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Dimensión Empresarial

Print version ISSN 1692-8563

Dimens.empres. vol.18 no.2 Barranquilla Apr./June 2020

https://doi.org/10.15665/dem.v18i2.2121 

Research result article

ENTREPRENEURIAL ATTITUDE AND BUSINESS SUCCESS. COLOMBIAN AUTO PARTS SECTOR*

ACTITUD EMPRENDEDORA Y ÉXITO EMPRESARIAL. SECTOR DE AUTOPARTES COLOMBIANO

ATITUDE EMPRESARIAL E SUCESSO EMPRESARIAL. SETOR COLOMBIANO DE AUTOPARTES

Ricardo Prada1 

1 PhD in Business Sciences; Management doctor. Research profesor in Universidad EAN. Mail: rpradao@universidadean.edu.co


Abstract

The growth, transformation and development of new economic sectors can be determined from the entrepreneurship. This entrepreneurial attitude it manifests the emergence of new companies and by decision-making and entrepreneurial activity. Business success can be attributed to the different influences, changes and pressures caused by the environment, or to special characteristics of entrepreneurs, personal aspects and environment. This article analyzes intra-entrepreneurship as a business renewal strategy, exploring the auto parts sector, through a qualitative study in a sample of companies in the auto parts sector in Colombia. The results conclude that even though entrepreneurship is considered a strategic scenario for business renewal, Colombian auto parts companies do not promote their strategic development.

Key words: entrepreneurship; growth; innovation; efficiency; auto parts sector

Resumen

El crecimiento, transformación y desarrollo de nuevos sectores económicos puede determinarse desde el emprendimiento. La actitud emprendedora se manifiesta por el surgimiento de nuevas empresas y por la toma de decisiones y la actividad emprendedora. El éxito empresarial puede atribuirse a las distintas influencias, cambios y presiones ofrecidas por el entorno, o también a características especiales de los emprendedores, aspectos personales y entorno. El presente artículo analiza el intra-emprendimiento como estrategia de renovación empresarial a través de un estudio cualitativo en una muestra de empresas del sector de autopartes en Colombia. Los resultados concluyen que a pesar de ser considerado el intra-emprendimiento un escenario estratégico de renovación empresarial, las empresas autopartistas colombianas no promueven su desarrollo estratégico.

Palabras clave: emprendimiento; crecimiento; innovación; eficiencia; sector de autopartes

Resumo

O crescimento, a transformação e o desenvolvimento de novos setores econômicos podem ser determinados a partir do empreendedorismo. Essa atitude empreendedora manifesta o surgimento de novas empresas e pela tomada de decisões e pela atividade empreendedora. O sucesso nos negócios pode ser atribuído às diferentes influências, mudanças e pressões causadas pelo meio ambiente, ou a características especiais de empreendedores, aspectos pessoais e meio ambiente. Este artigo analisa o intraempreendedorismo como uma estratégia de renovação de negócios, explorando o setor de autopeças, através de um estudo qualitativo em uma amostra de empresas do setor de autopeças na Colômbia. Os resultados concluem que, embora o empreendedorismo seja considerado um cenário estratégico para a renovação de negócios, as empresas colombianas de autopeças não promovem seu desenvolvimento estratégico.

Palavras-chave: empreendedorismo; crescimento; inovação; eficiencia; setor de autopeças

Introducción

The currently global socio-economic environment, in which the acceleration of technological change as well as the increasing global competition have impelled the executives and entrepreneurs to busily seek for a differentiating style in the formulation of their strategies that allow them sustain the achieved success or just stay afloat. As a result of the above, the perception manifested by the entrepreneurial spirit, in its various forms, is a preponderant factor of development, innovation and social welfare in an economy is shared today. This is especially caused by the impact of new and small entrepreuners, particularly in terms of wealth and employment generation (Hormiga & Batista, 2005). The three entrepreneurial stances - assumption of risk, innovation and proactivity - developed in new and independent business units can also be applied to corporate processes (Covin & Slevin, 1991).

Based on the foregoing, this study focuses on analyzing intra-entrepreneurship as a business renewal strategy, and to do so, it explores the auto parts sector in Colombia. This is a qualitative study carried out in three phases: analysis, design and implementation of the process of characterization of intra-entrepreneurship in a sample of the auto parts sector.

