Service quality, satisfaction and loyalty in retail- banking

Service quality, satisfaction and loyalty in retail- banking The structure i propose should be as follow: Section 1 Abstract ( i need abstract ?) 1. Introduction 1.2 background information 1.3 Research Justification 1.4 Research objectives 1.5 Research structure Section 2 / Literature Review This could follow the structure proposed but you need to improve it. Make it coherent and lead to the discussion section.It should evaluate the lit. Section 3 3 Discussion The relationship between SERVQUAL and satisfaction is well studied. However, the direct and indirect relation between service quality dimensions and loyalty is limited. Thus, i attempted to address this topic considering the relevance of service quality and satisfaction to customers loyalty. (Critical thinking is needed here) Section 4 conclusion Free Online OCR Home OCR API Contact us Comments Free Online OCR Convert JPEG, PNG, GIF, BMP, TIFF, PDF, DjVu to Text Select pages from 1 to 51 Recognition language(s) (you can select multiple) Rotate image 0° CCW 90° 180° CW 90° Page layout analysis - split multi-column text into columns Page of 51 Download Copy to Clipboard Google Translate Bing Translator Paste Online Edit Online Exploring the Relationship between corporate entrepreneurship and Human Resource Management Practices A 152785 research report presented in partial fulfilment of the requirements of the degree of Master of Management at Massey University Bo, ZHOU 02411261 2010 8,428 words Download Google Translate Bing Translator Edit Online Exploring the Relationship between corporate entrepreneurship and Human Resource Management Practices A 152785 research report presented in partial fulfilment of the requirements of the degree of Master of Management at Massey University Bo, ZHOU 02411261 2010 8,428 words Bo ZHOU 02411261 152.785 Research Report Acknowledgement My deepest and foremost gratitude goes to my supervisor, Dr. Kaye Thorn, for her invaluable and constant support. Especially for her patience, instructions and inspirational suggestions on the construction of my report, without which my research could not be successfully conducted. Secondly, I wish to express my humble appreciation to my colleagues, Bob and Colin, for their support and encouragement throughout the semester. And as always, a big thank you to my parents whom I have not seen for 3 years. Thank you so much for your unconditional understanding and financial support on my academic journey. i Bo ZHOU 02411261 152.785 Research Report Abstract The rapid changing external environment is becoming more turbulent and complex, adding critical challenges for organisations’ survival. There is a general consensus in the management field that firms need to rely on their entrepreneurial capabilities to develop new competencies and identify opportunities. There are three major aspects of corporate entrepreneurship, innovation, venturing and strategic renewal. Each of these can be influenced by firms’ human resource management. Therefore, human resource management practices have important impact on firm’s corporate entrepreneurship. This review is conducted by analysing academic and empirical research addressing the interactions between corporate entrepreneurship and human resource management. Agreement has been found on the effects of human resource management practices have on the successful implementation of firms’ corporate entrepreneurship initiatives. Furthermore, by evaluating Hayton’s conceptual framework of corporate entrepreneurship and human resource management relationships, a new conceptual model has been developed to add temporal aspects of organisation’s life cycle into the study of corporate entrepreneurship and human resource management interactions. This could help scholars and practitioners to enrich their knowledge on how organisations’ development stages can affect their demands on corporate entrepreneurship and their available options of human resource management practices. It is suggested that innovation and internal venturing are mostly identified with start-ups and SMEs, while external venturing and strategic renewal links to MNEs and mature organisations in traditional industry. Future research directions are then discussed. ii Bo ZHOU 02411261 152.785 Research Report Table of Contents Acknowledgement ....................................................................................................... i Abstract .......................................................................................................................ii Chapter 1. Introduction ............................................................................................... 1 1.1 Background ....................................................................................................... 1 1.2 Research Justification ....................................................................................... 2 1.3 Research Objectives ......................................................................................... 4 1.4 Report Structure................................................................................................ 4 Chapter 2. Literature Review...................................................................................... 6 2.1 Entrepreneurship Development ........................................................................ 6 2.2 corporate entrepreneurship ............................................................................... 8 2.2.1 Innovation ................................................................................................. 11 2.2.2 Venturing .................................................................................................. 13 2.2.3 Strategic Renewal..................................................................................... 15 2.2.4 Entrepreneurial Behaviour and Organisational Culture............................. 16 2.3 Human Resource Management ...................................................................... 19 2.3.1 Human Resource Management Development .......................................... 19 2.3.2 Human Resource Management and Organisational Culture and Behaviour ........................................................................................................................... 20 2.4 Interaction between Human Resource Management and corporate entrepreneurship ............................................................................................. 22 2.4.1 Human Resource Management and Innovation........................................ 23 2.4.2 Human Resource Management and Venturing ......................................... 24 2.4.3 Behavioural and Cultural Influence ........................................................... 25 Chapter 3. Critique, and Development of a New Model ........................................... 27 3.1 Conceptual Framework of corporate entrepreneurship and Human Resource Management ................................................................................................... 27 3.2 Temporal Model of Entrepreneurship and Human Resource Management Demands......................................................................................................... 29 3.3 Implications of the Framework ........................................................................ 32 Chapter 4. Conclusion .............................................................................................. 35 4.1 Future Research Direction .............................................................................. 36 Reference List .......................................................................................................... 39 Reflective Journal ..................................................................................................... 