Corporate entrepreneurship contingencies and organizational wealth creation

Linking entrepreneurial orientation and supply chain resilience to strengthen business performance: an empirical analysis

Purpose

This study examines the interactions between entrepreneurial orientation, supply chain resilience (SCRES) as well as the financial and commercial dimensions of business performance.

Design/methodology/approach

Drawing on a literature review, the authors develop a research model to identify positive relationships between five specific dimensions of entrepreneurial orientation, SCRES and business performance based on the dynamic capabilities view. The hypotheses are then empirically validated by applying partial least squares structural equation modeling (PLS-SEM) on survey data obtained from a questionnaire and 168 global companies.

Findings

The results partially support the hypotheses and suggest that entrepreneurial activities complement the resilience of supply chains to sudden disruptions and therefore also foster competitive advantage.

Originality/value

The relationships between entrepreneurial orientation, SCRES and business performance are examined and validated empirically in a single model, bridging the gap between these distinct research streams and shedding further light on supply chain risk management.

Personality Traits and Entrepreneurial Intentions: Financial Risk-Taking as Mediator

The interaction between environment and individual personality determines career. Over the past decades, the role of personality traits in explaining entrepreneurship cannot get much attention of researchers. To fill this gap, this study aims to investigate the effect of personality traits (extraversion, openness to experience, conscientiousness, neuroticism, and agreeableness) on the entrepreneurial intentions (EI) along with the mediating role of financial risk taking (FRT). Sample size consists of 500 students of business and management of different universities of Pakistan, out of which 466 useable questionnaires were collected and analyzed. The results of the study are consistent with conventional wisdom as explored by past studies. In line with past studies and proposed hypothesis, we found that both extraversion and openness to experience have a positive association with FRT, whereas neuroticism, conscientiousness, and agreeableness have negative association with FRT. The results also revealed that there is positive association between FRT and EI; however, FRT did not mediate the relationship between agreeableness and EI.

Entrepreneurial Behaviour Identified among SME Members of an International Group with Sustainability-Oriented Strategy

The current development of energy management services is stimulated by a series of factors that are both external and industry-specific. One important external factor is the pressure coming from legal provisions in favour of sustainable development. This qualitative, descriptive research is focused on an international group with a strategic orientation to sustainability. The aim is to analyse the strategic changes of several group members over a period of 15 years (2004–2019) in order to identify their entrepreneurial behaviour (EB), contributing to scarce literature on EB of sustainability-oriented SMEs—medium-sized enterprises, in particular. The methodological approach included both secondary and primary research (direct observation and in-house interviews). The results match the research objectives and research questions in that they are able to identify different types and degrees of enterprise EB (EEB). The findings demonstrated here support a proposed finer EEB typology: independent EEB and induced EEB. Besides the natural limitations of the research (only comprising companies of a group and single industry), the main limitation of the study is its pre-pandemic characteristic, which is also a challenging research opportunity for further post-pandemic studies on EEB. The promising results of this exploratory research on EEB and novel EEB typology proposed should also be tested in more industries. The research results are useful for scholars, company managers, and entrepreneurs as well as for strategists involved in designing sustainable development policies.

What Drives Sustainable Organizational Performance? The Roles of Perceived Organizational Support and Sustainable Organizational Reputation

Sustainable organizational performance (SOP) can differentiate an organization from its rivals. Thus, understanding the antecedents and driving factors of SOP has received wide attention from both the academicians and practitioners in recent years. In line with such attention, this empirical paper endeavored to investigate and identify the relationship between perceived organizational support (POS) and SOP with the mediating effect of sustainable organizational reputation (SOR). Based on 384 survey responses from mid-level managers using a cross-sectional survey design, we followed a deductive approach to test the hypotheses using covariance-based structural equation modeling. Our empirical investigation revealed that POS has a significant positive relationship with SOP as well as with SOR while SOR has a significant positive relationship with SOP. Regarding the mediating effect, we found that SOR can partially mediate the positive relationship between POS and SOP. We strongly believe that the findings revealed from this empirical study may aid interested future researchers in their quest of understanding the inherent relationship between perceived organizational support and sustainable organizational performance in the presence of sustainable organizational reputation. Further, such results may provide a platform for the top-level managers and other policymakers in their efforts to improve and sustain organizational reputation that will ultimately lead to sustainable organizational performance through proper organizational support.

