The entrepreneurial leadership practices of Malaysian secondary school principals in fundraising

Abstract

The reduction of funding allocation for school operations occurs in the education administration yearly. It is a notable fact that schools around the world are facing challenges in school funding as it affects the school’s operation. As a result, the performance of school for the long term would not be a primary concern in the future. Schools in Malaysia are not exempted from this issue as it is one of the main concerns in the centralized schools of this country. Generally, as the number of schools is increasing and a corresponding decrease takes place in centralized funding, it is vital for school principals to find alternatives for fundraising. Following a growing pattern of decentralization of school policies, entrepreneurial leadership currently begins to make an appearance in the education system through the transformation it creates in schools. However, there is insufficient discussion regarding the practices of entrepreneurial leadership and the abilities of entrepreneurial leaders in centralized schools. This study aims to identify the practices performed by centralized school principals to implement entrepreneurial activities in two schools selected for this study, which consisted of two different demographic backgrounds, districts, and locations. It investigates the entrepreneurial leadership practices performed by the Malaysian school principals in fundraising activities. The roles of the school principals as entrepreneurial leaders were identified based on their peers and other school staff who gained the experience of working under those principals. The various fundraising practices of the entrepreneurial leaders of both of these schools are examined within this crucial and challenging environment, followed by a discussion of how the school administrations deal with the external parties to obtain school funding. This study contributes to the field of educational administration by analysing the current fundraising practices of entrepreneurial principals of centralized schools in Malaysia.

Keywords

Principal entrepreneurial leadership abilities centralized school school administration fundraising

Introduction

The reduction of school funding allocation is a phenomenon which generally takes place in schools. School funding allocation is essential as it assists in the school’s operation and increases school performance. Therefore, as school leaders, school principals need to be proactive in overcoming the issue of insufficient funding. For example, the school principals in developed countries, such as the US and UK, are expected to be committed in fundraising activities as a part of their school programmes as they assist schools in overcoming this issue (Culbertson, 2008; Jacobson, 2014; Oliff et al., 2011). Moreover, it was shown in a previous study that there was a vast implementation of fundraising in school as a part of the initiative for decentralized schools. This implementation was due to the freedom provided by the decentralized policies to the school principals in school administration (Body, 2017; Borasi and Finnigan, 2010; Culbertson, 2008; Yemini et al., 2015; Oliff et al., 2011; Yemini and Sagie, 2015). There is little question that Malaysia has seen the rise and slow acceptance of entrepreneurial leadership in the educational administration of centralized schools. Although the role of entrepreneurial leadership in school administration is recognized in the literature, the ability of the entrepreneurs to help schools in fundraising is rarely discussed (Yemini et al., 2015; Xaba and Malindi, 2010) and there is a growing call from educational administrators for school principals to start recognizing this leadership ability to expand school funds from different sources (Knight, 1993).

Entrepreneurial leadership in education administration

Entrepreneurial leadership refers to the qualities of a leader that promote innovation, risk-taking, fast decision-making, seeking new opportunities, and the ability to create a positive culture with a strong and sharp vision (Thornberry, 2006). Entrepreneurial leadership has come to be seen as one of the best mechanisms for developing and sustaining an organization (Goosen and Stevens, 2013; Koryak et al., 2015; Kuratko, 2007; Leonard, 2013; Mastrangelo, 2016; Thornberry, 2006). There are numerous theories and perceptions regarding the implementation of entrepreneurial leadership in an organization. Thornberry (2006), Gupta et al. (2004), Kuratko (2007), and Schein (2010) posited a variety of different perceptions and dimensions in their theories while discussing entrepreneurial leadership in an organization. Whatever the definition may be, it is clear that entrepreneurial leadership is one of the most desirable and effective forms of leadership to be implemented in the modern educational environment (Abbas and Zaidatol Akmaliah, 2016; Kavitha and Zaidatol Akmaliah, 2017; Pihie et al., 2018). However, the implementation of entrepreneurial leadership practices needs to be further explored by educational administrators, especially for schools operating under the purview of highly centralized policies.

Thornberry’s (2006) entrepreneurial leadership

This study used Thornberry’s (2006) entrepreneurial leadership as a guide to explore the practices of entrepreneurial leadership by Malaysian school principals in their fundraising activities. Thornberry (2006), in his entrepreneurial leadership theories, discussed the importance of four dimensions in entrepreneurial leadership – what he calls miners, explorers, integrators, and accelerators. He believed that all these four dimensions are interacting with and influencing each other, both internally and externally. The activist environment focuses on the development of individual personal qualities while the miner dimension focuses on the methods used by leaders in accomplishing their obligations. Externally, in terms of the explorer dimension, leaders demand to seek and exploit opportunities while managing their organization at the same time. This dimension demands leaders to identify and communicate with stakeholders and influence them to stay active in managing their organizations. The third dimension – accelerator – explains leaders’ role in stimulating their followers’ creativity and innovation, while the integrator dimension refers to leaders’ role in assisting their followers to implement their organization’s vision. Thornberry’s model of entrepreneurial leadership is shown in Figure 1.

Figure 1.

Thornberry’s entrepreneurial leadership (2006).