46 iii Bo ZHOU 02411261 152.785 Research Report Chapter 1. Introduction 1.1 Background Entrepreneurship was first identified in the 18th century, as a unique character of new ventures for willing to involve in arbitrage activities such as taking financial risks (Minniti & Lévesque, 2008). Despite being studied for centuries, entrepreneurship remains a popular topic among academics and practitioners for its immense influence on firms’ behaviour and success. It has evolved from a concept strictly applied to the new venture creation process to a critical factor affecting firms’ ability to develop competitive advantages that needs to be nurtured (J. G. Covin & Slevin, 1991; Grebel, Pyka, & Hanusch, 2003; Hayton & Kelley, 2006). Recent decades have seen unimaginable advancement in modern technology, and the world of work have been drastically reshaped as more and more workforce move from traditional industries such as manufacturing, heavy labour and other prime industries towards technology and service centred industries. Among the evolution is the rise of small and medium-sized enterprises. As more and more small firms starting to secure their positions on the top of the business world with their rapid growth and success, research interest in entrepreneurship studies has again been enhanced, due to the fact that entrepreneurial characteristics such as flexible structure, innovation, visionary approach and risk acceptance are closely associated to small and medium-sized enterprises (Naman & Slevin, 1993; Zahra, 1993). Another concept that saw its rise in the 1980s is human resource management. Originated by the shifting management paradigm towards humanitarian perspective and early influential books about searching for excellent employees in the United 1 Bo ZHOU 02411261 152.785 Research Report States. (Blunt, 1990), human resource management has become a vital component of managerial functions, and is considered a key strategic tool for obtaining competitive advantages (Holland, Sheehan, & De Cieri, 2007). Extensive studies and research have been done since then to explore different human resource management practices beneficial to the success of firms, and different applications of human resource management regarding to the changing economic environments (Brewster & Holt Larsen, 1992; Doorewaard & Benschop, 2003). 1.2 Research Justification There has never been a lack in management literature in regard to entrepreneurship and Human Resource Managements two independent subjects. However, the relationship between these two firm success factors remained unaddressed for a long time. Studies that did touch upon the issue were highly conceptual. In his 1986 work, Schuler accentuated the relationship between human resource management practices and corporate entrepreneurship. He argued that human resource management practice is an important factor for the success of corporate entrepreneurship, and “By selecting and implementing the appropriate structure and practices, human resource professionals can systematically foster and facilitate innovation and entrepreneurship within their organisations.” (Schuler, 1986, p. 607). This brought the increase of interest in the association between corporate entrepreneurship and human resource management practices in the literature (Hayton, 2005). Many empirical studies have then been conducted to explore the interactions between the two variables. However, the majority of these studied are 2 Bo ZHOU 02411261 152.785 Research Report regional (Kaya, 2006; Schmelter, Mauer, Börsch, & Brettel, 2010; Wang & Zang, 2005), and primarily focused on small and medium-sized enterprises (Cassell, Nadin, Gray, & Clegg, 2002; Hayton, 2003; Hornsby & Kuratko, 2003; Jack, Hyman, & Osborne, 2006; Tocher & Rutherford, 2009). It is also difficult to draw conclusion from these researches due to their single dimensional nature and the varies in focus and specificity of the dependent variable (Hayton, 2005). In addition, according to Hornsby and Kuratko (2003), the human resource management practices applied to U.S. small enterprises has not changed over the last ten years. Given the nature of changes and development in technology, management paradigm and the economic environment, the lack of changes in applied human resource management practices raises concern that the entrepreneurial needs of these firms may not be effectively met (Hornsby & Kuratko, 2003). The threat is not only for small and medium-sized enterprises. In a more complex, dynamic and evolving environment, it is essential for firms of all kinds to become more entrepreneurial to identify new opportunities, assess new risks and acquire new competitive advantages for sustained performance (Hayton, 2005). Thus, it is important to develop a framework to integrate current studies on the subject, to clarify the knowledge acquired so far, make them more generally applicable, and to identify the gaps in the field, so to provide a focus for future studies. 3 Bo ZHOU 02411261 152.785 Research Report 1.3 Research Objectives The research question addressed in this report is: What is the relationship between firms’ corporate entrepreneurship/entrepreneurial behaviour and their human resource management practices? Based on the research question, there are three main objectives of this report: - To explore the relationship between human resource management practices and firms’ corporate entrepreneurship - To identify how human resource management practices shape firms’ behaviour - To analyse current literature and develop a model of the association between human resource management practices and firms’ corporate entrepreneurship Therefore, this report in will examine the interactions between corporate entrepreneurship and human resource management practices, and provide basic guide lines for organisations to identify the degree of need for entrepreneurship and how to utilise human resource management practices to accommodate such needs. 1.4 Report Structure The paper will start off by presenting relevant theories and studies of entrepreneurship and corporate entrepreneurship, exploring different aspects and drivers of corporate entrepreneurship and its application to different type of enterprises. The focus then will be focused on reviewing empirical studies on the 4 Bo ZHOU 02411261 152.785 Research Report association between entrepreneurship and human resource management practices, analysing their findings, and discussing their applicability. The third part of the report involves an evaluation of a conceptual framework of the relationship between corporate entrepreneurship and human resource management practices, a new temporal model is developed to assess the relationship between human resource management practices and entrepreneurship through an organisation’s life cycle. Conclusions will then be drawn by discussing the implications of the framework, and the directions for further studies. 5 Bo ZHOU 02411261 152.785 Research Report Chapter 2. Literature Review 2.1 Entrepreneurship Development The field of entrepreneurship has been studied for almost three centuries. Initially, it was only identified as the pursuit of risky opportunities by new ventures (Minniti & Lévesque, 2008), and the study around the topic was centred around individual behaviour and characteristics of the entrepreneur, rather than treating it as a firm wide phenomena (Grebel, et al., 2003). According to Shane and Venkataraman (2000, p. 218) the study of entrepreneurship is the ‘examination of how, by whom, and with what effects opportunities to create future goods and services are discovered, evaluated, and exploited’. This strongly implies that there is a need for investigation prior to entrepreneurship development. Considering that the study of entrepreneurship is moving into an upward spiral, many scholars in this field also continue to contribute their own as addition to the growing body of knowledge. Due to this ambiguous nature, there is a lack of uniformity and agreement in the literature regarding to this topic. Scholars often choose the most appropriate explanation concerning their particular study, rather than employing a generally accepted definition. The research field is often regarded as fragmented and its results are considered noncumulative, handicapping the evolution of the field as a respected scholarly discipline (Schildt, Zahra, & Sillanp, 2006). With the recent rapid increase of research interest in the field of entrepreneurship, the need for a framework that defines the domain of the field, reveals the relevant factors contributing to the topic and identifies the variables of interest is apparent (Shane & Venkataraman, 2000; Zahra & Dess, 2001). 6 Bo ZHOU 02411261 152.785 Research Report Theories are necessarily important as the studies associated with entrepreneurship continue to increase in number. Entrepreneurship as a scholarly field requires development of theories and testing them so as to ensure relevant and related studies in the future (Zahra, 2007). This is to say that research is an important aspect to be considered in entrepreneurship in order to come up with relevant information that can still be subjected to further studies and will pave the way to better understanding of its context. In fact, with much available research in line with the subjects of entrepreneurship, the different contexts in this field have been slowly understood because of the unravelling of some important details or relevant information. With this, the modern consideration regarding entrepreneurship has become wide spread through the presence of different research about the subject matter. In connection with this, a firm’s level of entrepreneurship requires establishment of empirical instrument such as opportunity-based management (Brown, Davidsson, & Wiklund, 2001). This is to ensure proper and efficient way of evaluation of the firm’s existing entrepreneurship. It is not only to ensure evaluation but in the end the main purpose of gathering empirical instruments is to substantially create more systematic approach in understanding information about entrepreneurship itself. On the other hand, entrepreneurship and its development can be viewed within the context of entrepreneurial style, organisational structure and mission strategy that are enough to fit with its environment (Naman & Slevin, 1993). Understanding entrepreneurship in these different contexts paved way to empirical studies. Information based on empirical evidence is required so as to substantially meet the demand for the creation of right idea on entrepreneurship. 