A Multilevel Examination of Entrepreneurial Orientation and Corporate Entrepreneurship: the Joint Impact of Unit-Level Social Capital and Firm-Level Transformational Leadership

2019 ◽  
Vol 9 (4) ◽  
Author(s):  
Yi-Ying Chang ◽  
Yi Ping Liu ◽  
Che-Yuan Chang
Keyword(s):  
Social Capital ◽  
Transformational Leadership ◽  
Entrepreneurial Orientation ◽  
Corporate Entrepreneurship ◽  
Dark Side ◽  
Senior Managers ◽  
Firm Level ◽  
Entrepreneurship Research ◽  
Unit Level ◽  
The Relationship

Abstract We examine the relationship between unit-level entrepreneurial orientation (EO) and unit-level corporate entrepreneurship (CE), which has been typically neglected in entrepreneurship research. Building on the conservation of resource theory (COR), we argue that the relationship between unit-level EO and unit-level CE will be stronger when unit-level social capital is higher. Further, we posit that unit-level social capital becomes more effective when firm-level leaders are viewed as less (and not more) transformational by unit members. Data were collected from 186 managers, 372 employees, and 62 senior managers from 93 units of 31 firms. We find that unit-level EO is positively related to unit-level CE and this relationship strengthens when unit-level social capital is high. This moderating effect of social capital is itself moderated by firm-level transformational leadership, and strengthens as firm-level transformational leadership behaviors decrease (supporting “dark side” views of transformational leadership). Implications of our findings for organizational entrepreneurship research and practice are discussed.

Transformational leadership and corporate entrepreneurship

2017 ◽  
Vol 38 (6) ◽  
pp. 812-833 ◽  
Author(s):  
Yi-Ying Chang ◽  
Che-Yuan Chang ◽  
Chung-Wen Chen
Keyword(s):  
Transformational Leadership ◽  
Collective Efficacy ◽  
Corporate Entrepreneurship ◽  
Transformational Leaders ◽  
Firm Level ◽  
Content Type ◽  
Unit Level ◽  
Empowerment Climate ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine how transformational leadership may relate to corporate entrepreneurship by adopting a multilevel approach. The authors also theorized and tested the top-down and bottom-up intermediate process linking transformational leadership and corporate entrepreneurship. Design/methodology/approach Multisource data across different timeframes were collected from 129 managers and 244 employees from 55 units of 27 firms. Findings The results showed that transformational leadership and corporate entrepreneurship were positively related at the unit level. Furthermore, unit-level collective efficacy mediated the relationship between unit-level transformational leadership and unit-level corporate entrepreneurship. The authors also found that the firm-level empowerment climate moderated the indirect effect of unit-level collective efficacy on the relationship between unit transformational leadership and unit-level corporate entrepreneurship. Originality/value First, the goal of this study is to extend the single focus of transformational leadership on corporate entrepreneurship (e.g. Ling et al., 2008) and develop a more thoughtful approach on determining how transformational leaders influence corporate entrepreneurship across levels. This study responds to calls for research to look at the impact of unit-level transformational leaders, such as middle managers, across levels (Ren and Guo, 2011) and creates a multilevel framework in which transformational leaders at the unit level influence the appearance of corporate entrepreneurship at the unit level.

Overcoming the Dark Side of Closed Networks in Cultural Tourism Clusters: The Importance of Diverse Networks

2017 ◽  
Vol 59 (3) ◽  
pp. 239-256 ◽  
Author(s):  
Ángela Martínez-Pérez ◽  
Marie-Michele Beauchesne
Keyword(s):  
Social Capital ◽  
Developed Countries ◽  
Cultural Tourism ◽  
Dark Side ◽  
Negative Effects ◽  
Firm Level ◽  
Firm Innovation ◽  
Closed Networks ◽  
The World ◽  
The Relationship

Despite the recognized importance of tourism as an engine of economic growth in developed countries, research on the antecedents of innovation in this sector has been sparse, especially in the context of tourism clusters. Scholars have suggested that social capital is a key determinant of firm innovation in the context of tourism clusters, but empirical evidence has been lacking. The aim of this article is to empirically study the interplay between social capital and innovation in the context of tourism clusters at firm level. More specifically, we analyzed the effects of closed networks and diverse networks on firm innovation using a sample of 215 hospitality and tourism firms located in the World Heritage Cities of Spain. Results showed an inverted-U-shaped relationship between closed networks and firm innovation. Consistent with existing literature, these findings suggest that whereas a certain degree of strength and density helps to promote innovation, a critical point may exist beyond which innovation stabilizes or deteriorates when the information of the network becomes too redundant. In addition, we found that diverse networks positively moderated the relationship between closed networks and firm innovation. In other words, structural holes appear to mitigate the negative effects arising from excess strength and density and encourage the development of innovations beyond what a firm relying solely on closed networks could achieve. In practice, these results suggest firms in tourism clusters should not exclusively focus on typical closed networks but also create connections with diverse agents to maximize their potential for innovation.

