Australian Journal of Business and Management Research New South Wales Research Centre Australia (NSWRCA) Vol.4 No.11 | March-2015 ISSN: 1839 - 0846 38 CAPABILITIES AND ENTREPRENUERIAL BEHAVIOUR OF EMPLOYEES IN NIGERIAN BEVERAGE INDUSTRY Oyedokun Akintunde Jonathan Department of Management and Accounting Ladoke Akintola University of Technology, Ogbomoso, Oyo – State, Nigeria akinteddy@yahoo.com Adele Hasimiyu Ademola Department of Management and Accounting Ladoke Akintola University of Technology, Ogbomoso, Oyo – State, Nigeria Adewoye Jonathan Oyerinde Department of Management and Accounting Ladoke Akintola University of Technology, Ogbomoso, Oyo – State, Nigeria ABSTRACT The relationship between capabilities and the entrepreneurial behaviour of employees in the Nigeria beverage industry was examined to determine if individual are at the heart of corporate entrepreneurship in the beverage industry. Eight hypothesis were advance in the study to capture the relationship between each identified capabilities and the innovative and risk taking attitudes of entrepreneurial behaviour of the employees. Structural equation model was deployed to analyse the data collected for the study because of its ability to validate propounded theory and show the multiple relationship among construct following their reliability and validation. The confirmatory factor analysis model displayed good fit following the assessment by three indices – absolute, incremental, parsimony. The result confirmed the test that individual are at the heart of corporate entrepreneurship in the beverage industry and all capabilities are found to have influenced the entrepreneurial behaviour of firms while learning and networking capabilities recorded the highest influence on entrepreneurial behaviour. Managers were therefore recommended to identify and promote capabilities that can stimulate entrepreneurial behaviour of employees. Risk taking behaviour of employees should also be properly managed to avoid demoralization of employees. Keywords: Capabilities, Entrepreneurial behaviour, Relationship 1 INTRODUCTION The development of entrepreneurial capability is central to the survival and sustainability of firm’s competitive position in modern day business environment. The survival of firms in today’s fiercely contested business environment characterised by innovative product development, process modification, shorter technology life cycle and speed of market entry is anchored on firm’s entrepreneurial prowess. The generation of new business activities (Schumpeter, 1934) alone does not constitute entrepreneurship. The development of innovative, proactive and risk taking behavioural (Covlin and Slevin, 1991; Miller, 1983) culture motivated towards the use of resources beyond individual control (Kirzner, 1973; Stevenson and Jarillo, 1990) constitute the major skills needed to sustain competitive advantage. This view was based on the generally accepted entrepreneurship theory that opportunities are recognised by individuals not firms (Aldrich and Zimmer, 1986; Ozgen and Baron, 2007; Singh, 2000; Venkataraman 1997). Existing firm’s capabilities could shape or influence the development and sustainability of entrepreneurship needed to stimulate creativity and innovation. The development of entrepreneurial behaviour among workforce will help widen the search scope for opportunities and subsequently its exploitation for the immediate and future growth of firms. This is particularly important in modern day businesses driven by knowledge and opportunity especially for fast and first entry firms considering the challenges of shorter product lifecycle. A firm with abundant entrepreneurial cultured employees is most likely to sustain or surpass its competitive position in the industry. While noting that an ecosystem to promote such entrepreneurial behaviour is necessary, successful entrepreneurial skill can stimulate the renewal or development of capabilities in firms. Conversely, existing firm’s capabilities could enhance the success of