The role of the school principal in school administration

It goes without saying that school principals play a major role in school management since their position requires them to unify all the current policies with the school vision, values, and strategies (Knight, 1993; Louis and Robinson, 2012). Hörnqvist and Leffler (2014) and Xaba and Malindi (2010) argued that school principals are the change agent in the educational administration. This is because they have the responsibility of influencing the large group of people under their charge (Bass, 1990; Cox, 2010; Dolph, 2016; Odhiambo and Hii, 2012). In sum, school principals are the driving force behind school effectiveness, student development, and enhancement of school performance (Ferrandino, 2001; Gonzales and Bogotch, 1999). Although there are numerous types of leadership in any management, the need for innovation and the demand for changes in the education system require school principals to build external relationships with external parties (Feit, 2016; Leonard, 2013; Lunenburg, 2010). For this particular reason, it is widely agreed that entrepreneurial leadership needs to be implemented, thereby allowing the school to connect with external parties to access funding and resources (Cameron and Quinn, 2006; Yemini et al., 2015; Yemini and Sagie, 2015).

Entrepreneurial leadership in school administration

However, entrepreneurial leadership in school administration is rarely implemented because the characteristics of entrepreneurship are often considered more suited to the realm of business administration (Yemini et al., 2015). This is despite previous studies showing that the implementation of entrepreneurial leadership in school administration brings benefits to schools (Borasi and Finnigan, 2010; Yemini et al., 2015; Xaba and Malindi, 2010; Yemini and Sagie, 2015), particularly in terms of aligning the school administration with the school’s vision (Borasi and Finnigan, 2010; Hörnqvist and Leffler, 2014). However, the lack of funding will slow down the journey of the school and hinder the school in accomplishing its vision (Yemini et al., 2015; Xaba and Malindi, 2010). Although there is no doubt that the implementation of entrepreneurial leadership will help in organizing fundraising (Kirzner, 1979), the specific practices in this endeavour by the school principal in the school administration require further exploration.

Fundraising in schools

School allocation is funded by central government or states (EdSource, 2017; Knight, 1993). However, the allocation of funds from the government is not sufficient to support school operations, which cost a fortune to maintain (Borasi and Finnigan, 2010; Yemini et al., 2015; Xaba and Malindi, 2010). Previously, to overcome limitations of resources in school administrations, Knight (1993) and Thayer and Shortt (1994) recommended that school principals start implementing fundraising activities as part of their school activities. In Malaysia, the main purpose of fundraising activities is, generally, to overcome the never-ending insufficient fund issues faced by Malaysian schools (Shahril, 2005). Consequently, foundations, school grants, and partnerships have become the best indicators for helping schools with their fundraising activities (Armistead et al., 2007; Bradshaw, 2000; Feuerstein, 2001; Knight, 1993; Lewis, 2010; Mestry, 2016; Nesbit, 1985; Peterson, 2014; Record, 2012; Thayer and Shortt, 1994; Winton, 2016). As stated above, there is very little information in the literature regarding the implementation of entrepreneurial leadership in fundraising activities in school administrations, although previous studies generally agreed that fundraising is an effective means for overcoming school allocation issues (Culbertson, 2008; Knight, 1993; Yemini et al., 2015; Thayer and Shortt, 1994; Winton, 2016; Xaba and Malindi, 2010; Yemini and Sagie, 2015). It has also been recommended that fundraising activities must be well planned because they may include external connectivity with outsiders (Knight, 1993). Moreover, school principals must consider and plan time for the extra work necessary for instilling entrepreneurial leadership among school administrators (Leonard, 2013; Reeves, 2007). Although the previous literature has highlighted the positive impact of entrepreneurial leadership in schools holistically (Pihie et al., 2018; Xaba and Malindi, 2010; Yemini and Sagie, 2015), the actual practices of this leadership in helping centralized schools to raise funds for school purposes are scarcely discussed.

Entrepreneurial leadership in Malaysian schools

Entrepreneurial leadership in Malaysian schools is rarely emphasized by school administrators. Although Malaysian secondary public schools operate under centralized policies, the gap of practices between school administration and entrepreneurial leadership is clear. However, the majority of administrators are not yet ready to implement this leadership in school administration. Provided that a centralized school operating under the Ministry of Education (MOE) is bound by national rules, especially the rules relating to financial management, this situation is caused by the lack of capability among the school principals to implement the entrepreneurial leadership (Zaidatol et al., 2014). As a result, the entrepreneurial leadership and fundraising activities by many school principals are deterred. Two factors related to this situation are: (a) as government workers, principals are bound by strict ministry laws; and (b) there is an insufficient discussion regarding entrepreneurial leadership practices in fundraising. Additionally, due to the major budget reductions for the operating expenditures by the federal government in 2015, school principals are prompted to seek external revenue sources to support their operations.

Meanwhile, Noman et al. (2017) discovered that the success of a school was dependent on the school’s coalition network. While the study did not highlight the leadership of a specific school principal, the researcher believes that the school principal clearly took initiative to include the community and parents – a good example of entrepreneurial leadership (Thornberry, 2006). While the coalition between the school and the community strongly contributed to the school development (Yemini and Sagie, 2015), the school principal’s initiative of seeking the help of parents and the community, indeed, echoes entrepreneurial leadership practices (Thornberry, 2006). In sum, the school principal’s personality led to the development of strong bonds between the school and the parents (Wan Ali, 2014).

