The Effect Of Organizational Preparedness Corporate Entrepreneurship On Innovation Performance And Financial Performance: The mediating role of Entrepreneurial orientation

Document Type : Research Paper

Authors

1 Faculty member of Faculty of Entrepreneurship

2 Kashan university

3 Tehran university

Abstract

In today's competitive environment, companies focus on entrepreneurial behavior.so managers try to provide the conditions for appropriate entrepreneurship. Some companies create an enterprise environment that is more entrepreneurial than other organizations. An evaluation of the organization's entrepreneurial environment, theorized and It has been shown that is an important element for success in implementation corporate entrepreneurship strategy. Research on organizational change efforts, Like implementing an corporate entrepreneurship strategy ,Need to analyze the current organizational environment or the status of "Organization Preparation for corporate entrepreneurship".Therefore, in this research has been tried review the effects of Organizational Preparedness Corporate Entrepreneurship on Innovation performance and Financial Performance with mediating variable of Entrepreneurial Orientation in active organizations in the food industry in Tehran. The present study due to its objective is practical and terms of methodology, descriptive correlational. With simple random sampling were selected 254 organizations as an example. For data analysis were used structural equation modeling technique and Smart PLS2 software. The results indicate that the organizational preparedness corporate entrepreneurship variable has a positive and significant effect on financial performance and innovation performance. Also, entrepreneurial orientation variable has a positive and significant effect on innovation and financial performance.The effect of entrepreneurial orientation on the relationship between organizational preparedness corporate entrepreneurship and innovation and financial performance was confirmed .

