Entrepreneur Innovation (Tan Sri A.K. Nathan)

7/23/2019 Entrepreneur Innovation (Tan Sri A.K. Nathan)

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Entrepreneur & Innovation

MOD001093

Tan Sri A.K. Nathan

Thavaselvi Munusamy (1517079)

4/30/2015


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Contents

Contents ....................................................................................................................................................... 1

Introduction .................................................................................................................................................. 2

Background ............................................................................................................................................... 2

Objective ................................................................................................................................................... 3

Literature Review .......................................................................................................................................... 3

Discussion and Assessment .......................................................................................................................... 5

Entrepreneurship as Personality Traits ................................................................................................. 5

Entrepreneurship as Leadership Style .................................................................................................. 7

Entrepreneurship as an Activity ............................................................................................................ 7

Entrepreneurship as Skill ...................................................................................................................... 7

Entrepreneurship as Corporate Culture................................................................................................ 8

Special Leadership Case Theory ............................................................................................................ 8

Conclusion ..................................................................................................................................................... 9

Recommendations ........................................................................................................................................ 9

References: ................................................................................................................................................. 10


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Introduction

Background

Tan Sri A.K Nathan dubbed as Malaysias Man of Steel, is founder, Chairman andGroup Managing Director of Eversendai Corporation Berhad - a public listed company well-

known in fabrication and erection of steel structures and power plants works. His awesome,

steely determination and leadership skills made his company to accomplish some of high profile

projects such as Tower 2 of the Petronas and the Kuala Lumpur International Airport in Malaysia,the Burj Al-Arab, Dubai Mall, Ski Dubai and Burj Khalifa in Dubai, Capital Gate in Abu Dhabi,

and the New Doha International Airport in Doha, Qatar.

Tan Sri A.K. Nathans humble beginning as a printing machine operator at the age of 21and from there on through his perseverance and persistence became one of Malaysias richest

men listed in Forbes. In his interview, he shared that he always had a burning desire to become

successful in his life. He dropped his studies from a university in India halfway due to financialconstraints after his father passed away in an accident. It is in India he learnt about printing

business and started work in a printing firm with aspiration to open up his own printing firm in

Malaysia. He became an insurance agent after being persuaded by his brother in law and went to

many courses to build his self-confidence, people skills and motivate himself. He then enteredinto construction business in 1982 after securing the services of a sub-contractor for temporary

steel platform works in Kuala Lumpur for Dayabumi project. His big break came through a

Japanese client, Tameshi Yamaki, who commissioned him to build Malaysias first car plant,Malaysian National Car Plant used to produce Proton vehicles. One project leads to another

project and from there on he started to build his empire in construction business.

Purpose of this study

In this study, we will take a step closer into understanding the entrepreneurial attributes

that inspires and drives entrepreneurs to excel. This study also investigates the entrepreneurial

personalities of Tan Sri A.K. Nathan a self-made man. Study on how someone from a humblebackground made it big in the industry had never failed to inspire most of us whom aspire to

become as successful as someone like him.

This report is structured into 6 segments that are discussing entrepreneurship fromdifferent perspective; personality traits, leadership style, activities, skills, corporate culture and

entrepreneurial tactics. Further discussion and analysis is also conducted, to assess on Tan Sri

A.K. Nathan and how he had leveraged on the discussed perspectives and successfully build hisempire. This study helps to develop a strong understanding on the factors that made an

entrepreneur into a successful person today.


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Objective

Take a step closer into understanding the entrepreneurial attributes that inspires and

drives entrepreneurs to excel

Study the entrepreneurial personalities of Tan Sri A.K. Nathan who rise from rags toriches

Provide a guideline for future entrepreneurs who aspire to be successful entrepreneurs

Literature Review

Present study defines entrepreneurship as mannerisms that are related to the creation of valueby manipulating opportunities in inventive and innovative means (Hisrich, Peters, & Sheperd,

2005). In this section, entrepreneurship is analyzed from the below perspectives:

Entrepreneurship as Personality TraitsEntrepreneurial Leadership Style

Entrepreneurship as an Activity

Entrepreneurship as SkillEntrepreneurship as Corporate Culture

Special Leadership Case Theory

Entrepreneurship as Personality Traits

The link between personal characteristics of an entrepreneur and the performance of their

firms is so strong that it becomes one of the factors in deciding the success of the entrepreneur.(MacMillan et all 1985). Every entrepreneurs are distinct in their personality, however it is

notable that there have been some attributes that consistently aligns with entrepreneurship which

are need for achievement, risk-taking propensity, locus of control, tolerance forambiguityand Type-A behaviour(Brockhaus 1982, Brockhaus and Horwitz 1986, Furnham

1992). Tan Sri A.K. Nathans personality traits will be assessed using The five factor model or

big five(Costa and McRae, 1992 cited in Llyewellyn and Wilson, 2003) and identify whether

the common attributes associated with entrepreneurs exists.