Does managerial capability always drive performance? Empirical examinations of small and medium firms (SMEs) in a developing economy

Purpose

The paper sought to uncover the conditions under which managerial capability enhances performance while considering the role of social capital within the unique boundary conditions created by competitive intensity.

Design/methodology/approach

The authors use multi-source data from 206 managers and owners of SMEs from a Sub-Saharan African nation – Ghana.

Findings

Using structural equation modeling (SEM) to analysis the data, the findings revealed that social capital serves as a mechanism through which managerial capability influences performance. Furthermore, the results indicate that competitive intensity does not significantly moderate this important indirect relationship. Implications: This study provides relevant knowledge for scholars, practitioners and policymakers on the role of managerial capability and how it may be harnessed in enhancing performance.

Originality/value

This paper provides a holistic understanding of the capability performance relationship in attempts at extending the literature by examining social capital as a mediator and competitive intensity as a contingent factor of this important relationship in a conditional indirect model.

Corporate entrepreneurship, employee engagement and innovation: a resource-basedview and a social exchangetheory perspective

Purpose

Synthesizing theoretical and empirical literature, this study aims to build a theoretical model linking the constructs; corporate entrepreneurship, employee engagement and innovation.

Design/methodology/approach

Using an integrative review method the current study conducted an examination of related literature on the areas of corporate entrepreneurship, employee engagement, as well as innovation and developed an integrated model which combines the three constructs. The study bases itself on the resource-based view (RBV) for looking into corporate entrepreneurial ecosystems as organizational capabilities and employee engagement as a human resource. The social exchange theory (SET) was also used to analyse the interrelationships.

Findings

An RBV synthesis made on corporate entrepreneurship, employee engagement, as well as innovation literature shows that while corporate entrepreneurship has been recognized as beneficial to bring positive organizational outcomes, attempts to tie it in the core resource, capability and competence input-output linkage are scanty. The study shows that the RBV can be a good way to see human resources as a source of organizational competitive advantage and corporate entrepreneurship as the capability to product innovation as a competence. The study also shows that by combining the RBV with the SET corporate entrepreneurship, employee engagement and innovation can be integrated as a basis for developing organizational competitiveness.

Practical implications

The implication of this paper to future empirical studies is that corporate entrepreneurship can be integrated with the RBV to relate it to the core competitive advantage development endeavour. The implication for policymakers and management practitioners on the other hand is that managers can consider corporate entrepreneurship as a major capability to bring the employee resource on board the innovation process. The study further implies that management practitioners need to provide time, freedom, boundary, reward and support to get their employees engaged in innovation. Hence, managers can integrate the SET into their motivation principles.

Originality/value

The study is original in its attempt to integrate the SET and RBV for studies in the area of corporate entrepreneurship, employee engagement and innovation.

Exploring the relationship between corporate entrepreneurship and firm performance: the mediating effect of strategic entrepreneurship

Purpose

Strategic entrepreneurship rejuvenates firms to achieve a competitive advantage in current markets. It is effective in forming corporate entrepreneurship and involves the simultaneous opportunity-seeking and advantage-seeking behaviors of firms. The aim of this paper is to investigate the mediating effect of strategic entrepreneurship in the relationship between corporate entrepreneurship and firm performance through the resource-based view.

Design/methodology/approach

Adopting a quantitative research method and structural equation modeling technique, structural models were developed to test the research hypotheses. To this end, a questionnaire survey was conducted among 103 financial technology companies in Iran.

