the relationship of filipino entrepreneurial styles and ...€¦ · the relationship of filipino...

The Relationship of Filipino Entrepreneurial Styles and

Firm Performance in Small and Medium Manufacturing Firms in

Metro Manila

Gloria S. Chavez Business Management Department, De La Salle University-Manila

INTRODUCTION A major factor in the growth of economies is the presence

of a large number of entrepreneurs who have started small and medium enterprises. In an era of liberalization and globalization, small and medium entrepreneurs are facing stiff competition. Will the Filipino entrepreneur be able to withstand the pressure of competition brought about by the entry of foreign products? Is he ready to venture into foreign markets? It is imperative that the quality of Filipino entrepreneur be enhanced for him to respond to the challenges ahead of him.

Who are the entrepreneurs? What particular qualities do they possess? What makes them unique? Answers to these questions have been as varied as the variables used in describing them. Over a period of two decades since entrepreneurship researches

DLSU Business & Economics Review Volume 12 No.! 2000-2001

62 THE RELATIONSHIP OF FILIPINO ENTREPRENEURIAL STYLES

have become popular, there is still a great deal of controversy over the definition of entrepreneurship (Stewart, Carland, & Carland, 1996). It is precisely this lack of universal definition of the entrepreneur which has spurred the need for additional research. There have been several schools of thought regarding entrepreneurship but this may essentially be divided into those that focus on entrepreneurship as a process or an economic activity (Morris, Lewis & Sexton, 1994; Stevenson & Gumpert, 1991) and those that define the term in relation with individual characteristics and traits. This second school of thought scrutinizes the person, his or her personality, styles, skills, and motives (Carland & Carland, 1997; Chan, Lau & Man, 1997; McGrath, Macmillan,Scheinberg, 1992; Stewart, Watson, Carland & Carland, 1998).

However, Withane (1996) emphasized that for entrepreneurship to become a distinct field of study and research by itself, it has to develop a consolidated framework and research agenda. Thus, he suggested the adoption of major social science phenomena into entrepreneurship research. First, concepts of psychology which examine individual behavior such as traits, motivation, and leadership; second, concepts and constructs related to economics such as profit maximization and growth which enhance the understanding of entrepreneurial process and behavior; lastly, theoretical concepts in the areas of sociology and anthropology such as culture can be examined to further enrich the field of entrepreneurship.

This study used the approach suggested by Withane in that it included in its concept of entrepreneurial style, the dimensions of entrepreneurial characteristics, leadership behavior, and values of the entrepreneurs in the manufacturing sector in Metro Manila.

OBJECTIVES OF THE STUDY This study aims to determine the predominant entrepreneurial

styles that entrepreneurs use in the management of their firms and the extent of influence of these styles on firm performance indicators such as sales, profitability, continued operation of the business, and growth.

Specifically, the study aims to: (1) Describe the profile of entrepreneurs in selected small and medium manufacturing enterprises in Metro Manila in terms of personal characteristics such as gender, age, civil status, education and birth order in the

DLSU Business & Economics Review Volume 12 No.1 2000-2001

Gloria S. Chavez 63

family; (2) Present a profile of the companies in terms of type of business, size, form of ownership, number of employee; (3) Describe the predominant entrepreneurial styles used by the owners/managers of small and medium enterprises; (4) Determine the effect of these entrepreneurial styles on firm performance indicators such as sales, profitability, continued operation of the business, and growth.

CONCEPTUAL FRAMEWORK Entrepreneurship is considered the catalyst of economic

development. Indeed, further understanding and development of entrepreneurship is a critical and important goal especially of a developing country such as the Philippines. In the last 30 years, numerous opportunities were open to entrepreneurs since markets were still developing and expanding. Today, with resources becoming scarce, competition both from local and foreign products is very stiff, and technological changes can make a product obsolete overnight. To be successful in today's environment, a business must be able to respond quickly to seize new opportunities. Entrepreneurship is the process which can quickly convert threats in the environment to opportunities.

