/downloads/Why-Banks-Should-Focus-On-Culture-v2.pdf Rothaermel, F. T. & Hess, A. M. (2007). Building Dynamic Capabilities: Innovation Driven by individual-, Firm-, and Network-Level Effects. Organ. Sci., 18(6), 898–921. Russell, R. D. (1999). Developing a process model of intrapreneurial systems: a cognitive mapping approach. Entrepreneurship Theory and Practice, 24(1), 65-84.
Sanusi, L. (2012). Banking Reform and its Impact on the Nigerian Economy. CBN Journal of Applied Statistics, 2(2), 115-122.
Sevrani, K., Gorica, K. & Kordha, E. (2013). Analyzing of Entrepreneurial Dimensions in Albanian Banking Systems - Some Improvement from Information Technology Paper presented at the Global Conference on Business and Finance Proceedings. Shihab, M. R. & Lestari, A. A. (2014). The Impact of Customer Knowledge Acquisition to Knowledge Management Benefits: A Case Study in Indonesian Banking and Insurance Industries. IEEEXplore Å kerlavaj, M., Song, J. H. & Lee, Y. (2010). Organisational Learning Culture, Innovative Culture and Innovations in South Korean Firms. Expert Systems with Applications, 37(9), 6390-6403.
Srivastava, M., Franklin, A. & Martinette, L. (2013). Building a Sustainable Competitive Advantage. Journal of Technology Management & Innovation, 8(2), 47-60. DOI: https://doi.org/10.4067/S0718-27242013000200004
Sudarmo, P. D. (2013). Influence Business Principles, Organizational Culture, Fundamental Safe Work Practices, Operational Excellence Expectations, and Corporate Commitment to the Tenets of Corporate Operations and Corporate Performance Oil and Gas Chevron Indonesia. Journal of Accounting, Business & Management, 20(1), 71-90.
Wang, X., Yang, B. & McLean, G. N. (2007). Influence of Demographic Factors and Ownership Type upon Organizational Learning Culture in Chinese Enterprises. International Journal of Training and Development, 11(3), 154–165. DOI: https://doi.org/10.1111/j.1468-2419.2007.00278.x
Wang, W. C., Lin, C. H. & Chu, Y. C. (2011). Types of Competitive Advantage and Analysis. International Journal of Business and Management, 6(5), 100-104. Watkins, K. E. & Marsick, V. J. (1993). Sculpting the Learning Organization: Lessons in the Art and Science of Systemic Change. Jossey-Bass: San Francisco. Watkins, K. E. & Marsick, V. J. (2003). Making Learning Count! Diagnosing the Learning Culture in Organisations. Califonia: Sage publication. Yiu, D. W. & Lau, C. (2008). Corporate entrepreneurship as resource capital configuration in emerging market firms. Entrepreneurship theory and Practice, 32(1), 37-57. Zahra, S. A. & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance: the moderating effect of international environmental hostility. Journal of Business Venturing, 15, 469-492. Zivanovic, M. & Zivanovic, N. (2015). Business Process Improvement Application of Modern Management Techniques. Ekonomika, Journal for Economic Theory and Practice and Social Issues, 61(1), 183-192.
Copyright (c) 2016 Journal of Economics and Behavioral Studies
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.