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.