While previous researches focused on personal characteristics of entrepreneurs, a new but interesting area of study is on entrepreneurial behavior. Entrepreneurial characteristics, leadership styles, and value orientation are described in this study as entrepreneurial style.

Based on the entrepreneurial characteristics advanced by Carland and Carland (1991), Timmons (1994), Long (1996), and Kuratko and Hodgetts (1995) three major characteristics best describe that which is entrepreneurial:

• propensity for risk-taking, which involves the willingness to commit resources to opportunities having a reasonable chance of failure.

• preference for innovation, which usually refers to seeking creative or unusual solutions to problems and needs.

• achievement orientation or the preference for setting goals, solving problems, and accomplishing these goals.

Another aspect of entrepreneurial style which was examined in this paper is the entrepreneur's leadership style which refers to the way leaders influence followers. The styles advanced by


64 THE RELATIONSHIP OF FIUPINO ENTREPRENEURIAL STYLES

Altman, Valenzi, and Hodgetts (1985) which was adopted by Petzall and Kim (1995) were used in this study:

• Directive style - a task oriented leader. • Negotiating style - a leader who gets things done by making

deals with subordinates. • Consultative style- the leader allows subordinates to have

inputs into the decision eventually made. • Participative style- the leader allows subordinates to share

in the decision eventually made. • Delegative style -the leader allows subordinates to obtain

results in their own way.

Since entrepreneurial style is defined as the pattern of entrepreneurial behavior indicated by entrepreneurial characteristics, leadership styles, and value orientation, certain Filipino values became relevant in this study. Based on researches advanced by Filipino authors such as Jocano (1990, 1993) and Mathias (1997), the following value orientations were used in this study:

• Personalism. Placing value on the person rather than on the job.

• Paternalism. There is a strong emphasis on the manager as the father to the employees, taking care of their physical as well as emotional needs.

• "Pakikisama". This can mean concession, giving in to the suggestions of others, yielding to the will of the leader or the majority to obtain a unanimous group decision.

On the other hand, Covin and Slevin (1991) state that the ultimate dependent variable in entrepreneurial research is firm performance. Based on success indicators cited in the literature review, the following variables were used as indicators of firm performance: sales, profit performance, continued operation of the business, and growth in asset size.

The conceptual framework which follow shows the relationship of the different concepts mentioned. The entrepreneurial styles are the independent variables, the variables which are expected to influence the dependent variable-firm performance


Gloria S. Chavez 65

Entrepreneurial Styles

+ + + Firm

Entrepreneurial Leadership Performance Characteristics Styles Value • Orientation

Sales Risk-Taking Directive Profitability

Achievement Developing Paternalism Continued-

Orientation Participative Personalism Operation of -

Innovation Negotiatlve Pakikisama the Business

Delegative Growth

Figure 1. Conceptual Framework

Methodology This study used descriptive and correlational research

designs. A survey was conducted covering a sample size of 373 small and medium manufacturing firms in Metro Manila. This was proportionally allocated to obtain a stratified random sample per manufacturing sub-sector. Table 1 presents the sample size per sector.

Number of Number of Firms Respondents

Sub-sector Ni Ni

Food and Beverages ,,. t7 Textiles 1570 7< Wood and Wood Products 185 • Paper and Paper Products 225 11 Publishing and Printing 7?4 " Chemical Products 1025 49 Tanning of Leather, Footwear 470 " Non-metallic and mineral products ~528 " Fabricated metal products 707 " Machinery and equipment 418 20 Electrical Machinery 137 7 Radio, TV equipment & medical 74 3

instrument Motor vehicles parts '" 7 Transport equipment " 3 Manufacturing/repair of furniture ,17 15 Others (Jewelry, office equipment, 207 11

tobacco, coke, and oven products



Data was gathered using the primary data collection method. A survey questionnaire developed by the researcher was used. The Entrepreneurial Style Survey Instrument had two parts.