Keywords

References

-    دانش، م.(1396). تأثیر آمادگی سازمان برای کارآفرینی سازمانی روی عملکرد نوآوری و عملکرد مالی سازمان‌ها (مورد کاوی: سازمان‌های فعال در صنعت مواد غذایی مستقر در تهران). پایان‌نامه کارشناسی ارشد. کاشان: دانشگاه کاشان.
-     Alegre, J., & Chiva. R.(2013). Linking Entrepreneurial Orientation and Firm Performance: The Role of Organizational Learning Capability and Innovation Performance.  Journal of Small Business Management, 51(4), 491–507.
-     Alegre, J., Lapiedra, R., Chiva, R.(2006). A Measurement Scale for Product innovation Performance, European Journal of Innovation Management, 9(4), 333–346.
-     Antoncic, B., & Hisrich, R. D.(2001). Intrapreneurship: Construct Refinement and Cross-Cultural Validation. Journal of Business Venturing, 5(16), 495–527.
-     Bayarçelika, E. B., & Özşahinb, M.(2014). How Entrepreneurial Climate Effects Firm Performance?. International Strategic Management Conference, 150(10), 823-833.
-     Benner, M. J., & Tushman, M. L.(2003). Exploitation, Exploration, and Process Management: The Productivity Dilemma Revisited. Academy of Management Review, 28(2), 238–256.
-     Buvaneswari, R., & Venkatesh. M.(2013). A Study on Financial Performance with Special Reference to Sundaram Hydraulics Limited, Chennai. International Journal of Advanced Research in Management and Social Sciences, 2(8), 139-154.
-     Brigham, K. H., De Castro, J. O., & Shepherd, D. A. (2007). A Person‐Organization Fit Model of Owner‐Managers' Cognitive Style and Organizational Demands. Entrepreneurship theory and practice, 31(1), 29-51.
-     Covin, J. G., & Slevin, D. P.(1989). Strategic Management of Small Firms in Hostile and Benign Environments. Strategic Management Journal, 10, 75–87.
-     Covin, J. G., & Wales, W. J.(2011). The Measurement of Entrepreneurial Orientation. Entrepreneurship theory and practice Journal, 1(1), 1–26.
-     Cantillon R.(1734). Essai sur la nature du commerce en general [Essay on the nature of general commerce]. (, Higgs Henry , Trans.). London: Macmillan.
-     Damanpour, F., Szabat, K. A., & Evan, W. M. )1989(. The Relationship between Types of Innovation and Organizational Performance. Journal of Management Studies, 26(6(, 587–601.
-     Dess, G. G., Ireland, R. D., Zahra, S. A., Floyd, S. W., Janney, J. J., & Lane, P. J.(2003). Emerging Issues in Corporate Entrepreneurship. Journal of Management, 29(3), 351-378.
-     Dess, G.G., Lumpkin, G. T., & Covin, J. G.(1997). Entrepreneurial Strategy Making and Firm Performance: Tests of Contingency and Configurational Models. Strategic Management Journal, 18(9), 677-695.
-     Druker, P. F. (1985). Innovation and Entrepreneurship; practice and principles. New York: Harper Row. Innovation.
-     Engelen, A., Gupta, V., Strenger, L., & Brettel, M.(2012). Entrepreneurial Orientation, Firm Performance, and the Moderating Role of Transformational Leadership Behaviors. Journal of Management, 4(41), 1–30.
-     Hamed Armesh, H., Wei, CH. CH., & Marthandan. G(2014(. Corporate Entrepreneurship Antecedents and Firm Performance in Iranian Manufacturing SMEs: Mediating Role of Corporate Entrepreneurship. Journal of Basic and Applied Scientific Research, 4(5), 36-51.
-     Hayton, C. J.(2005). Promoting Corporate Entrepreneurship through Human Resource Management Practices: A Review of Empirical Research. Human Resource Management Review, 15, 21–41.
-     Hagedoorn, J. & Cloodt, M.(2003). Measuring Innovative Performance: Is there an Advantage in Using Multiple Indicators?. Research Policy, 32, 1365–1379
-     Han, J. K., Kim, N., & Srivastava, R. K.(1998). Market Orientation and Organizational Performance: Is Innovation a Missing Link?. Journal of Marketing, 62(4), 30–45.
-     Hornsby, J., Kuratko, D., Holt, D., & Wales, W.(2013). Assessing a measurement of organizational preparedness for corporate entrepreneurship. Journal of Product Innovation Management, 5(30), 937–955.
-     Ireland, R. D., Covin, J. G. & Kuratko, D. F.(2009). Conceptualizing Corporate Entrepreneurship Strategy. Entrepreneurship Theory and Practice, 1(33), 19–46.
-     Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W.(2005). Managing Potential and Realized Absorptive Capacity: How Do Organizational Antecedents Matter?. The Academy of Management Journal, 48(6), 999–1015.
-     Kaya,  N.(2006). The Impact of Human Resource Management Practices and Corporate Entrepreneurship on Firm Performance: Evidence from Turkish Firms. The International Journal of Human Resource Management, 17(12), 2074-2090.
