Conceptualizing Corporate Entrepreneurship Capability and Its Linkages Towards Firm Performance

Author(s):  
Rohit Kumar ◽  
Amit Kumar

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.

2020 ◽  
pp. 1771-1796
Author(s):  
Rohit Kumar ◽  
Amit Kumar

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.


2020 ◽  
pp. 214-239
Author(s):  
Rohit Kumar ◽  
Amit Kumar

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiali Zheng ◽  
Han Qiao ◽  
Xiumei Zhu ◽  
Shouyang Wang

Purpose This study aims to explore the role of equity investment in knowledge-driven business model innovation (BMI) in context of open modes according to the evidence from China’s primary market. Design/methodology/approach Based on the database of China’s private market and data set of news clouds, the statistic approach is applied to explore and explain whether equity investment promotes knowledge-driven BMI. Machine learning method is also used to prove and predict the performance of such open innovation. Findings The results of logistic regression show that explanatory variables are significant, providing evidence that knowledge management (KM) promotes BMI through equity investment. By further using back propagation neural network, the classification learning algorithm estimates the possibility of BMI, which can be regarded as a score to quantify the performance of knowledge-driven BMI Research limitations/implications The quality of secondhand big data is not very ideal, and future empirical studies should use first-hand survey data. Practical implications This study provides new insights into the link between KM and BMI by highlighting the important roles of external investments in open modes. Social implications From the perspective of investment, the findings of this study suggest the importance for stakeholders to share knowledge and strategies for entrepreneurs to manage innovation. Originality/value The concepts and indicators related to business models are difficult to quantify currently, while this study provides feasible and practical methods to estimate knowledge-driven BMI with secondhand data from the primary market. The mechanism of knowledge and innovation bridged by the experience from investors is introduced and analyzed.


2019 ◽  
Vol 22 (3) ◽  
pp. 541-561 ◽  
Author(s):  
Changwei Pang ◽  
Qiong Wang ◽  
Yuan Li ◽  
Guang Duan

Purpose The purpose of this paper is to examine how business model innovation (BMI) mediates the relationship between integrative capability, business strategy and firm performance. Design/methodology/approach A literature review provides the model and hypotheses. Using a sample of 165 Chinese firms, the authors conduct the examination using a theoretical model and hypotheses following standard analysis methods. Findings The results show that BMI positively mediates the relationship between integrative capability and firm performance. Moreover, a differentiation strategy positively moderates the link between BMI and firm performance, while a cost leadership strategy presents a significantly negative moderating effect. Research limitations/implications First, the authors test the hypotheses using data from China; thus data from other emerging economies should be tested. Second, the authors use cross-sectional data in this study making it impossible to verify the dynamic developed in the process of BMI; a longitudinal study could provide a more comprehensive understanding. Third, the authors consider one intermediate mechanism to test the relationship of integrative capability and firm performance; additional factors may link integrative capability and firm performance. Practical implications The mediating effect of BMI suggests managers should pay more attention to BMI to improve firm performance, and they should understand that BMI’s role varies across different business strategies. Originality/value The paper is original in its investigation of the effect of integrative capability and BMI on firm performance using data from China and demonstrates the mediating effect of BMI on the relationship between integrative capability and firm performance.


Author(s):  
JUN YU ◽  
XINRUI LI ◽  
ZHENGCONG MA

Informed by the knowledge-based theory of the firm, the study explores how internal absorptive capacity and external inter-organisational collaboration jointly promote business model innovation (BMI). Drawing on the relevant existing literature, a model linking collaboration breadth, collaboration depth, absorptive capacity, and BMI was constructed and tested. Hierarchical multiple regression analysis of the results of a questionnaire-based survey of 317 senior managers in manufacturing firms revealed that both collaboration breadth and collaboration depth are positively related to BMI. Collaboration depth has no significant moderating effect on the collaboration breadth–BMI relationship, and absorptive capacity has no significant moderating effect on relations between BMI and collaboration breadth or collaboration depth. However, the joint moderating effects of absorptive capacity and collaboration depth on the collaboration breadth–BMI relationship were positively significant. These results have a number of implications for research on BMI and innovation management and for the development of knowledge-based theory.


Sign in / Sign up

Export Citation Format

Share Document