7 Bo ZHOU 02411261 152.785 Research Report Aside from the academic approach in understanding entrepreneurship prior to its development, there is also a need for practicality based on the human’s social experience. It was found that personal control and innovation were specific and common elements affecting entrepreneurial behaviour which can also be predicted using entrepreneurial attitude scale applied to entrepreneurs and consumers (Huefner & Hunt, 1994). This study suggests that entrepreneurship behaviour does not only focus on entrepreneurs but the same level was also investigated on consumers. Specifically, everyone has a natural tendency to implement entrepreneurship on his or her own way. This is a significant activity that is observed in research and studies as entrepreneurship is on its way moving forward to further development. The firm's survivability is determined by its founders' endowments and its competitiveness. Whether actors are right or wrong in evaluating their economic situation and their consequent decisions is proven ex post. Thus, there will be winners and losers in this economic system (Grebel, et al., 2003; Hayton, 2003). Entrepreneurship development therefore is about reaching competitive advantage and those who are not able to reach it will definitely have to constantly innovate and try creating more meaningful strategy that would work good in the end. 2.2 corporate entrepreneurship To compensate the drawbacks and to enrich future studies of entrepreneurship, a new stream of thought started to attract attentions from scholars and practitioners: corporate entrepreneurship (corporate entrepreneurship). There is a wide multitude 8 Bo ZHOU 02411261 152.785 Research Report of definitions of corporate entrepreneurship. It is often referred to as a strategic orientation that a firm holds which involves the regeneration of products, renewal of operation process, services, and strategies or the structure of the organisation (J. O. Covin & Miles, 1999). corporate entrepreneurship involves the active organisational learning, driven by collaboration, innovation and individual commitment within the organisation (Hayton, 2005). corporate entrepreneurship possesses all the traits of entrepreneurship such as innovation, vision of opportunities, and risk tolerance (Ireland, Covin, & Kuratko, 2009). It can be perceived as the result of successful attempt of searching and seizing of entrepreneurial opportunities presented by the asymmetries of market or technological knowledge (Hayton, 2005), that may lead to economic rewards such as superior financial and market performance (Chander, Keller, & Lyon, 2000; Loof & Heshmati, 2002). Corporate entrepreneurship becomes the significant tool not only that its underlying context contains theoretical framework but because of some important corporate advantages. The following are significant findings of Zahra (1996) when it comes to the importance of corporate entrepreneurship in organisational survival, profitability, growth and renewal. It was found that executive stock ownership and long-term institutional ownership have positive relationship with corporate entrepreneurship and a negative relationship with short-term institutional ownership. The next emphasis was that stock owners can prevent internal product development which was found to be the usual path of corporate entrepreneurship. Finally, the technological opportunities of industry can stand as moderating variable of the relationship between corporate governance entrepreneurship. 9 and ownership and corporate Bo ZHOU 02411261 152.785 Research Report As mentioned earlier, corporate entrepreneurship is a specific strategy of the firm to be competitive. In order to obtain or sustain competitive advantage of the firm, dynamic capabilities are needed to be understood and such could be through finding the relatedness of substantive capabilities and dynamic capabilities, the contribution of organisational knowledge and skills in such relationship, the impact of organisational age to speed of utilisation of dynamic capabilities and mode of learning used for organisational change, and the impact of organisational knowledge and market dynamism to the value of dynamic capabilities (Zahra, Sapienza, & Davidsson, 2006). In other words, the firm itself must obtain all the essential ideas about corporate entrepreneurship so as to remain in the edge of competitive advantage. Rutherford and Holt developed a conceptual model (Figure 1) of corporate entrepreneurship to cover some of the components of corporate entrepreneurship: process, context and individual characteristics (Rutherford & Holt, 2007). This model provides a theoretical framework for identifying the different components of corporate entrepreneurship and how they interact to create desirable outcomes. In the actual setting, theory is always the source of ideas prior to actual implementation and creation of output. In sustained corporate entrepreneurship for instance, theoretical foundations are important especially if some aspects need to be emphasised such as the relationship existing between perceived implementation and output (Kuratko, Hornsby, & Goldsby, 2004). 10 Bo ZHOU 02411261 152.785 Research Report In the current field of study, there are three major aspects of corporate entrepreneurship in regard to the type of entrepreneurial activities engaged in by firms: innovation, venturing, and strategic renewal (Guth & Ginsberg, 1990). 2.2.1 Innovation Innovation is argued to be behind of all forms of corporate entrepreneurships as far as reaching for competitive advantage is concerned, but it can also be better viewed as a way for the firms to redefining or changing themselves (J. O. Covin & Miles, 1999). Clearly, innovation and corporate entrepreneurship created a strong link 11 Bo ZHOU 02411261 152.785 Research Report between them that the movement of the other will essentially affect the other and vice versa. Innovation is understood as a process of transforming entrepreneurial opportunities such as ideas and inventions to marketable or value-adding products, processes, services or organisational changes which leads to growth (Guth & Ginsberg, 1990; Hayton, 2005). Thus, with innovation, there is a strong capability of corporate entrepreneurship to go beyond its limit. In pursuit of competitive advantage, firms have continuously tapped their internal and external sources in the midst of technological revolution (Zahra & Nielsen, 2002). This is a reliable proof that innovation is on the go and it does not only go on its own but with the change of time and trends. Innovation was originally seen as an individual behaviour. It is often identified with the entrepreneur as a personal trait to be creative, and visionary (Freeman & Engel, 2007). The shifting perspective of innovation is also tied to firm’s growth. Start up companies and small and medium-sized enterprises normally have less human capital. There are less bureaucratic strains due to the small size, and structure, which enables the structure and resources to be flexible. These are two major catalysts for promoting individual innovation. Thus, these firms’ competitive advantages can often be acquired from individual innovation. Now as firm grows, there is often need for a bureaucratic structure to centralise control, as resources distribution becomes more restricted. Innovative opportunities have to be carefully evaluated. This is due to the fact that there are more demands and requirements to be met from the growing number of businesses. Thus, the 12 Bo ZHOU 02411261 152.785 Research Report organisation becomes less flexible, and the supportive environment for individual innovation fades as other demands compete for management’s attention. The ability to facilitate innovation and seize entrepreneurial opportunities now falls on to the organisation as a whole to become innovative. Later studies started to link it to the organisation itself, as when the business grows larger, individual innovation is no longer enough to provide the competencies that the firm requires to survive the intensified competition and the rapid change of environment (Freeman & Engel, 2007; Rutherford & Holt, 2007). Thus, the organisation needs to become innovative as a whole entity, active learning must be enabled throughout the organisation to create the environment necessary to stimulate innovation in all aspects of the business (Zahra, Nielsen, & Bogner, 1999). As a result, the innovation aspect of corporate entrepreneurship does not only reflect innovation at personal level, but rather innovation at an organisational level. This level of innovation no longer applies only to the commercialisation of entrepreneurial ideas, but also the business practices of the organisation. One of these aspects is corporate venturing. 