Problem-solving style as blessing in extraversion personality and corporate entrepreneurship: evidence from automotive industry of Pakistan using Trait Activation Theory

Employees’ personalities towards occupational outcomes have significantly gained academic attention. Personality traits (PTs) of employees as the determinant of corporate entrepreneurship (CE) outcomes research domain is emerging. This paper aims to assess extraversion PT activation for CE outcome under the problem-solving conflict handling style (CHS) situational cue.

The survey was conducted in automotive manufacturing firms in Pakistan for cross-sectional data collection. Structural equation modelling was used to assess the hypothesised theoretical model from 376 employees.

Results revealed a positive and significant impact of extraversion on CE. Also, employees with high extraversion traits were found to prefer the problem-solving style in managing workplace conflicts. The extraversion trait was also found to be activated under the situational cue of the problem-solving style.

The present study draws implications on person-job fit conceptions at the workplace while hiring, promoting and appointing employees. Personality assessment at the workplace is still in infancy in developing countries. The benefits of employees’ personalities can positively impact organisational performance measures like CE.

The present study has proposed the theoretical model based on Trait Activation Theory (TAT) and contributed theoretically through empirically testing the theoretical model by investigating the employees’ CHS role in activating their PTs towards the CE outcomes. Theoretically, using TAT conceptualisations in entrepreneurship and CE is novel as previous knowledge on PTs activation towards CE outcomes is non-existent. CHS as situational cues will attract social science researchers towards studying its role in various predictor outcome links across multiple work settings.