Multilevel transformational leadership and management innovation

2016 ◽  
Vol 37 (2) ◽  
pp. 265-288 ◽  
Author(s):  
Yi-Ying Chang
Keyword(s):  
Transformational Leadership ◽  
Banking Sector ◽  
Current Knowledge ◽  
Management Innovation ◽  
Firm Level ◽  
Organizational Hierarchy ◽  
Content Type ◽  
Unit Level ◽  
Empowerment Climate ◽  
The Relationship

Purpose – The purpose of this paper is to extend management innovation theory and research by going beyond analysis at a single level. Focussing on management innovation at the lower level in the organizational hierarchy, the authors develop a multilevel framework; in doing so, the authors answer earlier calls for a study of the effects of multilevel transformational leadership (TFL) on management innovation and innovation in general. Design/methodology/approach – This study collected multisource and multilevel data from 169 managers, 423 employees of 141 units from 21 banking service firms in an emerging economy. Findings – The results from hierarchial linear modeling analysis reveal that unit-level TFL was positively related to unit-level management innovation. Furthermore, firm-level TFL was positively associated with firm-level empowerment climate, which in turn enhanced unit-level management innovation. In addition, firm-level empowerment climate strengthened the relationship between unit-level TFL and unit-level management innovation. Finally, the unit-level trust mediates the relationship between firm-level empowerment climate and unit-level management innovation. Practical implications – Firms operate more effectively when they generate management innovation. To help ensure the effectiveness of management innovation, it is essential that firms, especially those from the banking sector, encourage their managers to engage in TFL behaviors. The managers must consider how to utilize their TFL behaviors to create trusting relationships in order to achieve the organizational goals. Firms can also take steps to develop a supportive climate of higher levels of autonomy, delegation, freedom and task accountability, in order to promote higher levels of trust at the lower levels of the organizational hierarchy. Originality/value – The current study develops and tests a mediation model that links firm-level TFL to unit-level management innovation, and identifies unit-level trust as the intermediate outcome. With this theorizing and the findings, the authors deepen the current knowledge regarding the organizational implications of TFL behaviors for management innovation.

scholarly journals Cooperatives and Social Capital: A Narrative Literature Review and Directions for Future Research

2021 ◽  
Vol 13 (2) ◽  
pp. 534
Author(s):  
Isabel Saz-Gil ◽  
Ignacio Bretos ◽  
Millán Díaz-Foncea
Keyword(s):  
Social Capital ◽  
Literature Review ◽  
Dark Side ◽  
Future Research ◽  
Agricultural Cooperatives ◽  
Reciprocal Relationships ◽  
Narrative Literature ◽  
Narrative Literature Review ◽  
The One ◽  
The Relationship

How cooperatives generate and absorb social capital has attracted a great deal of attention due to the fact that they are collective organizations owned and democratically managed by their members, and, accordingly, are argued to be closely linked to the nature and dynamics of social capital. However, the extant literature and knowledge on the relationship between cooperatives and social capital remain unstructured and fragmented. This paper aims to provide a narrative literature review that integrates both sides of the relationship between cooperatives and social capital. On the one hand, one side involves how cooperatives create internal social capital and spread it in their immediate environment, and, on the other hand, it involves how the presence of social capital promotes the creation and development of cooperatives. In addition, our theoretical framework integrates the dark side of social capital, that is, how the lack of trust, reciprocal relationships, transparency, and other social capital components can lead to failure of the cooperative. On the basis of this review, we define a research agenda that synthesizes key trends and promising research avenues for further advancement of theoretical and empirical insights about the relationship between cooperatives and social capital, placing particular emphasis on rural and agricultural cooperatives.

Linking CEO relationship-focused leadership and corporate entrepreneurship: a multilevel moderated mediation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yueyue Liu ◽  
Meng Xi ◽  
Feifei Li ◽  
Xiulin Geng
Keyword(s):  
Indirect Effect ◽  
Organizational Identification ◽  
Identity Theory ◽  
Environmental Uncertainty ◽  
Corporate Entrepreneurship ◽  
Structural Equations ◽  
Strategic Leadership ◽  
Firm Level ◽  
Content Type ◽  
The Relationship

Purpose Corporate entrepreneurship is an important way for organizations to gain competitive advantages and achieve sustainable development. However, few studies pay attention to the influence of CEO strategic leadership on corporate entrepreneurship. Drawing on social identity theory and uncertainty-identity theory, this study aims to investigate whether CEO relationship-focused leadership impacts corporate entrepreneurship through middle managers’ (MMs’) organizational identification and whether the indirect effect is moderated by environmental uncertainty. Design/methodology/approach Using 192 Chinese samples with 192 firm-level and 716 department-level observations, this study uses multilevel structural equations modeling by Mplus 8.0 to test the theoretical model. Findings This study finds that CEO relationship-focused leadership positively predicts MMs’ organizational identification and corporate entrepreneurship, and MMs’ organizational identification mediates the relationship between CEO relationship-focused leadership and corporate entrepreneurship. In addition, environmental uncertainty moderates not only the relationship between CEO relationship-focused leadership and MMs’ organizational identification but also the indirect effect of CEO relationship-focused leadership on corporate entrepreneurship through MMs’ organizational identification. Research limitations/implications This study enriches the understanding of process and contextualization of CEO strategic leadership influencing on corporate entrepreneurship. Originality/value To the best of the authors’ knowledge, this study is among the first to explore the influence of CEO relationship-focused leadership on corporate entrepreneurship.

