Abstract

This study aims to examine the causal link among three constructs of corporate entrepreneurship strategy - an entrepreneurial strategic vision, organizational architecture, and entrepreneurial orientation -, business model innovation, and performance, with a focus on the moderating effect of environmental munificence. Building on literature review regarding key constructs, hypotheses are developed and tested using data collected from 301 small and medium sized venture firms. The data are based on the 2022 Factual Survey of Entrepreneurship (Firm level) conducted by Korea Entrepreneurship Foundation. Results show that the three constructs of corporate entrepreneurship strategy are found to have a significantly positive effect on business model innovation, which sequentially affects the outcome. The environmental munificence has a significantly negative moderating effect on the association between both the strategic vision and entrepreneurial orientation and business model innovation, while having a non-significant impact on the link between organizational architecture and the innovation. These results indicate that the corporate entrepreneurship strategy can serve as a useful means which contributes to the performance-oriented business model innovation. The findings imply that, in a fast-changing business environment by the 4th industrial revolution, resource-constrained small and medium-sized firms should focus on a strategic vision and entrepreneurial orientation to have the innovative business model.

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