2.2.2 Venturing Venturing is a process of business creation. This can be achieved by establishing new business units inside the organisation, acquiring a new business, or alliance and partnership with another firm (Hayton, 2005). This often involves two different kinds of process, internal venturing and external venturing (Burgers, Jansen, Van den Bosch, & Volberda, 2009; Kuratko, Covin, & Garrett, 2009). 13 Bo ZHOU 02411261 152.785 Research Report Internal venturing is the creation of new business units. It is similar to innovation in a sense that the firm needs to utilise its resources to transform an entrepreneurial idea or strategic plan into an operational business. Internal venturing is often found in organisations that operate in a highly competitive environment and industries with a reliance on advanced technology (Meyer, Willcocks, & Boushell, 2008). In these fields, the success of the organisation is closely tied to the proprietary technologies, information, or skills that the companies possess. This creates the restriction that prevent the firm from forming alliance or partnership with rivals as the risk of exposing proprietary intellectual properties is high with these setups. In addition, companies in these fields are normally newly established, having acquired enough resources for future growth and still highly innovative. Thus, internal venturing becomes the favourable option for such organisations to grow. External venturing involves the acquisition of new businesses or establishment of partnership (Burgers, et al., 2009). This process is different from internal venturing as it does not necessarily require the organisation to be innovative, and create new business opportunities with promising performance. Rather, the firm can obtain such competitive advantages by acquiring the already established companies or through the partnership with other companies that possesses the competencies valuable to our own. External venturing is often identified with established firms such as multinationals who have considerable resources in control and a solid market position in the industry. These firms are in their maturity stage, with the resources and experiences the organisation has acquired, external venturing is considered as a more effective way for seeking corporate entrepreneurship and development opportunities, as the size of the organisation and maturity of industry have limited the 14 Bo ZHOU 02411261 152.785 Research Report firm’s ability to be flexible to focus on the innovation process (Lassen, Gertsen, & Riis, 2006; Mahnke, Venzin, & Zahra, 2007). 2.2.3 Strategic Renewal Strategic renewal is defined as “the transformation of organisations through renewal of the key ideas on which they are built on” (Guth & Ginsberg, 1990, p. 5). It is the least studied aspect of corporate entrepreneurship due to the low possibility of occurrence, and the difficulty in identifying the process and conducting empirical studies with sufficient samples (J. O. Covin & Miles, 1999). Despite this difficulty, many studies have been conducted to examine strategic renewal. However, some of these studies are focused only on multinational enterprises (Macpherson & Jones, 2008; Volberda, Baden-Fuller, & van den Bosch, 2001), and many have regarded strategic renewal as a type of corporate venturing and treat the two as the same research objective in their research (Chakravarthy & Lorange, 2008; Prashantham, 2008; Verbeke, Chrisman, & Yuan, 2007). Nonetheless, strategic renewal has been identified to have significant impact on firm’s future development, as it is one of the most effective approaches to obtain sustainable advantage and above average returns as far as corporate entrepreneurship is concerned especially on autonomy, innovativeness, proactiveness, competitive aggressiveness and risk-taking (Dess & Lumpkin, 2005). This aspect is especially relevant to organisations in traditional industries such as primary manufacturing and heavy labour, as it can provide the essential competencies and knowledge for such organisations to compete in a drastically changed economic environment. 15 Bo ZHOU 02411261 152.785 Research Report 2.2.4 Entrepreneurial Behaviour and Organisational Culture Knowledge in corporate entrepreneurship is developed by individuals or groups focusing on organisation, technical and social dimensions as eventual requirements for competitive advantage (Zahra, et al., 1999). It is in this reason that there is a need to focus on social behaviour for it remains an important aspect to deal with prior to the success of entrepreneurship in general. Every business has to be conducted by an entrepreneur but to create remarkable output; there is a need to rely on human resource in particular. The human resource is a complex area that needs to be focused. This area requires management that does not only deal with organisation’s corporate goals but including the very essential parts of organisational culture and entrepreneurial behaviour. In this section there are related studies pointing to the importance and relationship between organisational culture and entrepreneurial behaviour. As exercised values of a nation, a region, or an organisation culture is very important to be learned prior to its association with entrepreneurial activities. It is believed that there are many things to be learned in behavioural research especially regarding between culture and entrepreneurship (George & Zahra, 2002). There are many behavioural researches conducted about its link to entrepreneurship and there are substantial ideas that need to be investigated. In family firms for instance, organisational culture is viewed to have significant impact in gaining competitive advantage. Thus, with this consideration, it is important to take closely the relationship or significant differences between family-run businesses and non-family-run businesses (Zahra, Hayton, & Salvato, 2004). Family run-businesses especially those by Chinese entrepreneurs are focused on family values and cultural 16 Bo ZHOU 02411261 152.785 Research Report conservatism. This creates remarkable impression that culture indeed plays an important role prior to the success of entrepreneurship. On the other hand, it was suggested in the study that citizenship behaviour contributes significant impact to organisations’ social capital particularly in the structural, relational, and cognitive aspects (Bolino, Turnley, & Bloodgood, 2002). This is to say that an individual’s behaviour creates significant impact to the entire organisation. However, this depends also on how the organisation influences the entire human resource based on the implemented policies are somehow in line with entrepreneurial behaviour and cultural behaviour. This remains a rich area for more empirical explorations and it is because of this that there are more on-going studies, which are necessary to be implemented. The conducted empirical studies regarding cultural characteristics and entrepreneurship paved way to more meaningful understanding about national cultural characteristics and entrepreneurship with their corresponding measures, characteristics of each entrepreneur and other matters regarding corporate entrepreneurship (Hayton, George, & Zahra, 2002). It is clear in this case that there is a need to focus on cultural aspects that can be measurable prior to creating successful corporate entrepreneurship. Entrepreneurship is also about studying individual behaviour as well as his organisational behaviour. This is necessary and important considering that entrepreneurship talks about social and cultural factors as mentioned earlier. Part of this consideration is to be able to find out the characteristics found in an individual and the organisation. Existing literature on entrepreneurship suggests that characteristics found in an individual and organisation have significant impact on 17 Bo ZHOU 02411261 152.785 Research Report entrepreneurial behaviour (Hornsby, Naffziger, Kuratko, & Montagno, 1993). For instance, behaviours of middle-level managers were found to have significant impact on entrepreneurial behaviour and thus to the success of corporate entrepreneurship (Kuratko, Ireland, Covin, & Hornsby, 2005). Thus, there is a necessary move to be exactly done. Entrepreneurial actions are strongly linked to successful corporate entrepreneurship strategy which brought not just the improvement of products and services and innovation but creating substantial changes to clients or customers (Kuratko, Ireland, & Hornsby, 2001). On the other hand, the need to improve requires not only the full understanding of individual and organisational characteristics. Entrepreneurship