With 2408 public secondary schools in Malaysia being monitored by the MOE, the implementation of entrepreneurial leadership is vital as it assists the schools in financial outsourcing (Yemini et al., 2015). However, the implementation of entrepreneurial leadership has been fraught with difficulties. A study by Zaidatol et al. (2014) discovered that it was challenging for school principals to develop among their administration qualities such as creativity, innovation, risk-taking, and readiness to manipulate school resources. It could be said that this was expected since Malaysian schools operate under strict centralized government supervision, while entrepreneurial leadership in education demands that school principals be bold risk takers (Borasi and Finnigan, 2010; Louis and Robinson, 2012; Yemini et al., 2015; Williams and Fenton, 2013). In addition, school principals who practice entrepreneurial leadership in school management must be knowledgeable leaders (Zaidatol et al., 2014) with good communication skills (Radzi et al., 2010; Wan Ali, 2014). This is because school principals need to be intimately involved in managing their schools and be able to handle an array of issues within the school administration, meaning that school principals in Malaysia are expected to successfully handle both internal and external school issues, as discovered by Noman et al. (2017). The demographic diversity of the Malaysian secondary school system as a whole further contributes to the challenges of entrepreneurial leadership practice among school principals in Malaysia. Given the complexity of the Malaysian secondary school system as backdrop, the current study sought to explore the entrepreneurial leadership capabilities of two school principals working in demographically diverse secondary schools.

Methodology

This study employed a qualitative case study approach. The qualitative case study is appropriate for exploring a phenomenon of interest that exists within a bounded system (Merriam, 1998; Merriam and Tisdell, 2016). This study chose the qualitative approach, as it explores the entrepreneurial leadership qualities among school principals in school fundraising activities. This study employed a semi-structured interview. Eighteen participants were interviewed. First, the school principals were individually interviewed. Then, two separate interviews were conducted, each with five teachers and three stakeholders (so the total interviewees were 10 teachers and six stakeholders). This step helps the researcher confirm that the school principals, the teachers, and the stakeholders have consistently adopted all practices. In the preliminary phase, the school principals were identified and selected from various districts, locations, and school backgrounds. In Malaysian secondary schools, the school status could be indicated from the school achievement and background. This is a key factor in school funding allocation, as it represents the school’s academic and co-curricular performance. While similarities in practices were identified, some constraints were also present in centralized schools, such as a different amount of funds allocated to the school each year. To ensure that the study addresses the objectives, the difference in the school fund allocation per year was not taken into account.

Two entrepreneurial school principals with different school characteristics were selected to strengthen the findings on the entrepreneurial leadership practices of school principals and to reveal the important practices that other school principals could practise as entrepreneurial leaders and organizers of school fundraising activities. Therefore, two school principals with different demographic profiles were identified and then selected. Known for their reputation as entrepreneurial leaders, both principals represent public secondary schools that receive annual funding allocations from the MOE, and are active at organizing fundraising activities. Some school principals were not selected during the preliminary phase due to their lack of experience in collaborating and sharing entrepreneurial leadership practices. Therefore, the duration of the school principals’ service in school is an important factor, as it is believed to influence the teachers’ and stakeholders’ knowledge of the school principals during the interview. After identifying suitable school principals that fit the criteria required for this study, permission and approval letters were obtained from the MOE in Malaysia and several interviews were conducted via phone with MOE staff before finalizing the release letter to conduct research on the selected schools. The researcher directly approached the school principals and other participants. An agreement between the researcher and the school principals was also finalized for privacy and confidentiality purposes. Both the school principals selected for this study were located in east Malaysia and west of Malaysia, representing different school backgrounds, districts, and locations. Both also actively engage in entrepreneurial leadership practices and fundraising activities.

The document analysis is a crucial part of this study. The minutes of meetings, the Parent Teacher Association (PTA) fund account, and the documentation of fundraising activities are highlighted in this analysis. Document analysis is important to conduct after the interviews and the observation phase because it strengthens all the data collected in this study for further triangulation. However, both school principals prohibited the sharing of the details of the funds raised from fundraising activities was due to issues of confidentiality. The minutes of the PTA meeting and the fundraising documents were analysed indirectly to fulfil the document analysis process. The minutes of meetings were indirectly analysed in this study because they provide details of the fundraising collection and the fund’s use for school development. It was important to maintain the confidentiality of the school fund information, as it is a part of the school’s confidential information. On the other hand, the interviews were transcribed and analysed using ATLAS.ti software version 8.0, and synchronized with Microsoft Word to identify the differences and similarities in both cases.

