Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2024 Vol: 30 Issue: 1

The impact of Human Resource Management Practices on Corporate Entrepreneurship: Empirical Study in Yemeni Public Universities

Jalal Rezk Saleh Nagi, University Sultan Zainal Abidin

Fakhrul Anwar Zainol, University Sultan Zainal Abidin

Citation Information: Nagi, S.R.J., Zainol, A.F. (2024). The Impact of Human Resource Management Practices on Corporate Entrepreneurship: Empirical Study in Yemeni Public Universities. Academy of Entrepreneurship Journal, 30(1), 1-11

Abstract

HRM practices are critical not only for organizing human and social capital, but also for fostering and increasing corporate effectiveness. But important empirical findings are still needed about how HRM practices affect corporate entrepreneurship (CE) in higher education. This study aims to examine how HRM practices and CE are connected at public universities in Yemen. Also, this study tries to find out how much HRM and CE are linked in the workplace. Data from 203 academic staff members working at public universities in Yemen were used to conduct an empirical examination of the hypothesized overall relationship between HRM practices and the CE. The analysis was performed using SPSS 5.0, and the model was made up based on HRM practices and CE. The findings of the current study showed that there is a significant impact of HRM practices on CE in Yemeni public universities. In general, the current study showed how important HRM practices are to improving CE in Yemeni universities. In addition, by using the mean and standard deviation, both HRM practices and CE have moderate levels in universities based on the opinions of academic staff. In conclusion, contributions to theory and practice were also made by the current study, which examined the impact of HRM practices on CE at Yemen's public universities. Furthermore, academic administrators and educators need to constantly investigate, supervise, and develop HRM programs in order to keep up with the ever-evolving corporate and educational fields

Keywords

Human resource Management, Corporate entrepreneurship, Yemeni Public University, Yemen.

Introduction

Corporate entrepreneurship (CE) helps a company stay ahead of the competition by actively looking for and using new sources of knowledge. Human resource management (HRM) activities are at the heart of these entrepreneurial actions, which place a high value on combining expertise in new ways (Amberg, Joe, & Sara, 2019). Moreover, human resources management practices (HRMPs) as a means of directing human and social capital are exceptionally imperative to advance and foster corporate entrepreneurship (CE) (Ozdimrici & Behram, 2014), and consequently the high performance of HRM practices is supportive in advancing CE. HRMPs are the central elements that contribute to making an organization able to become innovative, proactive, and take risks (Fong, Ng, Tan & Seow, 2013). Schuler (1986) contends that stable HRM practices can enhance corporate entrepreneurship. Contrasts in HRM practices are likely to be related to alterations in the level of entrepreneurship observed across companies, as is steady with contingency theories of companies (Minzberg, 1984). According to Kuratko et al., (2018), HRM practice can be considered one of the most significant administrative decision areas influencing CE. In addition, Burgelman (1983) and Schuler (1986), among others, propose that a huge number of HRM-related activities may have an impact on CE.

According to Kaya (2006), the contributions of intangible assets to organizations' results are enhanced by the viability of corporate forms and practices. Additionally, the sum of entrepreneurial activities can be improved by HRM practices (Kuratko, Ireland & Hornsby, 2001). Moreover, Hayton (2004) emphasized that CE can be considered an indicator of the efficiency of HRMPs inside organization. Brockbank (1999) stated that a culture of proactive, innovative, and initiative taking can be provided by HRM practices such as; motivation, development, and opportunity. In other words, HRM practices can drive a growth in CE while growing the performance influence of CE (Kaya, 2006). According to Chen, Zhu, and Anquan (2005), CE development cannot be implemented unless it is bolstered by the top administration and investors. Therefore, CE cannot get significant support without the practices of human resources management to support long-term and highly risky ventures (Zahra et al., 2000).

