Determinants of Entrepreneurial Employee Activity in Saudi Arabia

Abstract

Literature shows that entrepreneurial employee activity is positively related to organisational growth and competitiveness. A significant number of studies have focused on the determinants of entrepreneurial employee activity. However, there are aspects of these determinants that remain unexplored; in particular, the role of factors at the environmental level and their moderating effect has rarely been tested. Based on Human Capital Theory and Institutional Theory, this paper aims to analyse the direct and moderating effects of the determinants of entrepreneurial employee activity. Data were obtained from the 2016 Global Entrepreneurship Monitor for the context of Saudi Arabia (1499 observations). By applying a logistic regression model, we found that intrapreneurial skills, education and social status have significant and direct effects on entrepreneurial employee activity. In addition, ease of business and social status moderate and reinforce the effect of intrapreneurial skills on entrepreneurial employee activity. The results suggest that context plays a major role in the antecedents of entrepreneurial employee activity and that its effect may be different in the case of Saudi Arabia as compared to Western countries. Theoretical and practical implications are derived from these findings.