The article is structured as follows: after the introduction, the second section tackles the theoretical framework, which describes the intra-entrepreneurship construct, and relates to the automotive sector, specifically to the auto parts sub-sector. The third section shows the results and the main findings found and finally the final considerations are established. The results show that, despite the fact that intra-entrepreneurship is considered a strategic scenario for business renewal, Colombian auto parts do not promote their strategic development, since they mainly take traditional business models that are based on economic orientation driven by basic factors of production.

Theoretical framework

The continuous process of change in the economic environment, where the acceleration of globalization and the development of the knowledge economy act as engines, drives companies systematically. Therefore, at present, the priority of companies should be to evaluate the competitive position and participation of their products, in order to take advantage of market opportunities that allow them to strengthen themselves in face of the challenges of new competitors (Escolano & Belso, 2003).

The interest in deepening intra-entrepreneurship lies in the fact that, according to several studies, it has been identified that entrepreneurship within a company or organization could increase their probability of success for the benefit of intra-entrepreneurs and the organization where they work implemented with a positive impact in the socioeconomic context (Kantis, 2009; Corduras et al, 2011).

Currently, Colombia has been implementing policies to support technological development and nationwide innovation, however, the widespread use of intra-entrepreneurship in the country for decision making is not yet evident. Intra-entrepreneurship is a differentiating factor for companies. The creation of new businesses and particularly the job creation intensify competition in the markets and produces increases in productivity through economic growth and innovation (Kim, 2008).

Since Schumpeter (1934) and more recently with McMillan & Katz (1992), Kham (1986), Sandberg (1986), and Hofer & Sandberg (1987), it has been tried to study the entrepreneur, as a determinant actor of the economic progress, and these businessmen or entrepreneurs have characteristic features that predispose them to act in an entrepreneurial way. While it is true that entrepreneurial behavior is the product of some influences, the main pillar of entrepreneurship is the human being.

Entrepreneurship and intra-entrepreneurship

The concept of entrepreneurship emerges initially from the union between the French word entreprendre and the German word unternehmen that mean “to start a new business” (Veeraraghavan, 2009). This word entrepreneurship has a French origin and means taking risks, that is, someone who chases benefits and works in team or individually, innovating and creating business opportunities (Hisrich, 1990; Bruneau & Machado, 2006).

Originally, entrepreneurship is related to company’s capacity even though it is in fact a much broader term. Say (1803) states that entrepreneur, the person who starts a new little company, realizes resources’ modifications from a low yield zone to a higher productive one and with better yield. Recently, Carland, Hoy & Carland (1988) establishes that the “business starter” is an individual with achievement needs, dependency, passion for risks and the feeling for controlling his fate. With the same thinking, Shaver & Scott (1991) define the business starter as “someone with a certain number of psychological attributes, described by both his personality and the cognitive procedures that are triggered by circumstances.”

Numerous theoretical contributions have been made by researchers throughout time, such as the classic ones, contributed by Cantillon (1931), Knight (1921), Schumpeter (1934) o Kirzner (1997). Those contributions center their studies in the explication of the economic enterprising theory. All those theoretical efforts and academic and individual contributions have provided in the quest for a better context explanation and the entrepreneurship concept. However, there is as yet no universally accepted consensus or theory.

For its part, entrepreneurship is defined, according to Ventakataraman (1997), as the discovery, evaluation and the use of new goods and services. In this sense, entrepreneurship people those who stay alert and discover business opportunities (Kirzner, 1973). Whereas to Gartner (1988), the entrepreneur is considered as the “ensemble of activities that are put into action to create a new organization”, and who thinks that the creation of a company is an important context event, based on the result of numerous failures and achievements, perseverance and important perceived information. Confirming, in this way, the base of economic development of a population, region, or country is entrepreneurship. In the same page, Shane & Venkataraman (2000) state that entrepreneurship is the activity that includes the discovery, evaluation and exploitation of opportunities to introduce new products and services, new productive products, new raw material, new markets and new organization formulas that did not exist before.

