The Effect of Organizational Entrepreneurship and Entrepreneurship Orientation on Organizational Performance with Regard to Strategic Entrepreneurship in Industrial Companies in Zanjan Province

Subject Areas : Business Management

reza pirayesh ¹ (Assistant Professor, Department of Management, Faculty of Humanities, University of Zanjan, Zanjan, Iran)
Vahid Amiri ² (MSc, Department of Business Management, Faculty of Humanities, Zanjan University, Zanjan, Iran)
malihe Jafari ³ (MSc, Department of Business Management, Faculty of Humanities, Zanjan University, Zanjan, Iran)
mohammad Imani barandagh ⁴ (Associate Professor, Department of Management, Faculty of Humanities, University of Zanjan, Zanjan, Iran)

Received: 2018-02-15 Accepted : 2019-03-17 Published : 2020-03-20

Keywords: Organizational Entrepreneurship, Organizational Performance, Strategic Entrepreneurship, entrepreneurship orientation,

Abstract :

Entrepreneurship and organizational orientation towards it is now considered an important method of enjoying a competitive climate to institutionalize innovation in the institutional organization and thereby bring about economic prosperity of the country. The purpose of this applied descriptive survey was to explore the relationship between organizational entrepreneurship, entrepreneurial orientation and organizational performance in industrial companies in Zanjan, Iran and to examine the effect of strategic entrepreneurship. The research population comprised all staff members working in the target industrial companies, from among whom a clustered sample of 304 was randomly selected. The research data were collected via the organizational and strategic entrepreneurship Likert scale questionnaire. The research data were further analyzed through Structural Equations Modelling and PLS software and the results showed that the organizational entrepreneurship and entrepreneurship orientation had a significant effect on strategic entrepreneurship which had a positive and significant impact on organizational performance. Moreover, the findings verified the indirect effects of organizational entrepreneurship and entrepreneurial orientation on organizational performance.

References:

Agca, V., Topal, Y., & Kaya, H. (2012). Linking Intrapreneurship Activities to Multidimensional Firm Performance in Turkish Manufacturing Firms: An Empirical Study. International Entrepreneurship and Management Journal, 8(1), 15-33.

Ajzen, I., & Fishbein, M. (1977). Attitude-Behavior Relations. A Theoretical Analyisis and Review of Empirical Research. Psychological Bulletin, 84(5), 888-918.

Al-Dhaafri, H. S., Al-Swidi, A. K., & Yusoff, R. Z. B. (2016). The Mediating Role of Total Quality Management between the Entrepreneurial Orientation and the Organizational Performance. The TQM Journal, 28(1), 89-111.

Alvarez, J. L. (1998). The sociological Tradition and the Spread and Institutionalization of Knowledge for Action. London: MacMillan Publication.

Antoncic, B. (2003). Risk Taking in Intrapreneurship: Translating the Individual Level Risk Aversion into the Organizational Risk Taking. Journal of Enterprising Culture, 11(1), 1-23.

Antoncic, B., & Hisrich, R. D. (2004). Corporate Entrepreneurship Contingencies and Organizational Wealth Creation. The Journal of Management Development, 23(6), 518-550.

Arias, M. E., & Guillen, M. (1998). The Transfer of Organizational Techniques Across Borders: Combining Neo-Institutional and Comparative Perspectives. London: MacMillan Publication.

Chaston, I., & Scott, G. J. (2012). Entrepreneurship and Open Innovation in an Emerging Economy. Management Decision, 50(7), 1161-1177.

Covin, J. G., & Kuratko, D. F. (2010). The Concept of Corporate Entrepreneurship. Translated by: V. K., Narayanan, & G. C. O., Connor, Wiley Publication.

Covin, J. G., & Lumpkin, G. T. (2011). Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct. Entrepreneurship Theory and Practice, 35(5), 855-872.

Covin, J. G., & Miles, M. P. (1999). Corporate Entrepreneurship and the Pursuit of Competitive Advantage. Entrepreneurship Theory and Practice, 23(1), 47-58.

Covin, J. G., & Slevin, D. P. (1989). The Strategic Management of Small Firms in Hostile and Benign Environments. Strategic Management Journal, 10(1), 75-87.

Covin, J. G., & Slevin, D. P. (1991). A Conceptual Model of Entrepreneurship as Firm Behavior. Entrepreneurship Theory and Practice, 16(1), 7-24.

Covin, J. G., & Wales, W. J. (2012). The Measurement of Entrepreneurial Orientation. Entrepreneurship Theory and Practice, 36(4), 677-702.

Dess, G. G., Ireland, R. D., Zahra, S. A., Floyd, S. W., Janney, J. J., & Lane, P. J. (2003). Emerging Issues in Corporate Entrepreneurship. Journal of Management, 29(3), 351-378.

Engelen, A., Gupta, V., Strenger, L., & Brettel, M. (2015). Entrepreneurial Orientation, Firm Performance, and the Moderating Role of Transformational Leadership Behaviors. Journal of Management, 41(4), 1069-1097.

Hitt, M. A., Bierman, L., Shimizu, K., & Kochhar, R. (2001). Direct and Moderating Effects of Human Capital on Strategy and Performance in Professional Service Firms: A Resource-Based Perspective. Academy of Management Journal, 44, 13-28.

Hornsby, J. S., Kuratko, D. F., Shepherd, D. A., & Bott, J. P. (2009). Managers Corporate Entrepreneurial Actions: Examining Perception and Position. Journal of Business Venturing, 24(3), 236-247.