Findings

The results support the proposed hypotheses. The findings indicate that corporate entrepreneurship and strategic entrepreneurship are positively related to firm performance. They also reveal the mediating effect of strategic entrepreneurship in the relationship between corporate entrepreneurship and firm performance. In the developing context of Iran, financial technology companies are more likely to employ corporate entrepreneurship and strategic entrepreneurship to achieve firm performance.

Originality/value

The current study contributes to the literature on strategic entrepreneurship by employing a resource-based view and exploring the relationship between firm capabilities (i.e. strategic entrepreneurship) and firm performance. Applying a resource-based view leads to a better understanding of strategic entrepreneurship. Finally, this study singles out and discusses the various features that characterize the implementation of strategic entrepreneurship by Iranian financial technology companies to reach a competitive advantage.

Roles of dynamic capabilities and knowledge management strategies on organizational performance

The theoretical and practical impact of dynamic capabilities on organizational performance remains elusive. This study investigates the mediating role of a firm’s dynamic capabilities, measured by IT capability and environmental scanning. In addition, by proposing that knowledge management (KM) strategies play a crucial moderating role in the relationships between entrepreneurial orientation (EO), dynamic capabilities, and organizational performance, this study highlights the need for effective KM strategies to maximize organizational performance. A questionnaire was administered to Korean managers who understand and can answer overall characteristics of their organizations. Our study found that dynamic capabilities partially mediated the relationship between EO and organizational performance. In addition, our findings show that the relationship between EO and organizational performance is stronger when firms emphasize personalization KM strategies, while the firms focusing on codification KM strategies demonstrate a stronger relationship between IT capability and organizational performance.

A framework for business model with strategic innovation in ICT firms

Purpose

The purpose of this study is to help gain an accurate and distinct understanding of information-based business concepts and critical steps in designing an appropriate business model, by providing a framework for designing an innovative information-based business to help fledgling businesses development in the information and communication technology (ICT) industry of Iran. What is a business model framework with the strategic innovation approach in the small and medium enterprises (SMEs) of ICT industry? What are the components of this model and the relations between them? Business model is a logical response to how a business can create value. Changing business environment means that business models are rapidly growing; accordingly, innovation is no longer optional. However, innovation is important in general, but the kind of innovation that is widely and directly dependent on business model will be quite critical for all parts of the organization. In fact, business model innovation is an exquisite technic to create, deliver and earn value by changing one or more components of a typical business model. Business model innovation needs information and form business environment based on dynamic information system.

Design/methodology/approach

The present paper focuses upon SMEs in ICT. Grounded theory has been used for this purpose, with 15 interviews conducted.

Findings

An emerging market is one in which commercial exchanges of a particular industry between the countries are relatively new but possess great investment attractiveness and a high potential to grow (such as Iran).As the ICT industry of Iran is a leading industry, and the country itself is an emerging market, the main purpose of this study is to provide a framework for designing an innovative information-based business to help fledgling businesses development in the ICT industry of Iran.

Originality/value

The purpose of this paper is to help accurate and distinct understanding of the business model concept and critical steps in designing an appropriate business model. Studies conducted to simultaneously deal with the business model and strategic innovations are few, and by the time the proposal was written, there was no research observed from Persian sources.

Conditional Mediation of Absorptive Capacity and Environment in International Entrepreneurial Orientation of Family Businesses

This study analyzes the effect of conditional mediation of environment-absorptive capacity in international entrepreneurial orientation of family businesses. Results involve data from 218 Spanish family businesses, analyzed with SmartPLS 3.2.7 software. This paper presents a relevant contribution both to the academic field and the performance of family firms, helping to understand the process of transforming international entrepreneurial orientation into a better international performance through absorptive capacity while family businesses invest their efforts in aligning international entrepreneurial orientation and absorptive capacity with international results, bearing in mind the positive moderator effect of environment. The most relevant contribution of this work is to integrate in the same model the mediating effect of the absorption capacity and the moderating effect of the environment: the effect of the international entrepreneurial orientation on the international performance of family businesses improves with the mediation of the absorptive capacity (the variability of international performance goes from 32.5 to 40.6%) and the moderation of the environment (to variability of international performance goes from 40.6 to 45.3%).

