Abstract
A model is proposed that tests the antecedents and the mediating effect of corporate entrepreneurship on the external environment-performance relationship within private and public sector organizations. Hypotheses were tested using data from a sample of chief executive officers in 51 private sector organizations in the United States, 141 private sector organizations in Slovenia and 134 public sector state and semi-state enterprises in Ireland. Data was analyzed using hierarchical regression analysis. The results show that dynamism and munificence effects on performance are mediated by an organization's corporate entrepreneurship in the private sector and munificence effects on performance are mediated by an organization's renewal in the public sector and that renewal must be in place to maximize the effect of munificence on performance. The results support a model that incorporates an extensive and diverse literature into a single model and helps illuminate similarities and differences of corporate entrepreneurship between the private sector and the public sector. The study shows that an integrative model and the interplay among the constructs yields new insights unavailable to single and focused approaches. It offers new insights about corporate entrepreneurship, not only as a discrete pursuit, but also as a construct that shapes and extends organizational performance.
Highlights
In an effort to enrich theoretical explanations of the association between corporate entrepreneurship and organizational performance, this study proposes a deeper explanation based on the premise that corporate entrepreneurship maximizes the external environment – performance relationship
To date several studies have established the link between corporate entrepreneurship and performance (e.g., Zahra, Covin 1995; Dess et al 2003), few have examined the mediating effect of corporate entrepreneurship on the external environment – performance relationship in the private sector (Antoncic, Hisrich 2001), and none has examined this relationship in the public sector
We developed and tested a meditational model that suggests that corporate entrepreneurship increases organizational performance in private sector organizations in Slovenia
Summary
While researchers have diversely conceptualized the dimensions of corporate entrepreneurship, it is generally defined as a set of organizational level activities that focus on the discovery and pursuit of new opportunities through acts of venturing, renewal, Journal of Business Economics and Management, 2013, 14(Supplement 1): S328–S357 innovation, risk taking and proactivity (e.g., Miller 1983; Guth, Ginsberg 1990; Zahra, Covin 1995; Sharma, Chrisman 1999; Antoncic, Hisrich 2001; Morris et al 2008). Organizations that exhibit corporate entrepreneurship are generally recognized as dynamic, flexible entities preparing, or prepared to take advantage of new business opportunities when they emerge (Morris et al 2008). The factors that drive entrepreneurial activity in established organizations may not result in superior performance at the organizational level if the organization is not adapting to the external environment. The ability of those internal factors that drive corporate entrepreneurship activity to enhance performance is likely contingent upon the organization’s ability to judiciously adapt to its external environment
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