Part I described the profile of the entrepreneur in terms of gender, age, civil status, educational attainment, and birth order in the family. The company profile was described in terms of nature of business, form of ownership, size and number of employees in the company. Company performance was described in terms of number of years of operation, sales performance, financial condition, and growth in asset size.

Part II referred to the entrepreneurial styles of the entrepreneur. Entrepreneurial styles were described in terms of the following dimensions: entrepreneurial characteristics, leadership styles, and value orientation.

The response for each item in Part II was weighed using Likert's 5-point scale with the following equivalent weights: 5 - Strongly Agree, 4 - Agree , 3 - Neither agree nor disagree, 2 - Disagree, 1 - Strongly Disagree. Items in the questionnaire were generated from seventy-five entrepreneurs not included in the sample size. The instrument was pre-tested by administering it to 30 entrepreneurs. The results of the pre-test were subjected to a Reliability Analysis. After the first run, the items were reduced to 90. The second run resulted in a reliability coefficient of alpha = .9509. There were 67 validated items on the dimensions of entrepreneurial styles included in Part II of the questionnaire. The questionnaire was translated into Filipino before it was finally administered to the randomly selected entrepreneurs. Collection of data was done from June to August, 1999 with the assistance of students of the Entrepreneurship Seminar Classes of the Entrepreneurship Program of De La Salle University. A total of 550 questionnaires were fielded. Of this number, 465 questionnaires, including unusable ones were retrieved for a response rate of 85%.

Method of Data Analysis Data analysis involved several statistical procedures: frequency

distribution and percentage; factor analysis; Pearson's correlation, and canonical correlation analysis.

For factor analysis, the extraction method used principal component analysis. The initial unrotated factor matrix could not provide a meaningful interpretation since more than half of the items was loaded in factor 1. The rotated factor matrix resulted in a four factor model.

DLSU Business & Economics Review Volume 12 No.1 2000·2001

Gloria S. Chavez 67

RESULTS AND DISCUSSION

Profile of Entrepreneurs Table 2 shows that the males outnumbered the females in this

study, 221 or 59.2% were males and 149 or 39.9% were females. Of the total of 373 entrepreneurs involved in this study, the

youngest is 20 and the oldest is 73 years of age. The mean age is 41 years. Most or 114 (31.6%) of the entrepreneurs were in the 40-49 age bracket, while 89 or 24.7% were in the 30-39 age level.

Majority or 264 (70.8%) of the entrepreneurs included in the study were married. Ninety-four or 25.2% were single.

Most or 288 (77.2%) of the entrepreneurs were college graduates. Thirty of them or 8% even had graduate studies.

Of the 373 entrepreneurs, 108 or 29% were first born, 71 or 19% were second born, 85 or 22.8% were middle children, and 61 or 16.4% were the youngest in the family.

Frequency Percentage Gender

Male 111 59.2

Female 149 39.9

Did not specify 3 .8

Age I 10-29 70 19.4

I

30-39 89 24.7

40-49 114 31.6

50-59 68 18.8

60-69 17 4.7 I 70-79 3 .8

Did not snecifv 12 3.2

Civil Status Single 94 25.1

Married 164 70.8

Widowed 6 1.6

Separated 3 .8

Divorced 1 .3

Did not specify 5 1.3

Educational Attainment Elementary 3 .8

High School 48 11.9

College graduate I 188 77.1

Graduate Study 30 8.0

Did not specify 4 1.1

Birth Order in the Family First born 108 19.00

Second 71 19.03

Middle 85 22.78

last 61 16.34

Others 48 12.86


68 THE RELATIONSHIP OF Fl LIPINO ENTREPRENEURIAL STYLES

Company background

Nature of Business Of the manufacturing companies involved in this study,

75 (20.1 %) are engaged in the textiles business which includes garments and ready-to-wear clothing, 49 (13.1% ) in chemical products and 47 or 12.6% in food and beverage. The rest are in publishing and printing, fabricated metal products, non-metallic and mineral products, machinery and equipment, transport equipment, paper and paper products, jewelry, tobacco and sporting goods category, electrical machinery and motor vehicles parts, radio, t.v. equipment, and transport equipment and the coke and oven industry (Refer to Table 3).

