Corporate Entrepreneurship As A Determinant Of Large Firm Performance: Evidence From Malaysia
The aim of this study is to investigate performance determinant of large firms from the corporate entrepreneurship perspective. Corporate entrepreneurship is a term used to describe entrepreneurial behaviour inside established and large firms and the organizational structure plays a crucial role in...
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| Summary: | The aim of this study is to investigate performance determinant of large firms from the corporate entrepreneurship perspective. Corporate entrepreneurship is a term used to describe entrepreneurial behaviour inside established and large firms and the organizational structure plays a crucial role in achieving the firm's objectives. The theoretical frameworks underpinning the study are: the resource-based view theory. Organizational learning, and contingency theory. Five main constructs are chosen as independent factors namely the three dimensions of entrepreneurial orientation (innovativeness, risk taking and proactiveness). corporate venturing, and organic organizational structure. In this study, the entrepreneurial orientation dimensions and corporate venturing were used as a proxy for corporate entrepreneurship. The mechanistic versus organic structure will be used to determine the type of organizational structure. Environmental factors such as hostility and dynamism were used as moderating variables while the dependent variable was the firm's performance, conceptualized by return on assets, return on sales and sales growth. In order to analyze survey data, the study used the Partial Least Squares (PLS) approach to Structural Equation Modeling (SEM). Thus, the study was carried out in public listed companies listed on the main market, Bursa Malaysia. To strengthen the findings, three models were employed. A total of 660 mail survey was distributed, with 138 returned. The results demonstrate a positive relationship between corporate entrepreneurship dimensions, organic structure, and firm performance under different models. Nevertheless, not all relationships are moderated by environmental factors. This research provides new empirical evidence and valuable insight for future researchers, entrepreneurs. investors, business students and policy makers to better understand the localizing effects of corporate entrepreneurship, as moderated by hostility and dynamism environment on large firm performance. |
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