European Journal of Physical Education and Sport Science ISSN: 2501 - 1235 ISSN-L: 2501 - 1235 Available on-line at: www.oapub.org/edu 10.5281/zenodo.200256 Volume 2│Issue 5│2016 THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES Farah Hossein Panahi Department of Physical Education and Sport Science, Kurdistan Science and Research Branch, Islamic Azad University, Sanandaj, Iran Abstract: The purpose of this research was to investigate the relation between organizational structure and entrepreneurship in Kurdistan province’s sport and youth offices. The research method applied in this study is a descriptive-correlative method and furthermore, the study is considered as an applied research. This study elaborates on the relationship between organizational structure and entrepreneurship in Kurdistan province’s sport and youth offices and the required data are performed through field studies. The population of the study includes the entire experts, managers, authorities and associates of Kurdistan province’s sport and youth offices. Data collection instruments include Stephan and Robin’s organizational structure questionnaire plus Lurch’s organizational entrepreneurship questionnaire. For data analysis, descriptive and inferential statistics including tables, dispersion index, K-S test, Pearson’s correlation coefficient test and linear regression have been used. Results manifested that a significant negative relation exists between organizational structure and its dimensions and entrepreneurship in sport and youth offices of Kurdistan Province. In addition, it was revealed that organizational structure and the component of formality are able to anticipate entrepreneurship. Keywords: organizational structure, organizational entrepreneurship, Kurdistan province’s sport and youth offices 1. Introduction Nowadays, in many countries entrepreneurs have facilitated their economic development. Not only entrepreneurs make new inventions for realization of their Copyright © The Author(s). All Rights Reserved Published by Open Access Publishing Group ©2015. 86 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES desired commercial advantages, but also they lead to other innovations and inventions as well (Amishi et al. 2009). In fact, entrepreneurship culture includes creativity and innovation, set of values, attitudes, norms and behaviors which form one’s identity. Creative and entrepreneur people adopt a different view towards their surrounding phenomena and in this way, they are able to initiate entrepreneurial activities in order to develop new products or services for their society. Among the attributes of an entrepreneur person, it can be referred to creativity, innovation, risk taking, toleration of ambiguity, failure toleration, courage, internal control, self-confidence, flexibility, prudence and independence (Zivdar, 2009). In this regard, most definitions of entrepreneurship include innovation, opportunity and perspective or outlook. Sports related entrepreneurship covers different organizational, personnel and team levels. In fact when generate innovation and creativity they are considered as entrepreneurs. Similarly, in terms of sports entrepreneurs are players, owners of sport teams, sport representatives and owners of sports related businesses and industries (Morvy et al. 2010). From their view, sports related entrepreneurship includes a group of people, organizations or communities who work together in teams for fulfillment of opportunities. Sports are considered as a very important and basic factor for securement of a society’s health and exhilaration and are effective on national productivity and economical bloom. With respect to extensive dimensions of sports, it can be identified as one of the fastest economic, social and political sections of the world. Many of sports events are filled with job opportunities and achievements. In other words, increased entrepreneurial processes in sports and sport events are creating a form of new job opportunities (Vakili, 2013). By identification of contexts of entrepreneurship in sports, we can provide entrepreneurs with new opportunities which can be made use of towards obtaining social and economic development (Elham, 2014). The industry of sports provides the necessary contexts for entrepreneurship through creation of demand for sports products and services. On the other hand, through creation and development of sports related businesses in terms of production of sports equipment, entrepreneurship helps with advancement and growth of sports.In order to develop entrepreneurship in sports, first we are required to recognize effective structural and contextual elements and afterwards, plans must be developed for creation of effective structures and contexts in sports entrepreneurship according to different sports entrepreneurial objectives. Nevertheless, recognition of elements, determination of objectives and planning in sports industry are tasks of sports managers (Vakili, 2013). European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 87 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES Nowadays, sports is considered as one of the most valuable and extensive types of entertainment in international markets. The special culture which is dominant in extensive sport concepts reveals the unique characteristics of financial economy in this section (Izadian et al. 2008). In fact, most sport events include a large variety of job opportunities and achievements. In other words, increased entrepreneurial processes in sports and sport events create a variety of new job opportunities (Farahani, 2006). In fact, throughout the whole globe, sport is considered as an industry with most of its products being exercising, physical fitness and free-time related activities. These activities, products, services etc. have