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Entrepreneurial Outcomes and Organisational Performance through Business Coaching

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Entrepreneurial Outcomes and Organisational Performance through Business Coaching

Author: Dobrea, Mihaela,Maiorescu, Irina
Publisher: Bucharest: The Bucharest University of Economic Studies,Bucharest: The Bucharest University of Economic Studies
Year: 2015
Source: https://www.econstor.eu/bitstream/10419/168914/1/aej-v17-i38-p0247.pdf
Dob ea, Mihaela; Maio escu, I ina
A icle
En ep eneu ial Ou comes and O ganisa ional
Pe o mance h ough Business Coaching
Am i ea u Economic Jou nal
P o ided in Coope a ion wi h:
The Bucha es Uni e si y o Economic S udies
Sugges ed Ci a ion: Dob ea, Mihaela; Maio escu, I ina (2015) : En ep eneu ial Ou comes and
O ganisa ional Pe o mance h ough Business Coaching, Am i ea u Economic Jou nal, ISSN
2247-9104, The Bucha es Uni e si y o Economic S udies, Bucha es , Vol. 17, Iss. 38, pp. 247-260
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/168914
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Fos e ing En ep eneu ship in a Changing Business En i onmen AE
Vol. 17 • No. 38 • Feb ua y 2015 247
ENTREPRENEURIAL OUTCOMES AND ORGANISATIONAL PERFORMANCE
THROUGH BUSINESS COACHING
Mihaela Dob ea1 and I ina Maio escu2
1) 2) Bucha es Academy o Economic S udies, Romania
Please ci e his a icle as:
Dob ea, M. and Maio escu, I., 2015. En ep eneu ial Ou comes and O ganisa ional
Pe o mance Th ough Business Coaching. Am i ea u Economic, 17(38), pp. 247-260
Abs ac
The he eby a icle aims o add ess he main ques ion o whe he o ganisa ional pe o mance
is di ec ly o indi ec ly enhanced by business coaching. The esea ch in eg a es a
quan i a i e s udy ha ing as majo pu pose he in es iga ion o he manne in which
business coaching con ibu es o co po a ion g ow h in s a -up i ms and de eloping
companies. The p ima y objec i e o he esea ch is o quan i a i ely de e mine he e ec s
enhanced by business coaching on company pe o mance and g ow h o o ganisa ional
incomes. SME g ow h and coaching impac a e s udied h ough in e - ela ionships be ween
dis inc i e company cha ac e is ics (such as: indus y ca ego y, company ma u i y, numbe
o employees), en ep eneu ea u es (among which can be men ioned: leade age, nominal
gende , s udies), and en ep eneu cha ac e ( o ins ance: locus o con ol a wo k, sel -
e icacy in he wo k place). The compa ison is made be ween wo ypes o en ep eneu s:
he ones who ha e ecei ed business coaching p e iously wi h en ep eneu s wi h no p io
business coaching expe ience, excep he one a e which esea ch is pe o med. The
esea ch concludes ha business coaching has a g ea impac on he de elopmen o
en ep eneu s’ locus o con ol and sel -e icacy, hese leading o o ganisa ional g ow h.
Keywo ds: Business Coaching, Execu i e Coaching, Financial Pe o mance, Income,
En ep eneu ial, Con ol, Sel -e icacy.
Clasi ica e JEL: M12, M53, I25
In oduc ion
The new economy based on knowledge in eg a es sus ainable de elopmen and inno a ion
objec i es, he es uc u ing o he business en i onmen , a he same ime enhancing he
b oad access o in o ma ion and knowledge and inc easing he possibili y o economic
globaliza ion and g owing social cohesion.
 Co esponding au ho , Mihaela Dob ea – [email p o ec ed]
AE En ep eneu ial Ou comes
and O ganisa ional Pe o mance Th ough Business Coaching
Am i ea u Economic
248
A he same ime, a e he c isis o 2007-2008, due o he deepening and unp eceden ed
economic challenges and ensions ha he p i a e sec o s a ed o encoun e , i became
ob ious he need o a change in business unde he o m o coaching. Thus, along wi h he
need o cos s cu ing, i is belie ed ha cu en ly, companies a e o ced o e ocus on he
impo ance o employee pe o mance and de elopmen in o de o inc ease o ganisa ional
compe i i eness. Gi en ha employees a e he mos aluable asse o o ganisa ions, i is
impo an o he manage o bene i om coaching, o be able o wo k as a eam o build an
o ganiza ion ha can success ully wo k a any di icul ime.