is also about embracing changes and doing something about it for the benefit of corporate goals. Firms are constantly renewing their competencies in order to address the challenges associated by the changes in the environment (Yiu & Lau, 2008). This includes innovation on both products and the organisation in order to stay competitive. On the other hand, it was suggested that innovative performance of a firm may be affected by external business development through governance modes and venture relatedness, corporate venture capital investments, alliances, joint ventures and acquisitions (Keil, Maula, Schildt, & Zahra, 2008). Substantial innovation is not the only factor that drives firms’ competency. Everything must go back to basics, and this would involve more aspects about human resource management in which motivation plays an important part to ensure employee performance matches organisational targets. In their 2002 empirical study, Hornsby, Kuratko and Zahra identified five factors that affect corporate entrepreneurship. These are the appropriate use of rewards, top management support, resource 18 Bo ZHOU 02411261 152.785 Research Report availability, supportive organisational structure, and risk taking and tolerance of failure (Hornsby, Kuratko, & Zahra, 2002). In addition, another study has found that supervisory support and reward system support have positive association with innovative culture of small and medium-sized enterprises (Chander, et al., 2000). Furthermore, an innovative culture was found to be important consideration especially in a highly competitive environment. Motivators to sustain entrepreneurial process are important. In line with this, there are important implications of extrinsic rewards, independence/autonomy, intrinsic rewards, and family and security in sustaining ventures of entrepreneurs (Kuratko, Hornsby, & Naffziger, 1997). In multinational enterprises and their subsidiaries, it is believed that economic and behavioural aspects play significant role through delegation of authorities, giving of incentives, promotions and implementation of clan structures (Mahnke, et al., 2007). 2.3 Human Resource Management 2.3.1 Human Resource Management Development In the literature, most human resource management research that address firm level performances often falls into two categories: focus on individual human resource management practices such as motivation and compensation; systematic approach that examines the impact of the whole human resource management systems have on organisations (Hayton, 2005). Human resource is the best asset that every company has. Each organisation must find the best human resource management in order to preserve enthusiasm and gain or encourage cooperation from the employees. Human resource management is 19 Bo ZHOU 02411261 152.785 Research Report essentially a decision making system for the organisation to ensure that the interests of individual employee are aligned with the objectives of the organisation to achieve performance maximisation (Heneman & Tansky, 2002). It is therefore clear that the interest of its people is part of the human resource management development. This is necessary because it is linked to company’s future achievement of its corporate goals. Aside from compensation and other reward system which encompass human resource development, there is also a need to create a system with good design for human resource development especially on recruitment and selection of manpower (Holland, et al., 2007). It is necessary to be considered that each company must be able to develop hiring system which would directly focus on choosing the best employee with the same cultural behaviour or anything else with the organisation. 2.3.2 Human Resource Management and Organisational Culture and Behaviour Considering that employees are very important resources of any firm, effective employee management is viewed to have important roles in organisational performance and survival such as training and development, work-life dimension and more (Jack, et al., 2006). However, it is not enough to focus on this area alone. There are still many areas waiting for further exploration. Organisational culture for instance is one of them. Culture varies across different organisations and because of this variation, there is a great need to understand how each of them functions. It is also of great consideration to understand how every culture can be integrated with one another. Considering that there exist cultural differences between every nation, organisational 20 Bo ZHOU 02411261 152.785 Research Report factors were found to affect entrepreneurial behaviours among managers (Hornsby, Kuratko, & Montagno, 1999). Every organisation has underlying culture to follow in order to achieve its corporate goals. The idea that each nation’s culture vary from one another is a big challenge knowing that the human resource management needs to align such variations for the benefit of the organisation. For instance, it is good to consider the case of each regional manager assigned differently from one country to another. This is in the case of multinational companies with various extensions into other places. It was found that there are significant differences on perceptions between managers regarding organisational environment and entrepreneurial ideas (Hornsby, Kuratko, Shepherd, & Bott, 2009). This alone is a challenge to the human resource management. Such challenge can only be addressed by providing system that will perfectly fit in the need. It is not only the different perceptions among managers or higher ranks in the companies that matters in relation to creating effective human resource management system. Personal values, leader-member exchange, perceived organisational support, self-efficacy and credential of information source also have significant influence on employees’ decision to the point that some of them may prefer to pursue learning and development activities among others (Maurer, Pierce, & Shore, 2002). Employees need to be clearly understood because such understanding will create significant bases on how to manage the human resource despite any challenges that will be brought about by organisational culture and behaviour. Building an environment that supports active learning and open communication can create a better sense of belonging for the employees, build trust and enhance employee commitment (Song, Kim, & Kolb, 2009). Therefore, it is shown that not all 21 Bo ZHOU 02411261 152.785 Research Report employees are highly motivated by monetary rewards. This only proves that some other factors need for more careful considerations. 2.4 Interaction between Human Resource Management and corporate entrepreneurship Many studies in the current literature argue that human resource management practices is an important driver of corporate entrepreneurship due to the involvement of organisational learning driven by collaboration and individual commitment (Kaya, 2006; Slotte, Tynjala, & Hytonen, 2004; Song, et al., 2009). Human resource management may also facilitate corporate entrepreneurship by creating an entrepreneurial culture which promotes entrepreneurship with encouragement for entrepreneurial behaviour, rewards for innovation, delegation of responsibility and release of centralised control (Hayton, 2005). Thus, managers are able to foster and encourage entrepreneurial activities systematically by designing and implementing appropriate HR practices within the organisation (Schmelter, et al., 2010). It is then important to encourage opportunities for corporate entrepreneurship. In order to create more opportunities for corporate entrepreneurship, it is important to create roles, behaviours and individual competencies on business development (Hayton & Kelley, 2006). Thus, the human resource management must remain strong in its implementation for policies which demand competence. 22 Bo ZHOU 02411261 152.785 Research Report 2.4.1 Human Resource Management and Innovation Innovation is one of the closest links between corporate entrepreneurship and Human Resource Management. From the human resource management practices perspective, compensation practices and performance rewards practices have major influence on innovative performances (Balkin & Montemayor, 2000; Werbel & Balkin, 2010). Recent studies on human resource management systems suggested that the impact of ‘new’ human resource management practices (such as team based task, delegation, and evaluation and rewards based on performance) on firm innovation will be greater when they are used in combination (Laursen, 2002; Laursen & Foss, 2003). These practices require support from decentralised control, improved coordination and better combination of knowledge and skill (Hayton, 2005). Thus, these findings suggest that an active organisational learning environment is favoured for innovation. Human resource management plays important role in order to create more excellent entrepreneurial performance. It is important to consider the impact of human capital management and practices have on firms’ competencies (Hayton, 2003). There is an increasing trend in human resource management systems and innovation identified by research, that human resource management practices can be utilised to create a supportive environment for cooperation, and the development of human and social capital which leads to proactive organisational learning (Hayton, 2005). Firms trying to become more entrepreneurial need to come up with better strategic management practices (Barringer & Bluedorn, 1999). With this approach comes the need to become more innovative especially on the level of human resource management. 