Innovativeness, Proactiveness, and Risk-taking: Corporate Entrepreneurship of Indonesian SMEs

Abstract

Corporate entrepreneurship (CE) consists of three dimensions, which are innovativeness, proactiveness, and risk-taking. It has an essential role in ensuring SMEs willingness to adopt technology in the 4.0 industrial era. The aim of this study is twofold. First, to discover the pattern CE (innovativeness, proactiveness, and risk-taking) intensity on four SMEs and second, to identify the likely causes of that pattern from a strategic management perspective. This research employed a case study design with four Indonesian SMEs as the subjects. The data was gathered through guided interviews and observations. Dyadic data was collected to avoid bias. The answers were then put into a scale from one to seven by the informants and combined using a simple mean. A pattern was inferred from the scale. The results suggest that all four SMEs have a similar low-medium range of CE intensity. From the strategic management standpoint, this was likely due to the fact the SMEs have not conducted proper environmental scanning in terms of looking for new technology or embraced the involvement of low-level employees in their planning process.

Perceived Impact of Corporate Entrepreneurship on Operational Performance: Evidence from Municipal Organizations

“…This can also be defined as the transfer of resources to projects of high uncertainty (Karacaoglu et al, 2013). Kolaković, et al, (2008) also highlighted that risk taking has a significant association with corporate entrepreneurship which might be observed repeatedly while examining the literature on corporate entrepreneurship (Ketchen & Short, 2012).In actuality this makes the firm to be involved in bold actions rather than cautious actions (Ketchen & Short, 2012), and became an integral part of corporate entrepreneurship as the business environment is dynamic and unstable and companies have to take risk in order to sustain and to retain their market share (Astrini, 2020). Although the study of Morris and Kuratko (2002) indicated that corporate entrepreneurship in the public sector significantly lacks risk taking in comparison to innovation and proactiveness.…”

“…Therefore, an organization may implement innovation by applying new organizational structures, designing new services, and optimizing organizational work process (Currie, Humphreys, Ucbasaran & McManus, 2008). Thus, innovation is the characteristic which may lead to competitive edge (Ahmed et al, 2011), & concern towards this might be measured through investment in R&D and introducing new products (Astrini et al, 2020). However, in public sector, innovation is majorly concerned with designing and implementation of new processes, rather than other components (Diefenbach, 2011).…”

“…Thus, the actual purpose of inducing proactiveness in operations is to be a market leader (Wiklund & Shepherd, 2005). Moreover, proactiveness also aids firm through competitive advantage and foster pressure on others to respond to the first mover initiative created by the firm (Astrini et al, 2020). Thus, the hypothesis relationship proactiveness and CE and POP, are derived as follows:…”

“…This is coherent with Rauch, Wiklund, Frese, and Lumpkin (2005), that difference in methodology and data collection technique might result in a change in results, and when there is a need of conducting a study on eastern perspectives than making questionnaire through the mixing of research instruments is a must. The variables on innovation, proactiveness and risk-taking were taken from Astrini et al (2020) and Covin and Slevin (1986) while moderating variable (OC) was incorporated from Umrani et al (2018). However to make study more emphatic criterion from Egungwu and Egunwu (2018); Moige Mukulu and Orwa (2016); Karacaoglu et al (2013); Umrani et al (2015); and Minafam (2017) were also incorporated.…”

Mediating role of strategic orientations in the relationship between entrepreneurial orientation and performance of Saudi SMEs

“…As indicated by Centobelli et al (2019), innovativeness is a key indicator for the financial and non-financial success of SMEs. Further, risk-taking is important in improving the organisational efficiency (Jung et al, 2020), as proven for SMEs (Astrini et al, 2020;Games, 2019). Pro-activeness improves financial efficiency (Hossain & Al Asheq, 2019) and has an important influence on SMEs (Jalali et al, 2013).…”