Entrepreneurial Leadership Style

Entrepreneurial leadership concept was first introduced in 2000 by McGrath and

MacMillan. Entrepreneurial leadership is using the skills and traits of an entrepreneur and

applies it within the environment of the larger organization to improve on the overall

performance. There are few types of leadership styles. There is no fixed leadership style for anyparticular leaders as it may vary through the organization phases (Ward 2003).Ward's Creator

has common attributes with the widely accepted attributes of an entrepreneur which are sense of

urgency, vision, passion, comfort with ambiguity, and persistency. The Creators role isassociated with establishing an organization from scratch. Leadership style that is based on

personal attributes is known as the "trait theory of leadership". Stace and Dunphy (2001) define

four styles for leadership, and Entrepreneurial Leadership befits with Charismatic Leadership

description, although not definitive.
http://en.wikipedia.org/wiki/Rita_Gunther_McGrathhttp://en.wikipedia.org/wiki/Trait_theoryhttp://en.wikipedia.org/wiki/Trait_theoryhttp://en.wikipedia.org/wiki/Rita_Gunther_McGrath


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Entrepreneurial activity and economic development is interrelated and have influence on

each other (OECD, 1998; Verheul et al., 2002). Entrepreneurial activity is an action undertaken

by an entrepreneur to create value through expansion of economic activity, by identifying andmanipulation of new products, process or market. Entrepreneurial activity is an important source

for economic growth (Schumpeter, 1976)) and will be encouraged where there is weak

appropriability and high in isolating mechanisms.

Entrepreneurship as Corporate Culture

Corporate entrepreneurship may be formal or informal activities with the purpose ofcreating new businesses in established organizations through product and process innovations

and market ventures (Robert. Claudine et al 2011). Its supportive in improving a company's

competitive position and financial performance.


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Discussion and Assessment

Tan Sri A.K. Nathan is dubbed as Malaysias Man of Steel due to his contribution inthe steel industry. He is the founder, Chairman and Group Managing Director of Eversendai

Corporation Berhad. His profile includes more than 300 accomplished projects in over 14

different countries and dedicated workforce over 10,000 employees. He established 5 steelfabrication factories which are located in Malaysia, Dubai, Sharjah, Qatar and India. In his

interview he shared that he always had the burning desire to be successful. He aspired to

complete his studies in university however had to put an end to his studies halfway due to

financial constraints. His father passed away in an accident and he had to start working. While inIndia, he briefly learned about printing trade. He was paid 3 Indian Rupees a day. He at first

wanted to establish a printing firm. It is during this time he learned about hardship and poverty

he witnessed in India had shaped him into becoming a better person. After returning to Malaysia,

he started to work at the age of 22 in a printing firm. He met sales people who mention that hecould speak well and would make it as a good salesman. Soon, after approached by his brother in

law, Tan Sri A.K Nathan became an insurance agent. He realized that he was shy and lack ofconfident to talk to people. Identifying his weaknesses, he attended a lot of motivational speak.

He also introduced to a book written by Napoleon Hill - Law of Success. He realized that he

needs to upgrade himself and build self-confidence. He converted his weaknesses into strength.

He read the book every morning and tried following the books teaching whatever mind canconceive, you can achieve. He started to work hard.He developed himself and ventured out to

attain success.

Entrepreneurship as Personality Traits

I am a go getter. I dont give up.(Tan Sri A.K. Nathan for The Leaders Room - ICLIF,

2013). Tan Sri A.K. Nathan displayed strong characteristics of an entrepreneur. Some of his

projects are world iconic landmarks such as Petronas Tower and Burj Al Khalifa.