Problem Statement

HRM practice is one of the most important driving factors of CE, so it's important to look into the links between HRMP and an organization's willingness to take risks, try new things, and be proactive. (Madmoli, 2016). HRM practices and CE fields have been investigated together infrequently in the past, and few studies have examined the relationship between HRMPs and CE fields (Orakwue & Iguisi, 2020). Additionally, several scientific results from an individual entrepreneurship study support the notion that entrepreneurship is influenced by corporate background, however, the literature on entrepreneurship at the corporate level has been deemed insufficient (Zainol, Daud, & Muhammad, 2012). Moreover, according to the relationship between HR and CE, the employees who have entrepreneurial qualities are the basis for promoting the CE. However, there will be no innovation in the organization if the employees lack entrepreneurial awareness. Additionally, researchers looked at the skills and abilities of successful business entrepreneurs. They found that successful business entrepreneurs have traits like motivation, high willpower, self-efficacy, and independence (Littunen, 2000; Tang, Wei, Snape, & Ng, 2015).

Furthermore, HRM practices may have a significant impact on increasing CE (Soleimani & Shahnazari, 2013). However, few researchers have examined the influence of HRM practices on a CE company and described how HRM practices have a direct impact on CE (Khan, Khattak, Ahmed, & Khan, 2018). Despite this increased focus and action, our knowledge of the ways in which HRM affects CE is still in its infancy (Tang, et al., 2015). Some researchers have found that HRM practices are key to developing corporate entrepreneurship. This is because CE helps an organization grow and improve profitability (Salamzadeh, Aidin, Tajpour, & Hosseini, 2019). In conclusion, a gap exists in both fields of the HRM practices and CE literature, and this gap should be identified by reviewing the relationship between HRM and CE in entrepreneurial organizations (Keating & Olivares, 2007). Filling this gap is vital because of a main role of HRM in organizations as the shaker and mover in corporate improvement and growth, and because the literature has basically not researched this scope in great sufficient depth (Dabic, Criado, & Martinez, 2011).

According to what was mentioned above, the objectives of this study are:

1- To determine the levels of HRM practices and CE among the respondents.

2- To determine the relationship between HRM practices and CE.

3- To determine the influence of HRM practices on CE.

Literature Review

Corporate Entrepreneurship

Many businesses still struggle to achieve CE, despite the fact that it is increasingly recognized as critical to their future growth and viability. The term Corporate Entrepreneurship (CE) is used to describe entrepreneurial performance within an already existing medium or large company (Botha and Nyanjom, 2011). The 18th-century economists Jean-Bapt and Joseph Schumpeter are said to have laid out the notion of corporate entrepreneurship, which comes from the French language that means “to combine the resources for profit making”. In addition, according to Turró, Urban, & Peris-Ortiz (2014), entrepreneurship inside present companies has changed to the concept of corporate entrepreneurship since the beginning of the 1980s and has become the subject of both for researchers and businesspeople. As defined by Ireland, Covin, and Kuratko (2009), it is "the process of identifying and capitalizing on business opportunities created by information and knowledge gaps in regard to markets or innovations."

Additionally, CE also allocates human and financial resources to help the firm uncover and exploit innovations (in production and method), development (services or quality), and value advantages to maximize its revenue and share of the market (Khan et al., 2018). Chigamba, Rungani, and Mudenda (2014) defined CE as the chain of key corporate practices to generate an additional entry within or around the present organization. CE encompasses several academic fields and entrepreneurial perspectives, making it hard to define. CE involves starting new enterprises within current companies. When an organization's underlying ideas are no longer valid, it must undergo a renewal process that includes innovation. Companies with high renewal ability usually undertake discontinuous changes (Dabic et al., 2011).

HRM Practices

According to Kuratko, Hornsby, and Bishop (2005), HRM practice can be considered one of the most significant administrative decision areas influencing CE. In addition, Burgelman (1983) and Schuler (1986), among others, propose that a huge number of HRM-related activities may have an impact on CE. In his discussion of CE, MacMillan (1987) recommends that: We are looking at a circumstance where HRM involvement is maybe essential, for surely there is no other job that has the aptitudes and is preparing to organize the essential casual processes.

Human resources management practices (HRMPs) as a means of directing human and social capital are exceptionally imperative to advance and foster corporate entrepreneurship (Ozdimrici & Behram, 2014); consequently, the high performance of HRM practices is supportive in advancing CE. HRMPs are the central elements that contribute to making an organization able to become innovative, proactive, and take risks (Fong et al., 2013). Schuler (1986) contends that stable HRM practices can enhance corporate entrepreneurship. Contrasts in HRM practices are likely to be related to alterations in the level of entrepreneurship observed across companies, as is steady with contingency theories of companies (Minzberg, 1984).