Participant selection

Two-tier sampling was utilized for this study in selecting the school principals and the participants of the study. Two Malaysian secondary school principals who were known to actively practice entrepreneurial leadership in centralized schools and who actively organized school fundraising activities were the primary subjects of this study. A comparison of their involvement in these fundraising activities was made. For that reason, the school background and locations needed to be taken into consideration in selecting suitable school principals. Purposive sampling was, therefore, used in choosing the suitable participants for this study (Creswell, 2013; Merriam, 1998; Merriam and Tisdell, 2016) in order to ensure that all the selected participants were involved in school fundraising activities. Purposive sampling was employed with help from the school principals and senior assistants. Each of the participants was contacted personally to obtain approval before the interview was conducted. Naturally, for this research, it was important to find suitable participants who could give information regarding the research topic. School principals, school names, and the participants involved in this research were given pseudonyms to maintain confidentiality and privacy. The details of the school principals are provided in Table 1.

Table 1.

Characteristics of school principals.

Characteristics	Mrs Suhana (SMK Aminah Hassan)	Mr Kent (SMK Kampung Pinang Sebatang)
Leadership practice	Entrepreneurial leadership	Entrepreneurial leadership
Fundraising events	Three events per year	Two events per year
School location	Town, east Malaysia	Suburban, west Malaysia
School background	Well-performing cluster school Selected students Generally, economically prosperous parents	Daily secondary school Unselected students Parents not generally economically prosperous

Data analysis

The data were analysed in two phases – within-case and cross-case analysis. The within-case analysis was carried out to identify the entrepreneurial leadership practices carried out by the school principal in each case for the fundraising with the external. The interviews were analysed using ATLAS.ti version 8.0 and Microsoft Word was used for the cross-case analysis. The data analysis process started with the case analysis, where each set of data from both schools was analysed separately. The codes were analysed to search for the experiences, feelings, attitudes, and practices (Saldana, 2016). In categorizing the codes, similar meanings of codes such as “seek for an external relationship” and “develop an external relationship” were merged to form categories within the case. A similar process was applied for other cases. The data analysis was continued by utilizing cross-case analysis, in which the similarities of practices of entrepreneurial leadership by the school principals in school were identified. Each of the codes created were highlighted and codes with similar meanings were merged. The codes were then analysed and rearranged to form new categories. The categories emerged from the analysis according to the parameters of the research question. Each category represents a different characteristic (Morse, 2008). The details of the codes of three practices are displayed in Table 2 to illustrate the results. Category names reflect the characteristics and frequencies of the codes as they appeared during the interviews.

Table 2.

Codes obtained for principals’ entrepreneurial leadership practices in school fundraising.

Opening the school to the external environment
Codes		Frequencies (F) and percentages (%)						Category
		SMKAH		SMKPS		Total
		F	%	F	%	F	%
1.	Seeks external relationships	3	21	1	9	4	16	Opening the school to the external environment
2.	Involves the alumni	1	7	1	9	2	8
3.	Evidences openness to external factors	1	7	1	9	2	8
4.	Activates a school cooperative society	2	14	2	18	4	16
5.	Develops external relationships	3	21	1	9	4	16
6.	Acts according to the school rules	1	7	1	9	2	8
7.	Actively seeks out external resources	1	7	2	18	3	12
8.	Improves the school image in order to attract outsiders	2	14	2	18	4	16
Collaboration with the PTA for external networking
		Frequencies (F) and percentages (%)
		SMKAH		SMKPS		Total
Codes		F	%	F	%	F	%	Category
1.	Gives explanation of the role of the PTA in communications to parents	8	35	2	15	10	28	Collaboration with the PTA for external networking
2.	Asks for contributions from parents through the PTA	6	26	2	15	8	22
3.	Has a friendly attitude towards parents (PTA)	2	9	6	46	8	22
4.	Involves the PTA in school fundraising activities	3	13	1	9	4	11
5.	Encourages parents to contribute and get involved	4	17	2	15	6	16
Sharing entrepreneurial knowledge
		Frequencies (F) and percentages (%)
		SMKAH		SMKPS		Total
Codes		F	%	F	%	F	%	Category
1.	Acts like a businessperson	2	13	3	11	5	12	Sharing entrepreneurial knowledge
2.	Gives explanations in detail on the purpose of fundraising activities	3	20	8	29	11	26
3.	Principal practices entrepreneurship in school	2	13	5	18	7	16
4.	Is able to monitor all the instructions and tasks given to followers	3	20	6	21	9	21
5.	Shares knowledge about fundraising with the teachers, staff, and the PTA	5	33	6	21	11	26

SMKAH: SMK Aminah Hassan; SMKPPS: SMK Kampung Pinang Sebatang.

Findings and discussion

Eighteen participants who were actively involved in the school fundraising activities and working with the selected school principals, including the school principals themselves, were interviewed. The participants were selected through the purposive sampling method to ensure all of them were able to provide the information required for this research. The in-depth interviews, observations, and document analyses conducted in this research are presented in the following categories.

