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Institutional Corporate Entrepreneurship Essay (Article)

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Updated: Aug 11th, 2020

‘Differentiating the Effects of the Institutional Environment on Corporate Entrepreneurship’

The article ‘Differentiating the effects of the institutional environment on corporate entrepreneurship’ is written by Gómez-Haro, Aragón-Correa, and Cordón-Pozo (2011, p. 1677). It can be found in Management Decision, which is an authoritative academic peer-reviewed journal that exists since the second half of the 20th century. This work focuses on corporate entrepreneurship mainly. Still, it is discussed not just like a separate concept but in connection with the institutional environment. The professionals presuppose that the institutional environment of a region can affect corporate entrepreneurship.

Thus, they are willing to reveal the way its dimensions influence the level of entrepreneurship of various organizations. They focus on those firms that operate in Spin to conduct a research study and examine the issue. As a result, Gómez-Haro, Aragón-Correa, and Cordón-Pozo (2011) find out that there are no particular effects that can be observed in any situation within any company. The authors come up to the conclusion that the normative dimensions, such as history and culture, can influence the very orientation of entrepreneurship and its success. The same tendency is also observed when dealing with the cognitive variables, which include the knowledge and abilities of the individuals. Regulatory ones, in their turn, are proved to impact the activity that is maintained, it’s kind in particular.

They are seen as laws and policies that are developed to make it easier for businesses to maintain new activities, which leads to simplified management. Taking these findings into consideration, the authors conclude that a properly organized and developed institutional environment can help the organization to achieve substantial economic improvement, which, in turn, enhances corporate entrepreneurship. They encourage businesses to pay more attention to innovation and creativity, as they provide an opportunity to improve performance and develop further, positively affecting the business sphere, the economy, and the whole society.

The researchers were willing to select as participants of their study those firms that existed in a similar geographical, cultural, legal, and political environment so that the results could be valid and reliable. Thus, the sample includes 150 organizations that are located and operate in Spain. Initially, the random sample included almost 1,500 firms, but during the phone survey, not all of them responded. The research study was maintained in the form of a structured questionnaire. The general managers of the organizations that agreed to participate in the study completed it. This process started in March 2009 and ended in May 2009. The researchers ensured the sample that their answers would be anonymous and encouraged them to be honest.

The study focuses on the relationship between several variables. The independent one is corporate entrepreneurship. The dependent variable is presentment by the institutional environment. Still, including different dimensions, it requires the discussion of latent variables. In particular, they are cognitive, normative, and regulatory. Still, attention is also paid to innovativeness, proactivity, renewal, and business venturing.

The work is based on a comprehensive analysis. The country institutional profile instrument was used to measure pressures from regulatory, cognitive, and normative institutions. Knight’s scale for proactivity measurement was used during research. The innovativeness of the firms was assessed with Zahra’s scale as well as strategic renewal and new businesses venturing. The validity of the scales was proved with the help of confirmatory factor analysis.

I find this article very useful because it provides readers with very important information related to corporate entrepreneurship. It can be used not only by educators and students who are interested in this topic but also by individuals who work in the sphere of business. In this framework, it is critical to mention that the article includes introductory information that allows those why are not efficient in the theory of entrepreneurship to understand research and its findings. The work is properly organized. The authors admit that it is not perfect and includes limitations connected with the sample (only one representative from each firm participated, and they all were from Spain). Still, the fact that the firms included in the sample have the same country profile ensures the reliability of the findings also because they tend to have similar strengths and weaknesses that depend on the region.

I agree with the findings presented in this article. First of all, the authors paid attention to all variables that can influence corporate entrepreneurship in the framework of their interest. In addition to that, the validity of their measurements was ensured with tests and analysis offered by other scientists. Gómez-Haro, Aragón-Correa, and Cordón-Pozo (2011) also tried to avoid biases in responses ensuring the sample that their answers are anonymous and that there can be nothing wrong said. Moreover, all measurements were maintained decently and can be reconsidered if the reader wants. I believe that this article can attract other scientists’ attention to the influence of institutional variables on corporate entrepreneurship so that they would also support the findings.

With the help of this article, I got to know that different dimensions of the institutional environment have various influences on entrepreneurship. Initially, I considered only the whole impact provided by the environment and was not interested in variables. Moreover, I realized that this research is likely to be extremely beneficial for Spanish businesses as this country is currently “one of the lowest European countries in terms of entrepreneurial climate and activity rates” (Gómez-Haro, Aragón-Correa & Cordón-Pozo 2011, p. 1681).

Still, I also realized that this situation could be improved because policymakers have enough power to implement needed changes. They can provide training and educational programs that can encourage entrepreneurship to develop. Policies are also critical in the same way, and I even could not imagine that the regulatory environment can be so influential. I learned that a high level of entrepreneurial orientation ensures that the company will be proactive and innovative.

