Small entrepreneurial businesses are widely regarded as important contributors to the economic well-being of countries all over the world as they create value for both the entrepreneur and the economy in which they operate. The value creation process in these businesses often differs from what commonly happens in larger established businesses. Resources available to the entrepreneur are normally much more restricted and decisions are often based on limited information. This thesis focuses on the value that is created by technology-based entrepreneurial businesses, the leveraging of limited resources and the decision-making orientation they adopt during this process. Given the importance of technology-based entrepreneurial businesses in contributing to economic growth and job creation in most global economies, as well as the limited previous research conducted amongst these businesses, the purpose of this study was to identify the human and social capital factors influencing value creation in technology-based entrepreneurial businesses. With this purpose in mind, the primary objective was to identify, investigate and empirically test the relationships between the various identified factors and Perceived value creation in technology-based entrepreneurial businesses, taking into account their decision-making orientation, as well as the uncertain environment under which they operate. This study uses the Resource-Based View of the business as the basis of its theoretical orientation. The literature review revealed five main categories of constructs, namely Knowledge and skills, Experience, Networks, Decision-making orientation and Perceived environmental uncertainty influencing the dependent variable Perceived value creation in technology-based entrepreneurial businesses. Knowledge and skills, Experience and Networks were identified as independent variables while Decision-making orientation was identified as the mediating variable and Perceived environmental uncertainty as the moderating variable. Six demographic variables (type of industry, age of business, number of employees, age of entrepreneur, academic qualifications of entrepreneur and the number of previous businesses started by the entrepreneur) were also identified as potential influencing factors. Various hypotheses were formulated to be tested during the empirical investigation. Each construct was clearly defined and then operationalised. Operationalisation was done by using reliable and valid items sourced from tested measuring instruments used in previous studies, as well as a number of self-generated items based on secondary sources. A structured questionnaire was made available to respondents identified by means of the convenience snowball sampling technique, and the data collected from 313 usable questionnaires was subjected to various statistical analyses. An Exploratory Factor Analyses (EFA) was conducted which confirmed the different variables, and Cronbach-alpha coefficients were calculated to confirm the reliability of the measuring instrument. Structural Equation Modelling (SEM) was the main statistical procedure used to test the significance of the relationships hypothesised between the various independent, mediating, moderating and dependent variables. A number of different models were tested, and the results discussed and explained. The main finding of the study was that technology-based entrepreneurial business can create financial and non-financial value by adopting a decision-making orientation in the business of co-creating the future with other stakeholders. The most important human and social capital factors that influence the decision-making orientation of these businesses are Knowledge and skills, Unstructured networks and Structured networks. The main limitations of the study were firstly the convenience snowball sampling technique used to collect responses, secondly the dependence of reporting on organisation issues by individuals, and thirdly the limited number of influencing factors included in the models. Future research should address these limitations, and could include qualitative analyses. This study has added to the empirical body of knowledge on entrepreneurship research by investigating a particularly important segment of the literature, namely technology-based entrepreneurial businesses. By identifying and developing various models that outline the most significant factors that influence perceived value creation in technology-based entrepreneurial businesses, this study offers recommendations and suggestions for managing these businesses in such a way as to improve the creation of financial and non-financial value in them. It further provides recommendations for business teaching programmes to enhance curriculums by focusing on alternatives to the format of formal business planning.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:9329 |
| Date | January 2014 |
| Creators | Van den Heever, Thomas Stanley |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Doctoral, PhD |
| Format | xxii, 343 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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