Opening the school to the external environment

Lunenburg (2010) agreed that opening schools to external parties brings positive consequences to school development. With various demands in the education system at the moment, it is vital for school administrators to open their school to external parties in order to fulfil the school requirements (Borasi and Finnigan, 2010; Feit, 2016; Garza et al., 2014; Yemini et al., 2015; Xaba and Malindi, 2010; Yemini and Sagie, 2015). In trying to raise school funds, the school principal opens the school environment to external parties. The awareness of the school principals regarding this matter was proven as they implemented it in their practices. In fact, based on the code analysis in Table 2, both Mr Kent and Mrs Suhana opened up the school to the external environment by forging external relationships and involving the alumni. These actions evidence their openness to external factors. Besides, they also activated a school cooperative society, developed external relationships, acted according to the school rules, actively sought out external resources, and improved the school image to attract outsiders. Both school principals critically practised attracting the external environment to become involved in the school. From experience, schools realize that being isolated from the external local community will never benefit them in a number of areas. Opening the school up to external parties means that they are interacting with the local community and several organizations. Garza et al. (2014) discovered that school principals generally reach out to the local community in order to gain support for school development. Naturally, this brings wider opportunities for schools to develop through fundraising (Borasi and Finnigan, 2010; Yemini and Sagie, 2015). This point was highlighted by Mrs Suhana, principal of Sekolah Menengah Kebangsaan Aminah Hassan (SMKAH), as she explained:

We do not want to rely on the government alone. Hence, at the same time, we do this also to educate the students about entrepreneurship and make sure that the PTA and the communities understand our school constraint and help us. This is for the school’s benefit to be self-sustained. So, we try to open our school to the external parties, so the relationship between the school and the community will help us in terms of sustaining fund. We do not have to rely on government allocation alone.

When asked about the practice of welcoming the involvement of the third parties into the school for school development, the school PTA Chairman of SMK Aminah Hassan agreed that such practices begin with the school principal:

We have to collaborate with the outsiders. This is what the school principal practices. Our school principal does welcome the community to participate and contribute to the school. Hence, from her practices, several students are interested to join the entrepreneurship brought by her.

Similar practices occurred in SMK Kampung Pinang Sebatang, where the same answer was repeated by Dato’ Yusri, PTA Chairman:

This school principal is able to develop a network with other organizations. Actually, the school belongs to the community. So, involvement from the community is important. At this moment, the school principal tries to groom the school to attract more opportunities from the outsiders. If the school is not attractive, the external organization will not be convinced to invest, contribute or sign any partnership with the school. Opening the school is one of the mechanisms the school principal uses to sustain the school fund.

Welcoming external parties to the school opens up extra opportunities for school fund development. However, for centralized schools, it is important for any school under government supervision to ensure that all the terms and regulations for public schools have been taken into account. This was echoed by Mr Farid from SMK Kampung Pinang Sebatang:

For example, if the contractor wants to contribute, we do not allow that to happen to avoid corruption or any other uncomfortable issues in the future. That is wrong and we do not practice that in our school. I agree that there are several personnel who would like to contribute to our school. But we need to consider several issues to avoid any unrealistic fund from the outsiders too.

From the interviewee comments above, it can be concluded that welcoming external parties to the school is an essential step towards increasing their funding, since partnership activities, foundations, and contributions are accepted as one of the best mechanisms to raise the school fund (Body, 2017; Culbertson, 2008; Richards et al., 2005; Thayer and Shortt, 1994; Winton, 2016; Xaba and Malindi, 2010). In other words, if a school is to succeed in its fundraising endeavours, it is essential to allow external parties to participate in and contribute to school development (Salahuddin, 2016; Sanders, 2001; Xaba and Malindi, 2010). Both school principals had an awareness of the importance of external parties to fundraising in schools. This was evidenced by the document analysis of school programs, which showed that both school principals involved parents in fundraising activities. To illustrate, in the minutes of the PTA meeting in SMK Aminah Hassan, the overall funding collection from parents and contribution from outsiders to SPM (Malaysian Certificate of Education) food sponsorship for students was taken into account. Similar evidence was also recorded from the fundraising marathon activities organized at SMK Kampung Pinang Sebatang. Although the number of funds collected in SMK Kampung Pinang Sebatang was not as high as the funds collected in SMK Aminah Hassan, the former’s funds were collected from various external parties. Nonetheless, it is important to note that SMK Aminah Hassan (SMKAH) and SMK Kampung Pinang Sebatang (SMKPPS) implement the same practices but to a different extent (refer to Table 2) because both have different backgrounds.

However, in centralized schools, the autonomy of school operations needs sensitive planning and guidance from the school principal as the leader of the school. This point is clearly brought up by the participants during the interview, per the codes indicating that the school principals acted according to school rules. This is necessary to ensure all the actions and activities regarding entrepreneurial initiatives to raise the school funds are carried out according to the standard of operations of the MOE (Bahagian Kewangan, 2012; Muhammad Faizal et al., 2012). As entrepreneurial leadership was practiced by both school principals – Mr Kent and Mrs Suhana – their practices were aligned with the explorer dimension highlighted by Thornberry (2006). Notably, both of the school principals were aware of the importance of the investigation of the external environment by the school administration as they thoroughly administered the school. Furthermore, entrepreneurial qualities were evidenced through the readiness of both school principals to interact and contribute ideas from external sources (Yemini et al., 2015). These findings mirrored those of Yemini and Sagie (2015) on the engagement of school with non-government organizations. Moreover, awareness among the principals regarding the different practices between Malaysian and Israeli schools was crucial as both schools are operated differently. To illustrate, provided that Malaysian secondary schools operate under close MOE supervision, all school practices should be according to the standard operating system outlined by the MOE, and this system was followed by the school principals in this study.

