Edited by Alain Fayolle, Paula Kyrö and Francisco Liñán
Chapter 8: Corporate entrepreneurship and rent creation: an integration of perspectives
Firms engage in corporate entrepreneurship (CE) to increase competitiveness and sustain performance through rejuvenation, renewal, and redefinition of their organizations, markets, or industries (Covin and Miles 1999). This is challenging to most firms, since it often involves new relationships with customers and suppliers, and contact with less familiar industries. The reward for successful CE engagement should be a more sustainable and profitable firm. However, the potential for new value creation and competitive advantages may reside in different sources within the firm and appear quite complex to unveil. Thus, even if the relationship between CE and performance has been well researched and documented, there is, according to Covin and Miles (1999), less understanding of the reasons why CE may produce superior performance. The aim of this study is therefore to add further knowledge to the entrepreneurship field by exploring why CE may yield superior performance to firms. This issue demands in-depth insights into the content of possible sources of value creation in firms and also into how these sources may interact. This conceptual study depicts CE as an overarching perspective and tool for analyzing how new profit (rent) may be created and captured by firms engaging in entrepreneurial activities. This study argues that CE may leverage several bases of competitive advantage, which may be explored through the entrepreneurial orientation (EO), resource-based (RBV) and dynamic capability (DC) perspectives. Each of these perspectives may provide their unique insight into how entrepreneurship may create new rent streams and improve performance in firms.
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