‘Linking Corporate Entrepreneurship With Human Resources Management Practices’

The article ‘Linking corporate entrepreneurship with human resources management practices’ is written by Maalej, Amami, and Saâdaoui (2014, p. 689). It was published in the International Journal of Innovation and Applied Studies, which ensures that the paper is of high quality. This journal is peer-reviewed, so it includes only those works that follow all requirements. It is multidisciplinary, but this very article focuses on entrepreneurship and human resource management. The authors are willing to reveal the connection between these two spheres, so they pay attention to the relationship between human resource management practices and the promotion of corporate entrepreneurship while gathering related data from the authoritative literature sources.

In this work, the authors discuss corporate entrepreneurship, providing different definitions of the concept. They also state that its successful implementation and maintenance is likely to result in innovation, venturing, and strategic renewal. Considering the human resource management, Maalej, Amami, and Saâdaoui (2014) emphasize the fact that even though this concept is frequently discussed, there is no concrete definition of it that would reveal its sense. The professionals pay attention to traditional human resource management practices and their influence on the acquisition of human resources, their conservation, and development.

They emphasize the importance of these practices and related theories because they can enhance the understanding of the problems that are often faced by entrepreneurial organizations. The roles that the entrepreneur can maintain taking into consideration human resource management practices are discussed, including those of an individual who is to take risky and autonomic actions as well as to control and manage traditional practices. The professionals conclude that in the framework of small enterprises, the entrepreneur is the person who leads the company. Still, one tends to focus on current activities more as the organization grows so that the leadership role is maintained by the owner or director.

The article prepared by Maalej, Amami, and Saâdaoui (2014) discusses the connection between human resource management and corporate entrepreneurship based on the information received from the literature sources. The professionals conducted a literature review to explore the issue and for the readers to enhance their knowledge in the sphere. Thus, it can be claimed that they referred to qualitative research. The sample includes 66 reliable and authoritative sources and consists of both books and articles. They are selected based on the discussed topics. The information is presented in the form of a structured text that can be easily read.

Literature analysis allows the authors to compare and contrast the information they find about the topic of their interest and to make an appropriate conclusion. In many cases, the data sources complement one another, which allows the researchers to reveal new ideas that were not discussed previously even though the connection between them existed. The focus made on two different concepts at the same time but not on their linking gives Maalej, Amami, and Saâdaoui (2014) a chance to define those connections and influences that are made indirectly. In addition to that, this work summarizes data obtained from different sources and organizes it so that it becomes easier to understand. The authors created figures and tables that focused on the issue.

In their work, Maalej, Amami, and Saâdaoui (2014) gathered, analyzed, and discussed the information related to the corporate entrepreneurship and human resource management, obtaining the data from the works written by other scientists. Thus, it can be claimed that the content of the article is appropriate. Some of the sources were published recently while others appeared in the previous century. Having such information, the authors received an opportunity to see how the scientists treated the same concept at different periods. Moreover, they obtained a chance to prove that particular ideas are true to life as they remain constant.

I consider that the findings of this article are trustworthy. Because one statement is supported by several sources, it can be stated that the discussed ideas are not erroneous. Along with the comparison of the works and emphasis made on their differences, professionals also received a chance to avoid possible biases. Even though some inclinations may be present as the authors expected the obtained data to support and prove their ideas, the work provides enough objective information that can be used by the readers.

From this article, I have learned that it is significant for the company to maintain entrepreneurial dynamism. With its help, the organization can not just remain competitive and renew itself but also enhance its performance, including improved maintenance of operations and the environment within the company. I realized that an entrepreneur is a person who can boost the company with the help of one’s leadership. This individual can ensure that the resources are utilized so that they serve one’s vision.

He/she is the main human resource that can prevent the appearance of problems connected with the attraction of employees, their motivation, and value. Thus, those firms that are founded by entrepreneurs have more chances to achieve success. To achieve success, the entrepreneur should hire the workers that reveal creative and innovative behavior, are ready to make risky decisions, and take responsibility for them, set long-term goals, and focus on results. They also should be able to adapt to the situation and accept changes, work both in the team and separately. The leader is encouraged to undertake a wide range of diverse human resource management practices. Still, one should not forget that they are to be consistent with each other.

‘Corporate Entrepreneurship, Organizational Learning and Knowledge Implementation’

The article ‘Corporate entrepreneurship, organizational learning, and knowledge implementation’ is prepared by Nielsen (2015, p. 199). It is published in Economic Horizons, an academic journal that accepts only high-quality works that discuss economics, business, and management. This work is focused on the relationship between corporate entrepreneurship, learning, and knowledge implementation. The author decided to investigate this topic because it is still not decently discussed by the professionals and only a little information can be found by those who are willing to deepen into the issue.

