A proposed corporate entrepreneurial framework in the retail division of an agri–business
Van Antwerpen, Henry
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The global economy is creating profound and substantial changes for business and industries throughout the world. In the agricultural industry this is also true regarding the active consolidation of the food-value chain that is taking place at a rapid rate and on the other hand a strong component of international competitiveness is becoming a reality with multi-national role players positioning them globally. The consumer on the other hand requires a simpler and cheaper supply chain and wants to participate in the deliberations regarding the end product. In order for Senwes to be successfully positioned as an intermediary, it is evident that change is essential and unavoidable. Therefore, Senwes business platform has to be enlarged, scale of volume has to be added and trade mark has to be addressed. The literature review in this study confirmed that corporate entrepreneurship is recognised as a potential viable means of promoting and sustaining competitiveness, and transforming business and industry opportunities for value-creating innovation. The primary objective of this study is twofold: Firstly, to assess the determinants of corporate entrepreneurship and retail in an agri-business in South Africa and secondly to propose an integrated framework to facilitate the process of establishing and maintaining corporate entrepreneurship and retail within the specific agribusiness in South Africa. A comprehensive literature overview on corporate entrepreneurship was conducted in chapter 2. In the literature review corporate entrepreneurship was defined and the necessity and fostering of corporate entrepreneurship discussed. A framework with determinants for sustainable corporate entrepreneurship was furthermore explained. The chapter was concluded with a discussion on corporate entrepreneurial strategy. A historic overview of the agricultural industry in South Africa was presented. The focus of the discussion was on the agri-business sector in South Africa with a discussion on Senwes Limited. The nature of retail was discussed in chapter 4. An overview of the nature of retail with a definition of retail was explained. The reason for the change in retail, with different types of retailers as well as a strategic model was noted and discussed. A specific focus in the chapter was given to the strategic drivers for retail success with an overview of key retail success factors. The chapter was concluded with a discussion on the future of retailing. Empirical research was conducted after the literature review. The empirical research Specific climate variable. Work discretion and Management support need development to become present. As far as the retail survey is concerned, six variables describing the theoretical dimensions of Store factor, Technology, Service factor, Merchandise/Product, Price and Segmentation/Target market were extracted. As indicated from the results the constructs Store factor, Technology and Service factor are present in the business. Merchandise/Product, Price and Segmentation/Target market need development to become present in the business. Regarding the perceived success survey is concerned three factors, Financial measures, Process measures, People development were extracted. All three factors are present in the business. Finally, recommendations were proposed by means of an integrated framework that could assist the agri-business to establish and maintain corporate entrepreneurship and retail within the business focused on discussing the results obtained from the corporate entrepreneurial climate and retail questionnaire. Middle management and first line supervisors/staff of Senwes Village, Retail division, were selected as the sample population for this study and a 65% rating was achieved. Basic demographic information were dealt with first, after which the perceptions of the respondents with regard to the corporate entrepreneurial orientation and climate constructs, constructs measuring retail and perceived success of the business were discussed. Furthermore, relationships were determined between demographic variables and the constructs measured in the questionnaire. Following the detailed empirical analysis done in chapter 5, conclusions were made in chapter 6. Regarding the entrepreneurial orientation survey, five variables describing theoretical dimensions of Autonomy, Innovativeness, Risk-taking, Pro-activeness and Competitive aggressiveness were extracted. The constructs Innovativeness, Pro-activeness and Competitive aggressiveness are present in Senwes Village, Retail division. Autonomy and Risk-taking are less prevalent in Senwes Village, Retail division due to the lower average mean score that was obtained from the empirical study. In conclusion to the entrepreneurial climate survey, four variables describing theoretical dimensions of Management Support, Work discretion, Rewards/Reinforcement, Specific climate variables were extracted. The construct that is already active within the business is Rewards/Reinforcement.