In general, who individually or in groups create business ideas are entrepreneurs. Schumpeter (1934) determines in his theoretical model that «the actual function of an entrepreneur is to take the initiative, to create”, which gives the individual the opportunity to take advantage of the environment, without the ideas necessarily being produced by him (Liouville, 2002). However, it is also that employee who makes improvements in a firm that is already in operations. The entrepreneurship individual will be that person, who through his/ her personal characteristics, his attributes and actions, acts and influences decidedly in both: aspects that shape or act around the environment and the capacity to determine the opportunities in order to choose and explore them appropriately and successfully (Shane, 2000).

Under the assumption that the individual has all the means to raise an innovative idea and put it into practice within their organization, there is another level of action that can favor or curtail the development of that initiative: the entrepreneurship ecosystem (Antoncic & Hirish, 2001).

If an innovative idea exceeds the organizational scope, it must face the context. If it is a new business, this new unit will exchange with the external world through customers, suppliers, with economic variables of the market that will determine its long-term sustainability. In the same way, projects oriented to the conformation of cluster, working groups, interinstitutional agreements, the conditions of their maintenance depend on the conditions of the network formed (Kuratko, 2007).

Intra-entrepreneurship is a challenge for many Colombian companies. Although Colombia has been implementing policies to support technological development and innovation at the national level, there is still no baseline on intra-entrepreneurship in Colombia for decision-making.

In this sense, the main objective of this research is to characterize intra-entrepreneurship in the auto parts sector considering business innovation, human capital, practices, processes, implementation and results of intra-entrepreneurship, ie, identify from the basic level to the highest level of corporate entrepreneurship. It is expected to find that medium and large companies in the auto parts sector currently do not carry out intra-entrepreneurship activities within their organizations or are very incipient.

Anyway, there are many words to describe the enterprising efforts inside already constituted organizations there are numerous terms for describing the entrepreneurial efforts within established organizations which has, to a certain extent, hindered the development of this field of research (Sharma & Chrisman, 1999). According to Coduras et al. (2011), as it happens to most of the entrepreneurship, there is no current agreed and unique definition for corporative entrepreneurship so far. In this way, plenty of authors such as Morris & Kuratko (2002), Hornsby et al. (2002), Phan et al. (2009) y Parker (2011) have pointed out that there is no agreement in the terminology, which provokes that synonyms are used in the next expressions:

Intrapreneurship and corporative entrepreneurship are considered as synonyms by many researchers. Nonetheless, Åmo & Kolvereid (2005) argue there is a conceptual difference between corporative entrepreneurship and intrapreneurship, they both say that the two words are related and represent rising processes of renovation in companies through initiatives of innovation carried out by employees. The main difference lays on intrapreneurship being focused on independent initiatives or the employees themselves on behalf of employees and corporate entrepreneurship is related to the processes used by the company to encourage innovation activities, through the initiative of employees; in the same way, the impact that on the success of the company can have on the behavior of the individuals (Åmo & Kolvereid (2005). Stopford & Baden-Fuller (1990) claim that corporative entrepreneurship only takes place inside of the company, when it describes the process of renovation in an existing corporation and it is carried out only by the very actors. For Seshadri & Tripathy (2006), corporate entrepreneurship and intrapreneurship could be used as synonyms.

The problematic is the intra-entrepreneurship spirit is an abstract word (Lumpkin & Dess, 1996). Schumpeter (1911) argues that the introduction of innovations by entrepreneurs could be through the creation of a new company or within the limits of an existing organization. The different definitions allow detaching that corporate entrepreneurs are usually very motivated people in the organizations, with a high achieving orientation, extremely proactive and can act easily as to take initiatives that permit to accomplish the doing and the development of new products in their companies (Prada-Ospina, 2014).

The automobile industry

The car sector at an international level, over the last decades, has characterized itself for presenting a constant process of restructuration becoming one of the most dynamic industries of the modern era, generating important effects in the different economies in terms of productivity, technological development and competitiveness. The importance of the car sector in the development of a country lies in its capacity of generating innovation in the purchase, the development of technology, the main generation of employment due to the different productive chains that integrate them and the development of what it represents in the society where the activity takes place (Calderón et al. 2011).

In order to occupy the first positions in production and sales in the global markets, the member companies of the sector have always been looking for innovations that allow them to strengthen and make more competitive their productive process (Carbajal, 2010). This sector, as it is Dynamic, puts together different subsectors and components that are related to motorized ground transportation such as assemblers, auto parts, marketers, warehouse of service, motorbikes, diagnostic centers, among others.