With this work, Nielsen (2015) is willing to reveal the nature of interdependencies, investigate the internal cognitive potential of the company, and provide several recommendations on how to make it more flexible and innovative. To meet these objectives, a comprehensive, in-depth analysis is maintained. As a result, the professionals come up to the conclusion that “the knowledge implementation results in various forms of corporate entrepreneurship, more specifically the application of technical knowledge, lead to product lines extension, the integrative initiating of new platform development and the exploitative creating of a new business venture” (Nielsen 2015, p. 199). The author also considers that the organizations that treat the knowledge only as a set of information obtained due to the decently maintained organizational learning and corporate entrepreneurship may fail to achieve the most success.

He tends to emphasize the fact that this kind of knowledge can also be used as the trigger of development. Having an opportunity to look back and define the results of various activities, companies can reconsider their successes and failures to identify the most advantageous future entrepreneurial activities. With the help of this study, the theoretical understanding of the concept of corporate entrepreneurship can be improved. In addition to that, this article can be used in practice because it includes recommendations that the managers can use when dealing with the necessity to initiate entrepreneurial initiatives with an emphasis on learning and knowledge. This work is unique because it discussed entrepreneurship as a learning process.

To prepare this article, Nielsen (2015) conducted qualitative research. Her work is based on a descriptive study. The author focuses on the comprehensive, in-depth analysis, which allows her to compare and interpret the relevant scientific achievements. In addition to that, the theoretical verification is maintained, which provides the researcher with the chance to reach valid conclusions. Being based on abstraction and generalization, they turn out to be rather general, which is advantageous for the future implementation of the obtained knowledge.

While working with information related to the topic, the author utilizes a wide range of different methods. Still, analysis and synthesis are used in the majority of cases. However, it cannot be denied that deduction and induction also play a great role. All in all, the study reveals the data obtained from almost 60 authoritative sources that include books and peer-reviewed articles that were published both in this and in the previous centuries. It is properly organized and methodologically consistent. The objectives of research that are defined by the author are directly connected with the discussed subject, which ensures that one undertakes appropriate steps to meet them.

As the article is written based on various sources prepared by other scientists and published in different years, the researcher can deepen into the topic of interest and consider how it altered with time. Thus, the possibility of presenting wrongful information is minimalized, which has a positive influence on the quality of the work. It is also critical to mention that Nielsen (2015) creates several figures based on the received data and interprets them for the readers to follow his view. In this way, the professional ensures that the targeted audience will understand the data and also proves personal competence. This article is divided into three parts, which make it well-structured. As a result, it is much easier for the reader to find the information one needs.

In this article, the author points out that knowledge is critical for all organizations. It allows achieving the appropriate and successful maintenance of entrepreneurial activities. Moreover, knowledge can be implemented in different ways so that they can have a different impact on corporate entrepreneurship. I agree with the findings presented in the article because I consider that the professional was able to present all significant and relevant information related to the topic. I have no reason to doubt the sources used during the study, which makes me believe the discussed information. In addition to that, I have an opportunity to make my conclusions after reading the ideas of different scientists.

With the help of this article, I got to know a lot of new information that allowed me to deepen into the topic and understand the peculiarities of corporate entrepreneurship better. For example, I realized that even though the scientists today tend to agree that the implementation of corporate entrepreneurship is likely to ensure competitiveness and a stable position in the market, the organization still needs to deal with numerous related challenges. They can be connected with the absence of data or measurement instruments that can indicate the level of improvement achieved due to the implementation of entrepreneurship. I have learned that the entrepreneurial activity is determined by the way manager treats knowledge and its importance for organizational success. Moreover, corporate entrepreneurship can create technical, integrative, and explorative knowledge. Professionals can use “the environment, stakeholders, entrepreneurs, and their own experience” as the sources of knowledge (Nielsen 2015, p. 207). They need to develop internal encouragements for their employees to emphasize entrepreneurship.

Reference List

Gómez-Haro, S, Aragón-Correa, J & Cordón-Pozo, E 2011, ‘Differentiating the effects of the institutional environment on corporate entrepreneurship’, Management Decision, vol. 49, no.10, pp. 1677-1693.

Maalej, R, Amami, I & Saâdaoui, S 2014, ‘Linking corporate entrepreneurship with human resources management practices’, International Journal of Innovation and Applied Studies, vol. 7, no. 2, pp. 689-696.

Nielsen, J 2015, ‘Corporate entrepreneurship, organizational learning and knowledge implementation’, Economic Horizons, vol. 17, no. 3, pp. 199-214.

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