Entrepreneurial Preferences Regarding Centralization

Abstract

The purpose of this paper is to present the results of a pilot study examining the extent to which preferences for decentralized organizational structures and entrepreneurship may be associated. Building upon the extant literature, relationships between level of education and a preference for centralization and between work experience and a preference for decentralization are analyzed. Also studied is the preference for centralization/decentralization according to demographic factors as well as how individuals perceive their readiness for and knowledge about entrepreneurship. A survey of students and non-students enabled comparisons across a range of ages and years of education. Regardless of whether they were categorized as employees, managers, or business owners, respondents with fewer years of education indicated a greater preference for centralization. Similarly, regardless of category, respondents with fewer years of work experience preferred centralization. Finally, those believing they were knowledgeable about and ready for entrepreneurship showed a greater preference for decentralization. Findings cannot be generalized due to the small, non-random convenience sample and the comparisons of small subsets of data. Lessons learned in the study and the increased understanding of attitudes regarding centralization/decentralization, however, may lead to new and useful concepts for entrepreneurship education and in forming entrepreneurial teams within organizations. [ABSTRACT FROM AUTHOR]