The purpose of this bachelor thesis was to investigate the relationship between corporate entrepreneurship (CE) (i.e., innovation, strategic renewal, and corporate venturing) and firm performance (i.e., financial, non-financial, subjective, and objective). For this purpose, a meta-analysis is performed, analyzing prior literature findings regarding the CE-performance relationship of 76 independent samples. The results indicate that innovation, strategic renewal, and corporate venturing each have a significant positive impact on firm performance. Results also suggest that the CE-performance relationship is stronger, when performance is assessed subjectively, as opposed to objectively. In addition to this, a moderator analysis is conducted,
to evaluate whether the relationships vary between the firms’ country of origin. Results show
that innovation, strategic renewal, and corporate venturing have a stronger effect on performance in Asian countries, than in European or American countries. Those findings are discussed and embedded in current literature. Lastly, practical implications and limitations are discussed.
Diese Bachelorarbeit untersucht die Beziehung zwischen Corporate Entrepreneurship (Innovation, Strategic Renewal, Corporate Venturing) und Unternehmensleistung (finanziell, nicht-finanziell, subjektiv, objektiv) mittels einer Meta-Analyse von 76 Studien. Zudem wird analysiert, ob diese Beziehungen je nach Herkunftsland des Unternehmens variieren. Die Ergebnisse dieser Untersuchung werden im Kontext der aktuellen Literatur diskutiert und praktische Implikationen sowie Einschränkungen aufgezeigt.
Table of Contents
1 ABSTRACT
2 INTRODUCTION
3 THEORETICAL BACKGROUND
4 HYPOTHESES
4.1 Innovation and Performance
4.2 Strategic Renewal and Performance
4.3 Corporate Venturing and Performance
4.4 Subjective vs Objective Performance
4.5 The moderating influence of the country of origin
5 METHOD
5.1 Literature Search
5.2 Meta-Analysis
5.3 Measurement and Coding Procedure
5.4 Analysis
6 RESULTS
6.1 Moderator analysis
7 DISCUSSION
7.1 Direct effects of CE on performance
7.2 Moderating Influence
7.3 Implications
7.4 Limitations
8 CONCLUSION
Research Objective & Topics
This thesis investigates the relationship between corporate entrepreneurship (CE) activities—specifically innovation, strategic renewal, and corporate venturing—and firm performance using a meta-analytical approach. It aims to clarify the inconsistency in previous findings by evaluating how different performance metrics (subjective vs. objective) and the firm's country of origin moderate this relationship.
- Corporate entrepreneurship dimensions (Innovation, Strategic Renewal, Corporate Venturing)
- Direct and indirect performance effects
- Comparison of subjective vs. objective performance measures
- Moderating impact of the country of origin across different geographical regions
- Meta-analysis of empirical literature
Excerpt from the Thesis
4.1 Innovation and Performance
Innovation represents a distinguishing characteristic of every entrepreneurial company (Zahra, 1994). Firms may leverage product innovations to capitalize on opportunities within their industry, attracting new customers and exploring new markets (Zahra, 1994). Through product innovations, firms can also provide greater customer benefits, outperform rival firms, and thus enhance financial performance (Slater et al., 2014). Zahra and Covin (1995) state that, pioneering firms are able to develop a strong market position, which ultimately allows them to set higher prices. Furthermore, entering a new market (market pioneering), allows innovative firms to exploit first-mover advantages, such as defining market standards and raising entry barriers which consequently lead to increasing firm profitability and growth (Covin et al., 2000). Besides the benefits resulting from the development and introduction of new products, businesses also profit from improving their processes. Process innovations represent an important tool for firms to increase productivity and encompass the implementation of new equipment/materials for the production of a product or service, restructuring task specifications, as well as revising work and information flows (Reichstein & Salter, 2006). Process innovations also aim to enhance product quality, generate new knowledge, and reduce costs by improving internal operations (Martínez-Ros & Labeaga, 2009). Companies that maintain an innovative spirit over a long period stand out from the competition, build a positive brand reputation among customers, and acquire substantial market share (Zahra and Covin 1995). Hence, innovation is also expected to have a positive effect on non-financial performance.
Summary of Chapters
1 ABSTRACT: Provides a concise overview of the thesis, summarizing the purpose, methodology, key findings, and implications regarding the CE-performance relationship.
2 INTRODUCTION: Outlines the importance of corporate entrepreneurship (CE) as a driver of firm success and identifies the research gap that this meta-analysis intends to address.
3 THEORETICAL BACKGROUND: Defines the core concepts of corporate entrepreneurship and reviews existing literature concerning its dimensions and its impact on firm outcomes.
4 HYPOTHESES: Develops the theoretical framework and formalizes hypotheses regarding the direct effects of CE activities and the moderating role of performance measurement and country of origin.
5 METHOD: Details the systematic literature search process, the inclusion criteria for the studies, and the statistical methods used for the meta-analysis.
6 RESULTS: Presents the statistical findings of the meta-analysis, including the confirmation of hypotheses and the results from the moderator analysis.
7 DISCUSSION: Interprets the findings by linking them back to the literature, discusses implications for managers, and addresses the study's limitations.
8 CONCLUSION: Synthesizes the main conclusions of the thesis and provides a closing argument on the importance of context in understanding the success of CE initiatives.
Keywords
Corporate Entrepreneurship, Innovation, Strategic Renewal, Corporate Venturing, Firm Performance, Subjective Performance, Objective Performance, Meta-analysis, Moderator Analysis, Country of Origin, Firm Profitability, Literature Review, Quantitative Research, Management, Competitive Advantage
Frequently Asked Questions
What is the fundamental purpose of this thesis?
This thesis examines the impact of corporate entrepreneurship (CE) on firm performance by synthesizing existing empirical research through a comprehensive meta-analysis.
Which dimensions of corporate entrepreneurship does this work address?
The work focuses on three distinct dimensions of CE: innovation, strategic renewal, and corporate venturing.
What is the primary research question being studied?
The study aims to determine the effect of CE activities on firm performance, investigate whether this effect varies between subjective and objective performance measures, and identify how the country of origin moderates these relationships.
Which methodology is adopted in this research?
The author performs a meta-analysis, utilizing a sample of 75 empirical studies with 76 independent samples to quantitatively assess and integrate previous research findings.
What topics are covered in the main section of the thesis?
The main sections cover the theoretical definition of CE, the formulation of five key hypotheses, the systematic selection and coding of empirical literature, and an in-depth analysis of result variations across different international contexts.
How can this study be categorized based on its keywords?
The study is characterized by keywords relating to entrepreneurial activity in established firms, performance measurement techniques, meta-analytical methods, and institutional/contextual moderators like geography and national development.
According to the results, does the country of origin play a significant role?
Yes, the meta-analysis suggests that the effectiveness of CE activities significantly varies by region, with findings indicating stronger performance effects for firms in Asian countries compared to those in Europe or America.
Why distinguish between subjective and objective performance metrics?
The study distinguishes between these metrics to address potential biases; results reveal that the CE-performance relationship appears stronger when performance is reported subjectively, potentially due to overestimation or common method bias.
- Quote paper
- Anonym (Author), 2024, Examining the performance effects of corporate entrepreneurship , Munich, GRIN Verlag, https://www.grin.com/document/1478249
