A comparative analysis of corporate entrepreneurial orientation between selected firms in the Netherlands and the USA

Firms in turbulent or fast-changing environments must continually innovate to remain competitive. This study examined how a firm's strategic management practices influence its entrepreneurial behaviour as compared to an international competitor. Four firms in the Netherlands were each matched with a key competitor in the USA. Several survey measures related to the strategic management process were used along with an instrument related to corporate entrepreneurship practices. Both managers and employees participated in the study. Results revealed significant differences between the Netherlands firms and the US competitors in entrepreneurial orientation. Results also supported these comparative differences along three key dimensions of strategic management as they relate to corporate entrepreneurship. The final set of data revealed a relationship between corporate entrepreneurship and three measures of firm performance. The implications focus upon the key role that culture may play in facilitating corporate entrepreneurship and adaptable organizational practices. Suggestions for further research are also made.     

Links between entrepreneurial culture,innovation, and performance: The moderating role of family firms

The relationships between corporate entrepreneurship, innovation and performance have been previously addressed by the literature. However, they have yielded mixed and often inconclusive results. The purpose of this paper is hence to empirically test a model that links entrepreneurial culture, innovation outcomes and business performance. In this model, the family nature of firms is subsequently included as a moderator variable. The empirical investigation is based on a sample of 145 family firms from the automotive components manufacturing sector in Spain. This study uses Partial Least Squares (PLS) path-modeling to test our research model and hypotheses. Our results reveal the increasing importance of fostering an entrepreneurial culture within family firms in order to yield innovation processes and performance.     

Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry

Although strategic entrepreneurship in established firms is recognized as a vital source of sustainable competitive advantage, this field has no clearly developed research paradigm. This study proposes a conceptual framework to investigate dimensions of strategic entrepreneurship and its function in sustainable competitive advantage of established firms in a modern volatile environment, through the lens of the dynamic capability view. By conducting a systematic literature review of previous research documents and considering conceptual interrelationships between strategic entrepreneurship and dynamic capabilities, we propose categories that comprise dimensions of a firm’s strategic entrepreneurship: environmental sensing, opportunity seizing, strategic flexibility, entrepreneurial orientation and organizational learning. We establish a conceptual framework of strategic entrepreneurship in which entrepreneurs’ managerial capabilities of environmental sensing, opportunity seizing, strategic flexibility and entrepreneurial orientation closely interact with organizational learning, thereby facilitating sustainable performance of established firms. Following empirical studies of established firms in the digital TV manufacturing industry, the proposed conceptual framework suggests that each dimension of strategic entrepreneurship plays a critical role in competitive advantage of firms. In addition, case study results indicate that a firm’s position and evolutionary path form antecedent factors influencing entrepreneurs’ managerial capabilities and organizational learning of established firms.     

The interplay of corporate entrepreneurship,environmental orientation,and performance in clean‐tech firms—A double‐edged sword

Clean‐tech innovations are an important driver in solving global issues such as climate change and for the sustainable development of economies around the world. Whereas a large part of the literature focuses on clean‐tech ventures, less is known on corporate entrepreneurship, that is, entrepreneurial behavior in established firms and its relation to sustainability. This paper extends the sustainable entrepreneurship debate to corporate entrepreneurship, which represents a fruitful avenue to further developing clean technologies. We focus particularly on clean‐tech firms' organizational preparedness for corporate entrepreneurship (OPCE), that is, how well a firm's structures and processes are set for entrepreneurial activities. On the basis of contingency theory, this study investigates how the level of OPCE influences the environmental and financial performance of clean‐tech firms and whether their environmental orientation affects these relationships. Building on data from 103 firms, we find support for a positive effect of OPCE on both environmental and financial performance. Both effects are stronger the higher the external environmental orientation. In contrast, the leverage of internal environmental orientation is not equally positive. Our study reveals that the effect of OPCE on financial performance diminishes for firms that are more strongly driven by an internal than an external environmental orientation.     

Regional development and sources of superior performance across textile and IT sectors in Taiwan

The rapid growth and industrialization of Taiwan's textile and IT sectors, mainly comprised of small and medium-sized enterprises, has prompted an array of explanations among academics, including neoliberalism, structural-institutionalism, flying geese patterns, regional networks and economic geography. Drawing on neoliberal, structural-institutional, regional networking and economic geographic views in that strong Taiwanese entrepreneurial culture is important to its textile and IT sector development, this study shares their positive perspectives in influencing the sources of profitability differentials among Taiwan's textile and IT firms in international competitiveness. Researchers investigating the sources of performance differences among firms have focused mainly on the relative importance of industry and firm factors. Specifically, this study employs Taiwan's business database to examine industry and firm effects on profitability differentials in these sectors using return on assets and the economic performance measures of economic value added and market value added. A variance components model is proposed, and findings indicate that firm effects dominate performance while industry effects have little impact. Our discussion reconciles results with those of previous studies.     