P ac ising new coaching skills, i s o all, manage s lea n how o beha e hemsel es, hen,
hei new beha iou will change he way hey ela e o employees and hen will change he
way hey a e pe cei ed, o e ing new possibili ies o inc easing he e ec i eness o
in e ac ions a wo k, in o de o imp o e o ganiza ional pe o mance.
The concep has a posi i e impac on pe o mance and employee de elopmen , and inspi es
a signi ican compe i i e ad an age o an o ganiza ion as a whole. I is an app oach based
on he beha iou , ele an o all manage s, which should ecognize his as an ac i i y ha is
pa o how manage s conduc human esou ces. In his con ex , he e is a g owing
consensus o opinion suppo ing he idea ha he ela ionship be ween he manage and he
employee is essen ial o s imula ing a posi i e disc e iona y beha iou a wo k
(Misiukonis, 2011). Howe e , in his con ex , many ac o s can ep esen challenges o his
aspi a ion such as: o ganiza ional cul u e, manage ’s ime, na u al disposi ion and skills.
Gi en he ac uali y and complexi y o he p oblem, he main aim o he p ojec is o
esea ch he heo e ical and me hodological bases o knowledge-based coaching echniques,
o assessmen i s cu en de elopmen and o d aw ecommenda ions on imp o ing he
compe i i eness o he p i a e sec o .
The main objec i e o he a icle is o de e mine he ex en o which business coaching (BC)
is an incen i e o a d i e o inancial pe o mance and o compe i i eness in he p i a e
sec o .
Acco ding o he de ini ion o e ed by Clegg, Rhodes, Ko nbe ge and S ilin (2005), he
he eby a icle de ines business coaching as a collabo a i e ela ionship be ween coaches
and en ep eneu s, wi hin which coaches b ing business expe ience and ocus p ima ily on
i m pe o mance, business goals, and indi iduals’ con ibu ions o ha end.
Empi ical esea ch su ounding business coaching is limi ed, he e o e, i is necessa y o
d aw upon heo y and e idence om execu i e coaching (Clu e buck, 2008). Acco ding o
Zeus and Shi ing on (2008), he bo de be ween coaching o execu i e manage s and
business coaching is s ill unclea and, in espec o his ma e , G ay (2006) s a es ha
manage s use business coaching as an impo an ool o business de elopmen . Resea ch
sugges ha he e is a high need o business coaching, especially o manage s (She in and
Caige , 2004). Ne e heless, he app oach o business coaching is in con as o execu i e
coaching, which concen a es on indi idual pe o mance (Pel ie , 2001). Thus, execu i e
coaches wo k mainly in beha iou al de elopmen business a ea, meanwhile business
coaches help hei clien s o de elop en ep eneu ial knowledge and business skills.
The concep has a posi i e impac on pe o mance and employee de elopmen , and inspi es
a signi ican compe i i e ad an age o an o ganiza ion as a whole. I is an app oach based
on beha iou , ele an o all manage s, who app ecia e, a hei eal alue, human esou ces
Fos e ing En ep eneu ship in a Changing Business En i onmen AE
Vol. 17 • No. 38 • Feb ua y 2015 249
wi hin he o ganisa ion. In his con ex , he e is a g owing consensus o opinion suppo ing
he idea ha he ela ionship be ween he manage and he employee is essen ial o
s imula ing a posi i e disc e iona y beha iou (coaching elies on sel -de elopmen , he
assump ion o asks and esponsibili ies and less on a ge ing and con ol) wi hin he
o ganiza ion (Misiukonis, 2011). Howe e , eaching his objec i e can conduc o many
challenges such as: poo o ganiza ional cul u e, lack o a a ou able clima e, lack o
manage ial skills, and o he s.
Gi en he ac uali y and complexi y o he p oblem, he main aim o he a icle is o esea ch
he measu e in which, inancial pe o mance o o ganisa ions is di ec ly o indi ec ly
enhanced by business coaching.
