Corporate entrepreneurship strategies in the South African mining industry

Abstract

Purpose Volatility in the external environment increases the level of risk for organisations. Therefore organizations have to adapt to the environment by being entrepreneurial through adoption of entrepreneurship strategies. It is therefore the purpose of this study to determine the perceived value of entrepreneurial orientation and the type of corporate entrepreneurship strategies that are used in the mining industry when firms operate in volatile environments. Data collection For the purpose of this study online questionnaires were utilised. The questionnaires were emailed to the participants through the CEO of the company, the CEO then distributed via email to the targeted managers within the organisation. Response was minimal with only sixteen responses by mid February. The questionnaire was then sent to members of the Chamber of mines, to which there was no response. Questionnaires were then printed out and handed to respondents physically in order for them to fill out. In total 50 responses were obtained, of which three were incomplete. Key findings Key findings of the study are that junior mining firms are entrepreneurial and have a positive perception towards entrepreneurial orientation. Because these firms are entrepreneurial they differ from firms that are not entrepreneurially orientated by manifesting characteristics such as innovation, risk taking and proactiveness. Entrepreneurial orientation is used as a cushion against uncertainty in a volatile environment. Furthermore, entrepreneurially oriented firms also engage and utilize corporate entrepreneurship strategies such as corporate venturing and strategic entrepreneurship.