Form of ownership A total of 191 (51.21 %) of the companies are registered

as corporations; 168 or 45.04% are sole proprietorship while 14 or 3. 75% are listed as partnerships.

Company Size Based on the National Statistics Office classification,

316 or 84.71% are small scale enterprises and 57 or (15.28%) are medium scale enterprises.

Number of Employees A good number or 174 (46.64%) of the companies had

from 1 to 20 employees. The average number of employees is 45.

Firm Performance Indicators • Sales Performance

The entrepreneurs were asked to indicate the company sales performance for the last five years. A total of 204 or 54.7% indicated an average level of sales, 120 companies or 32.2% indicated a low level of sales and 49 or 13.1% had high level of sales.

• Financial Position Since it was expected that the entrepreneurs will hesitate

to reveal their actual financial position in peso terms. they


Gloria S. Chavez 69

Frequency Percentage

1. Nature of Business 75 Textiles 49 20.1 Chemicat Products 47 13.1 Food and Beverage 35 12.6 Publishing and Printing 34 9.4 Fabricated Metal Products 25 9.1 Non-metallic & mineral products 22 6.7 Tanning of leather, footwear 20 5.9 Machinery and equipment 15 5.4 Transport equipment 11 4.0 Paper and paper products 2.9 Jewelry, tobacco, sporting goods, 11

Oven and coke products 2.9 Wood and wood products 9

I Electrical machinery 7 2.4 Motor vehicles parts 7 1.9

I Radio, T.V. equipment 3 1.9 Transport equipment 3 .8

2 Form of Ownership 1,

Corporation 191 I Sole Proprietorship 168 51.20

I Partnership 14 45.04 3.75

3. Company Size

I Small scale 316 Medium scale 57 801

"" 4. Number of employees

1-20 174 21-40 64 46.64 41-60 44 17.15 61-80 21 11.79 81-100 13 5.60

101-120 16 3.48 121-140 11 4.28 141-160 14 2.94 161-180 10 3.75 181-200 6 2.68

were asked to describe their financial position for the last five years in terms of loss, breakeven, low profit, average profit or high profit. The responses indicate that a good number of companies-158 (42.4%)-experienced average profit, 67 or 18% had low profits while 19 or 5.1% had high profits. Ninety-five or 25.5% were able to breakeven and 31 or 8.3% suffered losses.

DLSU Business & Economics Review Volume 12 No. I 2000-200/

70 THE RElATIONSHIP OF FIUPINO ENTREPRENEURIAL STYLES

• Continued Operation of the Business The number of years of operation of the companies ranged

from 1 to 87 years. Almost half ofthe companies, 183 (49.06%) have been operating from 1-10years, while 92 or 24.66% have been around for 1 0-20 years. One company has been operating for the last 60 years and another one for over 80 years. The average number of years of operation is 15 years.

• Growth in Asset Size To describe the growth of the company, the entrepreneurs

were asked to compare the growth of assets since the start of the operations of the business. Almost half of the companies or 186 or 49.9% indicated that their assets increased since the start of operations of the business. A total of 147 or 39.4% indicated that their assets have remained the same, while 39 or 1 0.5% claimed that their assets have decreased (Refer to Table4).


