EMPLOYEES DO MATTER: AUTONOMY, TEAMWORK AND CORPORATE ENTREPRENEURIAL CULTURE ERIK WILLARD MONSEN. B.S. Rensselaer Polytechnic Institute, 1991

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1 EMPLOYEES DO MATTER: AUTONOMY, TEAMWORK AND CORPORATE ENTREPRENEURIAL CULTURE by ERIK WILLARD MONSEN B.S. Rensselaer Polytechnic Institute, 1991 M.S. Stanford University, 1992 M.B.A. University of Colorado at Boulder, 2001 A thesis submitted to the Faculty of the Graduate School of the University of Colorado in partial fulfillment of the requirement for the degree of Doctor of Philosophy Leeds School of Business, Management Division 2005

2 V CONTENTS List of Tables List of Figures x xiii Chapter 1 - Introduction Research Questions A Fresh Perspective Potential Contributions 3 Chapter 2 - Foundational Theory Corporate Entrepreneurship Entrepreneurship Structural Definitions Process Definitions Action-Oriented Definition Intrapreneurs An Entrepreneurial'Opportunity Role of Employees in Firm Performance Level of Analysis Historical and Empirical Perspectives Grounding in Culture Theory Psychological Culture Critical/Postmodern (Literary) Sociological Direct Effects of Entrepreneurial Strategies on Individual Performance Strategy, Orientation, Culture and Climate 22

3 2.3 Mediating Factors Prior Models Initial Model Refinement Grounding in Social Identity Theory Clarifying Organizational Identity and Identification Integrating Culture and Social Identity Review of Mediating Relationships Effect of Entrepreneurial Culture on Role Stress Effect of Entrepreneurial Culture on Organizational Identification Effect of Role Stress on Organizational Identification Effect of Role Stress on Job Performance Effect of Organizational Identification on Job Performance Summary 39 Chapter 3 - Contingency Effects High Performance Cultures Entrepreneurial Orientation (EO) Empowerment Theory and Autonomy Organizational Learning Theory and Teamwork Contingency Framework Distilling the Three Perspectives: Part Organizational Learning and Social Identity Theory Distilling the Three Perspectives: Part II Related Research Moderating Effects of Autonomy and Teamwork on EO and Job Performance 61 VI

4 3.3.1 Risk-Taking-Performance Relationship Proactiveness-Performance Relationship Innovativeness-Performance Relationship 69 Chapter 4 - Model and Hypothesis Levels of Modeling Construct Model Operational Model Structural Equation Model Research Hypotheses Direct Effects ofeo on Job Performance Mediating Effects of Role Ambiguity and Organizational Identification Moderating Effect of Autonomy and Teamwork Moderation of EO - Job Performance Relationships Control Variables Age Tenure f Educational Level Organizational Rank Issues Concerning Performance Appraisals 89 Chapter 5 - Research Design The Research Site The Health-Care Context The Data Collection Partner Organization Survey Method History 95 Vll

5 5.2.2 Survey Design Measures Entrepreneurial Culture Role Stress Organization Identification Individual Job Performance Demographic Measures Nonresponse and Sample Bias Statistical Methods Hypothesis Testing and Effect Sizes Statistical Software CFA and SEM Advanced SEM Estimation Technique Outliers Reflective vs. Formative Indicators Multi-Group SEM Single-Item Indicators Methodological Concerns and Limitations Self-reports and Common-Method Variance Additional Limitations 124 Chapter 6 - Results: Measurement Model Validation Validation of Entrepreneurial Culture Scale & Measurement Model Comparing EO Factor Structures Measurement Model Validation 128 Vlll

6 IX Chapter 7 - Results: Full SEM Model Analysis Goodness-of-Fit Identifying and Removing Outliers 137 Chapter 8 - Results Correlations between Culture and Effectiveness Direct Effects of EO on Job Performance Mediating Effects of Role Ambiguity and Organizational Identification Moderating Effects of Autonomy and Teamwork Measures of Culture and Effectiveness Omnibus Multi-Group Comparison Test Moderation of EO - Job Performance Relationships Moderating Impact of Autonomy and Teamwork on Mediators Serendipitous Results 171 Chapter 9 - Discussion and Conclusion Key Findings Theoretical and Practical Relevance Future Directions Final Word '. 182 Chapter 10 - Critical AfterThoughts On Autonomy and Teamwork Epistemological and Ontological Perspective Autonomy Collectivist Organizing Integrating Critical, Post-Modern, and Modernist Thought 187 References 188 Appendix A - Organization-Wide Survey 227