Corporate Entrepreneurship, Organization Learning Capability, External Environment Condition and Financial Performance of Public Universities in Kenya

Abstract

- In most developing countries universities play a role not only in providing knowledge but also contributes to economic growth and development. In order to supplement financial support from the government, most public universities have embraced entrepreneurship as part of their mission besides teaching, learning, research and community service. As a result basing on resource based theory, the study examined the moderating role of external environment condition in the relationship between corporate entrepreneurship and financial performance through organizational learning capability of public universities in Kenya. Descriptive survey was conducted targeting 42 accredited public universities in Kenya. Structured questionnaires were issued to 84 respondents from the 21 sampled public universities which was later subjected to factor, correlation and hierarchical multiple regression analysis. From the findings, there was a positive (β = .487) and significant (p<.001) relationship between corporate entrepreneurship and financial performance. Organizational learning capability was found to positively and significantly (β = .487, p<.05) partially mediate the relationship between corporate entrepreneurship and financial performance. On the other hand, external environment condition positively and significantly (β = .562, p<.01) moderated relationship between corporate entrepreneurship and financial performance. Further, external environment condition had a positive and significant (β = .0968, p<.05) moderating effect in the relationship between corporate entrepreneurship and financial performance through organizational learning capability of public universities in Kenya. The study thus concluded that given the existence of external environment condition, financial performance arising from corporate entrepreneurship and through organizational learning capability is enhanced. The study recommends future studies to analyze the mediating and moderating effect of each dimension under organizational learning capability and external environment condition. Moreover, quantitative financial performance measures and other constructs as the corporate governance could be incorporated.