scholarly journals The Moderating Effect of Social Capital in Relation to Entrepreneurial Orientation and Firm Performance

2017 ◽  
pp. 82-115
Author(s):  
Alireza Jalali ◽  
Ramayah Thurasamy ◽  
Mastura Jaafar
Keyword(s):  
Social Capital ◽  
Entrepreneurial Orientation ◽  
Random Sampling ◽  
Quantitative Method ◽  
Small And Medium Enterprises ◽  
Moderating Effect ◽  
Resource Based View ◽  
Medium Enterprises ◽  
The Relationship ◽  
Industry Network

The importance of entrepreneurial orientation (EO), resource-based view (RBV), network types of social capital (SC) and small and medium enterprises (SMEs) have become the main focus in the manufacturing environment. The current study investigates 1. The relationship between EO and Manufacturing SMEs performance and 2. The moderating effect of intra- and extra-industry network in EO and manufacturing SMEs performance relationship. Quantitative method was done through survey. The population of this study was industrial SMEs in Tehran and Hamedan. Proportionate stratified random sampling was employed and out of 580 questionnaires sent out, only 150 questionnaires were returned. The result implies that the dimensions of EO positively improved manufacturing SMEs performance. In addition the result shows that the high intra-industry network strongly moderates the relationship between innovativeness and growth-profit ability and also strongly moderates the relationship between risk-taking and growth-profitability. Contributions and limitations of the study are also discussed accordingly.

International assignments of employees and entrepreneurial intentions: the mediating role of human capital, social capital and career prospects

2020 ◽  
Vol 26 (6) ◽  
pp. 1259-1279
Author(s):  
Susanne Schlepphorst ◽  
Elizabeth C. Koetter ◽  
Arndt Werner ◽  
Christian Soost ◽  
Petra Moog
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Online Survey ◽  
Corporate Entrepreneurship ◽  
Entrepreneurial Intentions ◽  
International Assignments ◽  
Snowball Sampling ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

PurposeDrawing on human capital (HC) and social capital (SC) as well as the Jack-of-all-trades theory, this paper aims to clarify the relationship between international assignments (IAs) of employees and their entrepreneurial intentions. The study proposes that such IAs provide specific environmental features which may enable employees to build up diverse skills and network relations conducive to entrepreneuship.Design/methodology/approachThe authors collected data using an online survey, targeting professionals and managers in Germany and Switzerland. They used 223 complete responses. Before data collection, they ensured the suitability of their questionnaire by employing well-tested scales and consulted independent experts in survey design and methodology. They tested their hypotheses by applying multiple mediation modeling.FindingsAs hypothesized, the authors find empirical evidence that diverse skills and network relationships as well as poor career prospects, positively mediate the relationship between IAs and entrepreneurial intentions of employees.Research limitations/implicationsWe applied simple random and the snowball sampling method. Our approach involved the use of headhunters, international employers and relocation companies as multipliers.Practical implicationsOur results have practical implications for employees and employers. Employees on international assignments can proactively pursue opportunities in order to utilize the acquired experiences and resources for taking up entrepreneurial activities. Employers can try to retain these employees to facilitate (international) corporate entrepreneurship.Originality/valueTo the best of our knowledge, this is the first empirical study to highlight the entrepreneurial ambitions of international assignees. It thus provides initial insights into this topic.

Entrepreneurial Orientation and Performance in South Korea: The Mediating Roles of Dynamic Capabilities and Corporate Entrepreneurship

2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Euncheon Lim ◽  
Dohyeon Kim
Keyword(s):  
Firm Performance ◽  
South Korea ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Corporate Entrepreneurship ◽  
The South ◽  
Empirical Results ◽  
South Korean ◽  
And Performance ◽  
The Relationship

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.

scholarly journals Unlocking the Relationship between Corporate Entrepreneurship and Firm Performance

2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Ahmet M. Fis ◽  
Dilek Cetindamar
Keyword(s):  
Social Psychology ◽  
Organizational Culture ◽  
Theoretical Model ◽  
Entrepreneurial Orientation ◽  
Corporate Entrepreneurship ◽  
Theory And Practice ◽  
Managerial Support ◽  
And Performance ◽  
A Chain ◽  
The Relationship

Abstract This paper explores the relationship between corporate entrepreneurship and performance by developing a comprehensive theoretical model based on Schumpeterian understanding of entrepreneurship supported with the Theory of Planned Behavior from social psychology. The model shows how organizational culture (value) triggers a chain effect through its influence on entrepreneurial orientation (attitude) and managerial support (intentions) that ultimately generate impact on corporate entrepreneurship (behavior). We test our model in an emerging economy context and present our results with implications to theory and practice.

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