Academic journal article Contemporary Management Research

What Are the Antecedents to Creating Sustainable Corporate Entrepreneurship in Thailand?

Academic journal article Contemporary Management Research

What Are the Antecedents to Creating Sustainable Corporate Entrepreneurship in Thailand?

Article excerpt

ABSTRACT

Corporate entrepreneurship (CE) is broadly seen as an essential tool for competitiveness, particularly in today's fast-paced and complex global economy. However, there is a lack of research on the CE strategies of Asian companies in response to the Asian financial and the global financial crisis in developing Asian countries. In this study, the model of CE antecedents and effects is examined for 287 Thai managers at various levels within the targeted firms' operating in a wide variety of industries. Specifically, the impact of internal environment factors on CE and the relationship between CE and diverse firm performance aspects is mediated by process innovation. Results indicate that only three of the five antecedents to CE have primary effects on CE as well as process innovation. CE has a significant indirect effect on company performance through the mediation of process innovation. Process innovation is found to be a predictor of innovation performance and a predictor of marketing performance, which in turn affects financial outcomes. The implications of these results for both CE theory and practice are discussed. As there is a dearth of empirical research in this area, this paper makes a useful contribution by highlighting the CE initiatives of Thai companies to survive any future crises and the stiff competition present in the Asian region.

Keywords: Corporate entrepreneurship (CE), process innovation, firm performance, Corporate Entrepreneurship Assessment Instrument, structural equation modeling.

INTRODUCTION

Organizations are continually under competitive pressures and forced to exploit new opportunities, develop and launch new products, services, markets and technologies (Tajeddini, 2010) and place innovation at the core of their firm's competitive advantage (Morris et al., 2008).

Corporate entrepreneurship (CE) is a potential survival strategy for firms operating in highly competitive business environments. CE is viewed as the pursuit of entrepreneurial actions and initiatives that transform the existing organization through strategic renewal processes and/or extending the firm's scope of operations into new domains, that is, product-market or technological innovation (Goodale et al., 2011). Therefore, companies must seriously consider CE strategy as a means for their organizations to achieve both long-term survival and growth (Martin-Rojas et al., 2013; Tajeddini, 2010; Burns 2008).

To be an entrepreneurial firm, entrepreneurial endeavors must be integrated into a firm's overall strategies (Goodale et al, 2011; Tajeddini, 2010) and steered by a strong entrepreneurial mindset that stimulates engagement in innovative or entrepreneurial behavior (Duobiene and Pundziene, 2007). There is a general lack of consensus on the precise key internal factors that stimulate sustainable entrepreneurial behavior (Hornsby et al., 2013; Tahseen, 2012). Many studies view innovation as the core of entrepreneurship, particularly product-market innovation (Goodale et al, 2011; Morris et al, 2008). Other studies have focused on either entrepreneurship or innovation as an independent process, resulting in limitations in their application and usefulness (McFadzean et al, 2005). While research (e.g. Kickul et al, 2011) on entrepreneurship has developed substantially over the recent decades, the intersections between operations management and entrepreneurship remain scarce. Kickul et al. (2011) suggest that cross-disciplinary research and its practice is a fruitful approach that not only leads to new insights but also can produce tangible benefits for firms. In addition, certain empirical studies focus primarily on a few measured outcomes of CE with a bias directed toward positive financial results (Haar and White, 2013). However, theseCE studies often ignore the micro-level effects of entrepreneurial orientation (EO) and activities on an organization's sustained financial performance and thus have failed to broaden the full understanding of CE and its precise impact on business performance overall and for the future. …

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