Retaining skilled employees: A human capital model with innovation and entrepreneurship

In his seminal paper, Becker argues that firms never invest in general human capital in a frictionless labor market. Nevertheless, empirical evidence shows the opposite. This paper sheds light on this puzzle by developing a principal–agent model with human capital investments. The novel feature of the model is that specific human capital increases the agent's probability to innovate. Innovation brings the opportunity of entrepreneurship, which means losing a skilled agent for the principal. The results show that higher entrepreneurial income increases the risk of employee departure and the principal may use general human capital investment for retention.     

Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior

Scholars have long studied drivers of entrepreneurial behavior among established firms. Yet little is known about how individual factors shape a firm’s choice to pursue entrepreneurship. We draw on behavioral agency theory to explore the role of equity incentives in driving corporate entrepreneurship. Our findings suggest CEOs avoid corporate entrepreneurial behaviors as their option wealth increases. However industry dynamics also prove to be an important contingency when predicting the effects of both restricted stock and stock options on the likelihood that the CEO engages in corporate entrepreneurship. Our findings provide a theoretical platform for predicting dimensions of entrepreneurial behavior and highlight effects of CEO equity ownership.

     

Human resource management practices and corporate entrepreneurship: an empirical assessment from the USA

In this article, the relationship between human resource management and corporate entrepreneurship is assessed. The underlying nature of entrepreneurship is examined and the core dimensions of an entrepreneurial orientation are identified. Based on current classification schemes of HRM-related practices, an assessment is made of practices that facilitate rather than constrain entrepreneurial behaviour, and research hypotheses are generated. Results are reported of a cross-sectional survey of firms in which these hypotheses are tested. Conclusions and implications are drawn for managers, and suggestions are made for further research.     

Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability

This study examines how three different dimensions of entrepreneurial orientation (proactiveness, innovativeness, and risk-taking) each determine internationalization strategies and enhance international performance among small and medium-sized enterprises (SMEs) through the mediating role of marketing capabilities. An integrative theoretical framework built on international entrepreneurship and a resource-based approach was tested in the context of Korean SMEs. Analyses of 401 survey data collected from Korean exporting SMEs revealed the differential effects of each entrepreneurial orientation and the mediating effect of marketing capability on internationalization strategies and performance. Proactiveness and risk taking appeared to function as significant antecedents of marketing capability. Marketing capability, in turn, significantly decreased internationalization scope and increased the financial performance of Korean SMEs, though it did not influence internationalization scale. This study further confirms that the mediating role of marketing capability in entrepreneurial orientation-performance relationships vary by entrepreneurial orientation dimensions. Taking the direct and indirect roles of the entrepreneurial orientation dimensions together, this study recommends the critical prioritization of risk-taking over proactiveness. It extends previous approaches to the triad of resource–capability–performance. Theoretical contributions and insightful managerial implications are also provided.     

The relationship between resources,entrepreneurial orientation and performance in farm-based ventures

The purpose of this paper is to investigate how firm-specific resources and entrepreneurial orientation (EO) of the firm may influence performance in small farm-based ventures. It builds upon theoretical strands from the resource-based and entrepreneurship perspectives. Research within these fields indicates that these relationships might be dependent on the context within which the firm operates. Hypotheses are developed to test the possible effect of entrepreneurial efforts and resources (financial position, farm size, location, network and unique competence) on short- and long-term performance. Data gathered in 2003 and 2006 from farms engaged in innovative ventures were used to test the hypotheses. The results show that financial capacity, unique competence and entrepreneurial efforts influence performance in the investigated firms. This suggests that firms do get paid back in the long run for engaging in entrepreneurial efforts. Thus, entrepreneurial activities and attitudes represent an important factor enabling firms to create, reconsider and apply their resources in more efficient ways.     