According to Kaya (2006), the contributions to organizations' results of intangible assets are upgraded by the viability of corporate forms and practices. Additionally, the sum of entrepreneurial activities can be improved by HRMPs (Kuratko et al., 2001). Moreover, Hayton (2005) emphasized that CE can be considered as an indicator of the efficiency of HRMPs inside organization. Brockbank (1999) stated that a culture of proactive, innovative and initiative taking can be provided by HRMPs such as; motivation, development and opportunity. In other words, HRM practices can drive to a growing in CE while growing the performance influence of CE (Kaya,2006).

The relationship Between HRM practices and CE

HRM practices, which involve managing human and social capital, are very important to promote and support CE (Ozdimrici & Behram, 2014). As a result, the high performance of HRM practices helps to promote CE. HRMPs are the most important parts of an organization because they allow it to be creative, proactive, and willing to take risks (Fong et al., 2013). Schuler (1986) says that stable HRM practices can help companies be more entrepreneurial. As company contingency theories show, differences in HRM practices are likely to be linked to differences in the level of entrepreneurship seen in different companies (Moustaghfir,Fatihi, & Benouarrek, 2020).

Kaya (2006) says that the viability of corporate forms and practices improves the results that intangible assets bring to an organization. HRMPs can also boost the number of entrepreneurial activities (Gurmu & Ongkowijoyo, 2020; Kuratko et al., 2001). Hayton (2004) also pointed out that CE can be used to measure how well HRMPs are working in an organization. Brockbank (1999) said that HRMPs like motivation, development, and opportunity can help create a culture of being proactive, creative, and willing to take the lead. In other words, HRM practices can lead to a rise in CE while also making CE have a bigger effect on performance (Kaya, 2006; Reaves & Cozzens, 2018; Urban & Wood, 2015). Moreover, Chen et al. (2005) stated that CE development can't happen unless it has the support of top investors and the government. Furthermore, corporate entrepreneurship cannot get much support unless top management is willing to take on long-term, high-risk projects (Moustaghfir et al., 2020; Zahra et al., 2000).

Based on what has been mentioned before, the current study presents the following hypotheses:

H1: there is significant relationship between HRM practices and CE in Yemeni public universities.

H2: There is significant impact of HRM practices on CE in Yemeni public universities.

Methodology

Based on the objectives of the study, which were to find out how HRM and CE are related from the academic staff's point of view, it is thought that a descriptive and correlational method will give the most useful information. The study was carrying out HRM toward CE at Yemeni universities. Thus, this study tries to explain the relationship between HRM practices and CE. To identify how much HRM practices affect CE in Yemeni universities.

Population and Sample Size

The population of the current study was the academic staffs who were working in the faculties of business sciences, management, and economics in the target Yemeni universities (Sana’a, Hadhramout, Taiz, and Aden). Thus, simple random sampling was applied to determine a sample size of 203 from the target population of 430.

Data Analysis

SPSS version 25.0 was used to analyze the survey data collected. The collected data was coded once the questionnaires had been collected and completed and entered into a computer for analysis. The SPSS program was used to analyze the data. The descriptive statistics (mean and standard deviation) were being used to achieve the first objective of the study, which was to determine the levels of the main factors. Moreover, inferential statistics, consisting of Pearson correlation and regression, were used to achieve the second and third objectives of the study see table 1 and table 2.

Table 1 Questionnaire Response Rate
Details Total
Number of questionnaires distributed 203
Number of questionnaires collected 166
Percentage collected responses rate 81.80%
Number of usable questionnaires 166
Percentage usable return rate 100%
Table 2 Demographic Background of Respondents
Demographic Category
Gender Male (79.5%) Female (20.5%)
Age 41-50 years (41%) 31-40 years (29.5%)
Working Experience 20 years and above (31.3%) 16-19 years (21.7%)

Analysis and Finding

Levels of HRM and CE

To determine the levels of HRM and CE, the standard deviation and mean values were used to describe the degree to which respondents agreed or disagreed with each concept. There were three levels of mean scores, from 1.00 to 2.32, a low level; from 2.33 to 3.65, a moderate level; and from 3.66 to 5.00, a high level. Table 3 shows the levels of HRM and CE among the academic staff working in public universities in Yemen. According to table 3 below, HRM and CE had a moderate level based on the opinion of academic staff.