23 Bo ZHOU 02411261 152.785 Research Report Scholar have also identified the impact of agency theory has on the firm’s innovation performance. It is argued that employees acting as agents have priority on personal gains over the organisation that they work for (Heneman & Tansky, 2002). In addition, employees are more risk averse than employers as they do not possess the competency to diversify their risks as effectively as the organisation (Hayton, 2005; Lerner, Azulay, & Tishler, 2009), thus it is important for human resource managementto develop effective systems to promote entrepreneurial behaviour, improve employees’ risk acceptance , and monitor employee performances to ensure that all the innovative behaviour and activities are acceptable and in line with the organisation’s entrepreneurial demand (Freeman & Engel, 2007; Werbel & Balkin, 2010). 2.4.2 Human Resource Management and Venturing Corporate venturing involves the creation or acquisition of a new business in order to explore entrepreneurial opportunities (Hayton, 2005). The influence that human resource management has on corporate venturing is similar to the ones on innovation. Compensation practice is regarded as a major human resource management factor that has immense influence on the performance of venturing (Hayton, 2005; Lerner, et al., 2009). The rationale behind this argument is that the compensation method for the new venture does not only need to provide enough attraction an retention of employees, but also need to ensure internal equity within the organisation is properly maintained (Lerner, et al., 2009; Prashantham, 2008). This is to build enough competencies for the new venture to grow, and to make sure resources are properly distributed within the organisation for other operation demands. 24 Bo ZHOU 02411261 152.785 Research Report Compensation practice can also serve as a performance feedback to evaluate and retain commitment of the employees (Kuratko, et al., 2009). The development of new ventures is a long process with uncertainty and risk, and the success of new ventures are hard to measure as they may not be profitable initially (Hayton, 2005). Thus the need for sustained high performance level and commitment on the new venture is expected from the manager and employees to enhance the possibility of venture success (Hayton, 2005; Lerner, et al., 2009). The high level of uncertainty and risk of failure also put strains on employees’ motivation to take part in venturing operations. Therefore, risk acceptance becomes another factor that will have impact on venturing performance. In addition, unlike other entrepreneurial behaviours and innovative activities generally promoted to employees, venturing opportunities are more limited to personnel that possess the necessary skills and competencies for the development of the new venture (Hayton, 2005). Effective screening system for the recruitment of human resources in the new venture, proper training and education on venturing risks, and support and evaluation systems are among other human resource management practices that have potential influence on the success of corporate venturing (Ireland, et al., 2009; Kuratko, et al., 2009). 2.4.3 Behavioural and Cultural Influence Behavioural and cultural influences are other significant components between the interaction of human resource management and corporate entrepreneurship. There is already a strong consensus in the field of human resource management studies that human resource management is a key factor that shapes organisations’ culture and behaviour (Bolino, et al., 2002; Werbel & Balkin, 2010). It is suggested that 25 Bo ZHOU 02411261 152.785 Research Report Human Resource Management can positively promote creativity and innovation due to its capability of creating and shaping supportive culture (Chander, et al., 2000). Further studies provide support to this argument, adding that employee engagement in beneficial discretionary behaviours promoted by human resource management can help build trust, enhance organisational learning, and thus create better social capital (Bolino, et al., 2002), which can facilitate the development of corporate entrepreneurship (Hayton, 2005). Human resource management practices in corporate entrepreneurship are also found to affect firm performance (Kaya, 2006). By matching the right human resource into corporate culture and the development of high-potential employees, human resource management may have significant contributions to firm’s entrepreneurial performance (Heneman, Tansky, & Camp, 2000). Furthermore, based on the study revealing that human resource management is expected to be better when applied in knowledge-intensive industries (Laursen, 2002). All these findings suggest a strong link between human resource management and the firms’ culture and behaviour, and they in turn affect firms’ corporate entrepreneurship. 26 Bo ZHOU 02411261 152.785 Research Report Chapter 3. Critique, and Development of a New Model 3.1 Conceptual Framework of corporate entrepreneurship and Human Resource Management The field of corporate entrepreneurship and human resource management studies have remained fragmented. Although there is consensus in the literature that confirms the interactions between corporate entrepreneurship and human resource management, there has yet been a theoretical foundation that integrates the elements together to guide the studies in the field. Hayton’s (2005) conceptual framework for the relationship between human resource management and corporate entrepreneurship (Figure 2) is among the first in the field to provide an effective model for the identification and understanding of the interactions between corporate entrepreneurship and human resource management. The extensive coverage of entrepreneurial and human resource management factors within an organisation provides a broad, systematic view of the relationship, thus filled some gap in the literature by presenting an integrated framework. However, the framework is highly conceptual. The argument in his analyses provides a thorough explanation on how actual human resource management practices and system designs can influence corporate entrepreneurship. The framework, however, does not include these detailed elements which could greatly facilitate the understanding and applicability of the framework. In addition, contextual factors such as types of organisations, industry and economic environment will affect the effectiveness of the model, which makes the framework less applicable in reality. Moreover, there is a lack of temporal aspect in the framework. The stages in an organisation’s life cycle is an important variable that 27 Bo ZHOU 02411261 152.785 Research Report has great influence on the organisation’s needs of corporate entrepreneurship, the available options of human resource management practices, and organisational culture and behaviour (Hoy, 2006). These elements all contribute to the interactions between corporate entrepreneurship and human resource management through different stages of organisation’s development. 28 Bo ZHOU 02411261 152.785 Research Report 3.2 Temporal Model of Entrepreneurship and Human Resource Management Demands In order to fill the gaps left in Hayton’s model and to aid future studies, a model that incorporates temporal perspectives has been developed (Figure 3) to integrate current studies more effectively and provide insights on issues that have not been addressed. Unlike the study of product life cycle, there are a wide range of definitions and configurations for an organisation’s life cycle. For the purpose of this study, a generalised model of organisation’s life cycle is proposed. The model divided the organisation’s life span into four major periods: start up, growth, maturity and decline. The structure, behaviour and operation of the organisation all differ in each stage. 