PTA collaboration for external networking

While the previous category explained that entrepreneurial leadership practices help the school in fundraising by welcoming the external parties to become involved in school activities, the success of school networking with the external parties also relies on the collaborative role of the PTA, as per Table 2, which clearly shows the percentages and frequencies of each code. Thornberry (2006) explained that the leader is responsible for seeking opportunities available in the market while continuously communicating with stakeholders to influence them to stay active in organizational management. Schools are similar in terms of this practice because they also utilize top-down leadership in school administration (Scott, 2008). As both school principals had a concrete understanding of these elements, one of the categories identified in this research is PTA collaboration with the school in the interests of sustaining and developing external networks. Body (2017) discovered that the PTA’s relationship with a school has a very positive effect on helping schools to maintain fundraising activities. This collaboration, combined with the principal’s ability to implement entrepreneurial leadership, is certainly a requirement for the success of school fundraising (Body, 2017; Borasi and Finnigan, 2010; Yemini et al., 2015; Noman et al., 2017; Yemini and Sagie, 2015).

In Malaysian schools, it could be said that the collaboration of schools with PTAs for external networking only tends to succeed if the school principal demands it. In this study, the parents from SMK Aminah Hassan clearly realize that their contributions help the school to develop more external networking. In other words, while the development of external networking is continuous, it largely depends on the generosity of the parents to help the school to maintain its funding; a point made by Mrs Zara from SMK Aminah Hassan:

In this school, we do have quite a lot of parents who love to contribute to the school. Those parents are generous in contribution because majority of the students here came from a wealthy family. The PTA is also generous in fund contribution and they help the school in spreading the news to the outsiders.

The frequency of PTAs helping their schools to maintain external connections is clearly linked with the desire to help the school principal to develop the school. In addition, the PTA understands the school’s needs and the external expectations from their active involvement with the school activities. The school principals, in this case, played a big role in involving the PTA with the school. Clearly, the code analysis of Table 2 shows that the collaboration of the PTA with the school started with the school principals. The ability of both Mr Kent and Mrs Suhana to attract the PTA depended on how they interact with them. For example, one of the codes that emerged during the data analysis explains the role of the PTA in communicating with parents. Hence, the school principals do communicate with the parents as a method to involve them with the school. Indeed, parental involvement with the school stimulates the school fund and helps the school to survive in crucial circumstances (Eyal, 2003; Noman et al., 2017). Therefore, entrepreneurial leadership practices such as PTA collaboration for external networking brings several benefits, such as school bonds with the parents, which persist while the external networking continues (Eyal, 2003). School PTAs whose members are mostly parents and schoolteachers are vital to the success of school fundraising. This argument was supported by Mrs Lisa, one of the PTA members from SMK Aminah Hassan:

Fundraising in this school is more to the contribution from parents, community, and school alumni. We have our own association which we will contact all the possible contributors. This is where the PTA plays their role. We do help our school in that aspect.

The presence of the PTA Chairman on Friday every week to observe the school together with Mrs Suhana indicated an important collaborative relationship between the PTA and the school. This was similar to SMK Kampung Pinang Sebatang, where the PTA Chairman frequently visited Mr Kent to discuss their infrastructure project development, which was initiated by fundraising activities at the school.

Döş and Savaş (2015) assert that the role of the principal of a school is much more than just being a leader. The school principal is the individual who motivates the staff and, at the same time, includes all the staff in the process. Hence, the school principal is the key to the school’s successes in accomplishing its vision (Ayub and Norasmah, 2013; Dolph, 2016; Salahuddin, 2016, Noman et al., 2017). Moreover, Salahuddin (2016) and Noman et al. (2017) strongly believe that the school principal, as the leader of the school, is ultimately responsible for controlling all the external influences in the school. Whether schools are centralized or decentralized, this study postulates that the school principal’s leadership practices are important in determining school success. SMK Aminah Hassan PTA member, Tuan Haji, expressed the same point:

The school principal allows and opens door for us for this to happen. The school principal allows PTA to be active and participates in the school fundraising. She helps, supports, and informs the parents so that we obtain the good feedback from the community outside.

SMK Kampung Pinang Sebatang principal, Mr Kent, mentioned:

I will call the PTA. During the PTA meeting, we will raise up this necessity of the fundraising. Then, they helped us, go out and do the promotion also. So, you could see how we come together as part of the school.

Regarding SMK Kampung Pinang Sebatang, the low-income of parents is one of the main concerns of the PTA when it comes to organizing fundraising. In this case, the “miner” and “explorer” roles in the entrepreneurial leadership practices of Mr Kent as the school principal brought in the proper methods for fundraising activities and explorative opportunities (Thornberry, 2006). A school’s background is certainly not a constraint for the school principal in terms of exploring all of the available fundraising avenues while maintaining and gaining support from the PTA, the local community, and other external connections. On the contrary, it is seen as being advantageous for winning school contributions. PTA Chairman of SMK Kampung Pinang Sebatang, Dato’ Yusri, commented:

During the fundraising event, the YB also announced a huge allocation for the school infrastructure enhancement. The purpose of the fund is for the school to change the students’ chairs, desks in overall. The contribution was immediately approved.

