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Diagnosing a firm's internal environment for corporate entrepreneurship

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  • Kuratko, Donald F.
  • Hornsby, Jeffrey S.
  • Covin, Jeffrey G.

Abstract

Apple, 3M, Procter & Gamble, and Google know the importance of an internal environment supportive of innovative activity. But how is that environment identified or measured? As research on corporate entrepreneurial activity has evolved, numerous researchers have acknowledged the importance of internal organizational dimensions to promoting and supporting an environment for innovation. This research has identified five specific dimensions that are important determinants of an environment conducive to entrepreneurial behavior: (1) top management support, (2) work discretion/autonomy, (3) rewards/reinforcement, (4) time availability, and (5) organizational boundaries. If an organization is serious about developing an internal environment conducive to entrepreneurial activity, then it must seek to measure the specific dimensions associated with an innovative environment. In this article we introduce an instrument, the Corporate Entrepreneurship Assessment Instrument (CEAI), as a diagnostic tool used for assessing managers’ perceptions of the five major dimensions critical to creating an entrepreneurial/innovative environment. This instrument provides an indication of a firm's likelihood of being able to successfully implement an innovative strategy, and highlights areas of the internal work environment that should be the focus of ongoing development efforts.

Suggested Citation

  • Kuratko, Donald F. & Hornsby, Jeffrey S. & Covin, Jeffrey G., 2014. "Diagnosing a firm's internal environment for corporate entrepreneurship," Business Horizons, Elsevier, vol. 57(1), pages 37-47.
    • Handle: RePEc:eee:bushor:v:57:y:2014:i:1:p:37-47
    DOI: 10.1016/j.bushor.2013.08.009
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    References listed on IDEAS

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    1. Richard A. Bettis & Michael A. Hitt, 1995. "The new competitive landscape," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 7-19.
    2. Hornsby, Jeffrey S. & Kuratko, Donald F. & Zahra, Shaker A., 2002. "Middle managers' perception of the internal environment for corporate entrepreneurship: assessing a measurement scale," Journal of Business Venturing, Elsevier, vol. 17(3), pages 253-273, May.
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    4. Jeffrey S. Hornsby & Donald F. Kuratko & Ray V. Montagno, 1999. "Perception of Internal Factors for Corporate Entrepreneurship: A Comparison of Canadian and U.S. Managers," Entrepreneurship Theory and Practice, , vol. 24(2), pages 9-24, December.
    5. R. Duane Ireland & Jeffrey G. Covin & Donald F. Kuratko, 2009. "Conceptualizing Corporate Entrepreneurship Strategy," Entrepreneurship Theory and Practice, , vol. 33(1), pages 19-46, January.
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    7. Hornsby, Jeffrey S. & Kuratko, Donald F. & Shepherd, Dean A. & Bott, Jennifer P., 2009. "Managers' corporate entrepreneurial actions: Examining perception and position," Journal of Business Venturing, Elsevier, vol. 24(3), pages 236-247, May.
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    Cited by:

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    5. Poduška, Zoran & Nedeljković, Jelena & Nonić, Dragan & Ratknić, Tatjana & Ratknić, Mihailo & Živojinović, Ivana, 2020. "Intrapreneurial climate as momentum for fostering employee innovativeness in public forest enterprises," Forest Policy and Economics, Elsevier, vol. 119(C).
    6. Kuratko, Donald F. & Covin, Jeffrey G. & Hornsby, Jeffrey S., 2014. "Why implementing corporate innovation is so difficult," Business Horizons, Elsevier, vol. 57(5), pages 647-655.
    7. Yuan, Rongli & Wen, Wen, 2018. "Managerial foreign experience and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 48(C), pages 752-770.
    8. Dwivedi, Abhishek & Weerawardena, Jay, 2018. "Conceptualizing and operationalizing the social entrepreneurship construct," Journal of Business Research, Elsevier, vol. 86(C), pages 32-40.
    9. Bendell, Bari L. & Nesij Huvaj, M., 2020. "Does stakeholder engagement through corporate social and environmental behaviors affect innovation?," Journal of Business Research, Elsevier, vol. 119(C), pages 685-696.
    10. Gruenhagen, Jan Henrik & Parker, Rachel, 2020. "Factors driving or impeding the diffusion and adoption of innovation in mining: A systematic review of the literature," Resources Policy, Elsevier, vol. 65(C).
    11. Kuratko, Donald F. & McMullen, Jeffery S. & Hornsby, Jeffrey S. & Jackson, Chad, 2017. "Is your organization conducive to the continuous creation of social value? Toward a social corporate entrepreneurship scale," Business Horizons, Elsevier, vol. 60(3), pages 271-283.
    12. Shockley, Jeff & Turner, Tobin, 2016. "A relational performance model for developing innovation and long-term orientation in retail franchise organizations," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 175-188.

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