The role of organizational size in the heterogeneous nature of corporate entrepreneurship

The role of organizational size in the heterogeneous nature of corporate entrepreneurship Organizational size is an important factor contributing to the heterogeneous nature of corporate entrepreneurship (CE). We focus on explicating size-based differences in CE and integrating them into new theoretical development. Through a search of the contemporary CE literature, we argue that there has been a tendency toward examining CE dimensions within the context of large public firms, even though they represent a relatively small proportion of the firms that engage in CE activities. Drawing on resource-based theorizing, we identify how size confers CE competitive advantages via slack resources and resource structuring processes, but disadvantages via bureaucratic structures and resource bundling. Aware of these weaknesses, we suggest that small firms are more likely to utilize CE for growth to overcome liabilities of smallness, while large firms are more likely to utilize CE for learning to overcome liabilities of inertia. We thereby provide greater specificity to CE research and stimulate new theoretical development with a forward-looking CE research agenda that incorporates the role of organizational size. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

The role of organizational size in the heterogeneous nature of corporate entrepreneurship

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Publisher
Springer US
Copyright
Copyright © 2015 by Springer Science+Business Media New York
Subject
Economics / Management Science; Management/Business for Professionals; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-015-9632-6
Publisher site
See Article on Publisher Site

Abstract

Organizational size is an important factor contributing to the heterogeneous nature of corporate entrepreneurship (CE). We focus on explicating size-based differences in CE and integrating them into new theoretical development. Through a search of the contemporary CE literature, we argue that there has been a tendency toward examining CE dimensions within the context of large public firms, even though they represent a relatively small proportion of the firms that engage in CE activities. Drawing on resource-based theorizing, we identify how size confers CE competitive advantages via slack resources and resource structuring processes, but disadvantages via bureaucratic structures and resource bundling. Aware of these weaknesses, we suggest that small firms are more likely to utilize CE for growth to overcome liabilities of smallness, while large firms are more likely to utilize CE for learning to overcome liabilities of inertia. We thereby provide greater specificity to CE research and stimulate new theoretical development with a forward-looking CE research agenda that incorporates the role of organizational size.

Journal

Small Business EconomicsSpringer Journals

Published: Jan 21, 2015

References

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