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Psychological Climate in the Organization: A Determinant of Entrepreneurial Behavior

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Economic Development and Entrepreneurship in Transition Economies

Abstract

Entrepreneurial behavior is reflected through independent individuals/entrepreneurs who are ready to start new enterprises and therefore take risks in newly created circumstances. Increasing, dynamic markets, and competition create powerful pressure on organizations by enforcing them to continually grow and develop as a basic condition to survive. Innovation is the biggest potential for growth and thus becomes a continual business need in the cited circumstances so participants can have the necessary flexibility, competitiveness and adequate answers in the face of change. Circumstances considered as favorable to generate innovations within the organization are dominantly entrepreneurial because of their features, necessary creativity of active people and readiness to take risk and they are strong enough to generate ‘something new’, as the most authors in this field define internal entrepreneurship.

While analyzing motivators that cause internal entrepreneurship, on the one side there is the organizational context (psychological climate of organization) or management style and personal interests of internal entrepreneurs/employees on the other. According to past research, an entrepreneurial climate is essential for awakening the individual entrepreneurial potential of employees such as innovativeness, risk taking and being proactive. These characteristics require the following organizational factors to flourish: management support for new ideas and projects, participation in strategic decisions, tolerance of risk-taking, autonomy and resource allocations.

The primary purpose of this research chapter is to present an empirical study framed by the theory that task-oriented and relations-oriented leadership behaviors (or different leadership style) are positively related to the employees’ perceptions of organizational climate. The study introduces this theoretical perspective and examines the relevant literature that supports the significance of leadership behavior and the organizational climate. Results of empirical research will be presented in the second part of the chapter.

Many authors identified leadership/management behaviors as an emergent process that acts on both the organizational climate and conditions for entrepreneurship. An organizational climate has been conceptualized as a mediator of the relationship between leadership style and organizational entrepreneurship.

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Author information

Authors and Affiliations

Authors

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Correspondence to Slobodan Marić Ph.D. .

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Appendix: Descriptive Statistics

Appendix: Descriptive Statistics

 

N

Range

Minimum

Maximum

Mean

Std. deviation

Variance

Skewness

Kurtosis

Statistic

Statistic

Statistic

Statistic

Statistic

Statistic

Statistic

Statistic

Std. error

Statistic

Std. error

Direct. lead. style

18

33.00

0.00

33.00

15.2683

12.14350

147.465

0.178

0.536

−1.398

1.038

Indulgent. lead. style

18

39.50

0.00

39.50

10.7867

12.02514

144.604

1.213

0.536

0.677

1.038

Colleague. lead. style

18

63.00

37.00

100.00

73.6661

18.31733

335.525

−0.178

0.536

−0.513

1.038

Motivation low

18

20.00

0.00

20.00

1.4817

4.88077

23.822

3.664

0.536

13.877

1.038

Motivation medium

18

67.00

0.00

67.00

34.5367

17.66626

312.097

−0.213

0.536

−0.143

1.038

Motivation moderate high

18

47.00

20.00

67.00

40.9261

14.52225

210.896

0.368

0.536

−0.647

1.038

Motivation high

18

33.00

7.00

40.00

23.7961

9.52167

90.662

−0.097

0.536

−1.172

1.038

Organizational climate

1(+)–8(−)

17

2.86

2.05

4.91

3.1700

0.71013

0.504

0.630

0.550

0.975

1.063

Risk insignificant inclination

16

93.00

7.00

100.00

53.8125

30.95043

957.929

0.203

0.564

−1.119

1.091

Risk medium sign. inclin.

16

93.00

0.00

93.00

42.0938

31.34763

982.674

0.055

0.564

−1.279

1.091

Risk sign. inclination

16

23.00

0.00

23.00

4.0938

7.10450

50.474

1.720

0.564

2.286

1.091

Valid N (listwise)

15

          
  1. Source: Author’s calculation

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Leković, B., Marić, S. (2016). Psychological Climate in the Organization: A Determinant of Entrepreneurial Behavior. In: Ateljević, J., Trivić, J. (eds) Economic Development and Entrepreneurship in Transition Economies . Springer, Cham. https://doi.org/10.1007/978-3-319-28856-7_10

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