Table3 The Levels of HRM and CE
Factors (n=166) Mean Std. Deviation Level
HRM 3.653 0.45184 moderate level
CE 3.3539 0.73846 moderate level

The relationship Between HRM and CE

To determine the relationship between HRM practices and CE, the Pearson’s correlation coefficient was performed. Additionally, this analysis will test the first hypothesis (H1). Table 4 below shows the relationship between HRM and CE.

Table 4 The Relationship Between HRM Practices and CE
Variable Corporate Entrepreneurship (CE)
Pearson correlation Significance (2-tailed)
HRM .783** 0
**. Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed)

According to Pearson correlation in table 4 above, there is a significant positive correlation between HRM and CE where (r = 0.783, p < 0.01). Consequently, H1 is accepted.

The Impact of HRM practices on CE

Simple linear regression analyses were done to figure out the effect of HRM on CE. Moreover, this analysis has tested the second hypothesis (H2) and determined the contribution of HRM to CE. Tables 5, 6, and 7 present the relevant values for regression analysis.

Table 5 Model Summary (Regression of Analysis with HRM as Predictor of CE
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .783a 0.613 0.611 0.46076
Table 6 Statistical Significance of Regression Result
Model Sum of Squares df Mean Square Sig.
1 Regression 55.161 1 55.161 .000b
Residual 34.817 164 0.212
Total 89.978 165
a. Dependent Variable: CE
b. Predictors: (Constant), HRM
Table 7 Coefficient for the Influence of HRM Practices on CE
Model Unstandardized Coefficients Standardized Coefficients t Sig.
1   B Std.Error Beta    
(Constant) 1.41 0.298   4.737 0
HRM 1.28 0.079 0.783 16.119 0
 a. Dependent Variable: CE

According to the data shown in Table 5 below, the value of the adjusted R square is 0.611, which means that around 61% of the variation in CE is due to the variation in HRM at Yemeni public universities. In addition, table 6 below presents the result of an ANOVA, where F = 14.639 and p < 0.05 showed that the regression model of HRM on CE was statistically significant. That means HRM can be used as an independent variable to explain the CE in Yemeni public universities.

The assessment of ANOVA results is shown in table 6 where F = 59.89, p < 0.05. Statistical significance was found for the effect of HRM practices on corporate entrepreneurship in Yemeni public universities.

Additionally, table 7 below shows the regression coefficients for the influence of HRM practices on CE. According to the analysis results, HRM practices had an impact on CE (B = 0.783, p < 0.05) in Yemeni public universities.

Discussion

In the current study, ability, motivation, and opportunity are the characteristics of human resource management that are being examined. With regard to the dimensions assessed for HRM and CE by the questionnaire, HRM had a moderate level based on the opinion of academic staff in Yemeni public universities. This is because academics come from diverse and interesting backgrounds, and because the academic staff is widely believed to have high self-esteem and thus perform excellently in their roles (Reaves & Cozzens, 2018). In addition, because of the war that started in 2015, the academic staff had a higher opportunity to make decisions and share information in the workplace. Based on the mean values of HRM practice and CE, there were small differences in the numbers of mean values that they got. It suggests that there is not an enormous difference between the average levels of HRM and CE, which may be evidence that there is a connection between the academic staff's perceptions and that both of them had moderate mean values. According to the levels of the main variables, the results of the current study are consistent with the results of previous studies related to the importance of HRM level (Gurmu & Ongkowijoyo, 2020; Moustaghfir et al., 2020; Obeidat, 2016; Roberts, 2006; and Salamzadeh et al., 2019).

