Assessing the impact of corporate entrepreneurship in the financial performance of subsidiaries of Colombian business groups: under environmental dynamism moderation

Abstract

Corporate entrepreneurship creates opportunities in employment, technological advances, value creation, and cultural transformation for entrepreneurial ecosystems, entrepreneurs, governments, economies, and society around the globe. The purpose of this study is to assess the impact of corporate entrepreneurship on the financial performance of subsidiaries in Colombian business groups under the moderating effect of the environmental dynamism, because the relationship between corporate entrepreneurship and financial performance in emerging economies must differ from developed economies. Using a cross-sectional structural equation modeling analysis, this study assessed the impact of entrepreneurial orientation and corporate venturing on the firm financial performance of 87 subsidiaries of Colombian business groups at different levels of environmental dynamism. This study also confirms that the relationship between corporate entrepreneurship and performance is context-dependent and that entrepreneurial orientation has a strong and positive causal relationship with corporate venturing. Additionally, subsidiaries of Colombian business groups increase their financial performance when also does the entrepreneurial orientation, and decrease financial performance when so does corporate venturing. Furthermore, the results show that environmental dynamism does not have a moderating effect on the relationship between corporate entrepreneurship of subsidiaries in Colombian business groups and their performance. This paper would contribute to important areas in Latin America business, where such studies are scarce.

Moderating Effect of Business Environmental Dynamism In In-Novativeness-Firm Performance Relationship of Congolese Manufacturing Companies

“…These findings are in line with previous studies such as Agyapong et al (2021) and Taghizadeh et al (2021) who reported negative interaction between innovation and (market) ED on firm performance. However, this result is in contrast with other studies such as Rodriguez-Pena (2021) andFadlilah et al (2021) who have found significant positive effect of environmental dynamism in the innovation-performance relationship.…”

Venture Capital Financing as A Driver for Entrepreneurship Development in Africa. A Literature Review and Future Research Agenda

“…We further screened articles with key words like venture capital, entrepreneurship, SME development and economic growth from 2001-2021 sustaining venture capital and entrepreneurship development. Hunt, 2021;'Ning, 2021;Wennberg, 2021;Chalmers et al, 2021;Riar et al, 2022;Davidsson & Gruenhagen, 2021;Randolph et al, 2021;Aljuwaiber, 2021;Rodríguez-Peña, 2021). Our fast assessment shows a growing interest that most of these articles reflect largely on from US and Europe.…”

“…Breakdown of reviewed articles by year of publication Source: Author's compilation, (2021) In consideration of the reviewed articles published from 2001-2021 as illustrated in Figure VI, above, we discover that 18.2% (22 of 121 articles) appeared in the year 2021, (e.g Lee. N & Andres Rodrıguez-Pose, 2021 Hunt, 2021; 'Ning, 2021; Wennberg, 2021;Chalmers et al, 2021;Riar et al, 2022;Davidsson & Gruenhagen, 2021;Randolph et al, 2021;Aljuwaiber, 2021;Rodríguez-Peña, 2021). Our fast assessment shows a growing interest that most of these articles reflect largely on from US and Europe.…”

Research on the Influence of Dynamic Work Environment on Employees’ Innovative Performance in the Post-epidemic Era – The Role of Job Crafting and Voice Behavior

“…Dynamic is a key feature of the environment, which refers to a certain degree of rapid, unpredictable and turbulent changes ( Eisenhardt and Martin, 2000 ). The dynamic environment mainly emphasizes the speed, complexity and way of environmental change ( Rodriguez-Pea, 2021 ), and the uncertainty and unpredictability that it brings ( Rosenbusch et al, 2013 ). Scholars generally divide environmental dynamics into technological development dynamics and market demand dynamics, which mainly include unpredictability of customers, market trend change rates, peer competitors, business growth opportunities, R&D process ( Rodriguez-Pea, 2021 ).…”

“…The dynamic environment mainly emphasizes the speed, complexity and way of environmental change ( Rodriguez-Pea, 2021 ), and the uncertainty and unpredictability that it brings ( Rosenbusch et al, 2013 ). Scholars generally divide environmental dynamics into technological development dynamics and market demand dynamics, which mainly include unpredictability of customers, market trend change rates, peer competitors, business growth opportunities, R&D process ( Rodriguez-Pea, 2021 ). In addition, environmental dynamics are related to uncertainty, which weakens the employer’s ability to predict events and their impact on the organization ( Lumpkin and Dess, 2001 ).…”