provided a great variety of productions and customers for the industry of sports (Khalil Zadeh et al. 2013). On this basis, organizational structure is considered as a way or method for dividing, organizing and synchronizing organizational activities. Organizations create structures for synchronization of activities of each element as well as actions of each participant (Arabi, 2007; P15).The fundamental fact is that there exists a mutual relation between business strategies and organizational structure. Considering this interactive relation, the more organizational structure is consistent with the organization’s business strategy, more effectively implementation of strategies take place. Organizations must provide the contexts for dominance of entrepreneurial atmosphere and spirit throughout the entire organization so that people are able to undertake entrepreneurial activities individually or in groups. For this very reason, different organizations tend to propagate entrepreneurial activities among their employees. One of the most important factors for facilitation of entrepreneurship in an organization is having a structure consistent with objectives and goals. An organization with entrepreneurial intentions should benefit from a flexible and entrepreneurial structure. Necessary contexts for entrepreneurial activities do not form in vacuum; rather organizational structure should provide the necessary contexts for emergence of such an atmosphere (Sadie, 2012). Therefore, recognition of those factors which play a significant role in development of an entrepreneurial atmosphere is a major issue which should be considered in every organization. Different scholars have provided different definitions for entrepreneurship. According to the view held by shanp and Vankataraman (2000), entrepreneurship is a process which explores, evaluates and exploits the opportunities for production of future products and services. In fact, they view entrepreneurship as development of new economic activities based on new services or products. From the view held by Hisriche, Peters and Shepherd (2005), entrepreneurship is defined as the process of creation of new services or products accompanied by risk taking and financial awards. Turner (2005) defines entrepreneurship as a subject including belief, searching, European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 88 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES opportunity exploitation and maximization of values. Tina Selig (2003) believes that entrepreneurship is a managerial style that includes pursuit of opportunities irrespective of already in control resources (quoted by Seifi et al. 2003). Furthermore, researchers consider organizational entrepreneurship as a growth strategy and an effective instrument for obtaining competitive advantage (Dess, 2009). Findings of previous studies manifest that there exists a tight relation between inter organizational elements and creation of an entrepreneurial atmosphere (Hansby et al. 2002). On this basis, this research has investigated one of the most important interorganizational elements namely as organizational structure and its dimensions. Organizational structure along with objectives, technology and human resources is considered as a main pillar in every organization. Organizational structure points to the formed and regulated aspects of existing relations among components of an organized system. Recognition and investigation of organizational structure is the initiative of every type of exploitation of organizational resources, becoming able to recognize opportunities, providing new combinations of existing resources and ultimately, providing the contexts for organizational development. Baron (1998) conducted a study and showed that desirable reduction of formality and focus in bureaucratic processes leaves positive effects on creativity and efficiency among the personnel (Quoted by Gohari Pour, 2010). Landers et al. (2003) carried out a study and claimed that in organizational posts with reduced focus level, people tend to share more ideas and information and therefore, result in creation of creative views. Reza Zadeh (2004) carried out a research and revealed that a negative significant relation exists between organizational structure (formality, complexity and focus) and organizational entrepreneurship. Omidi (2007) carried out a research and claimed that there are no significant relations between complexity of organizational structure and creativity among staff managers; however, a negative significant relation exists between formality, focus and education and creativity among staff managers of the department of physical education. Although most organizations and governmental systems including department of education, department of science, research and technology, labor department, armed forces and etc. all have a deployed and independent activity in terms of physical education and sports, but in general all affairs related to physical education and sports in Iran are the responsibilities of sport and youth office (Husseini et al. 2007). The department of sport and youth is the main prosecutor of sports in Iran and has major impacts in this field in a way that, dynamicity of this office is followed by growth and efflorescence of sports and ultimately, macro development of the whole country (Asadi et al. 2009). With respect to importance of sports entrepreneurship and development of European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 89 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES sports for every community, a necessity is felt for recognition of negative and positive effective elements on entrepreneurship in this domain. Therefore, recognition of opportunities and problems faced by entrepreneurs in sports helps us towards effective establishment