The Effects of Technology Entrepreneurship on Customers and Society: A Case Study of a Spanish Pharmaceutical Distribution Company

The main purpose of this paper is to provide an understanding, within the field of corporate entrepreneurship, of the various factors that enable technology entrepreneurship in established firms and its principal effects on customers and society. The paper reports on a case study regarding technology entrepreneurship in a Spanish company whose activity is pharmaceutical distribution. This company has been able to overcome the consequences of the worldwide crisis and start an innovative process which includes the installation of new information technology (IT) and an investment of 6 million Euros. It is, in this respect, a model to imitate and the objective of this paper is therefore to discover the managers’ entrepreneurial orientation (EO) characteristics which have made this possible, along with the organizational and social effects resulting from the process. We verify that EO is present in this company and that the development of new IT has important effects on customers and the population.

Are subjective business performance measures justified?

Purpose

– The purpose of this paper is to operationalize the subjective measures of business performance and assessing their justification for use in place of objective measures of business performance.

Design/methodology/approach

– The study is based on a sample survey of 171 companies listed on Bombay Stock Exchange, India. A cross-sectional descriptive research design has been used. Exploratory factor analysis was used to assess the factor structure and dimensionality of objective and subjective measures of business performance. The psychometric properties of these measures and their interrelationship have been assessed through confirmatory factor analysis.

Findings

– The study finds a strong positive correlation between subjective business performance and objective business performance. The study finds it justified to use the subjective measures of business performance.

Research limitations/implications

– Response bias may have crept in because of self-reported measure used for the study. Future researchers may cross-verify the subjective perception of respondents with data available from the records of the firms. Second, the study focuses only on financial and operational indicators of performance. The future studies may widen the scope of business performance by incorporating the interests of other stakeholders like suppliers, government, environment and society in general.

Practical implications

– The strategy researchers confronting the challenge of adopting appropriate measures of business performance can use either or both of subjective and objective performance measures, as suggested in this study. The study has suggestions for strategic decision makers regarding measurement of business performance in terms of financial as well as operational indicators.

Originality/value

– The study operationalizes and validates two measures of performance, namely, subjective business performance and objective business performance. The study contributes to the strategic management literature by providing evidence for association between objective and subjective measures of performance.

EFFECT OF ORGANISATIONAL AND ENVIRONMENTAL FACTORS ON INNOVATIVENESS AND BUSINESS PERFORMANCE RELATIONSHIP

We have investigated the role played by organisational and environmental factors in innovativeness and business performance relationship. The study is based on a purposive sample of 168 key informants (senior level managers in decision-making roles) from Indian firms. For data collection, we developed scales to measure innovativeness and business performance. The results show that innovativeness is a significant determinant of business performance. We also find that influence of innovativeness on external business performance is moderated by organisational and environmental variables. The organisational decision makers in India can draw insights from these results and better decide their strategic postures for designing organisational structure (OS) and for coping better with the external business environment. The study contributes to the literature by providing empirical evidence in support of organic structure and innovativeness for Indian firms to achieve superior business performance in the face of turbulent external business environment.

Collective entrepreneurship: Employees’ perceptions of the influence of leadership styles

Collective entrepreneurship (CE) is the ability of several individuals to jointly innovate and create within organisations. In this exploratory study, we investigate whether the relationship between some specific leadership styles and more effective CE is affected by moderator variables. The unit of analysis were staff members of a Portuguese group of small- and medium-sized enterprises (SMEs). A total of 204 questionnaires were returned, representing almost half the employee population we approached. For measurement, we employed 19 items to gather the six latent variables related to our model. For data analysis, we used partial least squares. We found that participative leadership style had the highest joint and indirect effect on more effective CE. Job satisfaction appears to be an important moderator for the occurrence of CE. The impact of employees’ organisational commitment and collaboration on CE is rather weak. Our study contributes to advancing knowledge in the fields of organisational psychology and entrepreneurship. We combine and extend previous research, which allows us to reconcile the sometimes contradictory findings so far concerning leadership and CE in the realm of small- and medium-sized enterprises.

