Investigating the Effect of Perceived Organizational Support and Values Congruence on the Employees’ Entrepreneurship Behaviors

(Shiraz Public Organizations as Case Study)

 

Mohammad Bagher Fallahi1, Elham Maleki2

M.A. of Business Management, Department of Management, Faculty of Administrative Sciences and Economics, University of Isfahan

M.A. of Governmental Management, Islamic Azad University of Dahaghan.

*Corresponding Author E-mail: Mb.fallahi88@yahoo.com, maleki¬_elham_11@yahoo.com

 


ABSTRACT:

The present study was aimed to investigate the effect of perceived organizational support and values congruence on the employees’ entrepreneurship behaviors. This study is a practical research from purpose view and is a descriptive-survey one from research methodology perspective. The statistical population of this study includes 154 employees of a public organization in the city of Shiraz. A sample of 110 employees has been selected from this population through simple random sampling method. In order to collect the research data in terms of perceived organizational support, values congruence, and entrepreneurship behaviors, three questionnaires have been used. The questionnaire of perceived organizational support has been developed by Eisenberger and et al. (1986). The questionnaire of values congruence has been developed by Cable and Judge (1996). Finally, the questionnaire entrepreneurship behavior has been developed by Pearce et al. (1997). In order to employ these questionnaires, their reliability and validity of the questionnaires have been examined and confirmed. The SPSS and Smart-PLS are the statistical software which has been used for analyzing the research data and test the hypotheses. The results revealed that perceived organizational support (with path coefficient of 0.645) and values congruence (with path coefficient of 0.701) influence employees’ entrepreneurship behaviors. Another part of our findings indicated that values congruence plays a mediating role in the relationship between perceived organizational support and entrepreneurship behaviors.

 

KEYWORDS: Perceived Organizational Support, Values, Values congruence, Entrepreneur, Entrepreneurship Behavior.

 

 

 


INTRODUCTION:

With regard to the variation and revolutions of today’s world and emergence of knowledge-based organizations, human resources are considered as an important organizational resource in different organizations (Roepki, 2000). On the other hand, entrepreneurship has been considered as an important factor in both public and private organizations during recent years. In other words, entrepreneurship implies the effective role of governments in the societies and organizations’ success (Zampetakis and Moustakis, 2007).

Entrepreneurship behaviors in the organizations include a set of activities and methods by which employees use resources for recognizing and tracking opportunities. Such behaviors include recognition, evaluation, and utilize opportunities for producing new products and services (Shane and Venkataraman, 2000). It is necessary for organizations to support entrepreneurship behaviors across the organizational hierarchy. The reason is that it results in better organizational performance and competitive advantage (Mair, 2005).

 

There are several intra-organizational factors which influence employees’ entrepreneurship behaviors. Organizational support is one of such factors. Indeed, theory of organizational support provides a valuable theoretical framework for understanding employees’ entrepreneurship behaviors (Rhoades and Eisenberger, 2002). Based on the theory of social exchange, employees’ perspective toward organization determines their behavioral direction toward organization, coworkers, and clients. Employees show especial beliefs and attitudes toward organization based on the organization’s attention to their welfare and values. Such a believe is known as perceived organizational support (Ingham, 2008). Based on the theory of person-organization fit, employees’ perception of organizational conditions influenced by their evaluation of organizational values and values congruence considerably (Piasentin and Chapman, 2006). Lack of congruence between employees’ values and organization results in more alienation in employees and also increase their inability and meaningless (Mendoza and Lara, 2007). As a result, it pot down motivation of beneficial and constructive behaviors.

 

Based on the literature review, organizational entrepreneurship is very important for organizations’ success. In addition to entrepreneurship behaviors, there are several factors which improve and reinforce these behaviors. This why that these factors should be attended by organizations. The present study was aimed to the effect of perceived organizational support and values congruence on the employees’ entrepreneurship behaviors.

