The psychometric properties of a shortened corporate entrepreneurship assessment instrument

Abstract

Background: The entrepreneurial climate in organisations is often seen as an important antecedent to innovation and organisational success. Assessing the nature of the climate in a reliable and valid manner is essential, as this will guide the implementation of appropriate interventions where necessary as well as assessing the effects of such interventions. Aim: The aim of this research was to evaluate the psychometric properties of a measure of entrepreneurial climate. Entrepreneurial climate was measured using a shortened version of the Hornsby, Kuratko and Zahra (2002) instrument, called the Corporate Entrepreneurship Assessment Instrument (CEAI). Making information on the psychometric properties of the instrument available directly relates to its utility. Setting: The setting was medium to large South African companies. A random sample of employees was drawn from 53 selected companies across South Africa, with 60 respondents per company (N = 3 180). Methods: A cross-sectional survey design was used. Several instruments were administered, including the shortened version of the CEAI. Cronbach’s alpha was used to test for reliability and several methods were used to test for validity. Correlation analysis was used to test for concurrent validity, convergent validity and divergent validity. Principle component factor analysis was used to test for factorial validity and a t-test to test for known-group validity. Results: The results showed that the reliability for the total score of the shortened version of the CEAI was acceptable at 0.758. The results also showed some evidence of concurrent validity, as well as homogeneity among the items. With regard to factorial validity, all items loaded in accordance with the subscales of the instrument. The measure was able to distinguish, as expected, between government organisations and private business entities, suggesting known-group validity. Convergent validity and divergent validity were also assessed. Interesting to note was that entrepreneurship climate correlates more with general employee attitude (e.g. employee engagement; R= 0.420, p < 0.001 and organisational commitment, R = 0.331, p < 0.001) than with self-reported innovation (R = 0.277, p < 0.001 and R = 0.267, p < 0.001). Contribution: This paper not only provided information on the reliability and validity of the shortened version of the CEAI in the South African context but also provides norms to be used when researchers or consultants work with smaller groups. Recommendations on the appropriate use of the instrument are offered and this contributes to the responsible use of the instrument.

Keywords

• Corporate Entrepreneurship Assessment Instrument
• corporate entrepreneurship
• innovation
• psychometric properties
• South Africa