of general business plans, planning for establishment of entrepreneurial activities, assessment of globalization challenges such as quality of produces sports related goods, anticipation of market changes and optimized implementation of technology for obtaining competitive marginality. In this regard, the necessary fact is that there exists a mutual relationship between business strategy and organizational structure. With respect to this interactive relation, the more the consistence between organizational structure and business strategies; the more effectively the selected strategy is executed. Although that many researchers have performed studies regarding the relation between structure and strategy, none of previous studies have elaborated directly on the interactive relationship between the former and latter factors based on focus and control degree. Focus and control are used for categorization of different types of strategies and structures. In fact, no previous studies have considered this type of categorization based on these two mutual factors. In this research, the author tries to investigate previous similar studies before establishing a general categorization for the relation between organizational structure and entrepreneurship in Kurdistan province’s sport and youth offices. For this categorization, we have made use of two referential strategic points including focus and degree of control. In addition, results of this study can be applied for the department of sport and youth of Kurdistan Province, Iran so that the findings of the study are used for optimization of performance according to the amount of type of need. 2. Methodology The present research is an applied descriptive-correlative study and its population includes the entire experts, managers, authorities and associates of sport and youth offices of Kurdistan province as 250 individuals. According to the Morgan Chart, a number of 148 individuals were selected as the sample of study. Data collection instruments included Stephen and Robins’ questionnaire of organizational structure and Lurch’s questionnaire of organizational entrepreneurship. Furthermore, descriptive statistics have been made use of in order to categorize raw scores, design tables, determine the distribution of abundance, drawing cylindrical diagrams and calculation of dispersion indexes including average, standard deviation, analysis of demographic features and obtaining response means. Additionally, Kronbach’s alpha coefficient test European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 90 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES was used for determination of reliability of questionnaires. In addition, normality of data distributions was determined through K-S test. With respect to normality of data, the tests of person’s correlation coefficient and linear regression were used for analysis of statistical data. It is worth mentioning that the entire statistical analyses have been performed with SPSS v.23. 3. Experimental findings Descriptive results have shown that 121 subjects were male and 27 were females. In addition, results of the K-S test have shown that research variables are normal. There exists no relationship between organizational structure and organizational entrepreneurship in Kurdistan Province’s sport and youth department. Table 1: Investigating the relation between organizational structure and organizational entrepreneurship Variable Entrepreneurship Det. Coeff. Sig. Corr. Coeff. 0.0539 0.020 -0.23 Organizational Structure Table 1 shows that the obtained significance value is smaller than 0.05; on this basis the null-hypothesis is rejected and instead, the reverse hypothesis is accepted. in other words, with a 95% confidence, it can be said that a significant negative relationship exists between organizational structure and organizational entrepreneurship in Kurdistan Province’s sport and youth office. On the other hand, the obtained determination coefficient shows that 0.0539% of the changes in organizational structure are anticipated by entrepreneurship. By this, it is meant that the simpler the organizational structure becomes, the more probable the organizational entrepreneurship becomes. Organizational structure and its correlated dimensions are not suitable anticipators for organizational entrepreneurship in Kurdistan Province’s sport and youth department. Results of table 2: anticipation of organizational entrepreneurship by organizational structure and its correlated dimensions and its correlated dimensions. On the other hand, adjusted determination coefficient value shows that 10% of total changes in organizational entrepreneurship are anticipated by this model. European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 91 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES Table 2: A relatively good significant relation holds between organizational structures Model Summary Model Standard R 2 Adj Determination Multiple Estimation Error Adjusted Coefficient Correlations Coeff. 0.11 0.34 Determination Coeff. 