List of some of his iconic projects:


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Tan Sri A.K. Nathans personal traits are analyzed using the Big Five Model and it shows

the attributes that are strong in entrepreneurialism. In INCLIF interview 2013 he said I inspiremyself, I motivate myself, I penalize me, no one guide myself except mewhen asked about his

source of inspiration. He showed high confidence when he started his own company without

knowing whether it would be successful or not. He learned the trade through resilient andhardworking. He scored low in Neuroticism, and shows a great amount of emotional stability. Hebelieved that he needs to work hard to achieve his goals. His conscientiousness enables him to

persuade his clients for new projects and he is untraditional when he willing to take up complex

new designs and executes them. He is able to communicate well with his clients, employee andall around him. At one point, he fired one of the sub-contractor when learning that he has taken

advantage on him. This shows his low agreeableness level when comes to dealing with non-

ethical people. He shared that Petronas Project which was the breakth rough for his company

was secured through his persistence. He made over 12 visits, negotiated and persuaded theclients relentlessly to ensure that he gets the project. He further developed the trust by

completing the job given ahead of time and from there onwards, one project leads to another

project. He intelligently capitalizes the opportunity and the relationship with his clients to makeit work. He always had looked into positive side. In his interview, he mentioned that he is a

calculated risk-takerand carefully expanded his empire into other countries successfully.

ConstructionWeekOnline.com, 2014

Overview of Personality Traits of A.K. Nathan


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Entrepreneurship as Leadership Style

Entrepreneurial leadership is required in dynamic markets that are full of ambiguities and

competitiveness. Tan Sri A.K Nathan, leadership style strongly reflects type The Creatorin thebeginning, when he established his company from scratch and sets out on his mission

passionately while staying committed to make his vision a reality. He is persistent and talks to

his employee on his companysvision every day that it leaves no room for doubt on his purpose.

His perseverance also aligns his employee to work towards achieving the same vision. Headapted the Look East Policy, Japanese culture and Plan, Action & Check in his

organization that helps them to keep to their commitment and deliver their projects in time. At

this stage, he is being more charismatic leader when driving the company to achieve his aims. Hemanages to keep his employee focused on achieving his companys goals. He focuses on

nurturing, providing further education and provides a platform for his employees to be successfuland this has made his employee to look up to him. He also gained trust from his employees byalways keeping to the companys core value which are safety, quality and on time. His staffs are

personally drawn to him due to his motivating and character building nature. He ensures that his

company continues to expand so that he is able to provide job and ensure the livelihood of his

employees are protected.


Tan Sri A.K. Nathan launched offshore markets and successfully expanded his business

into Asian and Middle Eastern regions. To be able to capture the markets, he established officesin Dubai, Sharjah, Abu Dhabi, India and Qatar. He also positioned Eversendai in the oil & gas

sector targeting the middle-eastern regions. It is another big milestone to penetrate into market

servicing the offshore oil & gas sector. To ensure that he can break into the market, he build twojack-up lifeboatsvessels used to carry out fabrication works on plants at sea.

Entrepreneurship as Skill

Leaders who have entrepreneurial traits are able to exploit opportunities using

proactive approach, optimizing risk, innovate and take responsibility to manage the organization

to thrive in the rapidly changing environment faster than any other. Tan Sri A.K. Nathandisplayed strong entrepreneurial skills. He stick to the core values that he incorporated in the

organization since its inception namely; adhere to safety, deliver projects without compromising

on quality; deliver as committed in timely manner; ensure customer satisfaction. He is a risktaker when he takes up complex projects and unusual heavy steel structures that are challenging

to fabricate and install. His innovative ways won many clients. I am not an engineer. I have no

degree. I tackled the intricacies of the business to a level where I astounded engineers and other

professionals with my innovative recommendations Tan Sri A.K. Nathan said in INCLIFinterview. He is willing to take up changes and ventured into the oil and gas industry, a new

industry for his organization.

The Creator Charismatic Leader


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The Star Online - Business News, 2015

Entrepreneurship as Corporate Culture

In taking up further steps and to ensure the future of his company is bright he keepimproving his company's competitive position and financial performance. He changed his

company into a multi- disciplinary construction company which expanded the scope of work for

his company.

His companys portfolio now includes:

Petrochemical Plants / refineriesOnshore surface facilities

Petroleum products, Oil & Gas Depots, Storage and Terminals

Aviation Fuel, Hydrant & Terminals

Revamp, rejuvenation, and debottleneckingExpand scope of work & services

Enhance & Improvised facilities

Eversendai News Release, 2014

Special Leadership Case Theory

Tan Sri A.K. Nathans ability to lead the company during economic crisis in 2009 iscommendable. Even during the bleak market, he was still able to secure projects in Middle East

worth 500mil (NSTP, 2009). His greatest pride was working on the Petronas Twin Towers

(Worlds tallest building from 1998 2004) and completing it 10 days ahead of time compare toTower 1. He strictly adheres and upholds core values of his company, hence able to deliver all

their projects on time.