The main objec i e o he a icle is o de e mine he ex en o which business coaching (BC)
is an incen i e o a d i e o inancial pe o mance and o compe i i eness in he p i a e
sec o .
1. Li e a u e e iew wi h majo aim o iden i y ele an issues o business coaching
In oday’s compe i i e en i onmen , en ep eneu s as well as o ganisa ional manage s
encoun e mo e and mo e ma ke p essu es and eques s o sus ained pe o mance and
compe i i eness. In he con ex in which he a icle e e s mainly o manage s, i is seen as
necessa y o hem o adequa ely add ess he p oblems and challenges encoun e ed in day-
o-day ope a ions (Bennis and O’Toole, 2005), in o de o inc ease hei o ganisa ional
compe i i eness. Acco ding o some schola s, a manage is somebody who is esponsible
o one o mo e eams and o whom hese a e di ec ly subo dina ed (Pu cell and
Hu chinson. 2007).
Coaching can be iden i ied unde a ious o ms, “being applied o a wide ange o ac i i ies
in a wide ange o popula ions and p oblems” (Passmo e, 2010, p. 48). Bu , i was only
soon ha coaching was ecognised as a majo managemen ool, and especially as a
knowledge managemen ool. Thus, coaching is mo e and mo e accep ed as a means o
indi idual de elopmen , allowing, on he one hand, he inc ease o manage ial
pe o mances and, on he o he hand, he inc ease o compe i i eness be ween co po a ions
(Oli e o, Bane and Kopelman, 1997; Zeus and Ski ing on, 2000). In spi e o all hese,
coaching is a new iled o esea ch, no widely known by analys s bu wi h high po en ial
wi hin an o ganisa ion (Hagen, 2012).
As SMEs a e ope a ing in compe i i e and u bulen en i onmen s, hey a e unde going
e o s o cons an ly imp o e pe o mance and deli e powe ul inancial esul s. Acco ding
o specialis s, coaching will no only inc ease jus he indi idual po en ial o employees
(in ellec ual capi al), bu can also b ing, angible bene i s ha will suppo he o e all
o ganiza ional e o s S obe (2008). Cu en ly, „coaching is inc easingly ecognized as a
me hodology ha aims o inc ease he e ec i eness o he dialogue o a be e analysis and
e o mula ion o alues and goals in o de o ind solu ions o p oblems” (Zeus and
Shi ing on, 2008, p. 4).
Empi ical esea ch on coaching is limi ed (Pe e s and Ca , 2013). A e iew o he ele an
li e a u e (Kau man and Bachki o a, 2008; Visse , 2012) sugges s ha knowledge based
coaching can be assessed s a ing om physical and obse able e en s, and al e na i ely,
om iews o beha iou al de elopmen and men al-emo ional g ow h.
AE En ep eneu ial Ou comes
and O ganisa ional Pe o mance Th ough Business Coaching
Am i ea u Economic
250
In his con ex , he e a e ou main easons o in es iga ing he ela ionship be ween
knowledge based coaching, en ep eneu ial skills, pe o mance and compe i i eness o
o ganisa ions in he con ex o his pape . The i s eason may be due o a de eloping
li e a u e base (Fille y-T a is, 2011).
In spi e o he ac ha knowledge based coaching echniques a e c oss-disciplina y,
esea ches led o a limi ed numbe o in es iga ions ha a e based on s udies eme ging
om disciplines such as psychology, business managemen , human esou ces managemen ,
p ima ily ocusing on execu i e coaching (S obe and Pa y, 2005). Secondly, cu en ly
coaching esea ch is la gely based on case s udies, and ela i ely ew o hese in es iga ions
inco po a e con ol me hods o analyze causal ac o s and exclude compe i o ac o s
(G an , 2005). Thi d, exis ing esea ch has no been done sys ema ically o e alua e and
measu e he e ec o execu i e coaching echniques on changes ela ed o pe o mance,
e iciency, e ec i eness and compe i i eness wi hin o ganisa ions (Leedham, 2005). Las
bu no leas , he e is li le esea ch on he esul s o execu i e coaching echniques in
companies be o e and a e he a ending o en ep eneu s o coaching p og ams (S obe
and Pa y, 2005).