Sharing entrepreneurial knowledge

The above categories concerned PTA collaboration in networking activities and opening the school to the external community. However, the degree of entrepreneurship of school principals is one of the core factors of school fundraising success. Therefore, it is vital for the school principal to have appropriate entrepreneurial skills and knowledge to fulfil this commitment. In this study, both of the school principals were very well educated in fundraising methods as they had been trained well, they claimed, from experiences in previous schools. Mr Kent from SMK Kampung Pinang Sebatang revealed: “I have learned this (entrepreneurial) actually when I was in my previous school. My principal just throw thing to you. You need to learned how to settle all the problems”. Mrs Suhana from SMK Aminah Hassan confirmed: “When I was in my previous school in Kedah, we have many entrepreneurial activities. I have learned a lot when I was there”.

Clearly, there is a sharing of knowledge if the school principal is well educated in entrepreneurship. This shared knowledge is critical for integrating parental involvement with the school, in terms of the parents benefitting from an understanding of the fundraising. Being a leader in different types of schools is an experience shared by Mr Kent and Mrs Suhana, and this knowledge brings great benefits in terms of educating their teachers, staff, and parents. As expressed by Miss Tina from SMK Kampung Pinang Sebatang:

Our principal actually he is full of knowledge about this entrepreneurial. Whatever you asked him about the rules, law of the school. He knows about it. Everything is in his mind. And we here, whatever it is, we refer it to him.

SMK Aminah Hassan PTA member Mrs Chuah added: “She is a knowledgeable principal. She able to explained to ensure that everyone understand the purpose, the implementation of several programs”.

There is clear evidence that both school principals were practicing sharing knowledge as part of their entrepreneurial role as principal. The similarity of their practice was clear, and both of the school principals considered themselves as entrepreneurs. As commented by Mr Kent, school principal of SMK Kampung Pinang Sebatang:

But this entrepreneurial leadership that the main is you want to get a fund. You must look like a businessman. If not, you may not be overcome all of this problem. You have to be very patient. The entrepreneurial leadership is very important here. You must know how to play, this businessman, people out there. Sometimes they also very galling, they try to play around you.

Mrs Suhana, principal of SMK Aminah Hassan, also said:

You are the CEO of the school. So you must take care of your organization. As a leader, it is not proper to say you don’t know about things that your follower expecting you to. Everything others have to think for you. You will lose respect from your followers. I don’t do that. I’ll make sure I know everything, the school operation, etc. because my teachers, staff will refer everything to me. You have to act like a leader.

Salahuddin (2016) argued that a school principal’s knowledge is key to the school’s readiness to start opening the doors to outsiders. Based on the results of this study, being a knowledgeable school principal is extremely beneficial, but the readiness to share this knowledge with the teachers, staff, and PTA is what makes a difference in fundraising activities. Each school principal shows his or her strength in several areas, as clearly shown in the code frequencies and percentages listed in Table 2. While Mrs Suhana in SMKAH is strong at sharing knowledge about fundraising with teachers, staff, and the PTA, Mr Kent is stronger at giving detailed explanations of the purpose of the fundraising activities. However, the researcher agrees that both Mr Kent and Mrs Suhana translated their entrepreneurial qualities by sharing entrepreneurial knowledge with their followers, teachers, staff, and the PTA. Clearly, the integration of Thornberry’s (2006) accelerator and integrator dimensions was implemented by both school principals in school fundraising. The school principals were aware of the capabilities of the teachers of the schools and able to utilize those capabilities to achieve their respective visions for the schools. The school principals also demonstrated their knowledge and understanding of the school staff and their role in fundraising activities. Additionally, assistance was provided to the selected participants for the interview.

Conclusion

The entrepreneurial leadership practices of the school administrations are still not largely discussed in this study. While few studies have explored the connection between entrepreneurial leadership in school fundraising, this paper presents the practices of entrepreneurial leaders which determine the success of centralized schools in fundraising. Three related practices in Malaysian school are highlighted as follows.

Firstly, the role of school principals in terms of their entrepreneurial leadership in welcoming external parties involved in the school for fundraising purposes is essential. The right leadership will bring a level of expertise in fundraising, as proven by Mrs Suhana and Mr Kent. In this regard, the process of being an entrepreneurial leader is directed at opening the school up to external parties for opportunities (Lunenburg, 2010; Thornberry, 2006). External parties, such as private organizations, are able to contribute to the school in terms of school development. It goes without saying that being isolated is never a good thing when it comes to relevance and survival in the education system.

Centralized schools in Malaysia are funded by the central government. However, with a large number of schools in Malaysia, the constraints in supporting all schools are evidently a challenge. This has led to a situation where the school principal must seek outside opportunities in order to sustain the school fund. Opening the school to external parties is, therefore, a risk that needs to be considered by the school principal. Despite the aim of the MOE to empower parents, community, and the private sector to work with the schools (MOE, 2013), the discussion regarding the understanding of entrepreneurial leadership practices and their implementation in schools was inadequate. Therefore, this study provided insights into the understanding of the successful implementation of entrepreneurial practices in centralized schools under MOE supervision.

