The Impact of School’s Corporate Cultures on Teacher’s Entrepreneurial Orientation: The Mediating Role of Readiness for Change

Abstract

The competition between schools in this era of globalization, especially among private schools, requisites entrepreneurial orientation development to private schools context. Many previous studies showed that entrepreneurial orientation can be influenced by corporate cultures. However, those previous studies have been mostly done on employees or managers at profit-oriented institutions. On the contrary, school teachers as employees in non-profit institution are often assumed to be conservative, prefer to have a relatively safe work, and tend to avoid changes, so they are not necessarily interested in doing entrepreneurial-oriented activities. Thus, the teacher's readiness for change also needs to be a mediator variable between corporate cultures and teacher’s entrepreneurial orientation. The purpose of this study is to examine the role of corporate cultures in schools toward teacher’s entrepreneurial orientation with teacher’s readiness for change as a mediator. The subject of this survey study are 316 teachers from 14 private schools in Indonesia that support teacher entrepreneurial orientation. The Structural Equation Model path analysis results showed that learning orientation culture could have a positive effect on teacher entrepreneurial orientation, either directly or through the mediation of readiness for change. However, market orientation culture could not give a direct positive effect on entrepreneurial orientation and requires teacher’s readiness for change as a mediator for indirect effect. The synchronization between corporate culture values with individual member’s values becomes a reason that will be discussed to explain the result of this study.