State-Owned Entities in an African Emerging Market Context: The Role of Entrepreneurial Intensity and Capabilities in Performance

Abstract

Research in public sector entrepreneurship is proliferating which indicates that it is viable for organisations operating within a government regulatory regime, such as in state-owned entities (SOEs). This study examined the extent to which entrepreneurial intensity and entrepreneurial capabilities influence the performance of SOEs, while moderating effects of the external environment on this relationship were analysed from an African emerging market perspective. Primary data was collected via a structured questionnaire from SOEs operating in South Africa. After checking for instrument validity and reliability, findings based on moderated regression analyses show that the degree and frequency of entrepreneurial events, as well as human capabilities, can predict improved performance. The originality and contribution of this study is highlighted in appreciating the role that entrepreneurial intensity and capabilities have on improving SOEs’ public responsiveness and financial performance in an emerging market context.