29 Bo ZHOU 02411261 152.785 Research Report This includes the demand on entrepreneurship, and the focus on human resource management practice. Entrepreneurship and entrepreneurial behaviour are often identified with small, start up companies. Unlike multinational enterprises, these companies do not possess significant capital or human resources. Thus the demand for human resource management is relatively low. The competitiveness of these companies relies on their ability to innovate and taking risks. The incentives for firms in the start-up stage to accept and take risky opportunities is greater due to their highly uncertain nature, than for mature firms in a well established position (Hayton, 2005). These entrepreneurial traits act as critical factors for the company’s survival. Although larger corporations have competitive advantages due to size and capital, start-ups in high technology can exploit changes in technology that produce market disruptions. Creativity is enhanced in organisations that work in teams with shifting job responsibilities versus the bureaucratic structure of large corporations. Study has confirmed that innovative behaviour is one of the most important success factors for rapid growth among small firms (Barringer, Jones, & Neubaum, 2005). The growth of small business greatly relied on its ability to innovate, thus, the innovation aspect of corporate entrepreneurship is closely linked to this stage of development. After establishment, the need for growth begins to rise. There is a high demand of human resources for the growth of the company. Thus, the demand of focus on Human Resource Management starts to rise. However, to maintain the same level of competitiveness to survive the intense competition, and to seize new opportunities for steady growth, entrepreneurial orientation remains as a high priority. Established 30 Bo ZHOU 02411261 152.785 Research Report companies have more of the discipline required to execute a strategy and bring a product to market (Freeman & Engel, 2007). At the maturity stage, the company has already established its position in the market and industry. There is a high demand for human resource management to maintain the operation of the company due to the increased size and expansion of business. On the other hand, companies turn to move away from entrepreneurial focus, as the need for survival is relatively lower compare to the start-up and growth stage, and the opportunity cost of pursuing a risky project may exceed the gain. Thus, maintaining the status quo through human resource management practices becomes the main focus for organisations at this stage. There is a growing consensus that established companies must nurture entrepreneurial activity throughout their operations to continue to compete successfully (Schmelter, et al., 2010). Due to the above strains, corporate venturing becomes the favourable choice for organisations in this stage of development in their search for corporate entrepreneurship. The last dimension of this model is the decline stage. Theoretically, this is not a desirable state for any organisations. However, as technology advances, the economic environment starts to change more rapidly. Organisations that are too slow to respond to the environmental changes will fall behind the competition, and most likely fail to survive. To adapt the changes both internally and externally, organisations are required to be flexible and responsive, which can be achieved by maintaining an entrepreneurial orientation. At the same time, human resource management is needed to ensure that the change procedure can be executed smoothly. Thus, this dimension does not necessarily present organisations that have low demand on entrepreneurship and human resource management. It is a stage 31 Bo ZHOU 02411261 152.785 Research Report where organisations who lacks competency on both entrepreneurship and human resource management would fall into, making them less likely to survive. The characteristics of organisations in this category are closely linked to the strategic renewal aspect of corporate entrepreneurship. As discussed before, strategic renewal involves the transformation of organisation by redefining its purpose, position and realistic goals. This may help organisations re-evaluate the competencies it has, reconfigure the structure to adapt environmental changes and reacquire competitive advantages for re-growth. 3.3 Implications of the Framework From a theoretical perspective, instead of focusing on the linkages between specific human resource management practices and various aspects of corporate entrepreneurship, this model identifies and incorporates the temporal aspect of organisations’ life cycle into the interaction of human resource management and corporate entrepreneurship. This model recognises that organisations possess different competencies and the ability to develop certain competitive advantages in each stage of their life cycles. These have crucial impact on firms’ needs of entrepreneurial or human resource management competencies, and limit their choices in terms of the practices they can employ. The acknowledgement of this effect provides guidelines to further link different aspects of corporate entrepreneurship and human resource management practices to the development stage of an organisation. 32 Bo ZHOU 02411261 152.785 Research Report This also adds to the studies that identified the effects of industrial environment has on firms corporate entrepreneurship and human resource management practices, and suggests that in relation to the size of the organisation and the industry they operate in, the pursuit and implementation of corporate entrepreneurship varies for different organisations as well. Innovation and internal venturing are common corporate entrepreneurship practices among start-ups as well as established small and medium-sized enterprises in knowledge intense industries. External venturing and strategic renewal are more associated with mature organisations, multinational enterprises and firms in traditional industries. In combination, this clarifies the underlining factors that affect firm’s choice of human resource management practices and corporate entrepreneurship needs. These characteristics of the model also provide practical implications for human resource management managers. By linking different stages of development and characteristic of the firm to the associated corporate entrepreneurship aspects, the model can help human resource management mangers decide which human resource management practices can most effectively accommodate the specific entrepreneurial needs of the firm. Furthermore, the review recognised that human resource management’s influence on corporate entrepreneurship is not confined by human resource management practices, but also its contribution to building entrepreneurial organisational culture and supportive environments. Thus in addition to the routine human resource management functions, practitioners should also pay attention to the influence of human resource management upon culture and behaviour. 33 Bo ZHOU 02411261 152.785 Research Report It is important to note that this model does not suggest entrepreneurship and human resource management as two conflicting interests. Rather, they are arranged in a way to present the value of each variable in different stages of organisation’s development. As discussed in the literature review, they share a mutual relationship and could be utilised to accommodate each other depending on the demand of the organisation. 34 Bo ZHOU 02411261 152.785 Research Report Chapter 4. Conclusion The main purpose of this report is to examine the relationship between corporate entrepreneurship and human resource management, identify the interactions, and develop a new model to fill in some gaps in current literature and provide guidelines for future research. Many scholars have pointed out the importance of corporate entrepreneurship as a mean to acquire competitive advantages for the survival of organisations in the rapidly changing and evolving economic dynamic (J. O. Covin & Miles, 1999; Ireland, et al., 2009; Zahra, Korri, & JiFeng, 2005). Human resource management has been identified to be an important influential element in firm’s pursuit of corporate entrepreneurship, and there are considerable amount of theoretical and empirical support for this argument in the current literature which addresses the linkages between various human resource management practices and their impact of different aspects of corporate entrepreneurship (Hayton, 2005; Jack, et al., 2006; Kaya, 2006; Schmelter, et al., 2010; Tocher & Rutherford, 2009). Although the fields of corporate entrepreneurship and human resource management studies are well developed as separate topics for decades, the current research and literature focused on the interactions of corporate entrepreneurship and human resource management have only progressed through the infantry stage and started to establish theoretical foundations and explore practical implications. In an effort to further explore the field, this review has drawn on current literature in regard to the relationship between corporate entrepreneurship and human resource management to highlight some of the important influences human resource management has on corporate entrepreneurship performance. 