The dimensions of corporate entrepreneurship and the performance of established organization

Abstract

Recently, the issues of corporate entrepreneurship have evoked interest not only from academics, but also from business practitioners and policy makers. This interest stems from the recognition of the advantage that can be gained from corporate entrepreneurship activities. This paper analyses the effect of corporate entrepreneurship (intrapreneurship) dimensions on the financial performance of intrapreneurship companies of established Malaysian state government-linked corporation namely, Jcorp Group, a Johor state government-linked corporation. In this paper, there are four dimensions of corporate entrepreneurship being studied; (1) pro-activeness, (2) risk-taking, (3) innovations and (4) self-renewal. In addition, this paper also explores the moderating effects of resource availability, supportive organizat ional structure, and rewards on the relationsh ip between corporate entrepreneurship dimensions and company performance. The findings of this study show that pro-activeness has a positive and significant impact on financial performance of the company, and resource availability, supportive organizational structure and rewards do moderate the relationship between pro-activeness and financial performance. In contrast, we also found that risk-taking does not have a direct effect on financial performance of the company. However, resource availability, supportive organizational structure and rewards are shown to moderate the relationship between risk-taking and financial performa nce. Meanwhile, for innovation and self-renewal, we found that both are negatively related to financial performance. Further analysis shows that although all moderating factors were positively related with these two corporate entrepreneurship dimensions, but they are not significant .