When it is proposed to identify the current state of the sector in Colombia, it is proposed to know the importance of it for the country. According to studies of the Colombian automotive sector conducted by the Superintendencia de Industria y Comercio in year 2012, from the economic point of view, it was found that there is a correlation between the sale of vehicles and the percentage variation of the country's gross domestic product.

This correlation can be based on the domestic vehicle’s consumption. According to data provided by the National Administrative Department of Statistics (DANE, 2014), 47.7% of the units of sold vehicles were of domestic production, the remaining 52.3% were of foreign origin, that is, the internal market of vehicles presents an almost equitable participation between the number of imported cars and those manufactured in the country. However, measured in Colombian pesos, sales of imported vehicles tend to increase, while domestic vehicle sales appear to remain constant. This increase is explained by the reduction of entry barriers and the generation of competition based on unit sales price of motor vehicles.

Description of the Automotive Market in Colombia

The car industry in Colombia focuses mainly on four major activities: vehicle assembly, auto parts production, car sales and motorcycle assembly, among others.

An analyzing the composition of the supply chain of the auto parts sector (Arango, 2013), identify that it is composed of (i) national and international suppliers, which supply parts to manufacturers, assemblers and distributors; followed by (ii) parts manufacturing companies, which supply both assemblers and distributors; in third place are (iii) the light vehicle, truck, bus and motorcycle assembly companies; finally, (iv) the distribution companies, whose corporate purpose is the commercialization of auto parts (See Figure 1).

Source: prepared by the author based on Arango (2013)

Figure 1 Cost chain of the car sector. 

In the same way, the Ministerio de Industria, Comercio y Turismo in 2009, identified that the cost chain of the car sector in Colombia is integrated by provider, joiner, distributor, post-sale services provider or real-estate agent (Zapata et al. 2013). Therefore, the productive process of the car sector covers the assembly of vehicles such as the production of parts, pieces and spare parts. Which can be used also in the assembling process, that is, it implies the fabrication of parts and used pieces in the assembly of vehicles (light vehicles, trucks, buses and motorcycles). It should also be noted that suppliers of inputs from other industries such as metalworking, petrochemicals (plastics and rubbers) and textiles (BBVA, 2012; 2013) participate in the automotive chain in Colombia (Zapata et al., 2013).

The Colombian automotive industry represents 6.2% of GDP and employs 2.5% of the employed personnel in the manufacturing industry, making Colombia the fifth largest producer of automobiles in Latin America. This industry in Colombia includes the assembly activity (light vehicles, trucks, buses and motorcycles) and the manufacture of parts and pieces used in the assembly of spare parts (Figure 2), which involves suppliers of inputs from other industries such as metalworking, petrochemicals (plastics and rubbers) and textiles (DNP, 2014).

Source: National Department of Planning - DNP (2004)

Figure 2 Simplified structure of vehicle-chain production in Colombia 

Auto parts sector

Auto parts subsector in the second link of the productive chain that composes the Colombian vehicle-chain production industry. In spite of its participation is estimated in less than 20% of the total production in this economic field, behind it, many groups exist that do fabricating activities, commercialization and logistics of these products, according to what has been concluded by the study Comprehensive characterization of logistic processes in the car-parts sector (Zapata et al, 2013). The auto part and pieces sector are composed by:

  • National and international providers that supply parts to makers, assemblers and distributors.

  • Fabricant pieces companies that supply to assemblers and distributors.

  • Assembling companies for light vehicles, trucks buses and motorbikes.

  • Distributing companies, whose social object is the commercialization of auto parts.

Also included are the freight carriers, who mobilize the pieces between each of the above groups. As regards the subsectors by type of component, according to data disclosed by the Superintendence of Industry and Commerce, 28% of the national production of auto parts corresponded to electrical equipment and installations; 18% for steering, braking and suspension systems; and 16% to other bodies, these being the three main segments in the production chain of the auto parts sector in Colombia.

In Bogota, it is found the biggest auto motor number of Colombia. Due to 2016, 2.1 million of cars would be running across the city, which represents 39% of the number of cars in the country. It is a spreading sector, since from 2001 to 2010 the number of private carts has increased in 180% in the city; besides, Bogota is the main headquarters of 6 out 7 assemblers that Colombia and the auto parts sector have. They are settled in three main cities: Bogota, Cali and Medellin, but most of them are located in Bogota, close with 100 manufacturing companies of the auto parts sector (EMSA), this generates 70% of the auto part production in the country (Invest in Bogotá, 2014).

