Corporate Entrepreneurship and Manufacturing Firms’ Performance

Authors

DOI:

https://doi.org/10.5195/emaj.2018.146

Keywords:

Corporate Entrepreneurship, Manufacturing Firms, Non-Financial Performance, Innovation, Proactiveness, Risk-Taking, Strategic Renewal, Corporate Venturing

Abstract

The study evaluates the effect of corporate entrepreneurship (measured by innovation, proactiveness, risk-taking, strategic renewal and corporate venturing) on the non-financial performance of manufacturing firms in Nigeria (measured by market share and employees satisfaction). The study employed survey research design, through the administration of structured questionnaire to management staff of eight manufacturing firms in Nigeria. The findings revealed that innovation, risk taking, proactiveness, strategic renewal and corporate venturing are all significantly related with manufacturing firms’ non-financial performance. It can therefore be concluded that corporate entrepreneurship (CE) elements (risk-taking, innovation, corporate venturing, proactiveness and strategic renewal) enhance manufacturing firms’ non-financial performance (market share and employees’ satisfaction). It is recommended that manufacturing firms should employ CE elements towards the enhancement of their non-financial performance.

Author Biography

Benneth Uchenna Eze, Hallmark University

Lecturer,  Department of Business Administration

References

Abosede, A.J., Fayose, J., and Eze, B.U. (2018). Corporate entrepreneurship and international performance of banks in Nigeria. Journal of Economics and Management, 32(2), 5-17.

Abosede, A.J., Oladimeji, M.S., and Eze, B.U. (2017, November). Innovation and internationalization of banks in Nigeria. Paper presented at the Lagos State University International Conference of Business Administration, Lagos, Nigeria.

Adele, H. A. (2015). Corporate entrepreneurship as prerequisite for corporate financial performance of public liability companies: A study of selected manufacturing firms in Nigeria. International journal of economic development research and investment, 6(3), 118.

Akinmulegun, S.O. and Oluwole, F.O. (2014). An assessment of the Nigerian manufacturing sector in the era of globalization. American Journal of Social and Management Sciences, 5(1), 27-32.

Burgelman, R. A. (1984). Designs for corporate entrepreneurship in established firms. California management review, 26(3), 154–166.

Central Bank of Nigeria (2012). Statistical bulletin. Retrieved from www.cbn.gov.ng.

Daryani, M.A., and Karimi, A. (2017). Effect of corporate entrepreneurship on firm performance in Iranian ASMEs: The mediating role of knowledge creation and learning orientation. Journal of agricultural science and technology, 19(2), 261-277.

Eze, B.U. (in press). Risk-taking, proactiveness and internationalization of Nigerian deposit money banks. Izvestiya Journal of Varna University of Economic.

Gunday, G., Ulusoy, G., Kilic, K., and Alpkan, L. (2011). Effects of innovation types on firms’ performance. Middle East Journal of Scientific Research, 10(101), 662-667.

Hanan,M. (1976). Venturing corporations-Think small to stay strong. Harvard Business Review, 54(3), 139–148.

Hill, R. M., and Hlavacek, J. D. (1972). The venture team: a new concept in marketing organizations. Journal of Marketing, 36(1), 44–50.

Jancenelle, V.E., Storrud-Barnes, S., and Javalgi, R.G. (2017). Corporate entrepreneurship and market performance: A content analysis of earnings conference calls. Management Research Review, 40 (3), 352-367.

Jennings, D. F., and Young, D. M. (1990). An empirical comparison between objective and subjective measures of the product innovation domain of corporate entrepreneurship. Entrepreneurship Theory and Practice, 15(1), 53–66.

Kuratko, D. F., and Montagno, R. V. (1989). The intrapreneurial spirit. Training and Development Journal, 43(10), 83–87.

Kuratko, D. F., Montagno, R. V., & Hornsby, J. S. (1990). Developing an entrepreneurial assessment instrument for an effective corporate entrepreneurial environment. Strategic Management Journal, 11, 49–58.

Laleye, M. (2003). Public enterprises. In L. Adamolekun (Ed.), Public Administration in Africa, (pp. 2848), Abuja, Spectrum Books.

Miller, D., and Friesen, P. (1982). Innovation in Conservative and Entrepreneurial Firms: Two Models of Strategic Momentum. Strategic Management Journal.

Oburota, C.S., and Ifere, E.O. (2017). Manufacturing subsector and economic growth in Nigeria. British Journal of Economics, Management and Trade, 17(3), 1-9.

Oke, A. (2015). The impact of innovation performance. International Journal of Innovation in SMEs, 5(1), 13-25.

Oladimeji, M.S., Abosede, A.J., and Eze, B.U. (2017, November). Corporate entrepreneurship and service firms’ performance in Nigeria. Paper presented at the Lagos State University International Conference of Business Administration, Lagos, Nigeria.

