Volume 19, Number 2 Article by B R Bhardwaj, Sushil and K Momaya June, 2007
Corporate Entrepreneurship Model: A Source of Competitiveness :
Corporate entrepreneurship (CE) is a tool that allows companies to revitalise and to create new value through innovation, business development and renewal. Although empirical research on corporate entrepreneurship is quite rich, there is a gap between theoretical and empirical knowledge regarding the effective conduct of corporate entrepreneurship. There is also a need to understand the predictors of corporate entrepreneurial activities for developing countries like India. Bhardwaj, Sushil and Momaya conducted a study to identify the organisational antecedents of CE in the Indian context and propose a model for developing competitiveness within the firm by implementing CE. Based on a survey of the literature, a conceptual model for CE Outcomes was evolved. Using data from 81 firms from the manufacturing and service sectors across India, the study measured the various parameters of competitive assets and competitive processes. Empirical analyses were conducted involving 181 midlevel and top level managers. Construct validity, correlation and stepwise regression were conducted to identify the impact of these variables on CE and validate the proposed model. The internal organisational factors stimulating corporate entrepreneurship were classified according to the Asset-Process-Performance Framework for competitiveness developed by Momaya. The five factors identified by Hornsby et al in 2000 included management support, work discretion/autonomy, rewards/reinforcement, time availability, and flexible organisational boundaries. This study contributes to the existing literature by identifying three more factors that increased the predictability of CE outcomes – risk-taking propensity, intelligence generation and intelligence dissemination. The findings show that these variables are critical for stimulating CE activities within the organisations and for enhancing the competitiveness of the firm.
Reprint No 07205