The part sector for vehicles is composed by national and international providers that supply pieces to makers, assemblers and distributors; assembling companies of light vehicles, trucks, buses and motorcycles, distributing societies, whose social object is the auto part commercialization. It is also including merchandising transportation that moves the parts of the already mentioned groups.

The industry growth has reported in the last decade the beginning of an international market leap, its principal objective is the diversification of markets and offer as well as the specialized parts for new and emerging technologies (Metalmecánica, 2015). However, in terms of the industry global production, from 2002 to 2012, the making of components represented 13.9% of the overall industry (Fedesarrollo, 2015).

Methodology

Authors like McMillan & Katz (1992) have conceptualized in research the way how structural change and the technological gap, by highlighting the importance of diffusing sectors of knowledge in the economic dynamic as a source of innovation in the productive tissue. This sector of knowledge is found in the metal mechanic subsector, defining it as that that generates capital goods and is related to the creation of new technologies, and the industry and transformation equipment.

It is about a qualitative study that is done in three phases: analysis, design and implementation of the process of characterization of intra-entrepreneurship, in a sample of the auto parts sector. The analysis phase covers theoretical knowledge of intra-entrepreneurship and its participant variable as well as the sector and its context. The design phase implied the construction of the instrument in which it was revealed information about intra-entrepreneurship in companies ‘samples of the sector that accepted to provide their data. The instrument was designed to collect productive and economic information of the company, company innovation, human capital, as context variables of the companies to deepen in the development and intra-entrepreneurship cycle afterwards: practices, procedures, implementation and intra-entrepreneurship results.

The samples were obtained from the number of legal companies all constituted in the auto parts sector in 2015 in three different institutions: the Bogotá chamber of commerce (CCB), superintendence of corporations and the Colombian Association of fabricants de auto parts (ACOLFA). In the CCB under the code CIIU C2930, there are 15 big companies registered and 40 medians, which make 70% of the country (Araque, 2012). The superintendence of corporations classifies the making part and spare part companies for auto motors through the code CIIU D3430, they record 115 registered companies. When gathering the records, matching names of one hundred and ten companies legally registered in the Superintendencia de Sociedades were found. These form the sample framework of the investigation.

Results

The 2013-2014 Technology Development and Innovation Survey carried out by the National Administrative Department of Statistics (DANE, 2014) provides relevant information on companies dealt with the motor vehicles manufacturing and their parts. It is therefore concluded, that 25% of these companies are innovative in a broad and narrow sense, and 6.3% is potentially innovative and 68.8% non-innovative. Of the total of these companies, only 12.5% carries out innovations in the national and international market and the rest innovations for the company. That is, nationally, in the auto parts sector, approximately 40% of the companies carry out innovative activities; therefore, it is probable that they carry out processes of intra-entrepreneurship.

Of 27 companies in the auto parts sector that responded to the survey on intra-entrepreneurship, 55% have between 10 and 49 employees, 30% between 50 and 199 and only 15% more than 200 employees. It is striking that according to Table 1, 55% of the surveyed companies declare sales for more than 300 million Colombian pesos, 60% have between 5 and 10 years old and that 70% are part of the manufacturing industry. Only 10% of companies export.

Table 1 Characteristics of the sample of companies in the auto parts sector 

Sample composition Autoparts Sector
Sample size 110
Distribution of firms by size
Sample
10 and 49 55%
50 and 199 30%
200 or more 15%
Total sales
51 and 100 mil 30%
101 and 300 mil 15
300 mil or more 55
Age
<5 years 15%
5 and 10 years 60%
10 or more years 25%
Main industries
Manufacturing 70%
Services 5%
Trade 25%

Source: prepared by the author

Characteristics of companies

When asking about the use of new technologies, 30% of surveyed companies answer that they do not use any technology, 55% use hard technology and 15% soft technology. 45% indicate that if it has carried out innovation processes that have generated revenues or cost reductions and of these, while 70% are process innovations, while 30% is service innovation, such as sheet dubbing, production online, in multiple vehicle storage and marketing and sales. 45% invest less than 25% of their income in new technology and innovation, 35% between 25 and 50% and the rest, does not reinvest anything.

