The Role of Entrepreneurial Orientation in Stimulating Effective Corporate Entrepreneurship

TLDR

This article examines how a firm's entrepreneurial orientation relates to overall performance. The study explores the implications of corporate entrepreneurship strategies for managers and suggests future research directions. The authors describe five dimensions of corporate entrepreneurship: autonomy, innovativeness, proactiveness, competitive aggressiveness, and risk‑taking. Firms that pursue corporate entrepreneurship can grow through new ventures and strategic renewal, achieving sustainable advantages and above‑average returns.

Abstract

This article discusses research that examines the relationship between a firm's entrepreneurial orientation and their overall performance. The authors note that firms that follow a strategy of corporate entrepreneurship are able to pursue growth through new venture opportunities and strategic renewal. Firms that are able to effectively follow this strategy experience sustainable advantages and yield above-average returns. They outline and discuss five dimensions of corporate entrepreneurship including autonomy, innovativness, proactiveness, competitive aggressiveness and risk-taking. They examine what implications these strategies have for managers and identify areas of future research.