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Conclusion

There are certain values that Tan Sri A.K. Nathan strongly holds and made him into whohe is today. He believes in maintaining a healthy relationship with clients, employees, and people

that he works with (INCLIF, 2013). He also live up to the commitments without compromisingcore values as the clients awards job based on the trust and virtue to complete on time. He alsoinvests on Human Capital hence quoting that his employee is his greatest motivating factor. He

earns their loyalty by providing continuous learning, educates, nurture, and made them

successful. Sendai means thousands of generations in Japanese. He named his company as

EverSendai and wanted his legacy to go on forever.

Recommendations

Based on the discussion, entrepreneurship does not necessarily come from a built in

character by birth or with certain privileges like inheriting family business from the beginning.

Anyone can become an entrepreneur by being a strong believer in character building, who is

resilient and endure all challenges to attain success that they envisioned. Being persistent when

pursuing their goals and never say no attitude is also important as that is what will help someone

to keep going during the tough times. Tan Sri A.K. Nathans advice for future generations -

Whenyou fall down, it is difficult to put yourself back and move forward but be persistent and

never give up in pushing for success,and he lived up to his words by achieving the success that

he had always wanted.

Awards and Achievements


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References:

Herron, Robinson Jr., Lanny, Richard B., 1993. A structural model of the effects of

entrepreneurial characteristics on venture performance . Journal of Business Venturing, [Online].Volume 8, Issues 3, Pages 281294. Available at:

http://www.sciencedirect.com/science/article/pii/088390269390032Z [Accessed 15 April 2015].

Hill, Robert C., and Michael Levenhagen. "Metaphors and mental models: Sensemaking and

sensegiving in innovative and entrepreneurial activities." Journal of Management 21.6 (1995):

1057-1074.

Hogg, Michael A. "A social identity theory of leadership." Personality and social psychology

review 5.3 (2001): Pages 184-200.

Ward, Andrew, 2002. The Leadership Lifecycle: Matching Leaders to Evolving Organizations.

1st ed. na: Palgrave Macmillan.

Chell, Elizabeth, 2008. The Entrepreneurial Personality: A Social Construction. Revised ed. U.K:Routledge

O'Sullivan, June, 2009. Leadership Skills in the Early Years: Making a Difference. 1st ed. U.K:A&C Black

F.Leutner et al./Personality and Individual Differences 63 (2014) 5863

Hisrich, Kearney, Robert , Claudine , 2012. Corporate Entrepreneurship: How to Create aThriving Entrepreneurial Spirit Throughout Your Company. Business and Economics. United

States: McGraw Hill Professional.

Z.J. Acs and D.B. Audretsch (eds.), Handbook of Entrepreneurship Research, 105140

2003 Kluwer L aw International. Printed in Great Britain.

Joyce Koe Hwee Nga, Gomathi Shamuganathan. The Influence of Personality Traits and

Demographic Factors on Social Entrepreneurship Start Up Intentions, Journal of Business Ethics,

2010, August 2010, Volume 95,Issue 2,pp 259-282

ICLIF. (2013). The Leaders Room: Tan Sri A.K Nathan . [Online Video]. 03 November 2013.

Available from:https://www.youtube.com/watch?v=yAFIR_bEBYU.[Accessed: 02 March

2015].

2015 Eversendai Group. 2015. Eversendai Corporate Info. [ONLINE] Available at:

http://www.eversendai.com/.[Accessed 13 April 15].

Cooney, Thomas M. "Entrepreneurship Skills for Growth-Orientated Businesses." (2012).
http://www.sciencedirect.com/science/article/pii/088390269390032Zhttp://link.springer.com/journal/10551/95/2/page/1https://www.youtube.com/watch?v=yAFIR_bEBYUhttp://www.eversendai.com/http://www.eversendai.com/https://www.youtube.com/watch?v=yAFIR_bEBYUhttp://link.springer.com/journal/10551/95/2/page/1http://www.sciencedirect.com/science/article/pii/088390269390032Z


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Dato' A.K. Nathan. 2015. Dato' A.K. Nathan. [ONLINE] Available at:

http://www.roofandfacade.com/rfa/index.php?option=com_content&view=article&id=188:dato-

ak-nathan&catid=65:personality&Itemid=67.[Accessed 28 April 2015].

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A.K. Nathan, Eversendai | ConstructionWeekOnline.com. [ONLINE] Available at:http://www.constructionweekonline.com/article-30198-face-to-face-tan-sri-ak-nathan-eversendai/.

[Accessed 15 April 2015].
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