 

Review of literature

Perceived organizational support

Humans like others behave them as they behave others. If a supervisor behaves his/her subordinate appropriately, the subordinate attempt to improve his/her performance. It is should be noted that the concept of mutual transaction improve employees’ behaviors and job performance. As a result, organizational effectiveness will be improved. This refers to the importance of mutual exchange which results in social exchange formation (Deckop et al., 2003). Based on the theory of social exchange, employees’ behaviors with each other show their mutual behaviors. Many authors and researchers believe that there is such a relationship between employees and their organization. The reason is that organization is a source which satisfies employees’ needs. Theory of social exchange refers to this fact that if a person benefits from others’ activities and efforts, he/she think that has commitment to compensate that activity and effort. This theory can be used in organizations. In other words, when employees evaluate their perceived support favorably, they show better behaviors from themselves such as organizational citizenship behavior, customer-oriented behaviors, services-oriented behaviors, and so on. As a result, organizational performance will be improved (Hung et al., 2004).

 

Indeed, perceived organizational support is a perception or believes of a person that his/her welfare and participation is important for organization (Bell and Menguc, 2002). Employees attempt to achieve organizational goals based on the supports they perceive from organization in different areas. Such believe is known as perceived organizational support (Ingham, 2008). Indeed, perceived organizational support results in more commitment in employees and also increase their participation in organizational goals. As a result, organizational performance will be improved (Riggle et al, 2009).

 

Values congruence

Values are defined as internalized normative believes which determine favorable conditions, goals, and objectives. When such believes are formed, they are used as normative criteria in evaluations (Schwartz, 1992). Durbin (2000) refers to values as the main basis of organizational culture. Key values and believes could be defined as what is perceived by a person (Gandhi, 1996). Based on the theory of organization-person fit, employees’ perception of job conditions is influenced by their evaluation of organizational values (Piasentin and Chapman, 2006).

 

Organization-person fit could be defined as the consistency between employees and their organization. Indeed, when organization-person fit is formed that employees goals, values, needs, attitudes, interests, expectations, and personality have consistency with organization’s goals, values, needs, attitudes, interests, expectations, and personality. The definition implies that employees’ attitude and behavior influenced by organization’s attitude and behavior (Silva et al, 2010). As a result, their individual values motivate their final expectations toward organizations conditions. According to many authors and researchers, congruence of employees and organizations’ values results in positive outcomes for both employees and organizations and vice versa (Cable and Judge, 1996). Lack of congruence between organizational values and employees’ values, employees’ alienation, inability, and meaningless will be increased (Mendoza and Lara, 2007). Indeed, employees who have similar values with their organization, have more effective interaction with organization and also their conflict and uncertainty will be decreased (Pandey and Welch, 2005).

 

Entrepreneurship behaviors

Organizations’ need to entrepreneurship derives from this fact that they are acting in a dynamic and complex environments. Such environments could be defined through their rapid, continuous, and radical changes (Hornsby, 1993). Organizational entrepreneurship refers to the process that its purpose not only is to create risky business, but also includes daily risky efforts such as development of new products and services, new managerial technologies, and new competitive strategies and conditions (Antoncic and Hisrich, 2004). An entrepreneur is one who recognize and evaluate different business opportunities and then provide necessary resources for operate that opportunities (Zabihi and Moghaddasi, 2005). On the other hand, organizations entrepreneurs are individuals who form entrepreneurship behaviors inside the organizations. Such employees could be found at different organizational levels. Indeed, entrepreneurship behaviors consist of a set of activities and methods by which employees recognize and track business opportunities at different organizational levels. Such behaviors refer to recognition, evaluation, and utilization of opportunities for developing and producing new products and services (Shane and Venkataraman, 2000).

 

There are several effective factors on the employees’ entrepreneurship behaviors. For example, perceived organizational support is one of the main effective factors on the employees’ entrepreneurship behaviors. Since perceived organizational support is a sense of supporting employees’ behaviors and efforts, it influences employees’ entrepreneurship behaviors (Littunen, 2000). The importance of this issue is the main stimuli of authors of this study. This is why the present study was aimed to investigate the effect of perceived organizational support and values congruence on the employees’ entrepreneurship behaviors.

 

Conceptual model

The conceptual model of this study has been developed as shown in figure 1.

