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Corporate entrepreneurship and market performance

Author

Listed:
  • Vivien E. Jancenelle
  • Susan Storrud-Barnes
  • Rajshekhar (Raj) G. Javalgi

Abstract

Purpose - The purpose of this paper is to investigate the effects of a firm’s entrepreneurial proclivity on market performance for large, publicly traded US firms. This study draws upon the five-dimensional view of corporate entrepreneurship (CE) and develops hypotheses aimed at understanding the effects of direct effect of CE cues of proactiveness, autonomy, innovativeness, competitive aggressiveness and risk-taking on stock performance during earnings conference calls. Design/methodology/approach - The entrepreneurial orientation of 339 firm post-earnings announcement conference calls is analyzed through a content analysis of transcripts, and the impact of CE cues on stock price is measured using event-study methodology. Findings - The results suggest that the cueing the CE dimensions of innovativeness, risk-taking and especially autonomy have a positive effect on market performance during conference calls, while competitive aggressiveness has a negative effect. No effect was found for proactiveness. Research limitations/implications - The effect of entrepreneurial proclivity on firm value is not uniform. Not all dimensions of CE have a positive effect on market performance at a corporate level, and measuring each dimension of CE separately may be a valuable approach for future research. Practical implications - Firms may create more value when they cue specific entrepreneurial attributes, and cueing competitive aggressiveness may not be desirable. Originality/value - This study fills a gap in the literature by measuring the direct effect of CE cues on market performance through an innovative research design which relies on computer-aided text analysis.

Suggested Citation

  • Vivien E. Jancenelle & Susan Storrud-Barnes & Rajshekhar (Raj) G. Javalgi, 2017. "Corporate entrepreneurship and market performance," Management Research Review, Emerald Group Publishing Limited, vol. 40(3), pages 352-367, March.
    • Handle: RePEc:eme:mrrpps:mrr-01-2016-0019
    DOI: 10.1108/MRR-01-2016-0019
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    Citations

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    Cited by:

    1. Omonijo & O.S. & Egwakhe & A.J . & Akande & F.P. & Umukoro & E.J, 2022. "Corporate Entrepreneurship and Market Share of Selected Polyurethane Manufacturing Companies in Lagos State, Nigeria," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 12(2), pages 183-195.
    2. Moruff Sanjo Oladimeji & Adebiyi Julius Abosede & Benneth Uchenna Eze, 2019. "Corporate Entrepreneurship And Service Firms’ Performance In Nigeria," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 17(1), pages 3-15, May.
    3. Omonijo & O.S . & Egwakhe & A.J . & Akande & F.P . & Umukoro & E.J, 2022. "Corporate Entrepreneurship and Market Share of Selected Polyurethane Manufacturing Companies in Lagos State, Nigeria," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 12(2), pages 169-181.
    4. Steven W. Bayighomog Likoum & Mohamed Dawood Shamout & Ibrahim Harazneh & A. Mohammed Abubakar, 2020. "Market-Sensing Capability, Innovativeness, Brand Management Systems, Market Dynamism, Competitive Intensity, and Performance: an Integrative Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 593-613, June.
    5. Jian Xu & Yue Shang & Weizhen Yu & Feng Liu, 2019. "Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 11(19), pages 1-16, September.

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