Effects of Corporate Entrepreneurship Dimensions on Organizational Performance: Case of Small and Medium Enterprises in Holeta Town, Ethiopia

Gemechu Abdissa,Abebe Ayalew,Csaba Bálint Illés,Anna Dunay

doi:10.3390/joitmc7040234

Abstract

Small and medium enterprises are paying the lion’s share in the innovation-based economy of today’s competitive business environment. To this effect, this study observed the effects of corporate entrepreneurship (CE) dimensions on the performance of SMEs in the town of Holeta, Ethiopia. We used both descriptive and survey research designs to meet the specified target of the study. The researchers employed both primary and secondary data sources; the former were collected from 173 participants using both primary and secondary data. The result of this study indicates that all of the explanatory variables used were statistically significant and had a positive relationship with the performance of SMEs. Thus, we recommend that owners of small and medium enterprises pay special attention to practicing CE to increase their business performance, sustainability, and competitiveness. Entrepreneurs should also come up with new and attractive product and service features to take high market shares. Furthermore, forecasting potential challenges for firms and devising possible ways of solving the situation in advance can safeguard businesses from failure.

Highlights

IntroductionCorporate entrepreneurship is the creation of new businesses within an existing organization through innovation or transforming the business by renewing the company’s strategy to increase business profits to overcome competition in the market [1,2,3,4]
The researchers used correlation analysis, which is used to test for the strength of the relationships between corporate entrepreneurship (CE) dimensions and the performance of
As elaborated on and analyzed in different sections of this paper, the main objective of this study was to evaluate the degree of contributions of corporate entrepreneurship dimensions to the performance of small and medium enterprises

Summary

Introduction

Corporate entrepreneurship is the creation of new businesses within an existing organization through innovation or transforming the business by renewing the company’s strategy to increase business profits to overcome competition in the market [1,2,3,4]. According to Parker [5], corporate entrepreneurship is developing new ventures or taking advantage of novel prospects in external situations to create economic value. Corporate entrepreneurship is seen as an approach for renewing an organization because, along with innovation, there is an existing drive toward new ventures [7]. As CE is established within an enterprise, there is significant economic growth and wealth creation at all stages of the organizational life cycle [8].

Objectives

Results

Discussion

Conclusion