1 0.227 0.10 Anticipator Variables: Organizational Structure, Complexity, Focus And Formality Dependent Variable: Organizational Entrepreneurship Table 3: Regression ANOVA results Model Sum Of Squares 1 Average Squares Freedom Degree F 1.450 0.483 3 Regression 10.688 0.052 206 Remaining 12.138 9.341 Sig 0.001 209 Total Table 3 indicates that the value of F test is significant at an error level smaller than 0.01. it means that our regression model combined of 4 anticipator variables and one dependent variable is a suitable model and that the sum of these anticipator variables are able to determine the changes in the variable of organizational entrepreneurship. Table 4: Results of coefficients of regression effects of anticipator variables on dependent variable Model Anticipators 1 Standard Coefficients Non-Standard Coefficients Beta Standard Error Constant T Sig B 0.195 2.132 10.932 0.000 Organizational Structure 0.224 0.070 -0.233 3.322 0.001 Complexity 0.038 0.045 -0.026 -0.574 0.567 Formality 0.344 0.043 -0.222 5.206 0.001 Focus 0.058 0.040 -0.035 0.890 0.374 X1: organizational structure; X2: complexity; X3: focus; X4: formality; Y: organizational entrepreneurship Table 4 shows that there exists a negative significant relationship between organizational structure and formality, however there are no other significant relations between any of the remaining variables and the variables of organizational performance. It means that the weaker the organizational structure and formality is, the more probable the entrepreneurship will become. European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 92 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES Discussion and conclusions Results of correlation test showed that there exists a negative significant relationship between entrepreneurship and organizational structure in Kurdistan province’s sport and youth offices. This results is consistent with the results obtained by NikNahad(2014); Moosavi Rad (2012); Seifi et al. (2015); Alimardani et al. (2014); Arabioon et al. (2012); Yadollahi et al. (2010); Reza Zadeh et al. (2010); Yao et al. (2009); Pihe (2011) and Tucker and Cellcoock (2008). Organizational entrepreneurship is a method for provoking and exploiting people in an organization. A way people think that they are able to do things better and differently. In this regard, development of entrepreneurship spirit within organizations can be beneficial towards overcoming the upcoming challenges. Training entrepreneurs within an organization requires a suitable context along propagation of entrepreneurship spirit (Robins, 2002). In terms of structure, every organization must have formality and if that formality is clear for the personnel, different activities can be done. However, one must try to keep the amount of this formality in a relatively suitable condition so that it would not be transformed in excessive caution. On the other hand, since the office of sports and youth in Iran is a governmental organization and received a precise amount of budget, then formality of this organizational structure might have a negative effect on entrepreneurship in these offices. Entrepreneurship is sports organizations is dynamic and influences a number of managerial domains including business structure, crisis management, promotion of novice sports, executive management, creation of innovation, advertisement structures, social issues, continuous concerns and technological advances (Moosavi rad, 2011). By adherence to principles and hierarchies, each organization tries to show its structural shape. In fact, through formation of organizational structure, organizations are able to elaborate on other activities including entrepreneurship. In Iran and especially in governmental organizations which are directly budgeted by the state, entrepreneurship is followed by several paper works and as many people have stated, this is effective in terms of negativity of the former relation. Nowadays, entrepreneurship. both researchers Organizational and managers entrepreneurship have felt results in the need for occurrence of entrepreneurial activities within an organization. In fact, it is important for promotion of structure of organizations. Organizations can be categorized in a spectrum shape in terms of entrepreneurship, ranging from low to high. In governmental organizations, the main focus is on execution of government’s plans and additionally, lack of adequate financial supports and several financial problems have led to reduction of focus on European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 93 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES entrepreneurship in sport and youth organizations. This can help the negativity of the aforementioned relation. In all conceptual models of organizational entrepreneurship developed by different researchers, organizational structure is considered as one of the main factors for advancement of entrepreneurship. As the structure of an organization becomes more regulated, employment, income and entrepreneurship become more suitable. Precise and valid plans are developed under the light of regulated structures. On the other hand, entrepreneurship results in efflorescence of organization. However, above content include points that show that organizational structure can be negatively effective on organizational entrepreneurship. In addition, results of regression test have shown that organizational structure and formality are able to anticipate entrepreneurship in Kurdistan Province’s offices of sport and youth. This result is also consistent with the results obtained by NikNahad (2014); Moosavi Rad (2012); Seifi et al. (2015); Alimardani et al. (2014); Arabioon et al. (2012); Yadollahi et al. (2010) and Yao et al. (2009). With a regulated structure and with a solid plan, we can make arrangements for those activities that need to be organized. With no doubt one of the most important plans is the issue of entrepreneurship. Successful entrepreneurship guarantees the future of organization and even the entire future efforts of the entire components and employees of the organization. References 1. Sabounchi Reza. Explain the organizational structure of Physical Education, Science MOVEMENT. 2009. Department of Physical Education and Sports Science, Islamic Azad University of Boroujerd. 2. Zivdar Mehdi. Relational review of corporate entrepreneurial orientation and performance. Tehran University, 2008. Master of Entrepreneurial Management. 3. Fardinvakili. The relationship between organizational structure and organizational and economic entrepreneurship in companies, small and large businesses, MA, School of Qom Tehran University campus 0. 