Entrepreneur & Innovation

MOD001093
Tan Sri A.K. Nathan
Thavaselvi Munusamy (1517079)
4/30/2015

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

Introduction
Background
Tan Sri A.K Nathan dubbed as Malaysias Man of Steel, is founder, Chairman and
Group Managing Director of Eversendai Corporation Berhad - a public listed company wellknown 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 21
and 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 financial
constraints 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 entered
into 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 humble
background 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 from
different 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 his
empire. This study helps to develop a strong understanding on the factors that made an
entrepreneur into a successful person today.

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 to
riches
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 value
by manipulating opportunities in inventive and innovative means (Hisrich, Peters, & Sheperd,
2005). In this section, entrepreneurship is analyzed from the below perspectives:
Entrepreneurship as Personality Traits
Entrepreneurial Leadership Style
Entrepreneurship as an Activity
Entrepreneurship as Skill
Entrepreneurship 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 for
ambiguity and 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 any
particular 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 is
associated 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.

Entrepreneurship as an Activity

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 and
manipulation 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 of

creating 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.

Discussion and Assessment

Tan Sri A.K. Nathan is dubbed as Malaysias Man of Steel due to his contribution in
the 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 steel
fabrication 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 in
India, 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 he
could 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 of
confident 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 can
conceive, 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:

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 inspire
myself, I motivate myself, I penalize me, no one guide myself except me when 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 and
hardworking. He scored low in Neuroticism, and shows a great amount of emotional stability. He
believed 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 and
all 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 nonethical people. He shared that Petronas Project which was the breakthrough for his company
was secured through his persistence. He made over 12 visits, negotiated and persuaded the
clients 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 make
it work. He always had looked into positive side. In his interview, he mentioned that he is a
calculated risk-taker and carefully expanded his empire into other countries successfully.

ConstructionWeekOnline.com, 2014

Overview of Personality Traits of A.K. Nathan

Entrepreneurship as Leadership Style

The Creator

Charismatic Leader

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 Creator in the
beginning, 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 companys vision 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. He
adapted 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. He
manages 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 successful
and this has made his employee to look up to him. He also gained trust from his employees by
always 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.
Entrepreneurship as an Activity

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 offices
in 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 two
jack-up lifeboats vessels 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. Nathan
displayed 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 risk
taker 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 INCLIF
interview. He is willing to take up changes and ventured into the oil and gas industry, a new
industry for his organization.

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 keep
improving 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 / refineries
Onshore surface facilities
Petroleum products, Oil & Gas Depots, Storage and Terminals
Aviation Fuel, Hydrant & Terminals
Revamp, rejuvenation, and debottlenecking
Expand 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 is
commendable. 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 to
Tower 1. He strictly adheres and upholds core values of his company, hence able to deliver all
their projects on time.

Conclusion
There are certain values that Tan Sri A.K. Nathan strongly holds and made him into who
he 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 compromising
core values as the clients awards job based on the trust and virtue to complete on time. He also
invests 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 When you 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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