Regarding the gender distribution of the human talent that works in the companies analyzed, 65% hire men (75%) rather than women (25%). When inquiring about the level of educational training contracted by these companies, it is found, on average that 46% of the employees are workers without training but, with experience; 27% have technical or technical level and the remaining 27% are professionals. Approximately 70% of employees in the auto parts sector are hired on an indefinite basis.

Intra-entrepreneurship practices

Once the managers of the surveyed companies were informed of what corporate entrepreneurship means, when asking them if they believed that the company carried out some kind of corporate entrepreneurship, 45% said yes, 45% said not and the remaining 15% does not know or does not answer. Table 2 shows that of 100% of companies that respond that their company performs some type of activity related to intra-entrepreneurship or corporate entrepreneurship, 33% are small companies, 45% medium and 22% large companies.

Table 2 shows that of 100% of companies that respond that their company performs some type of activity related to intra-enterpreneurship or corporate entrepreneurship, 33% are small companies, 45% medium and 22% large companies.

Table 2 Companies with intra-entrepreneurship (IE) according to number of employee’s auto parts 

Number of employees Does your company carry out any type of activity related to IE?
Yes No Do not know / do not answer
Between 10 and 49 employees 33,4 75,0 100
Between 50 and 199 employees 44,4 12,5 0
More than 200 employees 22,2 12,5 0
Total 100,0 100 100

Source: prepared by the author

When asking the managers of auto parts companies, according to the definition submitted in the instrument, if they carry out some type of activity related to intra-entrepreneurship, 47% of them answer that they does, in contrast to 42% who answer no, while the remaining does not answer. The companies, which answer the question, allude to their interest in keeping customers, increasing sales and being competitive in the market; those, which do not answer, perceive that the business is static; they are in their comfort zone, among others answers shown in table 3.

Table 3 Reasons to carry out or not intra-entrepreneurship activities (IE) 

Why? Do you think that your company makes some kind of activity related to intra-entrepreneurship
Yes No
The way it is works fine 0 1
Business is doing good 0 1
We create new sailing strategies 1 0
The kind of business does not allow to add any changes 0 1
It’s a specific and established market 0 1
Research in high-tech 1 0
The main activity is already established 0 1
The company believes in employees’ contribution 1 0
Tasks are very common 0 1
The moto line changes constantly in markets 1 0
Sales and service are better 1 0
New business lines for the bend-machine 1 0
Social object representation of a brand 0 1
Thinking of the company growth and the gross profit rising 1 0
There is an innovative department 1 0
Keeping and calling new clients on the way. 1 0
Limited time and business 0 1

Source: prepared by the author

When detailing the type of practices that companies are carrying out in the framework of intra- entrepreneurship, it is found that although approximately 40% of companies which affirm that not to carry out any activity. Approximately 25% perform collaborative work among the different areas of the company, 40% frequently perform activities oriented to increasing of sales, and 15% work in groups for the creation of new business lines (see Table 4).

Table 4 Intra-entrepreneurship practices 

Practices to involve employees in company’s strengthening Percentage
Project generation by work teams 10,0
Collaborative work among the different areas of the company 25,0
Monitoring and evaluation of business opportunities 10,0
None 55,0
Total 100,0
Corporate entrepreneurship practices carried out frequently Percentage
Process, product or service innovation 10,0
New products creation or generation 10,0
Creation or generation of new business units inside company 5,0
Search of new business opportunities in the market 35,0
Activities oriented to increasing of sales 40,0
Total 100,0
Mechanisms for employees to propose new business lines Percentage
Incentives for employees proposing projects 10,0
Work teams for new business lines generation 15,0
None 75,0
Total 100,0
Reasons for not doing any support practice for the entrepreneur employee Percentage
Company does not require it 15,0
The organizational climate does not adapt 10,0
The company’s organizational structure has not allowed it 25,0
Shortage of financing 15,0
Shortage of time 30,0
The company does not find added value to this type of practices 5,0
Total 100,0
Reasons that have prevented the adoption of corporate entrepreneurship practices Percentage
Corporate risk 25,0
Lack of resources 35,0
Low interest of the directives 35,0
Other 5,0
Total 100,0

Source: Prepared by the author

Table 4 shows that the most important factors for not carrying out intra-entrepreneurship practice are the low interest of the directives and the lack of specific resources to do so. Other factors that are taken from the table are the shortage of time for these activities and because it is believed that, the organizational structure does not allow it, among others with a lower percentage, as the main reasons for not supporting the intrapreneur or for the adoption of intra-entrepreneurship practices.