2012. 4. Rahimielham. (2013), and to provide suitable models of corporate entrepreneurship strategies and local organizations, master thesis, Faculty of Industrial Science and Technology. 5. Horabadi Farahani, M. (2005) Examine the relationship between organizational structure and empowerment, cultural Akbar, published MA thesis, Tehran University, School of Management. European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 94 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES 6. Khalili, hadi. Mohammad Zadeh, Younes. Mashallahi, Akram. Nikkhooi, B. (2012). Factors affecting implementation of Article 88 of the Law regulating part of the financial regulations of the State General Administration of Sport and Youth Alborz Province. Applied Research in Sport Management. (3): 42-33. 7. Rezaeian, A. (2004), principles of organization and management, Tehran, the publisher, Sixth Edition. 8. Robbins, Stephen (2006), organizational theory (structure, design and application), Alvani and H. DanaeeFard, Tehran: Saffar, the fourteenth edition. 9. Seifi, SR (2004) A comprehensive review on the theories of management and organization (concepts, theories, principles, behavior, human resources, system analysis), printing, publishing knowledge look, winter 10. Reza Zadeh Hossein. The relationship between organizational structure and corporate entrepreneurship, 2003. Master of Science, Faculty of Management, Tehran University. 11. Moqimi, Seyyed Mohammad. Organization and management research approach, Tehran Tormeh publication, the fifth volume. 2007 12. Vasati Caley, Maryam. The realization of entrepreneurial organization in standards organizations. Master of Science, Faculty of Industrial Science and Technology. 2007 13. Haghshenaasghar. Model of corporate entrepreneurship in the public sector in Iran, Journal of Management Sciences 31-73 .2007, Iran 14. Sabounchi Reza. Explain the organizational structure of Physical Education, Science MOVEMENT. 2009. Department of Physical Education and Sports Science, Islamic Azad University of Boroujerd. 15. Soleiman iGhulam. Review internal factors affecting the state at the beginning of their entrepreneurial activities Ilam, MA, School of Management Amishi & Lumpkin, G.T. (2009), The role of Entrepreneurial Orientation in stimulating effective corporate entrepreneurship. Academy of management executive. VOL 19. NO1. pp 147-156. 16. Merwe A. P. D (2010) Project management and business development: integrating strategy, structure, processes and project, international journal of project management to (2002) 401-411. 17. Izaidin A. M., Mohd, T. D., and 3 Mohd, F. K. Factors influencing the formation of business ventures, Journal of Human Capital Development, 2008, 1 (1): 29-40. 18. Sayadi, Emadodin & Esmaeilsharifian & Kourosh Ghahramantabrizi (2012); Identification and prioritization of of the Acquired Benefits Industry The creation European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 95 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES Relationship with the Universityin Iran manufacturing sector of the sport industry , International Journal of Sport Studies, Vol., 2 (5), 255-261 19. Hornsby, J., Kuratko, D. and Zahra, S. Middle managers perception of the internal environment for corporate entrepreneurship: assessing a measurement scale, Journal of Business Venturing, 2002. Vol. 17, pp. 253-73. 20. Sathe, Corporate entrepreneurship: top managers and new business creation; 2003. 21. Dees, Gregry G. & Lumpkin, G.T. The role of Entrepreneurial Orientation in stimulating effective corporate entrepreneurship. Academy of management executive, 2005. VOL 19. NO1. pp 147-156. 22. McKelvey, S., & Grady, J. Sponsorship program protection strategies for special sport events: Are event organizers outmaneuvering; 2008. 23. Desbordes, M. (2002). Empirical analysis of the innovation phenomena in the sports equipment industry. Technology Analysis & Strategic Management, 2002. 14 4 , 4 1˚ 4 . 24. Mathew w. Rutherford and Daniel T. Holt (2004) corporate entrepreneurship. An empirical Look at the innovativeness dimension and its antecedents. Department of systems and Engineering management Ohio. European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 96 Farah Hossein Panahi THE RELATION BETWEEN ORGANIZATIONAL STRUCTURE AND ENTREPRENEURSHIP IN SPORT AND YOUTH OFFICES Creative Commons licensing terms Authors will retain the copyright of their published articles agreeing that a Creative Commons Attribution 4.0 International License (CC BY 4.0) terms will be applied to their work. Under the terms of this license, no permission is required from the author(s) or publisher for members of the community to copy, distribute, transmit or adapt the article content, providing a proper, prominent and unambiguous attribution to the authors in a manner that makes clear that the materials are being reused under permission of a Creative Commons License. Views, opinions and conclusions expressed in this research article are views, opinions and conclusions of the author(s). Open Access Publishing Group and European Journal of Physical Education and Sport Science shall not be responsible or answerable for any loss, damage or liability caused in relation to/arising out of conflict of interests, copyright violations and inappropriate or inaccurate use of any kind content related or integrated on the research work. All the published works are meeting the Open Access Publishing requirements and can be freely accessed, shared, modified, distributed and used in educational, commercial and noncommercial purposes under a Creative Commons Attribution 4.0 International License (CC BY 4.0). European Journal of Physical Education and Sport Science - Volume 2 │ Issue 5 │ 2016 97