Corporate entrepreneurship contingencies and organizational wealth creation

Abstract

Despite the recognized importance of entrepreneurship for organizational wealth creation, research has devoted minimal attention to investigating this area. This study contributes to a better understanding of the relationship between corporate entrepreneurship and wealth creation by developing and testing a normative model, which clarifies the nature of the influences of corporate entrepreneurship and its environmental and organizational antecedents on organizational performance. The findings of structural equation modeling, based on mail survey data from 477 Slovenian firms, demonstrate that corporate entrepreneurship and some its contingencies make a difference in organizational wealth creation, growth and profitability.Organizational wealth creation is an important goal for both strategic management and entrepreneurship. Strategic management decisions are crucial for heterogeneity in firm behavior and organizational value creation (Rumelt et al., 1994) and entrepreneurship represents an important means for generating new value (Hisrich and Peters, 1998). Corporate entrepreneurship (entrepreneurial activities and orientations in an established organization) is one important aspect of organizational and economic development and wealth creation. Scholars and practitioners have shown interest in the concept since the beginning of the eighties due to the beneficial effect on revitalization and performance of firms (

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