Alliance portfolio management capabilities, corporate entrepreneurship, and relative firm performance in SMEs

Author(s):  
Kamal Sakhdari ◽  
J. Henri Burgers ◽  
Per Davidsson
2018 ◽  
Vol 24 (3) ◽  
pp. 569-587 ◽  
Author(s):  
Christopher R. Penney ◽  
James G. Combs ◽  
Nolan Gaffney ◽  
Jennifer C. Sexton

Purpose Theory predicts that balancing exploratory and exploitative learning (i.e., ambidexterity) across alliance portfolio domains (e.g. value chain function, governance modes) increases firm performance, whereas balance within domains decreases performance. Prior empirical work, however, only assessed balance/imbalance within and across two domains. The purpose of this study is to determine if theory generalizes beyond specific domain combinations. The authors investigated across multiple domains to determine whether alliance portfolios should be imbalanced toward exploration or exploitation within domains or balanced across domains. The authors also extended prior research by exploring whether the direction of imbalance matters. Current theory only advises managers to accept imbalance without helping with the choice between exploration and exploitation. Design/methodology/approach Hypotheses are tested using fixed-effects generalized least squares (GLS) regression analysis of a large 13-year panel sample of Fortune 500 firms from 1996 to 2008. Findings With respect to the balance between exploration and exploitation within each of the five domains investigated, imbalanced alliance portfolios had higher firm performance. No evidence was found that balance across domains relates to performance. Instead, for four of the five domains, imbalance toward exploration related positively to firm performance. Originality/value An alliance portfolio that allows for exploration in some domains and exploitation in other domains appears more difficult to implement than prior theory suggests. Firms benefit mostly from using the alliance portfolio for exploratory learning.


2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Euncheon Lim ◽  
Dohyeon Kim

Abstract Although a cumulative body of literature explains entrepreneurial orientation (EO) and firm performance, there remain differing views on the mechanisms underlying this relationship. The purpose of this study is to investigate the effect of EO on firm performance by considering the roles of dynamic capabilities (DC) and corporate entrepreneurship (CE). We propose that DC and CE mediate the relationship between EO and firm performance, and our empirical results support these propositions. This study fills a gap in the literature on the EO–performance relationship by considering the linkages among disposition, capabilities, and activities in the South Korean context.


2017 ◽  
Vol 2 (1) ◽  
pp. 20-45
Author(s):  
Dr.Bruno Mugambi Linyiru ◽  
Dr.Kabare Karanja ◽  
Dr.Kabare Karanja ◽  
Dr.Robert Gichira ◽  
Dr.Robert Gichira

Purpose: The purpose of this study was to establish the influence of corporate entrepreneurship on performance of state corporations in Kenya.Methodology: The study adopted an explanatory research design.  The population of the research consists of the 187 state corporations in Kenya as at 2013. The unit of analysis was the state corporation. A purposive sample of 55 commercial state corporations was included in the study. The study used primary data gathered using questionnaires. Statistical Package for Social Sciences (SPSS) was used in the analysis of data. Reliability and validity tests were conducted to determine the internal consistencies of the variables under investigation. The data was analyzed by use of descriptive and inferential statistics. Descriptive statistics produced frequencies, trends, means and percentages while inferential statistics produced regression and correlation results which showed the causal relationship among the variables. Results were presented on frequency tables and charts.Results: The study findings indicated that there was improved firm performance which was linked to corporate entrepreneurship. Results showed that companies initiated actions to which competitors responded to, the firms had a tendency to be ahead of other competitors in introducing novel idea or products and the companies strived in identifying new markets to sale products. Results indicated that risk taking, innovativeness, competitive aggressiveness and organizational factors were key determinants of firm performance for commercial state corporations in Kenya. The study findings also indicated that the companies had a strong tendency to increase the market share by reducing competitors through competitive marketing strategies, the companies spent substantial amount of financial resources in sales promotion and the companies actively searched for significant opportunities to improve market share.Policy recommendation: The study recommends to the management of firms that corporate entrepreneurship should be pursued as a competitive and performance improvement strategy by all firms regardless of size. This is because corporate entrepreneurship influences firm performance positively. For corporate entrepreneurship to thrive, firms need to put in place an environment with support systems, structures and resources that encourage employees to behave entrepreneurially. The management should therefore ensure that they engage all the employees as they embrace corporate entrepreneurship to ensure that all staffs are working towards achieving the same objective and company goal. The study is a justification of the fact that an organization with competitive innovativeness skills has a deep understanding of the business enterprises which catapults their growth to a large extent. The study recommends that the management should use technology in controlling the production cost while maintaining competitive prices as it results in continued profitability of a firm and therefore growth. Managers should be efficient time managers with a control on the firm cost of operation to help provide a working schedule and competitive prices which fit the client needs.


2017 ◽  
Vol 14 (4) ◽  
pp. 3866
Author(s):  
Ferda Üstün ◽  
Kemal Can Kılıç

In this study, the tightness-looseness dimension, suggested as a cultural dimension of community was examined at organizational level. Introducing the tightness-looseness dimension to the literature, and identifying the effects of the dimension on corporate entrepreneurship activities and firm performance, which poses great importance for organizations, were the main purposes of the study. In the study, the correlations between dependent and independent variables were examined through the hypotheses suggested, and the consistency level of the model was analyzed through the structural equation modeling. It was concluded from the study that there was a significant positive correlation between the tightness-looseness level and corporate entrepreneurship and firm performance. Coefficients of corporate entrepreneurship, proactivity, innovational orientation, and coefficients of firm performance, and coefficients concerning the profit, growth, and customer satisfaction seem to be statistically significant. Accordingly, the higher (or lower) the level of looseness is, the higher (or lower) the level of corporate entrepreneurship and firm performance will be. The validity of the model on the target sample has been discussed considering the compliance indices of the model proposed in the study on Turkey's leading industrial enterprises. As the results of the analysis of the constructed structural equation model gave the values of good and acceptance level goodness of fit (RMSEA <0.05, GFI and CFI> 0.95 and AGFI> 0.90), the model was found to be acceptable.


Author(s):  
Matthew G. Kenney ◽  
Nile M. Khanfar ◽  
Lee E. Kizer

Scholars have shown that maintaining an intrapreneurial culture contributes to superior firm performance (Parboteeah, 2000) and attracting better qualified job applicants (Olmsted, 2005). Yet, there remains a need for more research “regarding the successes or failures of large companies that systematically instill corporate entrepreneurship” (Thornberry, 2003 p. 332).  While an increasing number of scholars have examined the benefits and challenges of creating and maintaining an intrapreneurial culture, there remains a need to examine intrapreneurship from an intrapreneur’s perspective. This article is an exploratory study which qualitatively, through the use of informational interviews, explores how experienced intrapreneurs within the Information Technology (IT) field view intrapreneurial opportunities and how management practices explicitly and/or implicitly effect intrapreneurial perceptions.


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