1. Sales Performance I Low sales 120 32.2 Average sales 204 54.7 High sales 49 13.1

2. Company financial position Loss

Breakeven 31 8.3 Profit 95 25.5

Low 67 18.0 Average 158 42.4 High 19 5.1

3. Number of years of operation 1-10 183 49.06

11-20 92 24.66 21-30 60 16.08

I 31-40 26 6.97 41-50 7 1.87 51-60 3 .80 61-70 1 .30 71-80 0 .00 81-90 1 .30

4. Growth in asset size Decreased 39 10.5 Remained the same 147 39.4 Increased 186 49.9


Gloria S. Chavez 71

Entrepreneurial Styles used by Respondents Using factor analysis, a four factor model resulted in this

study after going through the Kaiser criterion, the scree test and percentage of variance criterion. Table 5 shows the four factors with their corresponding loading, eigen values and dimensions. There were 21 items that loaded in factor 1. This factor describes the participative-negotiative-developing-paternalistic-innovative style. This style was labeled entrepati. The word "entrepati" was coined from the words, "entre" referring to entrepreneurial and "pati" referring to paternalistic and innovative. This style is highly people-oriented. In the entrepreneur's people orientation, he allows participation, he negotiates with and develops his people. He has a paternal concern for the employees' physical and emotional well-being, is perceptive of their creative talents and supportive of their innovative activities being an innovator himself.

There were 11 items that entered factor 2. This factor represents the entrepreneurial style which includes the directivepersonalistic-achievement oriented characteristics. This was labeled the entrepera. "Entre" again refers to entrepreneurial and "pera" refers to personalistic and achievement oriented. Being directive, this entrepreneur is very much aware of his role and his goal to achieve. He is sensitive and perceptive to the needs of his people as he performs his function so that he can enable his team to achieve the goal.

On the other hand Factor 3 which includes 11 items describes a negotiative-developing-delegative-strong in pakikisama-innovative style. This was called the entreperin. "Entre" as entrepreneurial and "perin" referring to people orientation and innovation. This entrepreneur is very people-oriented as indicated by his being negotiative, developing, and delegative in leadership style. But his people orientation is geared towards the group as a clique. He has the ability to push the group to pursue innovative ways in doing things.

And finally factor 4 which covers 13 items indicates a directive-paternalistic-risk-taking style. This was labeled entreparis. "Paris "refers to paternalistic and risk-taking. This entrepreneur is directive, concerned that everybody is doing his job, but caters to the needs of his employees as a father. He initiates taking risks.



Table 5. Rotated Factor Loadings

FACTOR 1 People Oriented- Paternalistic-Innovative or Entrepati Style

Items

It is important to have a ... We are like one big .... Supporting the actions ... I hold meetings .... Employees feel important ... I value friendship ... A leader who listens ... I allow employees ... I am flexible ... I know my worker's ... It is important to have ... My employees are usually ... .Leadership is a ... I conduct social. .. Before I make decisions ... I give incentives ... I give-in to suggestions ... I give benefits .. .. I usually give .... . I always abide by .. . I allow advances .. .

Factor Loading

.653

.607

.585

.544

.534

.522

.518

.502

.480

.473

.473

.454

.447

.419

.418

.390

.388

.380

.368

.364

.358

FACTOR 2 Directive-Personalistic-Achievement Oriented or Entrepera Style

Items

I welcome suggestions ... I regularly check ... I give clear .... All tasks should be ... I regularly check ... I set goals ... I follow the schedule ... Problems should be dealt with ... I order my employees ...

Factor Loadings

.669

.598

.578

.564

.558

.471

.464

.434

.410


I do not tolerate .... Special emphasis should .. . Personal networking helps .. .

Gloria S. Chavez 73

.409

.402

.347

FACTOR 3 People Oriented-Pakikisamalnnovative or Entreperin Style

Items I am not afraid .... I sometime allow myself .. . To succeed in business .. . I like to take risks ... My business is growing .. . Business must change .. . It is important to keep .. . I conduct.. .. Rewards are given .... I enjoy the challenge .... To solve problems ...

Factor Loading .523 .576 .493 .491 .471 .439 .439 .428 .427 .417 .359

FACTOR 4 Directive-Paternalistic- Risk-Taker Style or Entreparis

Items Nobody can tell ... My employees are supposed ... Blood is thicker .. . I feel upset when .. . I take over. .. I do not allow ... Decentralization usually ... I know all my ... I do not borrow ... My workers regard me ... Business is largely .. . It is better to work .. . I personally check .. .