Signi ican con inuing g ow h has been occu ing in he ield o coaching o e he pas
h ee decades and a hal wi h inconspicuous o igins occu ing du ing he 1980’s (Na ale
and Diaman e, 2005). Ga man, Whis on and Zla ope (2004) conduc ed a li e a u e e iew
o 72 coaching a icles appea ing be ween 1991 and 1998 and ound exponen ial g ow h in
he amoun o a en ion gi en o coaching. This phenomenon has con inued a a simila a e
as can be seen by he inc ease in companies aining new coaches, along wi h inc eased
cos s associa ed wi h he p ac ice wi hin o ganisa ions (Penning on, 2009; Ne es, Jo dão
and Cunha 2013), which explains he impo ance o he opic.
2. Resea ch Me hodology, Objec i es and Resea ch Hypo hesis
Acco ding o he esea ch hypo hesis, “business coaching has a majo impac on he
de elopmen and g ow h o o ganisa ional pe o mance”. In his con ex , he cu en a icle
epo s on he pa ial indings o a s udy made in 2014, implying business coaches and
en ep eneu ial manage s, making use o quan i a i e esea ch me hods. The esea ch d aws
also a compa ison o he pa icipan s (manage s) who expe ienced mo e sessions o
business coaching (BC) agains hose who had aken only one session o business coaching
( he one he cu en s udy bases i s esul s on). The design o esea ch is p esen ed below, in
able no.1.
Da a a e analysed using SPSS o es ablish ela ions exis ing be ween examined a iables
and o discuss he impo ance o business coaching in inc easing inancial pe o mance o
o ganisa ions.
Pa icipan s o he esea ch a e 125 en ep eneu s/manage s om companies who eques ed
business coaching. Da a a e analysed using desc ip i e s a is ics and uni a ia e and
mul i a ia e s a is ical echniques o d aw a compa ison be ween o ganisa ional
cha ac e is ics and en ep eneu s’ ea u es as well as be ween pa icipan s who expe ienced
coaching o who did no .

Fos e ing En ep eneu ship in a Changing Business En i onmen AE
Vol. 17 • No. 38 • Feb ua y 2015 251
Table no. 1: Design o he esea ch
Scope Resea ch Ques ion Me hodology Coho
Es ablishing
esul
measu es o
business
coaching
Wha di e ence, i
any, does business
coaching make o
en ep eneu s’
pe cep ions?
P e-pos pilo
esul s udy o
SMEs
P e ious business coaching
expe ience be o e s udied coaching
session (n=45)
/
No p e ious business coaching
expe ience be o e s udied coaching
session (n=80)
Es ablishing
he
con ibu ion
o BC o he
g ow h o
companies
Does business
coaching con ibu e
di ec ly o
indi ec ly o he
g ow h o
companies?
P e-pos pilo
esul s udy o
SMEs
P e ious business coaching
expe ience be o e s udied coaching
session (n=45)
/
No p e ious business coaching
expe ience be o e s udied coaching
session (n=80)
Sou ce: au ho s, acco ding o esea ch me hodology
Pa icipan s we e asked o comple e a ques ionnai e made up o wo pa s, he i s one
e e ing o i m demog aphics and en ep eneu cha ac e is ics, and he second pa
conce ning pe cep ions o coaching impac o pa icipan s.
The esul s o he su ey we e in oduced bo h in SPSS and Mic oso Excel p og ams,
whe e hey we e analyzed in e ms o hei s a is ical signi icance. Acco ding o he esul s,
nea ly 2/3 o he o al pa icipan s (64 %) had used coaching be o e en olling in he
esea ch.
Fu he on, we e iden i ied he domains on indus ies whe e en ep eneu ial pa icipa ion o
coaching is bigge . Table no. 2 shows he dis ibu ion o manage s who bene i ed o one o
mo e coaching sessions acco ding o he indus y sec o s o en ep eneu s’ companies.