Ireland, R. D., Hitt, M. A., & Sirmon, D. G. (2003). A Model of Strategic Entrepreneurship: The Construct and Its Dimensions. Journal of Management, 29(6), 963-989.

Ireland, R. D., Covin, J. G., & Kuratko, D. F. (2009). Conceptualizing Corporate Entrepreneurship Strategy. Entrepreneurship Theory and Practice, 33(1), 19-46.

Kantur, D. (2016). Strategic Entrepreneurship: Mediating the Entrepreneurial Orientation Performance Link. Management Decision, 54(1), 24-43.

Kearney, C., Hisrich, R. D., & Antoncic, B. (2013). The Mediating Role of Corporate Entrepreneurship for External Environment Effects on Performance. Journal of Business Economics and Management, 14(1), 328-357.

Kelley, D. (2011). Sustainable Corporate Entrepreneurship: Evolving and Connecting with the Organization. Business Horizons, 54(1), 73-83.

Khandwalla, P. N. (1977). The Design of Organizations. New York: Harcourt Brace Jovanovich Publication.

Kuratko, D. F., & Audretsch, D. B. (2009). Strategic Entrepreneurship: Exploring Different Perspectives on an Emerging Concept. Entrepreneurship Theory and Practice, 33(1), 1-17.

Kuratko, D. F., & Audretsch, D. B. (2013). Clarifying the Domain of Corporate Entrepreneurship. International Entrepreneurship and Management Journal, 9(3), 323-335.

Kuratko, D. F., Morris, M. H., & Covin, J. C. (2011). Corporate Entrepreneurship & Innovation. Thomson/Southwestern Publishing.

Lekovic, B., & Bobera, D. (2018). Use of Latest Technologies as a Mediator between Entrepreneurial Aspiration and Open Innovation Development. Engineering Economics, 29(2), 205-214.

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. Academy of Management Review, 21(1), 135-172.

Miller, D., & Friesen, P. H. (1982). Innovation in Conservative and Entrepreneurial Firms: Two Models of Strategic Momentum. Strategic Management Journal, 3(1), 1-25.

Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring Performance in Entrepreneurship Research. Journal of Business Research, 36(1), 15-23.

Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial Orientation and Business Performance: An Assessment of Past Research and Suggestions for the Future. Entrepreneurship Theory and Practice, 33(3), 761-787.

Smith, K. G., & Di Gregorio, D. (2002). Bisociation, Discovery, and the Role of Entrepreneurial Action. In M. A, Oxford: Blackwell Publication.

Rodrigues, M. J., Moreno, P., & Tejada, P. (2015). Entrepreneurial Orientation and Performance of SMEs in the Service Industry. Journal of Organizational Change Management, 28(2), 194-212.

Tajudin, A. A., Mahmood, R. A., & Abdullah, M. H. (2014). The Relationship between Entrepreneurial Orientation and Business Performance of SMEs in Malaysia. International Journal of Management Excellence, 2(3), 221-236.

Urban, B. (2012). The Effect of Pro-Entrepreneurship Architecture on Organizational Outcomes. Journal of Business Economics and Management, 13(3), 518-545.

Vesper, K. H. (1984). Three Faces of Corporate Entrepreneurship: A Pilot Study. Translated by: J. A., Hornaday, F., Tarpley, & J. A., Timmons, Frontiers of Entrepreneurship Research.

Wales, W., Wiklund, J., & McKelvie, A. (2015). What About New Entry? Examining the Theorized Role of New Entry in the Entrepreneurial-Performance Relationship?. International Small Business Journal, 33(4), 351-373.

Wei, L., & Ling, Y. (2015). CEO Characteristics and Corporate Entrepreneurship in Transition Economies: Evidence from China. Journal of Business Research, 68(6), 1157-1165.

Wiklund, J. (1999). The Sustainability of the Entrepreneurial Orientation-Performance Relationship. Entrepreneurship Theory and Practice, 24(1), 39-50.

Wiklund, J. (2006). The Sustainability of the Entrepreneurial Orientation-Performance Relationship. Translated by: P., Davidsson, F., Delmar, & J., Wiklund, Cheltenham: Entrepreneurship and the Growth of Firms, Edward Elgar Publishing.

Wiklund, J., & Shepherd, D. (2005). Entrepreneurial Orientation and Small Business Performance: A Configurational Approach. Journal of Business Venturing, 20(1), 71-91.

Yiu, D. W., & Lau, C. (2008). Corporate Entrepreneurship as Resource Capital Configuration in Emerging Market Firms. Entrepreneurship Theory and Practice, 32(1), 37-57.

Zahra, S. A. (1991). Predictors and Financial Outcomes of Corporate Entrepreneurship: An Exploratory Study. Journal of Business Venturing, 6(4), 259-285.

Zahra, S. A., & Covin, J. G. (1995). Contextual Influences on the Corporate Entrepreneurship Performance Relationship: A Longitudinal Analysis. Journal of Business Venturing, 10(1), 43-58.

Zahra, S. A., & Garvis, D. M. (2000). International Corporate Entrepreneurship and Firm Performance: the Moderating Effect of International Environmental Hostility. Journal of Business Venturing, 15(5-6), 469-492.

Zahra, S. A., Jennings, D. F., & Kuratko, D. F. (1999). The Antecedents and Consequences of Firm Level Entrepreneurship: The State of the Field. Entrepreneurship Theory and Practice, 24(1), 45-65.