 

Based on the review of literature and Conceptual model, the following hypotheses have been developed.

1.     Perceived Organizational Support influences Entrepreneurship Behavior significantly.

2.     Value congruence influences Entrepreneurship Behavior significantly.

3.     Perceived Organizational Support influences Entrepreneurship Behavior significantly through Value congruence.

Research methodology

The present study is a practical research from purpose view and is a descriptive-survey one from research methodology perspective. The statistical population of this study includes 154 employees of a public organization in the city of Shiraz. A sample of 110 employees has been selected from this population through simple random sampling method. In order to collect the research data in terms of perceived organizational support, values congruence, and entrepreneurship behaviors, three questionnaires have been used. The questionnaire of perceived organizational support has been developed by Eisenberger et al. (1986). The questionnaire of values congruence has been developed by Cable and Judge (1996). Finally, the questionnaire entrepreneurship behavior has been developed by Pearce et al. (1997). In order to employ these questionnaires, their reliability and validity of the questionnaires have been examined and confirmed. The SPSS and Smart-PLS are the statistical software which has been used for analyzing the research data and test the hypotheses.

 

Data analysis

The structural equation modeling consists of two steps in Smart-PLS. these include testing the measurement model (external model) and testing the structural model (internal model).

Testing the measurement model:   In order to test the measurement model in the PLS, three steps should be passed. These include doing confirmatory factor analysis, composite reliability, and average variance extracted (AVE). If factor loading of the questions is more than 0.7, it can be said that its reliability is confirmed and vice versa. Also it is should be remembered that the factor loading should be significant in 0.05. The factor loading of every question has been indicated in table 1.


 

Table 1: Confirmatory factor analysis

Loadings

Indicators

Variables

Loadings

Indicators

Variables

0.715

Q12

Entrepreneurship Behavior

0.845

Q1

Perceived Organizational Support

0.825

Q13

0.769

Q2

0.741

Q14

0.89

Q3

0.701

Q15

0.705

Q4

0.779

Q16

0.694

Q5

0.699

Q17

0.773

Q6

0.714

Q7

0.678

Q8

0.886

Q9

Values congruence

0.802

Q10

 

 

0.791

Q11

 


As indicated in table 1, all of the factor loadings are more than 0.7 and so it can be concluded that the questionnaire is reliable. In order to examine composite reliability of the questionnaire, the PC coefficient has been used. The acceptable value of the PC is 0.7 or more than it. The third criteria for testing the measurement model is average variance extracted (AVE). If the AVE is more than 0.5, it can be said that the construct explains 0.5 of the variable’s variance. The results of this test and composite reliability have been indicated in table 2.

 

Table 2: Composite Reliability and AVE

AVE

Composite Reliability

Variable

0.589

0.810

Perceived Organizational Support

0.660

0.750

Values congruence

0.550

0.885

Entrepreneurship Behavior

 

Testing the structural model: In order to test the research hypotheses, structural equation modeling has been employed. Every path refers to one of the research hypothesis. Testing every hypothesis can be done based on three factors. These include the sign, size, and significance of Beta between independent variable and its dependent variable. The structural equation model of this study has been indicated in figure 2.

 


 

figure 2. path coefficients of structural model

 

In order to examine the significance level of path coefficients, it is necessary to show the t-value. This value has been indicated in figure 3.

 

figure 3. t-values of structural model

 

With regard to the results of figure 3, t-value of the first and second hypotheses is more than 1.96. Therefore, it can be said that these hypotheses are confirmed.

 

Table 3: Results of hypotheses (structural equation modeling)

Hypotheses supported (yes/no)

t-Statistic

β

Paths

Hypotheses

Yes

3.852

0.645

Perceived Organizational Support            Entrepreneurship Behavior

H1

Yes

2.360

0.701

Values congruence                            Entrepreneurship Behavior

H2

 

 


The results of hypotheses test in terms of explained variation (R2), and coefficient of Q2 have been presented in table 4.