Oladimeji, M.S., Eze, B.U., and Adebayo, A.A. (in press). Strategic renewal, corporate venturing and internationalization of banks in Nigeria. Lapai Journal of Management Sciences.

Oyedokun, A.J. (2015). Corporate entrepreneurship and dynamic capabilities in selected pharmaceutical firms in Nigeria, International journal of management, 6(9), 121-135.

Peterson, R., and Berger, D. (1972). Entrepreneurship in organizations. Administrative Science Quarterly, 16, 97–106.

Pinchott, G. (1985). Intrapreneurship. New York: Harper & Row.

Prange, C., and Pinho, J.C. (2017). How personal and organizational drivers impact on SME internationalizational performance: The mediating role of organization innovation. International business review.

Rauch, A., Wiklund, J., Lumpkin, G., and Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761–787.

Sathe, V. (1989). Fostering entrepreneurship in large diversified firm. Organizational Dynamics, 18(1), 20–32.

Schollhammer, H. (1982). Internal corporate entrepreneurship. In C. Kent, D. Sexton, & K. Vesper (Eds.), Encyclopedia of entrepreneurship. Englewood Cliffs: Prentice Hall.

Thornberry, N.E. (2003). Corporate entrepreneurship: teaching managers to be entrepreneurs. Journal of management development, 22(4), 329-344.

Wiklund, J. (1999). The sustainability of entrepreneurial orientation-performance relationship. Entrepreneurship Theory and Practice, 24(1), 37-48.

Wolcot, R.C., & Lippitz, M.J. (2007). The four models of corporate entrepreneurship. MIT Sloan management review, 49(1), 221-229.

World Economic Forum (2013). Manufacturing sector adds value to economic growth and creates job. India: Press Trust.

Yamane, T. (1967). Statistics: An introductory analysis, 2nd edition, New York: Harper and Row.

Zahra, S.A. (1991). Predictors and financial outcomes of corporate entrepreneurship: an exploratory study. Journal of Business Venturing, 6(3), 259–286.

Zahra, S.A. (1995). Corporate entrepreneurship and financial performance: the case of management leveraged buyouts. Journal of Business Venturing, 10(3), 225-247.

Zahra, S.A. and Garvis, D. M. (2000). International Corporate Entrepreneurship and Firm Performance: The Moderating Effect of International Environment Hostility, Journal of Business Venturing, 15(2), 469-492.

Downloads

Published

2018-08-17

Issue

Vol. 8 No. 1 (2018)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. The Author retains copyright in the Work, where the term “Work” shall include all digital objects that may result in subsequent electronic publication or distribution.
  2. Upon acceptance of the Work, the author shall grant to the Publisher the right of first publication of the Work.
  3. The Author shall grant to the Publisher and its agents the nonexclusive perpetual right and license to publish, archive, and make accessible the Work in whole or in part in all forms of media now or hereafter known under a Creative Commons Attribution 4.0 International License or its equivalent, which, for the avoidance of doubt, allows others to copy, distribute, and transmit the Work under the following conditions:
    1. Attribution—other users must attribute the Work in the manner specified by the author as indicated on the journal Web site;
    with the understanding that the above condition can be waived with permission from the Author and that where the Work or any of its elements is in the public domain under applicable law, that status is in no way affected by the license.
  4. The Author is able to enter into separate, additional contractual arrangements for the nonexclusive distribution of the journal's published version of the Work (e.g., post it to an institutional repository or publish it in a book), as long as there is provided in the document an acknowledgement of its initial publication in this journal.
  5. Authors are permitted and encouraged to post online a prepublication manuscript (but not the Publisher’s final formatted PDF version of the Work) in institutional repositories or on their Websites prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. Any such posting made before acceptance and publication of the Work shall be updated upon publication to include a reference to the Publisher-assigned DOI (Digital Object Identifier) and a link to the online abstract for the final published Work in the Journal.
  6. Upon Publisher’s request, the Author agrees to furnish promptly to Publisher, at the Author’s own expense, written evidence of the permissions, licenses, and consents for use of third-party material included within the Work, except as determined by Publisher to be covered by the principles of Fair Use.
  7. The Author represents and warrants that:
    1. the Work is the Author’s original work;
    2. the Author has not transferred, and will not transfer, exclusive rights in the Work to any third party;
    3. the Work is not pending review or under consideration by another publisher;
    4. the Work has not previously been published;
    5. the Work contains no misrepresentation or infringement of the Work or property of other authors or third parties; and
    6. the Work contains no libel, invasion of privacy, or other unlawful matter.
  8. The Author agrees to indemnify and hold Publisher harmless from Author’s breach of the representations and warranties contained in Paragraph 6 above, as well as any claim or proceeding relating to Publisher’s use and publication of any content contained in the Work, including third-party content.

Revised 7/16/2018. Revision Description: Removed outdated link.