Secondly, the school principal, as the opportunity seeker, needs to collaborate with the school’s PTA. In this regard, this paper suggests that “one-man” work on fundraising must definitely be avoided. In centralized schools, the PTA plays a role in developing external connections for the schools. Therefore, a good relationship with the PTA also depends on the role of the school principals and the quality of their leadership. Both Mrs Suhana and Mr Kent understood the role and the importance of the PTA in school fundraising. Being passive and unable to collaborate will jeopardize the role of the PTA in a school. For this reason, the study findings indicate that the quality of the school principal’s entrepreneurial leadership is vital for this collaboration to work. This inference was aligned with the fifth shift highlighted in the Malaysia Education Blueprint (MOE, 2013) regarding the improved criteria of school principals due to their impact on school performance. In the current demanding environment, the qualities of school principals are crucial for the adoption and adaptation of suitable leadership practices in administrating schools. Moreover, due to the financial constraints in schools, fundraising activities are essential in maintaining the performance of the schools and students.

Thirdly, the practice of entrepreneurial leadership demands that the school principal masters the knowledge of entrepreneurial leadership and shares it with the teachers, staff, and PTA. Leonard (2013) believed the role of school principals to be more than just a leader who gives instructions; they also act as a reference point and problem solver to the teachers, staff, and PTA. In the Malaysian school scenario, to be successful as an entrepreneurial leader in fundraising activities, sharing entrepreneurial knowledge and being transparent in terms of acting accordingly to the rules and laws of the school administration and government, is essential.

The findings of this study reveal information additional to the findings of either previous studies. While a study by Body (2017) purposely encourages schools to be actively involved in the communities to be part of the fundraising activities, this study explores the importance of school principals as entrepreneurial leaders and key holders of external parties, including the involvement of PTAs in fundraising. This paper, therefore, agrees that proactive PTAs stimulate school fundraising activities. However, in school operations, the school principal is the leader responsible for all of the decisions and actions as demonstrated by Mrs Suhana and Mr Kent. This study, therefore, argues that the entrepreneurial school principal is the crucial element for success in school fundraising.

While most of the literature explained entrepreneurial leadership in the context of decentralized schools where autonomy in operation is obviously different from centralized schools, it is clear that entrepreneurial leadership in capturing external resources for schools is key in both sectors (Yemini et al., 2015; Xaba and Malindi, 2010). Of course, this being said, there are constraints in terms of school background, allocation, and students. In this study, the importance of entrepreneurial knowledge sharing was determined as part of entrepreneurial leadership in school fundraising for Malaysian schools, which are under governmental authority. As a result, the sharing of entrepreneurial knowledge with the teachers, staff, and PTA in fundraising activities indicates the school principals serving as the reference point. This is important to ensure that school fundraising activities following the Malaysian government’s standard operating procedures. In short, the school principal should be unafraid to take risks, and, at the same time, be very knowledgeable of fundraising techniques and governmental constraints for the benefits of both the school and MOE in the future.

The limitations of this study are in the time spent for each school, as the schools were geographically far from each other. Hence, the cooperation of school members in sharing information during the interview required extra effort from the researchers. However, the information was successfully gathered when the interviewees realized the pseudonym implementation for data confidential and secrecy.

Theoretically, this study contributes in terms of an understanding of the importance of the implementation of entrepreneurial leadership in schools for fundraising purposes. In Thornberry’s (2006) entrepreneurial leadership theory, the four dimensions as miners, explorers, integrators, and accelerators were explained in terms of business management. Nevertheless, this study established the interconnection of the miners and explorer in terms of education and entrepreneurship, which appears rarely in the literature. Nonetheless, it is clear that it is appropriate for school principals to implement this type of leadership for fundraising even though the school is a non-profit organization (Knight, 1993). In terms of future study, this study recommends exploring further the nature of the teamwork of the school principal with the administration team as another crucial factor in successful fundraising.

The present study shows that entrepreneurial leadership practices, such as welcoming external parties in developing and maintaining fundraising activities through PTA collaboration with the school, increase the schools’ external connections. In this case, the role of PTA in the school and the principal’s entrepreneurial leadership collaboration in fundraising are undeniably essential. In spite of this, awareness is still lacking regarding the importance of PTAs for schools’ development of entrepreneurial fundraising activities (Zaidatol et al., 2014).

Therefore, it could be clearly seen that entrepreneurial leadership in school administration could solve the issue of decreased school funding which occurs in schools (Addi-Raccah et al., 2018; Borasi and Finnigan, 2010; Feit, 2016; Yemini et al., 2015; Nieswandt, 2017; Pashiardis and Savvides, 2011; Xaba and Malindi, 2010; Yemini and Sagie, 2015). With that being said, centralized schools are also expected to implement entrepreneurial leadership and start organizing fundraising in school.

Footnotes

Declaration of conflicting interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article.

ORCID iD

Siti Sabihah Ghazali

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