Key Information
In their article ‘Corporate entrepreneurship in family firms: a family perspective’, Kellermanns and Eddleston (2006) study the effects that the exposure to the corporate entrepreneurship practices has on companies run as family organizations. The article was published in 2006, which makes the information represented in its touch dated. However, the phenomenon of corporate entrepreneurship can be viewed from a broad perspective that involves the study of a company’s evolution in the context of the global economy, which makes the outcomes of the research applicable to the contemporary business environment. The article was published in Entrepreneurship Theory and Practice, which, being issued by the Wiley Online Library, can be described as a peer-reviewed journal (Wiley Online Library 2016).
Summary
According to the results of the study carried out by Kellermanns and Eddleston (2006), there is a direct correlation between the adoption of the corporate entrepreneurship framework and the impetus for change that the organization receives. Moreover, the outcomes of the research also indicate that the application of the identified practices in the context of a family firm is likely to enhance the technological progress within the organization. Furthermore, the overall attitude toward change as the driving force behind promoting improvements in the organizational environment, in general, can be viewed as the essential study implication (Kellermanns & Eddleston 2006).
As far as the technological progress is concerned, the study reveals that the acceptance of the corporate entrepreneurship culture in family firms helps build the environment, in which technological opportunities are viewed as the tools for enhancing change, and in which change is interpreted as part and parcel of the continuous success.
Finally, the use of strategic planning as the foundation for the decision-making processes in the organization can be considered the crucial concept introduced to the environment of the family business by the authors of the study. As Kellermanns and Eddleston (2006) explain, for a firm operating in the context of the global economy, there is a need to use its every asset to retrieve the maximum benefit and maximize the profits. Therefore, by introducing the strategic planning concept into the realm of family entrepreneurship, Kellermanns and Eddleston create opportunities for sustainably allocating the available resources, making sure that every single process carried out in the company is supported to the required degree.
Methods
Kellermanns and Eddleston (2006) used the qualitative framework as the foundation for their study, therefore, putting a very heavy emphasis on the quantitative relationships between the main variables of the study. Although the incorporation of a qualitative aspect could help shed some light on the nature of the phenomenon, therefore, exploring the links between the family business and corporate entrepreneurship in a more detailed fashion, the quantitative approach can be deemed as a legitimate choice given the focus of the study. The cross-sectional analysis, however, adds a significant amount of depth to the research (Bryan & Bell 2015).
Similarly, the application of the one-way ANOVA test as the tool for determining the degree to which the variables are connected can be viewed as a sensible step to take in the context of the study. The ANOVA framework allows for exploring the variation levels among the variables in question. Indeed, the purpose of the proposed tool is to identify the degree to which the stated variables are different from the mean. The variation analysis, in its turn, is bound to help prove the initial hypothesis either right or wrong, i.e., specify whether family organizations can benefit from the use of the corporate entrepreneurship concept or not. Given the fact that the analysis incorporates a range of external variables, such as the impact of the technology-related changes, etc., the use of the ANOVA tool as the means of encompassing the influences of the identified variables is completely justified (Weathington, Cunningham, & Pittenger 2012).
The data collection device used by the authors of the study, however, has its limitations, the lack of flexibility, and the possible validity issues being the key obstacles. Although the use of a survey implies retrieving the necessary data from a large number of people within a relatively short amount of time, it, nevertheless, makes the participants remove essential information from their answers to make them fit the survey format.
Findings
The results of Kellermanns and Eddleston’s (2006) study seem quite applicable to the contemporary business environment, and the statements made by the authors are rather legitimate. Corporate entrepreneurship as the means of managing supply chains and core corporate processes does become important for family firms as they enter the environment of the global economy. To remain sustainable and deliver impressive results, family organizations need to make efficient use of the available resources, including the information and the main assets. Therefore, the corporate entrepreneurship principle, which implies that family firms should gain competitiveness, is indispensable to survive in the global market realm (Grosse 2015).
Conclusion
The findings indicate quite clearly that the use of corporate entrepreneurship is beneficial; to the growth of family firms, especially in the environment of the global economy. Furthermore, the authors shed some light on the importance of technological progress and the incorporation of the latest technological advances in the company’s design. The conclusion mentioned above leads to the assumption that a firm, in general, and family entrepreneurship, in particular, need a consistent quality upgrade. Therefore, various frameworks for improving the quality of the company’s performance, such as the use of the Six Sigma strategy (Pyzdek & Keller 2014), the Total Quality Management (TQM) approach, etc., are strongly recommended. Finally, the research points to the significance of the proper use of resources, including the sustainable allocation of financial assets.
Reference List
Bryan, A & Bell, E 2015, Business research methods, OUP, Oxford, UK.
Grosse, R 2015, Emerging markets: strategies for competing in the global value chain, Kogan Page, Philadelphia, PA.
Kellermanns, F W & Eddleston, K A 2006, ‘Corporate entrepreneurship in family firms: a family perspective’, Entrepreneurship Theory and Practice, vol. 30, no. 6, pp. 809-830.
Pyzdek, T & Keller, P 2014, The Six Sigma handbook, 4th edn, McGraw-Hill, New York, NY.
Weathington, B L, Cunningham, C J L, & Pittenger, D J 2012, Understanding business research, John Wiley & Sons, New York, NY.
Wiley Online Library 2016, Entrepreneurship theory and practice, Web.