35 Bo ZHOU 02411261 152.785 Research Report In addition, by analysing Hayton’s conceptual framework for the relationship between human resource management and corporate entrepreneurship, some gaps in the current studies have been identified, and a new model has been developed which incorporates the temporal aspect of organisation’s life cycle into the interactions between corporate entrepreneurship and human resource management to enhance the knowledge on the impact of human resource management on different aspects of corporate entrepreneurship through different development stages of an organisation. 4.1 Future Research Direction Although there are solid theoretical evidence that supports the argument made and frameworks developed regarding to corporate entrepreneurship and human resource management interactions in the current literature, in the real world, organisations in different industries may find it hard to adopt such model, as there are too many contextual variables. To ensure that these frameworks can provide sufficient practical implications, there is a need for more thorough empirical research to be done. The first issue that future empirical research should explore is to establish cross border, cross industry studies to examine whether or not the current findings and consensus in the field of studies are consistent with empirical results. The main focus should be the effectiveness of human resource management practices on firms’ entrepreneurial performances to assess the applicability of current theories. Secondly, longitudinal studies should be conducted to evaluate whether or not the development stages proposed in the temporal model fits organisations life cycle in 36 Bo ZHOU 02411261 152.785 Research Report the real world. This is to ensure that the assumptions made by the model can be applied to practical situations, thus enhance its implications. Cross cultural studies on firm behaviours and human resource management practices are also required to examine cultural impacts. As several studies have suggested, that a high level of individualism and short power distance can greatly promote creativity, innovation and, while a high level of collectivism and long power distance limits the potential of entrepreneurial behaviour (Lassen & Nielsen, 2009; Morris & Jones, 1993; Naman & Slevin, 1993; Zahra, et al., 2004). More empirical research can provide practical evidence for such argument and enrich our knowledge base in regard to cultural influences. Last but not least, the aspect of strategic renewal needs to be studied, both conceptually and empirically. Most current literature tends to ignore this issue in there discussion due to: 1. There is a great ambiguity around the definition and reorganisation of strategic renewal. Many studies on this topic often categorise it to a type of venturing, thus overlooks the unique characteristics and attribution of this phenomenon; 2. There are not enough empirical studies to draw upon, as strategic renewal has a low possibility of occurrence, and cannot be easily identified. Thus, there is a great difficulty in conducting research, due to the amount of time and effort needed to collect sufficient samples. Despite these constrains, strategic renewal needs to be empirically examined as many have considered it as one of the most effective approaches to obtain sustainable advantage in regards to corporate entrepreneurship, especially on 37 Bo ZHOU 02411261 152.785 Research Report autonomy, innovativeness, pro-activeness, competitive aggressiveness and risk tolerance (Dess & Lumpkin, 2005). Thus, it is essential for us to accumulate more information and develop further understanding about this issue. The research field in the interaction of corporate entrepreneurship and human resource management is still young. Most of the current research is highly conceptual, and empirical studies carried out in the recent years are mostly conducted in the US, and focused on operational human resource management practices. As identified by this review, it is important to connect effective human resource management practices to related corporate entrepreneurship performances, it is also important to take other factors such as culture and life cycle into consideration, as these can directly or indirectly influences the impact human resource management has on corporate entrepreneurship. Upcoming literature has also linked organisational learning and knowledge management to corporate entrepreneurship (Crossan & Bedrow, 2003; Kontoghiorghes, Awbre, & Feurig, 2005; Ng, 2004). 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Cognition and international entrepreneurship: Implications for research on international opportunity recognition and exploitation. International Business Review, 14(2), 129-146. Zahra, S. A., & Nielsen, A. P. (2002). Sources of capabilities, integration and technology commercialization. Strategic Management Journal, 23(5), 377. Zahra, S. A., Nielsen, A. P., & Bogner, W. C. (1999). Corporate entrepreneurship, knowledge, and competence development. Entrepreneurship: Theory & Practice, 23(3), 169-189. Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management Studies, 43(4), 917-955. 45 Bo ZHOU 02411261 152.785 Research Report Reflective Journal The past fourteen weeks has been an incredible journey for me. I have heard a lot about the challenging nature of this research paper long before I enrolled. As a business graduate, I was fairly certain when I started this paper that the skills and competencies I have acquired through my academic studies were enough to help me pass. However, what I have experienced in this semester is much more than I anticipated. The construction of the research report is not only difficult and challenging, but also highly stimulating. The first task is to choose my research topic. I have been told that picking a popular and easy topic can greatly reduce the effort required to finish the report, as we already have certain amount of knowledge about the topic, and there are a lot of resources we can refer to. However, I prefer to do something different and fresh, rather than repeating what others have done before. After some initial research, I decided to write about the interactions between corporate entrepreneurship and human resource management, a field that is relatively new and very challenging, and it’s about entrepreneurship, a fascinating topic that I’m very interested in. The second stage of this report involves intensive research. The process is quite time consuming, as building up strong arguments and quality analysis requires a substantial amount of theoretical and empirical support. This is especially challenging for me, as my research topic is not well developed yet, there’s not as much resource available to my specific study, and there are only a handful of scholars who had been working on this topic. Thus, I spent a lot time on researching each variable as a single topic, trying to find linkages or consensus that I could draw upon. I’m fortunate to have my supervisor, Dr. Kaye Thorn, and my colleagues who 46 Bo ZHOU 02411261 152.785 Research Report have helped me clarify my research focus, and provided me some useful resources. I have to express my gratitude to them, for their support through this long and difficult process. The next part is the actual writing of the report. This process is split into three stages: introduction and designing the report structure; writing literature review; the development of my own conceptual model. I have always enjoyed the creative and critical thinking part of doing any task. Thus, I’m very motivated to develop my own framework, and find it quite fulfilling to construct the assumptions and justifications for my argument. I have to thank Dr. Thorn again, for her inspiration on adding the temporal aspect to the discussion, this is crucial to the successful development of my model. However, the literature review part to me was not as stimulating. I have taken out the parts I found useful from each article while doing the research, and planned to reorganise them and link them together to form my literature review. The actual task is much more difficult and time consuming than I expected. It is quite an accomplishment for me to finish this project. It has not only tested my academic competencies for carrying out research and constructing quality report, but also challenged my time management skills, as I have to balance between this report and the other paper I was doing this semester. My plan to return to my home country after graduation put additional stress on me too, due to the many personal and family issues that need to be settled before I leave the country. In all, this paper is by far the most useful course I had taken. It challenged me on many aspects, and the skills and experience I developed and enhanced through this journey will become invaluable assets for me to carry on in the future, wherever it may lead. For this, I am grateful and fulfilled. 47