Table no. 2: Indus y Sec o o en ep eneu s’ companies
Indus y
Sec o
P e ious BC be o e s udied
coaching session
(mo e coaching sessions) (n=45)
No p e ious BC be o e s udied
coaching session (one session)
(n=80)
IT&C 62% 82%
Manu ac u ing 20% 18%
Educa ion 9% -
Re ail 7% -
T ade 2% -
To al 100% 100%
Sou ce: au ho s, acco ding o esea ch me hodology
As shown in able no. 2, companies unde bo h condi ions end o be p edomina ely
ep esen ed in he IT&C ield. Thus, acco ding o he esul s o he esea ch, almos 62%
(28 esponden s) among hose bene i ing om se e al coaching sessions and 82% (66
esponden s) among hose bene i ing om one coaching session belong o his ield. In he
comme ce a ea a e e y ew manage s bene i ing om coaching.
AE En ep eneu ial Ou comes
and O ganisa ional Pe o mance Th ough Business Coaching
Am i ea u Economic
252
Fu he on we e analysed demog aphics ega ding company age and numbe o employees,
and he esul s can be seen in able no. 3.
Table no. 3: O ganisa ion Demog aphics
O ganisa ion Demog aphics P e ious BC (mo e
coaching sessions) (n=45)
No p e ious BC
(one session) (n=80)
Company Age
Range - yea s 1 - 19 yea s 1 - 17 yea s
Mean (S anda d De ia ion) 3.53 (3.99) 4.42 (4.44)
Median 2.0 3.0
Numbe o Employees
Range - employees 0 - 20 employees 0-20 employees
Mean (SD) 3.07 (3.91) 4.05 (4.88)
Median 2.0 2.0
Sou ce: au ho s, acco ding o esea ch esul s calcula ions made in SPSS p og am
As iden i ied in able no. 3, median i m age is simila (2-3 yea s), and bo h coho s employ
a median o wo ull- ime equi alen s a . Table no. 4 shows cha ac e is ics including
en ep eneu age, gende , and s udies.
Table no. 4: Da a conce ning pa icipan s’ cha ac e is ics
Pa icipan s’
cha ac e is ics
P e ious BC (mo e coaching
sessions) (n=45)
No p e ious BC
(one session) (n=80)
Age (yea s)
< 30 36% 20%
30 - 50 51% 60%
> 50 13% 20%
Gende
Male 84% 83 %
Female 16% 16%
S udies
Seconda y 7% 14%
Ce i ica e/Diploma 24% 15%
Te ia y 40% 45%
Pos G adua e 29% 26%
Sou ce: au ho s, acco ding o esea ch esul s calcula ions made in SPSS p og am
As shown in able no. 4, en ep eneu ea u es be ween p e ious business coaching and no
p e ious business coaching end o be simila (30-50) age ange (51%; 60%), a e mos ly
male (84%; 84%), holding e ia y o pos g adua e academic quali ica ions (69%; 71%).
The e a e h ee main a iables ha he p e- and pos - es ques ionnai es ha e in iew: he
ole o business coaches, session ocus o business coaching, and sa is ac ion and business
coaching (see able no.5). In he ques ionnai es, hese a e measu ed h ough 7-poin Like
scales. En ep eneu le el o con idence was also measu ed in o de o ind ou impac s o
en ep eneu locus-o -con ol (in e nal and ex e nal) and sel -e icacy on o ganisa ional
g ow h.
Fos e ing En ep eneu ship in a Changing Business En i onmen AE
Vol. 17 • No. 38 • Feb ua y 2015 253
Table no. 5. Va iables o he Ques ionnai es
and Connec ed I ems on Business Coaching
Va iable Ques ion I em
Wha ole played
you business
coach:
 Ne wo k acili a o
 Sounding boa d
 Lis ene
 Ad iso
 Counsello
Role o
business
coaches You business
coach e e al o
specialis
se ices
 Legal ad ices
 Financial ad ices
 Business ad ices
 Psycho he apy/Counselling
Session
ocus o BC
Du ing he
coaching
sessions, did you
ocus mainly on:
 Visions/s a egies/goals
 Clien s
 P oduc ion
 P ocesses
 Indi iduals
Sa is ac ion
and business
coaching
Did you
business
coaching
expe ience b ing
you sa is ac ion?
