REWARDS - THE DIMENSIONS OF CORPORATE ENTREPRENEURSHIP AND THE PERFORMANCE OF ESTABLISHED ORGANIZATI

REWARDS - THE DIMENSIONS OF CORPORATE ENTREPRENEURSHIP AND THE PERFORMANCE OF ESTABLISHED ORGANIZATI

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ACRN Journal of Entrepreneurship Perspectives Vol. 1, Issue 2, p. 111-131, Nov. 2012 ISSN 2224-9729 111 THE DIMENSIONS OF CORPORATE ENTREPRENEURSHIP AND THE PERFORMANCE OF ESTABLISHED ORGANIZATION Sofian Shamsuddin 1 , Jaizah Othman 2 , Mohamad Asmady Shahadan 3 , Zukarnain Zakaria 4 1,2,3 Faculty of Business Management, Universiti Teknologi MARA, Malaysia 4 International Business School, Universiti Teknologi Malaysia, Malaysia Abstract. Recently, the issues of corporate entrepreneurship have evoked interest not only from academics, but also from business practitioners and policy makers. This interest stems from the recognition of the advantage that can be gained from corporate entrepreneurship activities. This paper analyses the effect of corporate entrepreneurship (intrapreneurship) dimensions on the financial performance of intrapreneurship companies of established Malaysian state government-linked corporation namely, Jcorp Group, a Johor state government-linked corporation. In this paper, there are four dimensions of corporate entrepreneurship being studied; (1) pro-activeness, (2) risk-taking, (3) innovations and (4) self-renewal. In addition, this paper also explores the moderating effects of resource availability, supportive organizational structure, and rewards on the relationship between corporate entrepreneurship dimensions and company performance. The findings of this study show that pro-activeness has a positive and significant impact on financial performance of the company, and resource availability, supportive organizational structure and rewards do moderate the relationship between pro-activeness and financial performance. In contrast, we also found that risk-taking does not have a direct effect on financial performance of the company. However, resource availability, supportive organizational structure and rewards are shown to moderate the relationship between risk-taking and financial performance. Meanwhile, for innovation and self-renewal, we found that both are negatively related to financial performance. Further analysis shows that although all moderating factors were positively related with these two corporate entrepreneurship dimensions, but they are not significant. Keywords: Corporate Entrepreneurship, Dimensions, Performance, Established Organizations, Malaysi Introduction Corporate entrepreneurship (CE) is crucially important to the survival, profitability and growth of a company. This is due to the fact that CE activities tend to stimulate creativity and innovation as well as to encourage a culture of calculated risk-taking throughout organizational operations which may reinforce the company's position in
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THE DIMENSIONS OF CORPORATE ENTREPRENEURSHIP AND THE PERFORMANCE OF ESTABLISHED ORGANIZATION 112 existing markets by entering new and lucrative growth fields (Zahra et al., 2009). The corporate entrepreneurship elements in the established firms comprise the activities such as innovation, pro-activeness and risk-taking (Zahra, 1993). Empirically, several
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  • Fall '09
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  • Entrepreneurship, RNA, corporate entrepreneurship, ACRN Journal of Entrepreneurship Perspectives

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