A challenging business world

Corporate entrepreneurship and performance

Using strategic entrepreneurship to enhance the impact

Evidence from Iran

Comment

Reference

A challenging business world

Contemporary organizations are being increasingly forced to compete within an operating context characterized by unpredictability and change. As a result, only those proactive and agile enough are able to exploit opportunities that arise.

The volatile nature of the business environment poses considerable strategic challenges for firms. However, these must be adequately addressed if hopes of securing any meaningful competitive edge are to be realized.

Given these demanding circumstances, the increased focus on a company’s internal assets is hardly unexpected. One strong assumption to emerge is that dynamic capabilities are critical to performance success.

Corporate entrepreneurship and performance

In this regard, various observers point to the significance of entrepreneurial qualities and their scope to impact on how an organization performs. Evidence suggests that corporate entrepreneurship (CE) is becoming more widely recognized as an essential competence within firms. For example, the resource-based theory advocates that CE is vital if key resources at a company’s disposal are utilized to enhance its competitive position.

Flexibility is a core quality of CE and permits both formal and informal means of generating new business within companies. That it facilitates expansion through product or process innovation is further testimony to this. Value ascribed to CE has risen in line with growing market uncertainty and the increase in global competition. Factors like these have raised serious questions about the effectiveness of conventional approaches to corporate management.