 

Table 4: R2 and Q2

Q2

R2

Variable

0.311

0.355

Values congruence

0.328

0.605

Entrepreneurship Behavior

 

Because the coefficient of R2 is 0.605 for Entrepreneurship Behavior, it can be said that the proposed model explains 0.605 of Entrepreneurship Behavior variations. On the other hand, the Q2 of dependent variables are positive, it can be said that the independent variables predict dependent variable.

 

In order to investigate the mediating role of Values congruence in the relationship between Perceived Organizational Support and Entrepreneurship Behavior, the indirect effect of Perceived Organizational Support on Entrepreneurship Behavior should be examined through Values congruence. The results of this hypothesis have been presented in table 5.

 

Table 5: Examine the mediating role of Values congruence

Total effect

Indirect effect

Direct effect

Dependent variable

Independent variable

0.450

-

0.450

Values congruence

Perceived Organizational Support

0.701

-

0.701

Entrepreneurship Behavior

Values congruence

0.960

0.315

0.645

Entrepreneurship Behavior

Perceived Organizational Support

 

As the results of table 6 revealed, the direct and indirect relationship between Perceived Organizational Support and Entrepreneurship Behavior is significant. As a result, the results of third hypotheses of this study revealed that Perceived Organizational Support influences Entrepreneurship Behavior through Values congruence significantly. Therefore, the third hypotheses of this study are supported.

 

Discussion and conclusion:

As indicated across the paper, the purpose of this study is to investigate the effect of perceived organizational support and values congruence on the employees’ entrepreneurship behaviors in the city of Shiraz. The results of this study revealed that both perceived organizational support and values congruence influence employees’ entrepreneurship behaviors significantly. It can be said that employees with more perceived organizational support and values congruence have more entrepreneurship behaviors. This part of our findings is in consistency with findings of Zampetakis and et al. (2009). If employees evaluate their perceived organizational support positive, they will be motivated to compensate that supports. The results of the second hypothesis revealed that increase in the employees’ values congruence improve their entrepreneurship behaviors. Indeed, employees with similar values and interests to their organization, have more tendencies toward entrepreneurship behaviors. Also the results of this study revealed that values congruence plays a mediating role in the relationship between perceived organizational support and entrepreneurship behaviors. In other words, employees which perceive more organizational support, have more values congruence. This is why that they show more entrepreneurship behaviors in the organization.

 

Based on the findings of this study, the following empirical suggestions could be presented for improving entrepreneurship behaviors in the organizations.

·      Based on the positive relationship between perceived organizational support, it is suggested that organizational managers support their employees at different organizational levels, support new and creative ideas, and also allocate necessary resources for supporting them. Indeed, physical and spiritual supports which re considered for entrepreneurs should be described for them so exactly that they understand their role in the entrepreneurship efforts.

·      With regard to the effect of values congruence on the entrepreneurship behaviors, it is suggested that employees with rare job experiences are perceived more attention. The reason is that such employees have rare consciousness about organization and its values and so need more organizational support. Implementation of educational periods and workshops for informing such employees about organizational values can be effective in this area.

·      It is suggested that congruence of organizations and employees’ values are considered as an important criteria in selecting employees.

 

References:

Antoncic, B. and Hisrich R. D. (2004). Corporate entrepreneurship contingencies and organizational wealth creation. J Manage Dev, 23(5-6), 518-50.

Antoncic, B. (2007). Intrapreneurship: A comparative structural equation modeling study. Industrial Management and Data Systems, 107(3), 309-325.

Bell, S.  J.   and Menguc, B. (2002). The employee – organization relationship,  organizational citizenship behaviors, and superior service quality. Journal of retailing,  78, 131-146.

Cable, D. M. and Judge, T. A. (1996). Person– organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67, 294-311.

Silva, D. N., Hutchinson, J. and Wahl, G. (2010). Organizational strategy and employee outcomes: A person-organization fit perspective. The Journal of Psychology: Interdisciplinary and Applied, 144(2), 145-161.

Deckop, J. R., Cirka, C. C. and Andersson, L. M. (2003). Doing unto others: The reciprocity of Helping Behavior in Organizations, Journal of Business Ethics, 47(2), 101-113.