Moreover, the findings of the correlation analysis indicated that HRM practices were positively correlated with CE in Yemeni universities. According to testing the first hypothesis, it confirmed that there is a positive and significant relationship between HRM practices and CE at the public universities in Yemen. Accordingly, this result proves the empirical linkage between HRM practices and CE. The empirical findings, according to Urban and Wood (2017), reveal that workers have several chances and motives related to their readiness to undertake entrepreneurial efforts within the organization. Similarly, business innovation is profoundly affected by HRM practices’ handling of employee ability, opportunity, and motivation. Additionally, the relevant result about the influence of HRM on CE confirmed the important impact of HRM on CE in Yemeni universities. The findings of this study are consistent with the findings from previous studies, like Chen et al. (2005), Dabic et al. (2011), Fong et.al, 2013), Hayton (2004), Kaya (2006), Keating & Olivares (2007), Moustaghfir et al. (2020), Ozdimrici & Behram (2014), and Salamzadeh & Hosseini, (2019), which have shown a positive relationship between HRM practices and CE. And significant impact of HRM on CE.

Implication of Study

The current study builds on the prior knowledge that has been gained in the HRM and CE domains. Additionally, this study adds to what is already known in the field of CE and helps us think about and understand HRM practices by AMO theory and how to better correlate these elements that influence the relationship between predictor variables and criterion variables in Yemeni public universities. Moreover, this study also aims to improve corporate entrepreneurship in Yemeni public universities by determining the role of HRM practices. According to some previous studies, such as AL-Mottahar & Pangil (2021), Khan et al. (2018), Kuratko et al. (2005), Alakrash et al., 2022, and Schuler (1986), they have shown that HRM is one of the most important fields for making decisions in management that affect CE. Therefore, organizations rely heavily on how well HRM departments function because this is where a lot of organizational decisions are made, which can result in achievement or weakness. The results of the current study are going to help human capital management in universities identify the needed policies and plans to improve skills, knowledge, and self-efficacy for enhancing CE.

Conclusion and Recommendations

Organizations can increase the value of their human resources and the return on their investment in them by implementing suitable plans for HRM that encourage CE. Additionally, significant empirical findings from studying the case of a Yemeni public university have strengthened the integration of the current body of knowledge on the impact of HRM on CE in universities. The advancement and refinement of current conceptualizations of the function of HRM as a performance driver in CE may be attributed to the development and testing of a study model in the context of CE. HRM in universities should pay attention to and focus on the important effect of war on individual and organizational performance. Hence, the war in Yemen affected the ability of the academic staff to provide the academic service efficiently and effectively. Additionally, universities should take into consideration that the absence of some important practices of HRM, such as satisfied motivational factors, may lead to dissatisfaction among employees, which affects CE, and organizational performance as a whole (Al-mottahar & Pangil, 2020). Universities should also be more flexible and connected to employees to develop CE. To ensure the development of CE, improving HRM practices such as sharing knowledge, motivating employees, and participating in administrative decision-making can be recommended as vital factors in enhancing CE in public universities. For future studies, the study highlighted some ideas based on the results. It is suggested that additional research be conducted with larger populations and sample size. Furthermore, further HRM practices and functional aspects that could have affected CE at universities need to be incorporated to gain a complete picture of how HRM practices affect CE in Yemen. Using PLS-SEM or CB-SEM is also recommended for analysis in future studies. It would be very useful if another study were to use the same mix of quantitative and qualitative techniques to look into CE and HRM in an alternate environment. In conclusion, educators and administrators in higher education need to always be learning, monitoring, and creating new programs in order to stay up with the rapidly evolving field of HRM practices and CE. This is crucial for the prosperity of people as well as businesses. Thus, existing HRM practices within businesses foster the development of new ideas, whether they be at the level of the individual worker or the entire company (Ireland et al., 2009). Therefore, it is reasonable to conclude that the expansion of HRM practices through information sharing, the emphasis on innovation and proactiveness, and the link between these factors contribute positively to the entrepreneurial drive of organizations.

Acknowledgement

After I have thanked ALLAH for everything, I would like to thank my dear supervisor, Assoc. Prof. Fakhrul Anwar Zainol, for all the help, direction, and inspiration he gave me during my PhD journey and the writing of this paper. I'd also like to thank my financial sponsor, Taiz University in Yemen, for its financial help.

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Received: 27-Oct-2023, Manuscript No. AEJ-23-14159; Editor assigned: 01-Nov-2023, PreQC No. AEJ-23-14159(PQ); Reviewed: 15-Nov-2023, QC No. AEJ-23-14159; Revised: 22-Nov-2023, Manuscript No. AEJ-23-14159(R); Published: 29-Nov-2023

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