Examining the interrelatedness among human resources management practices, entrepreneurial traits and corporate entrepreneurship in emerging markets: an evidence from Egypt

Abstract

Purpose

The main purpose of this paper is to investigate the relationships among a set of human resources management (HRM) practices, entrepreneurial traits (ET) and corporate entrepreneurship (CE) in an emerging market such as the Egyptian one.

Design/methodology/approach

This research is explanatory in nature where it explains the causal relationships between the variables. Data was collected from 230 human resources (HR) managers and professional serving in top Egyptian financial institutions. Data was analyzed using structural equation modeling with relevant goodness-of-fit statistics.

Findings

The results of this study indicate that HRM practices have significant impact on the development of ET of personnel currently operating in the Egyptian financial institutions. Besides, the results confirm the effect of HRM practices on ET, which in turn have significant impact on CE.

Practical implications

This research provides an appropriate direction for HR managers on how to best design HR programs directed toward the development of strong CE orientation. It also highlights the core ET needed to enhance CE in emerging economies. The validated hypothetical relationships of this model serve as the baseline for those managers to plan, execute and measure the consequences of those HRM programs.

Originality/value

Although HRM is widely considered as a critical driving force for CE, there is a remarkable scarcity of empirical research examining the role of ET. The conceptual model tested in this research typically deepens both HRM scholars and managers’ understanding of how they can best connect HRM practices to ET and CE in emerging economies. The findings of this study open the door for a new venue of research in the HRM area of study, particularly in emerging markets that search for a fast-growing rate of economic prosperity. The findings of this study lend support for HRM as an antecedent to CE rather than vice versa.

Citation

Shehata, G.M., Montash, M.A.-H. and Areda, M.R. (2021), "Examining the interrelatedness among human resources management practices, entrepreneurial traits and corporate entrepreneurship in emerging markets: an evidence from Egypt", Journal of Entrepreneurship in Emerging Economies, Vol. 13 No. 3, pp. 353-379. https://doi.org/10.1108/JEEE-08-2019-0117