Evolving Concepts and Processes
European Research in Entrepreneurship series
Edited by Odd Jarl Borch, Alain Fayolle, Paula Kyrö and Elisabet Ljunggren
Chapter 10: The Influence of Organizational Characteristics on Intentions of Employees Towards Corporate Entrepreneurship
Olga Belousova* INTRODUCTION Corporate entrepreneurship (CE) is often recognized as beneficial for organizations. In a race for newness and diversity, modern companies employ an entrepreneurial approach to their strategies (Kuratko et al., 2005). Indeed, being innovative, risk-taking and ready to pioneer has proved to contribute well to the financial performance and strategic value of big corporations as well as small and medium enterprises (Covin and Slevin, 1989; Dess et al., 1997; Lumpkin and Dess, 2001; Wiklund and Shepherd, 2005). Therefore, we are interested in learning more about the way organizations become more innovative and entrepreneurial. More specifically, we are eager to understand how organizations stimulate such behaviours among their employees. Indeed, individual innovation behaviour is recognized as crucial in fostering continued entrepreneurship (Aldrich, 1999). In this chapter we focus on factors within the organization that influence employees’ decisions to engage in entrepreneurial behaviours. One way to approach this issue is to look at intentions of employees to engage in specific behaviours. Intentions are known to be formed by three types of beliefs: behavioural, normative and control. Further we look at organizational factors that influence these beliefs. We map the existing research on factors stimulating entrepreneurship and formulate several hypotheses. Our main hypothesis is that the entrepreneurial orientation of the business (reflecting the way the entrepreneurial strategy is exercised within the business) should directly and positively influence employees’ intentions towards entrepreneurial behaviours. To our knowledge, this 228 M2622 - BORCH TEXT.indd 228 25/05/2011 13:03 The influence of organizational characteristics 229...
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