Linking high performance organizational culture and talent management: satisfaction/motivation and organizational commitment as mediators

Relying on strategic human resource management and organization development systemic principles, this theory-building study tested the validity of a new talent attraction and retention model which focused on the under-researched effects of organizational culture and employee attitudes. The analysis was based on data gathered from two large organizations representing two different countries and industries. Structural equation modeling results ascertained that talent attraction and retention were predicted by high performance organizational culture. This effect was also found to be mediated by the employee attitudes of satisfaction/motivation and organizational commitment. More specifically, this study found talent attraction and retention to be highly associated with the extent to which the organization is perceived to have a change-, quality-, and technology-driven culture, and characterized by support for creativity, open communications, effective knowledge management, and the core values of respect and integrity. This study concluded that strategically aligned and ethical high performance organizational cultures have strong effects on talent attraction and retention and are also highly conducive to the development of high commitment and motivating work systems.     

Incidence of teams in the firms owned by serial,portfolio and first-time entrepreneurs

This study focused on the prevalence of teams in the firms owned by habitual and first-time entrepreneurs. Most team-oriented studies in the field of entrepreneurship have rather focused on entrepreneurial than management teams. In this study, we extend the prior research by linking management teams to the discussion and by paying attention a previous closure experience of an entrepreneur. The research revealed that management teams were more common in the firms owned by habitual than first-time entrepreneurs. Correspondingly, there were more solo entrepreneurs among the first-time entrepreneurs. The results also suggest that a closure experience decrease the probability of solo entrepreneurship.     

International entrepreneurship and the small business

The topic of ‘international entrepreneurship’ is becoming increasingly popular with researchers concerned with examining how international and entrepreneurial activities intersect when people in organizations engage in pro-active brokering and risk-taking behaviour in cross-border contexts. Some caution is needed in over-generalizing the meaning and significance of international entrepreneurship – especially in relation to small businesses. Not all entrepreneurial risk-taking, brokering and opportunity-seeking activities lead to internationalization (as the statistics on small business international activities indicate). This might suggest then that the only truly internationally entrepreneurial firms are those that are ‘born global’. However, their entrepreneurial activities are more ‘spatial’, concerned with what can be constructed again in relation to global markets rather than in relation to the local/regional context in which the business is located. For small firms that internationalize a few years after start-up (late starters), processes of international entrepreneurship are different. For ‘later starters’, international entrepreneurship is distinctive in that it is characterized by extending and modifying entrepreneurial understandings and practices that have been socially constructed in relation to the local and regional context in which the small firm is located.     

Antecedents of the small firm effect: the role of knowledge spillover and blocked mobility for employee entrepreneurial intentions

Small firms are said to produce more entrepreneurs than larger ones (“small firm effect”). Applying existing theories, we analyze how different management positions influence employee entrepreneurship in small firms. Based on a panel study of 4832 cases, we provide evidence for the fact that small firms indeed produce more entrepreneurs. Moreover, we show that lower management positions of small firm employees are responsible for this small firm effect. We conclude that small firms seem to create an environment in which employees on low management positions strongly benefit from knowledge spillover effects as they are educated necessary skills, knowledge and expertise, and are able to build up networks conducive to entrepreneurship (“knowledge spillover effect”), while not having the multifaceted advancement opportunities as in large companies (“blocked mobility effect”).     

External cooperation and entrepreneurial orientation in industrial clusters

ABSTRACT

The aim of this paper is to examine the relationship between external cooperation and entrepreneurial orientation (EO). This relationship is explored in cluster environment, wherein entrepreneurial organizations compete and cooperate simultaneously to pursue opportunities. The following hypothesis is tested: External cooperation is positively correlated with entrepreneurial orientation. The hypothesis is tested with a correlation analysis on a sample of 77 small-sized enterprises operating in the Malopolska region in Poland, wherein several clusters are active. Additionally, the regression analysis is conducted to examine the associations between inter-organizational cooperation and EO dimensions. The findings confirm that external cooperation is positively correlated with EO. This observation is confronted with a pro-competitive approach that is a constitutional element of the entrepreneurship concept. Moreover, the findings show that the correlation between external cooperation and a firm’s performance is stronger than between some other EO dimensions and performance. Additionally, the findings show the important role of relationships between organizations and their clients. In the paper, several remarks for development of the theory are discussed, including the need for incorporating inter-organizational cooperation into a set of entrepreneurial traits and reflecting it in entrepreneurial orientation scales. The findings confirm the importance of that direction of theory development that focuses on inter-organizational collaboration in the context of entrepreneurship.     

