Corporate Entrepreneurship and Firm Performance: The Moderating Role of Corporate Governance

Abstract

Corporate entrepreneurship and corporate governance have been investigated at length in the extant literature; however, corporate entrepreneurship research to date has largely neglected the role of corporate governance mechanisms in sustaining or improving firm performance. It is surprising that the link between corporate entrepreneurship and corporate governance has not been widely studied in the management or entrepreneurship literature. We address this research gap by proposing corporate governance’s moderating role in the relationship between corporate entrepreneurship and firm performance. Our study is framed by the four forms of corporate entrepreneurship – sustained regeneration, organizational rejuvenation, strategic renewal, and domain redefinition – and explores the moderating role of key board composition variables – board size, board independence, director stock ownership, and CEO duality. We provide arguments for propositions, discuss our contributions to the literature, and make suggestions for advancing the model in future research efforts.