Factor 1 Factor 2

Eigenvalues 17.94% 23.01%

DLSU Business & Economics Review Volume 12 No.1

Factor Loading .478 .557 .548 .528 .528 -.517 .517 .401 -.360 .357 .352 .352 .326

Factor 3 Factor 4

26.50% 29.82%

2000-2001


Entrepreneurial Styles of Respondents by Personal Characteristics and Firm Performance

The factor scores were used to identify the entrepreneurial style of each respondent. The factor scores being the composite measures for each factor representing each subject (Hair, et. al., 1997). The factor scores thus show that an individual possesses a particular characteristic represented by the factor to a high degree. The percentages of respondents by entrepreneurial styles based on factor scores of each of the respondents are presented on Table 6.

The data on this table reveal that most of the respondents can be identified to be exhibiting entrepera style (63% of the respondents). entreparis had the least number of respondents (2.1%).

That the least-used style is that of the entreparis is contrary to what Jocano (1993) revealed in his field studies that Filipinos are risk-takers since the strong adherence to Bahala na describes the risk-taking, daring, and courage of Filipinos. While studies by Filipino sociologists (Jocano, 1993; Quisumbing, 1980) have mentioned the personalistic and achievement orientation of Filipinos, that Filipino entrepreneurs would choose the entrepera indicate that they are more achievement oriented than risk-takers. The entrepera is the personal achiever who wants to control things at his own pace, doing things according to his plans and yet practicing flexibility when the need arises. This type of entrepreneur was also described as dealing with problems personally. For the characteristics of directiveness and achievement orientation to combine is not unusual since they both refer to goal orientation. What is surprising is for the personalistic value to come in. When a person is directive and achievement oriented, he usually pays attention to the job and not the person. However, in the case of the entrepera this could imply that Filipino entrepreneurs, while being directive and achievement oriented are able to balance these very task oriented characteristics with people orientation.

Table 6. Respondent's Entrepreneurial Styles Based on Factor Scores


Entrepati 76 '

20.4 ' Entrepera 235 ' 63.0 '

Entreperin 54

I 14.5

Entreparis 8 2.1


Gloria S. Chavez 75

The Relationship of Enterepreneurial Styles and Company Performance

When Pearson's correlation was used, the correlation results (Table 7) demonstrate there were no significant correlation between sales, financial performance, continued operation of the business, and entrepreneurial styles.

The same table shows that entrepera (r = .1 07) and entreperin (r = .137) are positively and significantly correlated with the growth of the company.

This indicates that entrepera and entreperin are relevant contributing factors to the growth of a firm. To confirm the above results, the canonical correlation was used.

Table 7. Person Correlation Results for Entrepreneurial Styles and Firm Performance

Entrepreneurial Sales Profitability Styles

Entrepati r .009 -.046 p value .860 .378

Entrepera r .038 -.007 p value ' .464 .898

Entreperin r .090 .038 P value .083 .462

l

Entreparis r ·.025 -.025 P value .629 .629

r . Pearson Correlaf1on • ••

Correlation significant at the 0.05 level Correlation significant at the 0.01 level

Continued Operation

-.060 .244

-.013 .801

-.071 .173

i -.084 ' .107 i

Growth

i ·.027

.603

.107" .038

.137"" .008

-.069 .182

The canonical correlation analysis (Table 8) shows that there is a significant relationship between the set of variables, entrepreneurial styles, and set of variables under firm performance as shown by the canonical correlation values RC. Entrepera and entreperin are more highly correlated with firm performance with p values of .03461 and .00142 respectively. These are the same results obtained when Pearson correlation was used for each of the firm performance characteristics.



Table 8. Cannonical Correlation Analysis for the Relationship of Entrepreneurial Styles to Firm Performance

Entrepreneurial Style Cannonical Eigenvalue Probability

Correlation (RC) (RC') I

Entrepati .34779 .12095 .09021

Entrepera .31025 I

.09625 .03461'

Entreperin .38843 ' .15087 .00142"

Entreparis ! .26845 I .07206 .28888 I

* = Significant at 0.05 level

CONCLUSIONS Based on the summary of findings, it can be concluded that

entrepreneurs vary along a number of dimensions which include personal characteristics, industry, and firm performance.