 Business coaching pe iod
 Deli e y me hod o sessions
 Rela ionship wi h he coach
 The s yle o he business coach
 Role/s played by business coach
 Ou comes o business coaching
Sel -e icacy Is i ue ha :
 Whene e I y ha d I manage o sol e p oblems.
 When a pe son opposes me, I always ge wha I wan .
 I I no di icul o me o espec my aims and each
my scopes.
 I can handle e icien ly un o eseen issues.
 Due o my ingenui y, I can deal unexpec ed si ua ions.
 Wi h he necessa y e o , all p oblems can be sol ed.
 I am able o s ay calm when acing p oblems as I coun
on my coping capabili ies.
 Whene e I ha e a p oblem, I ind mo e solu ions.
 When in ouble, I can gene ally ind a solu ion.
 I gene ally sol e e e y hing.
Locus-o -
con ol
(in e nal +
ex e nal)
Is i ue ha :
 Se e al pe sons un he wo ld and I can no do any hing
abou i
 Company g ow h depends on he igh place and ime.
 Poli icians can no be con olled.
 I ha e li le in luence o e wha happens o me.
 Bad o une may occu and his is why I ne e make
plans.
Sou ce: au ho s, acco ding o esea ch esul s
AE En ep eneu ial Ou comes
and O ganisa ional Pe o mance Th ough Business Coaching
Am i ea u Economic
254
Resea ch esul s
The Role o Business Coaches
The e we e analysed i e oles o coaches, pa icipan s egis e ing highe sco es on h ee o
he business coach oles analysed, namely ha o counsello (44) = -3.54, p<0.05, ad iso
(44) = -2.98, p<0.05, as well as ha o ne wo k acili a o (44) = -2.82, p<0.05. On he
o he hand, pa icipan s hold lowe sco es on oles o sounding boa d and lis ene wi h no
majo di e ences signi ican ly be ween p e- and pos - es , acco ding o he able no. 6
below.
Table no. 6: Business Coach Role Mean, S anda d De ia ion,
and Co ela ed -Tes S a is ics
P e/Pos - es * (n=45)
Business Coach Role: P e- es * (n=45)
X (SD)
Pos - es * (n=45)
X (SD)
Sounding boa d 6.07 (1.14) 6.22 (.98) - 0.77 0.11
Lis ene 5.67 (1.64) 6.07 (1.2) - 1.71 0.25
Ad iso 5.36 (1.57) 6.11 (.98) - 3.54** 0.47
Counsello 5.49 (1.53) 6.16 (1.07) - 2.98** 0.41
Ne wo k acili a o 3.22 (2.23) 4.51 (1.93) - 2.82** .39
Sou ce: au ho s, acco ding o esea ch esul s, calcula ions made in SPSS
* Manage s who had had p e ious business coaching expe ience be o e s udied coaching session
**p<0.05.
Acco ding o hese indings, business coaches ac as ad iso s, counsello s and ne wo k
acili a o s. The e o e, hey pass down o o he s hei wisdom and skills a he same ime
being an ad oca e and o e ing access o capi al.
Also i should be no iced ha en ep eneu s highly alue he ole o business coaches as
counsello a bo h p e/pos - es , his meaning a imes he o e lapping o coaching wi h
counselling.
Fu he on was examined he ex en o which business coaches e e ed pa icipan s o o he
se ices. Acco ding o he esea ch (see able no.7), as a esul o business coaching
session, he incidence o e e al o business ad ice g ew.
Table no. 7: Business Coaching o ien a ion owa ds o he specialis se ices
P e ious BC No p e ious BC O ien a ion
owa ds specialis
se ices:
P e- es *
(n=45)
Pos - es *
(n=45)
P e es **
(n=80)
Pos - es **
(n=80)
Legal ad ices 28.9% 17.8% 6.5% 28.9%
Financial ad ices 17.8% 8.9% 8.6% 17.8%
Business ad ices 26.7% 33.3% 9.7% 26.7%
Psycho he apy/
Counselling 4.4% 2.2% 2.2% 4.4%
Sou ce: au ho s, acco ding o esea ch esul s, calcula ions made in SPSS
* Manage s who had had p e ious business coaching expe ience be o e s udied coaching session
** Manage s who hadn’ had p e ious business coaching expe ience be o e s udied coaching session