Intra-entrepreneurship process

At a deeper level, a group of questions explores the processes related to intra-entrepreneurship. In this field, the scenario is more precarious than in the previous one. When delving into teamwork and employees’ proposals, 55% of the companies indicate that they do not any specific process and 40% hold specific meetings to generate ideas and proposals for new business units. Although 75% says that the manager does not meet with middle and low managers to hear new business ideas and 65% of companies indicate that products are not reflected in these activities, although 10% say they are reflected in brainstorming and in new Projects.

It is investigated the impact on the process map or organizational structure in companies that declare to undertake intra-entrepreneurship processes and 90% of them say that no impact has been observed at this level (see table 5).

Table 5 Intra-entrepreneurhip process 

Specific activities that the company does regarding the relationship with work and the propositions of his employees Percentage
Specific meetings to create ideas 20.0
Generation of propositions of new business units 20.0
Other 5.0
None 55.0
Total 100.0
Does the manager meet with mid/love level executives to listen to new business ideas? Percentage
Yes 25.0
No 75.0
Total 100.0
The products of activities generate new ideas and projects are expressed Percentage
Brainstorming 10.0
New projects 10.0
New business units 10.0
Other 5.0
Non 65.0
Total 100.0

Source: prepared by the author

Implementation of intra-entrepreneurship

Another phase of intra-entrepreneurship evaluation is the implementation related to activities, indicators related to the creation of new business units, the directives’ position in the execution phase of new projects and the impact that these processes of execution have represented for the company.

It is important to have an integral view of the intra-entrepreneurship process that reveals the type of entrepreneurship and the phase in which the company is. In other words, although there are practices and processes of intra-entrepreneurship in auto parts sector companies, approximately 50% of them reflect certain dynamics when verifying the implementation of this opening of new ideas and their execution through the creation of new business units. It is found that approximately 40% of auto parts companies have generated a new business unit, line of business or new products (10% one, 25% less than five and 5% more than five, see table 6).

Table 6 Implementation of intra-entrepreneurship 

In the last three years how many business lines, business units or new products have been made? Percentage
One 10.0
Less than five 25.0
More than five 5.0
Any 60.0
Total 100.0
What is the administration position about projects? Percentage
At a standstill 10
Feasibility are read and evaluated 30.0
Implemented 10.0
Other 50.0
Total 100.0
Type of novelty? Percentage
New processes 20.0
New products 10.0
Does not answer 70.0
Total 100.0
How many business units have been implemented by the company Percentage
One 20.0
Two 5.0
Does not answer 75.0
Total 100.0
What type of impact it as made in your company? Percentage
Productivity rise 10.0
Incomes rise 15.0
Costs reduction 10.0
Other 25.0
Does not answer 40.0
Total 100.0

Source: prepared by the author

When evaluating the directives’ position of the before the projects or new proposals, 50% of the auto parts companies indicate that there is disinterest and indifference, 10% of them comment that these proposals stagnate, 30% indicates that the proposals are read and its feasibility is evaluated, and just 10% affirms that these proposals are implemented. In the last year, 30% of companies affirm that they have generated new processes, products or services, 20% of these percentage is a process of innovation and 10% of product. The impact of the intra-entrepreneurship implementation on approximately 40% of auto parts companies is in three areas: productivity increase (10%), increase in earnings (15%) and reduction of costs (10%).

Noticeable results of intra-entrepreneurship

Every effort of human capital and resources must be evidenced in concrete results that represent tangible benefits such as higher incomes, or intangibles such as the learning of company. In this sense, the outcome measurement of intra-entrepreneurship has the objective of showing the results of the execution of intra-entrepreneurship activities, as an impact on the short, medium and long term.

As evidenced in table 7, which incorporates the responses of auto parts companies in terms of intra-entrepreneurship indicators at the organizational level, approximately 5% of companies assure that they have a team of entrepreneurs recognized within the company, an organizational strategy for new ideas management, databases on innovative ideas and procedural manuals for innovative ideas management. 95% of the surveyed companies do not have intra-entrepreneurship outcome indicators.

