There has been a vast amount of academic research done in the field of employee satisfaction and the resulting impact of this dimension on employee innovation output and institutional entrepreneurship. However, there is a dearth of literature on how to retain employees and their tacit knowledge in firms. This study, therefore, seeks to identify Institutional Entrepreneurship (IE) as a key pivot point of strategy, that firms can exploit when endeavouring to actively improve employee retention levels. In this interpretation, the researcher seeks to make a distinction between generally entrepreneurial companies and employee driven innovation or intrapreneurship within companies.
There appears to be an appealing synergy that the fostering of institutional entrepreneurship initiatives can offer business strategists. By incorporating plans for IE into core strategy, they could potentially create sustainable competitive advantage from new business innovations. What this report aims to show is that businesses that make a concerted effort at fostering IE can also protect their current competitive advantage contained in the tacit knowledge of their workforce. This all happens in a climate that is better equipped to deliver organic growth.
The main objective of the research is to establish that there is a relationship between the propensity for an employee to remain in a firm in the near future and their perceptions of whether or how strongly their firm supports IE. A secondary objective is to explore whether this association is stronger among young employees, specifically those who are from the cohort that has been defined as ‘the millennials’, with an assumption that this relationship, therefore, will become more important in future.
This research report has set out to prove that by orchestrating strategies to improve institutional entrepreneurship, firms can enjoy the benefits of increased employee retention in conjunction with increased organic growth.