Organisational learning and intrapreneurship: evidence of interrelated concepts

Purpose

– The purpose of this paper is to explore in-depth the interface between organisational learning and intrapreneurship. In this way, the paper aims at understanding how these two concepts are interrelated and mutually dependent.

Design/methodology/approach

– The method employed is qualitative analysis, including multiple exploratory case studies. For data collection, interviews with staff members of the selected companies and analysis of documents were used. Content analysis served as the data processing technique.

Findings

– The research identifies four dimensions of organisational learning and intrapreneurship in which both concepts are interlinked. Within each of these levels, the most beneficial attitudes and behaviours are highlighted.

Practical implications

– This study helps to better understand the dyadic effects between organisational learning and intrapreneurship. Through the dimensions and drivers identified, mechanisms can be developed and implemented leading firms to improve their performance through their employees’ learning and intrapreneurial capacities.

Originality/value

– The contribution of this paper is to provide an in-depth view of the interdependence between organisational learning and intrapreneurship. The findings allow development of a new conceptualisation of these concepts and the underlying drivers.

Strategic utilization of entrepreneur's resource-based social capital and small firm growth

An entrepreneur's social capital can be important for their firm's growth. The creation of a network can be largely determined by strategy. This study makes a contribution by developing and testing a model of the firm growth driven by the entrepreneur's social capital that considers the entrepreneur's resource acquisition network ties. In the model a controversial combination of strong and weak tie arguments is proposed. Regression analysis was conducted using structured-questionnaire survey data from small firm entrepreneurs in Slovenia. The findings suggest that firm growth can be influenced by strategic utilization of the entrepreneur's resource-based social capital. In particular, resource network intensity can have a positive influence on firm growth, whereas the central resource ‘network person friendship’ can be negatively related to firm growth.

Strategic utilization of entrepreneur's resource-based social capital and small firm growth

An entrepreneur's social capital can be important for their firm's growth. The creation of a network can be largely determined by strategy. This study makes a contribution by developing and testing a model of the firm growth driven by the entrepreneur's social capital that considers the entrepreneur's resource acquisition network ties. In the model a controversial combination of strong and weak tie arguments is proposed. Regression analysis was conducted using structured-questionnaire survey data from small firm entrepreneurs in Slovenia. The findings suggest that firm growth can be influenced by strategic utilization of the entrepreneur's resource-based social capital. In particular, resource network intensity can have a positive influence on firm growth, whereas the central resource ‘network person friendship’ can be negatively related to firm growth.

STRATEGIC INNOVATION AT THE FIRM LEVEL: THE IMPACT OF STRATEGIC MANAGEMENT PRACTICES ON ENTREPRENEURIAL ORIENTATION

The study combines the research domains of strategic management and corporate innovation by examining the impact of strategic management practices on entrepreneurial orientation (EO). Recognising the importance of internal business processes that enable firm entrepreneurial behaviour, it is hypothesised that higher levels of EO are positively associated with the strategic management practices of (1) locus of planning, (2) scanning intensity, (3) planning flexibility, (4) planning horizon, and (5) strategy and financial control attributes. Empirical testing takes place in an under-researched emerging market context on a sample of 219 financial and business services firms. The results provide support for the positive impact that the different strategic management practices have on EO. A practical consideration is for managers to leverage the strategic management practices so that the firm's position on the conservative-entrepreneurial continuum is increased by its propensity to be innovative, proactive, and be willing to take risks when confronted by uncertainty.