Dubrin, A. J. (2007). Fundamentals of Organizational Behavior. Thomson South-Western: Canada.

Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. Dand . Rhoades, L. (2001). Reciprocation of perceived organizational support,  Journal of Applied Psychology, 86, 42-51

Eisenberger, R., Huntington, R., Huntington, S. and Sowa. D. (1986). Perceived Organizational Support.  Journal of Applied Psychology, 71(3), 500-507.

Gandhi, M. K. (1961). My Phiosophy of Life. Pearl Publications Private Limited: Bombay, India.

Hoffman, B. J.  and Woehr, D. J. (2006). A quantitative review of the relationship between person–organization fit and behavioral outcomes. Journal of Vocational Behavior, 68, 389-399.

Hornsby, J. S., Naffziger, D. W., Kuratko, D.F. and Montagno, R. V. (1993). An interactive model of the corporate entrepreneurship process.  Entrepreneurship Theory and Practice, 17 (2).

Huang, J. H., Jin, B. H. and Yang, C. (2004). Satisfaction with business-to-employee benefit systems and organizational citizenship behavior: An examination of gender differences. International Journal of Manpower, 25, 195-210.

Ingham, M. K. (2008). Citizenship, support, and fit: Exploring the generalizability of these concepts to the occupational domain, PhD Dissertation, Temple University.

Littunen, H. (2000).  Entrepreneurship and the characteristics of the entrepreneurial personality. International Journal of Entrepreneurial Behavior and Research, 6(6), 295-309.

Mair, j. (2005). Entrepreneurial behavior in a large traditional firm: Exploring key drivers. Corporate entrepreneurship and venturing, Ed. T. Elfring, pp. 49-72. Springer: US.

Mendoza, M. J. S., and Lara, P. Z. M. D. (2007). The impact of work alienation on organizational citizenship behavior in the Canary Islands. International Journal of Organizational Analysis, 15, 56-76.

Pandey, S. K., and Welch, E. W. (2005). Beyond stereotypes: A multistage model of managerial perceptions of red tape. Administration and Society, 37, 542-575.

Pearce, J. A., Kramer, T. R. and Robbins, K. D. (1997). Effects of managers’ entrepreneurial behavior on subordinates. Journal of Business Venturing, 12, 147-160.

Piasentin, K. A. and Chapman, D. S. (2006). Subjective person–organization Wt: Bridging the gap between conceptualization and measurement. Journal of Vocational Behavior, 69, 202–221.

Rhoades, L. and Eisenberger, R. (2002). Perceived organizational support: Are view of the examination. Managing Global Transitions, 2(1), 5-14.

Riggle, R. J., Edmondson, D. R. and Hansen, J. D. (2009). A Meta analysis of the relationship between perceived organizational support and job outcomes: 20 years of research. Journal of Business Research, 62(10), 1027-1030.

Roepki, R. (2000). Aligning the IT and Human Resource with Business vision: The leadership initiative at 3M”. MLS Quarterly, 24, 32-54.

Schwartz, S. H. (1992). Universals in the content and structure of values: Theory and empirical tests in 20 countries. In M. Zanna (Ed.). Advances in Experimental Social Psychology, 25 , 1–65.

Shane, S. and Venkataraman, S. (2000). The promise of entrepreneurship as a field of research”. Academy of Management Review, 25(1), 217-228.

Zabihi M. and Moghaddasi, A. (2005).  Entrepreneurship from theory to practice .1 ed. Tehran: Jahan farad, Nama Publications.

Zampetakis, L. A. and Moustakis, V. (2007). Entrepreneurial behavior in the Greek public sector.  International Journal of Entrepreneurial Behavior and Research, 13(1), 19-38

Zampetakis, L. A., Beldekos, P. and Moustakis, V. (2009). Day to-day entrepreneurship within organizations: The role of trait Emotional intelligence and perceived organizational support. European Management Journal, 27, 165.

 

 

 

 

 

Received on 07.05.2014               Modified on 18.05.2014

Accepted on 28.05.2014                © A&V Publication all right reserved

Asian J. Management 5(3): July-September, 2014 page 335-340