Table 7 Results of organizational intra-entrepreneurship 

Is there an identified group of entrepreneurs within your organization? Percentage
Yes 5,0
No 95,0
Total 100,0
Does the company have an organizational strategy for new ideas management? Percentage
Yes 5,0
No 95,0
Total 100,0
Is there a database for registration and following up new ideas or innovations? Percentage
Yes 75,00
No 15,00
do not know / do not answer
Total 100,00
Yes 5,00
No 90,00
do not know / do not answer 5,00
Total 100,00

Source: prepared by the author

In terms of the use of resources and entrepreneurship financing, 65% of companies do not offer any incentive, 15% offer verbal incentives and 15% of companies offer bonuses. Apparently if the company has policies and implements new business units based on their entrepreneurs’ ideas, 15% of these are financed with the company's own resources, 5% through external advertising, 10% through indebtedness and the rest do not know or do not answer. Despite the financing provided by the government, just 5% of the auto parts sector considers it (table 8).

Table 8 Results of intra-entrepreneurship: Financing 

What are the incentives offered by the company to its intrapreneurs? Percentage
None 65,0
Verbal incentives 15,0
Bonuses 15,0
Other 5,0
Total 100,0
What is the type of financing for the new business units created by your employees? Percentage
Company's own financing 15,0
external advertising 5,0
indebtedness 10,0
Other 60,0
do not know / do not answer 10,0
Total 100,0

Source: prepared by the author

Table 9 shows that 100% of the companies that respond that In the collective imagination is perceived that the response to market needs must be rapid. Since the percentage of auto parts companies that practice intra-entrepreneurship is low, the response to the times taken by the development of a project from the idea to its implementation indicates that 55% of the companies respond in less than 6 months, 20% in less than a year and 20% more than a year.

Table 9 Results of intra-entrepreneurship: efficiency 

What is the average time elapsed from the generation of an idea to its implementation for the company's economic benefit? Percentage
Less than 6 months 55,0
between 6 months and 1 year 20,0
More than a year 20,0
do not know / do not answer 5,0
Total 100,0
What percentage of increase in earnings attributed to the new business units created in the last three years did the company have? Percentage
No increase 65,0
Less than 10% 15,0
Between 11% and 20% 15,0
More than 20% 5,0
Total 100,0
What chances of long-term sustainability do the new business units currently have? Percentage
Low 75,00
Medium 15,00
High 10,00
Total 100,00
Will the company continue to promote in the long-term new business units generated by its employees? Percentage
Yes 35,00
No 65,00
Total 100,00

Source: prepared by the author

The profits of the companies attributed to new projects in the last three years are approximately less than 10% of the profits for 80% of the auto parts companies. Only for 5% I represent more than 20%.

In this accelerated scenario, when inquiring about the sustainability of the new business units, 75% believe that sustainability is low, 15% medium and 10% high. And according to the above, only 35% of companies say they will continue to promote intra-entrepreneurship long-term, while 65% say no.

Conclusions

The academic literature has interested in the study of the factors that influence the entrepreneurship. There is a great consensus about what to be an entrepreneur means; however, the contribution of corporate entrepreneurship to organizational renewal that leads a company to success is still unknown, at least from an empirical point of view.

Within market research, it is always expected that the response to the needs for change and needs of clients to be prompt. On the contrary, based on the observation of the answers, it is concluded that the percentage of auto parts companies practicing corporate entrepreneurship is low. Regarding the response to the times that the development of a project takes from the idea to its implementation, it indicates that 55% of companies respond in less than 6 months, 20% in less than a year and 20% more than a year.

In this scenario, when inquiring about the sustainability of the new business units, 75% think that sustainability is low, 15% medium and 10% high. According to the above, it is estimated that only 35% of companies affirm that they will continue to promote long-term corporate entrepreneurship, while 65% say no.

The profits of companies attributed to new projects in the last three years are approximately less than 10% of earnings for 80% of auto parts companies. Only for 5% accounted more than 20%.

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How to cite this article: Prada, Ricardo (2020). Entrepreneurial attitude and business success. Colombian auto parts sector. Dimensión Empresarial, 18(2). DOI: 10.15665/dem.v18i2.2121

Received: September 16, 2019; Accepted: March 08, 2020

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