Small entrepreneurial ventures culture, change and the impact on HRM: A critical review

Effective management of people is increasingly recognized in the literature as a vital contributor to organizational performance and indeed survival. Nevertheless, studies of the dynamics of human resource management in small entrepreneurial ventures are relatively sparse. In this paper we draw upon a range of behaviourally-informed research publications to demonstrate that a culture of owner-influenced individualism and informality pervades these ventures, affecting prime human resource issues such as performance related practices, training and development, work–life balance and other critical dimensions of employee welfare. A preference for informality and an absence of strategy to inform owner–employee relations sits uneasily alongside growing political pressures toward codification of the management of employees in small entrepreneurial ventures. The response to these pressures may have significant implications both for relationships with employees and for organizational performance.     

The regional variations of entrepreneurial dynamism: a mixed methods study

ABSTRACT

Given that added knowledge and deeper understanding are needed with regard to regional variations in the creation of new firms, this study seeks to answer the following two research questions: What are the variables that explain entrepreneurial dynamism and how may they be apprehended under the four necessary and complementary dimensions of this phenomenon, namely the demand, supply, institutional and spatial dimensions? And how should the nature and interrelatedness of these dimensions and their associated variables influence regional policymakers and other regional stakeholders in their efforts to stimulate entrepreneurship in their region? In order to do so, we used mixed methods to collect and analyze regional data, first doing a regression analysis of quantitative data on 97 small regions in Canada’s province of Québec, followed by a qualitative survey of regional stakeholders on eight matched pairs of regions. A phenomenological qualitative analysis was then effectuated in order to gain a deeper understanding of the research variables’ effects and thus grasp the complex socio-economic reality of entrepreneurial dynamism in a region. The results of the study confirm the importance and interrelatedness of the four dimensions of entrepreneurial dynamism in providing new insights into these questions. Moreover, the findings that results from these quantitative, qualitative and holistic analyses have implications for the policies of regional authorities and for the actions of other regional stakeholders.     

Beyond the enclave? Break-outs into mainstream markets and multicultural hybridism in ethnic firms

The literature on immigrant entrepreneurship has richly described the characteristics and peculiarities of ethnic businesses catering to enclave markets. However, several indications suggest that immigrant-owned firms are increasingly entering mainstream markets and changing both their internal structures and their external networks with resource providers. One of the most substantial changes, which has been overlooked by researchers, consists of the appearance of what we define as ‘multiculturally hybrid firms’, which are firms that rely on inter-ethnic managerial or labour resources to carry out their activities. Therefore, in this paper we provide an understanding of the variables that affect the recourse to solutions of multicultural hybridism in the entrepreneurial teams and personnel of immigrant-owned firms. We conduct our empirical analyses on data collected through interviews on a sample of 130 immigrant entrepreneurs in Italy. Our results show that multicultural hybridism is mainly driven by the size of the founding team, the business's maturity, the entrepreneurs' host-country language competence and by entrepreneurs' motivation by individual goals rather than community goals. This research advances our knowledge about immigrant entrepreneurship by focusing on firm-level dimensions such as the diversity of entrepreneurial teams and employees, which are increasingly relevant in our multicultural societies.     

Efficient entrepreneurial culture: a cross-country analysis of developed countries

Entrepreneurship, together with national cultural values, may improve a country’s GDP levels. Under this hypothesis, the aim of this paper is to analyse the relationships between the levels of entrepreneurship, cultural values, and of GDP per capita in a sample of 27 developed countries, by identifying an efficient combination of culture and entrepreneurship variables, under the concept of efficient entrepreneurial culture, that maximises GDP per capita. Through the application of Data Envelopment Analysis (DEA) methodology, nine countries have been identified as having an efficient entrepreneurial culture. The implications derived for policy-makers are substantial, since a better understanding of cultural effects on entrepreneurship can lead to improvements in the design of governmental programmes that foster cultural values related to high-quality entrepreneurship.     

System‐Spanning Values Work and Entrepreneurial Growth in Family Firms

Culture and values are key drivers of corporate entrepreneurship in early stages of family firm development, but value conflicts often arise over time that progressively inhibit their entrepreneurial efforts. How can family firms reconcile conflicting values to sustain corporate entrepreneurship over time? Our 45‐year longitudinal case study of a large global family firm shows that family business leaders’ practices of invoking and flexibly using family and business values were crucial to achieve sustained entrepreneurial behaviour and growth over an extended period of time. We theorize these efforts as system‐spanning values work enfolding through specific family, business, and temporal mechanisms. By identifying and elucidating three types of values work (i.e., rooting, revitalizing, and spreading), our study advances current understanding of the micro‐foundations underpinning the relationship between values and entrepreneurship in family firms.