There is a predominant entrepreneurial style used by entrepreneurs in small and medium scale businesses among manufacturing firms in Metro Manila. The predominant entrepreneurial style used by the small and medium scale manufacturing entrepreneurs is that of the entrepera.

The Entrepera can be described as personalistic and highly task and achievement oriented. The leader tells the subordinates what they are supposed to do, dominates the decision-making process and exercises tight supervision. Being achievement oriented as well, this entrepreneur strives for excellence for its own sake.

A closer analysis reveals that this entrepreneur's being personalistic brings with it the aspect of attention on the person. This value in fact is this entrepreneur's balancing factor which makes this style not just task or goal oriented but people oriented as well.

Entrepreneurial styles have a positive influence on firm performance indicators such as sales, profit performance,


Gloria S. Chavez 77

number of years of operation as well as growth in asset size. The entrepera and the entreperin have more positive influence on firm performance. The entrepera style uses a directiveachievement oriented and personalistic approach. While the entreperin style uses a more people-oriented approach. This would indicate that in both cases, Filipinos are still more people oriented than task oriented. The fact that majority of the entrepreneurs are goal and achievement oriented with a personal touch redeems the image of the Filipino as just having a baha/a na or high risk-taking mentality. The achievement orientation of the Filipino entrepreneur is supported with the fact that 50% of those using the entrepera style have increased in asset size since the initial operations of the company. While sales and profits may only be average for the last five years, it must be noted that with the economic crisis which affected the rest of Asia from 1997 onwards, average sales and profits are even good news.

RECOMMENDATIONS Since the entrepera is the most predominant style used by the

entrepreneurs in this study, a follow-up study on this style is in order. To find out if this is the predominant style across industries as well as regions, the study will reveal that there is truly a Filipino entrepreneurial style. The fact that this style correlates with firm performance all the more necessitates this follow-up study.

The instrument on entrepreneurial styles can be used to bring about entrepreneur's awareness of the styles he is using thereby helping him to identify his strengths and weaknesses and pursue areas which have to be developed.

Further, a training program can be developed to help participants deepen their awareness of how their entrepreneurial styles can be enhanced.

Academic institutions involved in entrepreneurship development can use the results in this study to develop a curriculum that may enhance entrepreneurial styles which have impact on firms. Further, an em pi rally based study could enhance faculty and student interest in entrepreneurship.

Government and non-government agencies involved in entrepreneurship development could make use of the instrument on entrepreneurial styles and the results of this study to identify entrepreneurship potentials and styles of their clients thereby maximizing use of their resources.


78 THE RELATIONSHIP OF FIUPINO ENTREPRENEURIAL STYLES

As further research, this study could be replicated and validated across industries. Since this study was limited to the Metro Manila area, a study of entrepreneurial styles in the different regions could provide a national picture of the Filipino entrepreneur. Other studies may include variables as the motivation to own the company, background experiences, management practices, as well as how the entrepreneurs respond to changes in the environment. Furthermore, a study of entrepreneurial styles as the company moves in its stages of development from incubation, start-up, development, growth, maturity or decline would be an interesting follow-up. Other researches could use cluster analysis to develop groupings of individuals. Likewise, discriminant analysis can be used to understand group differences. The framework could be used by researchers in other countries to determine their entrepreneurial styles.

As the country faces the new millennium, the Filipino entrepreneur must be well equipped not only with the technical, managerial, and human relations skills necessary to survive. He must also be ready to accept the threats and opportunities that the environment will bring. By being aware of his entrepreneurial style and its effects on firm performance, the entrepreneur will be able to enhance his strengths and work on his weaknesses and be more prepared to face the challenges of the 21 ''century.

