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
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 |
|
H1 |
|
Yes |
2.360 |
0.701 |
|
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.
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Received on 07.05.2014 Modified on 18.05.2014
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