Links between entrepreneurial orientation and corporate governance structures in the South African oil and gas industry
Molokwu, Vincent Brown
This study examines the relationships between entrepreneurial orientation (EO) and four sub-dimensions of corporate governance structures (CGS) in a sample of 173 senior decision-makers representing companies in the South African oil and gas industry. The four attributes of CGS include: board effectiveness and competence, board knowledge and experience, board commitment and recognition of complexities and board involvement in decision-making processes. A series of Canonical correlation analyses assess the strength of relationships between the dimensions of EO and CGS at both univariate and multivariate levels. The results of this study support a positive significant relationship between EO dimensions namely, innovation, proactiveness and risk-taking; and the dimensions of CGS namely, board effectiveness and competence, board knowledge and experience, board commitment and recognition of complexities, and board involvement in decision-making processes. It also indicates a positive link between EO and CGS. The synthesis gleaned from this study is based on the expansive literature review on EO and CGS which provided an insight on the existing knowledge on the relevance of EO in organisational growth and CGS with respect to the nature of the boards, executives and decision-makers roles and responsibilities in strategic entrepreneurial activities within the organisation. This study is of practical use to organisations, enabling them to think and act entrepreneurially, and to policy makers to assist them to keep track of the regulatory guidelines, adopted by boards and executives in monitoring and implementing entrepreneurial culture in their respective organisations. Finally, to researchers and academics, this study allows an extension of knowledge to the EO and CGS and its applicability in one distinct industrial context.
Corporate governance, Oil and gas industry, South Africa