*The author would like to acknowledge the Philippine APEC Study Center Network (PACSN) for the funding it provided for this research.

BIBLIOGRAPHY

Altman, S., Valenzi, E., and Hodgets, R. M. Organizational Behavior: Theory and Practice. Orlando, FL: American Press, 1985.

Carland, James and Carland, JoAnn. 1997. "A Model of Potential Entrepreneurship: Profiles and Educational Implications." http://www.sbaer.uca.edu.proceedings/ 97sbi009. txt


Gloria S. Chavez 79

Carland, J.W. and Carland, J.A. "An Empirical Investigation into the Distinctions Between Male and Female Entrepreneurs and Managers." International Journal of Small Business, Vol. 7, No.3 (1991), 62-72.

Chan, K.F., Lau, T., and Man, T. "The Entrepreneurial Personality of Small Business Owners-Managers in Hongkong: A Critical Incident Analysis". Journal of Enterprising Culture, Vol. 5 No. 3 (1997).

Covin, J. and Sleven, D. "A conceptual model of entrepreneurship as firm behavior." Entrepreneurship Theory and Practice, (Fall 1991):7-25.

Hair, J.J., Anderson, R.A., and Tatham, R. Multivariate Data Analysis with Readings. New York: MacMilland Publishing, 1997.

Jocano, F. Management by Culture: Fire Tuning Management to Filipino Culture. Quezon City: Rural Research House, 1990.

---=---.,...--· The Value in Filipino culture: The Concept of Pamantayan. Q. C.: Punlad Research House, 1992.

---=---,--::-· ASAL: The Expressive Core of Filipino Value System. Q. C. Punlad Research House, 1993.

--:-:-:---:::--.,.-· Halaga: The Evaluative Core of the Filipino Value System. Q. C. Punlad Research House, 1993.

Kuratko, D. and Hodgetts, R. Entrepreneurship and Contemporary Approach. Dredyen Press, 1995.

Long, W.A. Why entrepreneurship? Entrepreneur, Enterpreneurship, Enterprising Culture. Singapore: Addison Wesley Publishing, Ltd., 1996.



McGath, R.G. Macmillian, I.C. and Scheinberg, S. "Elitists, Risktakers, and Rugged Individuals: An Exploratory Analysis of Differences Between Entrepreneurs and NonEntretreneurs." Journal of Business Venturing 4 (1990): 115-135

Mathias, M. Culture Mediation in Chinese and Filipino Business in the Philippines. Doctoral Dissertation, Exeter University of Exeter.

Morris, M. H. Lewis, P.S. and Sexton, D.L. "Reconceptualizing Entrepreneurship: An Input-output Perspective." SAM Advanced Management Journal 59 (1994) (1).

Petzall, S. and Kim, T.S. "Leadership Styles of Singapore Small Business Owners". Entrepreneur, Entrepreneurship and Enterprising Culture 5 (1). 1995.

Stewart, Jr. W.H. Carland, J.C., and Carland, J.W. Empirically definining the entrepreneur. Journal of Business and Entrepreneurship Vol. 8, No.1 (1996):1-18.

Stewart, Jr. W.H., Watson, J.C., Carland, J.C. and Carland, J.W. A proclivity for entrepreneurship: a comparison of entrepreneurs, small business owners, and corporate managers." Journal of Business Venturing 14 (1998):189-214.

Stevenson, H.H. and Gumpert, D. E. "The heart of entrepreneurship." Harvard Business Review 1991. 90076, 71-80.

Timmons, J. A. New Venture Creation: Entrepreneur for the 21 51 Century. Boston: Richard D. Irwin, Inc. 1994.

Withane, S. Broadening the concept of entrepreneurship: A multidisciplinary approach. Journal of Business Venturing. Vol. 14, No.3 (1996):225-240.

DLSU Business & Economics Review Volume 12 No. I 2000-2001

the relationship of filipino entrepreneurial styles and ...€¦ · the relationship of filipino...

Documents