-     Kuratko, D. F., Hornsby, J.S., & Covin, J.G.(2014). Diagnosing a Firm’s Internal Environment for Corporate Entrepreneurship. Business Horizons journal, 1(57), 37-47.
-     Kuratko, D. F., Hornsby, J.S., & Zahra, Sh.(2002). Middle Managers’ Perception of the Internal Environment for Corporate Entrepreneurship: Assessing a Measurement Scale, Journal of Business Venturing, 17(1), 253-273.
-     Kuratko, D. F., Hornsby, J.S., Covin, J.G., & Goodalea, J.C.(2011). Operations Management and Corporate Entrepreneurship: The Moderating Effect of Operations Control on the Antecedents of Corporate Entrepreneurial Activity in Relation to Innovation Performance. Journal of Operations Management, 29(1), 116-127.
-     Kuratko, D. F., Hornsby, J.S., Holt, D.T., & Wales, W.J.(2013). Assessing a Measurement of Organizational Preparedness for Corporate Entrepreneurship. Journal of Product Innovation Management, 30(5), 937-955.
-     Lekmat, L., Chelliah, J.(2014). What Are The Antecedents to Creating Sustainable Corporate Entrepreneurship in Thailand?. Journal of Contemporary Management Research, 3(10), 181-202.
-     Lumpkin, G. T., Dess, G. G.(2001). Linking two Dimensions of Entrepreneurial Orientation to Firm Performance: The Moderating Role of Environment and IndustryLlife Cycle. Journal of Business Venturing, 17(5), 429-451.
-     Lumpkin, G. T., Cogliser, C.C., & Schneider, D.R.(2009). Understanding and Measuring Autonomy: An Entrepreneurial Orientation Perspective. Entrepreneurship Theory and Practice, 33(1), 47–69.
-     Luk, CH. L., Yau, O. HM.,  Tse, A. CB., Chow, R. PM., & Lee, J. SY.(2008). The Effects of Social Capital and Organizational Innovativeness in Different Institutional Contexts. Journal of International Business Studies, 39, 589–612.
-     Lumpkin, G.T. & Dess, G.G.(1996), clarifying the entrepreneurial orientation construct and linking it to performance. The Academy of Management Review. 21(1), pp.135-172.
-     Miller, D.(1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, 29, 770-791.
-     Miller, D., & Friesen, P.H.(1982). Innovation in Conservative and Entrepreneurial Firms: Two Models of Strategic Momentum. Strategic Management Journal, 3, 1–25.
-     Morris, M. H., Kuratko, D. F. & Covin, J. G.(2011). Corporate Entrepreneurship and Innovation, 3rd ed., South-Western Cengage, Mason, OH.
-    Phan, PH., Wright, M., Ucbasaran, D., & Tan, W. L.(2009). Corporate Entrepreneurship: Current Research and Future Directions. Journal of Business Venturing, 24(3), 197–205.
-     Schollhammer, H.(1982). Internal Corporate Entrepreneurship. In C.A. Kent, D.L. Sexton, and K.H.Vesper, eds., Encyclopedia of Entrepreneurship. Englewood Cliffs, NJ: Prentice Hall, 209-223.
-     Stopford, J. M., & Baden‐Fuller, C. W. (1994). Creating corporate entrepreneurship. Strategic management journal, 15(7), 521-536.
-     Tsado, E., & Gunu, U.(2016). Managers’ Perception of Internal Factors and their Effect on Corporate Entrepreneurship: The Case of Nigerian Manufacturing Industry. Journal of Small Business & Entrepreneurship, 4(14), 1-23
-     Urban, B.(2017). Corporate Entrepreneurship in South Africa: The Role of Organizational Factors And Entrepreneurial Alertness In Advancing Innovativeness. Acta Universitatis Danubius: Oeconomica Journal, 4(12), 240-253.
-     Wood, CH. C., Holt, D.T., Reed, T. S., & Hudgens, B. J.(2015). Perceptions of Corporate Entrepreneurship in Air Force Organizations: Antecedents and Outcomes.  Journal of Small Business & Entrepreneurship, 1(21), 117-131.
-     West, M. A., & Anderson, N. R.(1996). Innovation in Top Management Teams. Journal of Applied Psychology, 81(6), 680–693.
-     Wiklund, J. (1999). The sustainability of the entrepreneurial orientation—performance relationship. Entrepreneurship theory and practice, 24(1), 37-48.
-     Zahra, SH. A., & Garvis, D. M.(2000). International Corporate Entrepreneurship and Firm Performance: The Moderating Effect of International Environment Hostility. Journal of Business Venturing, 15, 469–492.
-     Zahra, SH. A., & Das, S. R(1993). Innovation Strategy and Firm Performance in Manufacturing Companies. Production and Operations Management.
-     Zahra, Sh. A.(1993). Environment, Corporate Entrepreneurship, and Financial Performance: A Taxonomic Approach. Journal of Business Venturing, 8(4), 319-340.
Journal of Technology Development Management
Volume 5, Issue 2
August 2017
Pages 123-146

Files

History

  • Receive Date: 06 September 2017
  • Revise Date: 18 May 2017
  • Accept Date: 23 June 2017

Share

How to cite

Statistics