A business dynamics model in entrepreneurial orientation for employees

Abstract

PurposeThe purpose of this paper is to design and develop a business dynamics model in entrepreneurial orientation for employees (EOE).Design/methodology/approachThe mental model uses the casual loops, stock and flow diagrams in the business dynamics model. Hiring rate, Quit rate, Skill rate, Skill growth rate, EOE skill inventory rate, Performance rate etc. were defined and used with EOE metrics governing the model. VENSIM software package was used to simulate and validate the model using sensitivity analysis. The case study method was used to experiment a pre/post EOE training intervention with employees in an ITES organisation in India. Using a validated EOE questionnaire, data were captured from employees in an ITES organisation in Chennai, for validation of business dynamics model.FindingsThe time frame for imparting initial EOE training and retraining time after EOE training were simulated and results were summarised.Research limitations/implicationsFuture researchers can extend this work and apply in other industries and geographies also. Any organisation can customise and utilise the business dynamics EOE model as per their requirementsPractical implicationsThe model facilitates the measurement of both individual employee performance as well as organisational performance. The EOE business dynamics model contributes to the development of two indices namely entrepreneurial orientation for employees index (EOEI) and organisational performance index (OPI). The policy planners, human resource strategists, management consultants can utilise the business dynamics EOE model for effective decision making, budgetary allocations towards training initiatives and so on.Originality/valueThe model is a novel and first of its kind using business dynamics in entrepreneurial orientation for employees. The human resource planners can use this model for forecasting the man power needs as well as skill development, employee empowerment and organisational development.

Skill development research in India: a systematic literature review and future research agenda

“…The study suggested that lack of training institutes and ITI could be covered by the private participation 18. Krishnakumar, Devi, and Rao (2013) The model developed in this study predicts the future requirement of labour in skill development, organisational development and employee empowerment. The model also formulates two indices namely.…”

Entrepreneurial orientation and performance – are sexes equal?

“…Earlier several scholars discussed the impact of different EO dimensions on individual performance levels in the sphere of typologies in entrepreneurial behaviour (e.g., Pearce Ii et al, 1997;Woo et al, 1991) which has been only studied with respect to gender also quite some time ago (Lerner et al, 1997). Recently, Krishnakumar et al (2013) designed and developed a business model related to EO for employees that facilitates performance. Since a company is a result of individuals' behaviours and in line with prior findings that EO impacts performance (e.g., Lechner and Gudmundsson, 2014;Lindsay et al, 2014;Shehu and Mahmood, 2014), we propose the following hypothesis:…”

A Dynamic Model of Employees’ Transition to Entrepreneur: A Cognitive Mapping Approach

“…Since Russell's seminal work, the cognitive mapping approach has been adopted by several entrepreneurship and talent management researchers to explore multiple interrelationships among the factors and their influences on entrepreneurship or individuals' career decision-making processes. For example, cognitive mapping has been used to examine the motivations of the early entrepreneurship stage (Santos et al, 2010), training effects in employees' entrepreneurial orientation (Krishnakumar et al, 2013), and the brain drain process in developing countries (Azad et al, 2010). The use of cognitive mapping enables researchers to map out the relational structures of factors and to track processes.…”

“…It enables the researcher to look beyond a linear and reductionist view, and to examine the complex and dynamic relationships among elements of a system (Sterman, 2001). Many research benefits are emerging from cognitive mapping in the fields of entrepreneurship training, education, and talent management (e.g., Azad et al, 2010;Krishnakumar et al, 2013). Systems theory and a processual focus has been central to the field of HRD (Garavan et al, 2015;Swanson, 2001).…”