IDEAS home Printed from https://ideas.repec.org/a/kap/asiapa/v36y2019i3d10.1007_s10490-019-09645-5.html
   My bibliography  Save this article

Unpacking the mechanism linking market orientation and corporate entrepreneurship: the mediating role of human resource management strength

Author

Listed:
  • Guiyao Tang

    (Shandong University)

  • Bingjie Yu

    (Shandong University)

  • Yang Chen

    (Southwestern University of Finance and Economics)

  • Li-Qun Wei

    (Hong Kong Baptist University)

Abstract

Corporate entrepreneurship is becoming increasingly important for firms to gain competitiveness in the marketplace. Yet, insufficient knowledge has been accumulated on how to develop entrepreneurial behaviors within firms, specifically how firms are motivated to develop entrepreneurship and what managerial process facilitates the development process. Drawing on the literature of market orientation, human resource management (HRM) and corporate entrepreneurship, we propose a model in which the relationship between market orientation and corporate entrepreneurship is mediated by HRM strength, and hierarchical culture and competitive intensity moderate the relationship between HRM strength and corporate entrepreneurship. Using time-lagged matching survey data obtained from 97 CEOs, CFOs and also 220 employees in 97 Chinese companies, we show that HRM strength mediates the relationship between market orientation and corporate entrepreneurship, and that the relationship between HRM strength and corporate entrepreneurship is stronger when the organizational culture is more hierarchical and the competition is less intensified. Both theoretical and practical implications and limitations of the study are discussed.

Suggested Citation

  • Guiyao Tang & Bingjie Yu & Yang Chen & Li-Qun Wei, 2019. "Unpacking the mechanism linking market orientation and corporate entrepreneurship: the mediating role of human resource management strength," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 593-614, September.
  • Handle: RePEc:kap:asiapa:v:36:y:2019:i:3:d:10.1007_s10490-019-09645-5
    DOI: 10.1007/s10490-019-09645-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10490-019-09645-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10490-019-09645-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wood, Van R. & Bhuian, Shahid & Kiecker, Pamela, 2000. "Market Orientation and Organizational Performance in Not-for-Profit Hospitals," Journal of Business Research, Elsevier, vol. 48(3), pages 213-226, June.
    2. Yaprak, Attila & Tasoluk, Burcu & Kocas, Cenk, 2015. "Market orientation, managerial perceptions, and corporate culture in an emerging market: Evidence from Turkey," International Business Review, Elsevier, vol. 24(3), pages 443-456.
    3. Bruce R. Barringer & Allen C. Bluedorn, 1999. "The relationship between corporate entrepreneurship and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 421-444, May.
    4. Wang, Cheng Lu & Chung, Henry F.L., 2013. "The moderating role of managerial ties in market orientation and innovation: An Asian perspective," Journal of Business Research, Elsevier, vol. 66(12), pages 2431-2437.
    5. Kristopher J. Preacher & Patrick J. Curran & Daniel J. Bauer, 2006. "Computational Tools for Probing Interactions in Multiple Linear Regression, Multilevel Modeling, and Latent Curve Analysis," Journal of Educational and Behavioral Statistics, , vol. 31(4), pages 437-448, December.
    6. Yan Ling & Zeki Simsek & Michael Lubatkin & John F. Velga, 2008. "Transformational Leadership's Role in Promoting Corporate Entrepreneurship : Examining the CEO - TMT Interface," Post-Print hal-02276697, HAL.
    7. Hilton Barrett & Art Weinstein, 1998. "The Effect of Market Orientation and Organizational Flexibility on Corporate Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 23(1), pages 57-70, October.
    8. Zeki Simsek & John F. Veiga & Michael H. Lubatkin, 2007. "The Impact of Managerial Environmental Perceptions on Corporate Entrepreneurship: Towards Understanding Discretionary Slack's Pivotal Role," Journal of Management Studies, Wiley Blackwell, vol. 44(8), pages 1398-1424, December.
    9. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
    10. G. Tomas M. Hult & David J. Ketchen & Stanley F. Slater, 2005. "Market orientation and performance: an integration of disparate approaches," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1173-1181, December.
    11. Chihmao Hsieh & Jack A. Nickerson & Todd R. Zenger, 2007. "Opportunity Discovery, Problem Solving and a Theory of the Entrepreneurial Firm," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1255-1277, November.
    12. Robert E. Quinn & John Rohrbaugh, 1983. "A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis," Management Science, INFORMS, vol. 29(3), pages 363-377, March.
    13. Li-Qun Wei & Chung-Ming Lau, 2008. "The impact of market orientation and strategic HRM on firm performance: the case of Chinese enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 980-995, September.
    14. Richard, Orlando C. & McMillan-Capehart, Amy & Bhuian, Shahid N. & Taylor, Edward C., 2009. "Antecedents and consequences of psychological contracts: Does organizational culture really matter?," Journal of Business Research, Elsevier, vol. 62(8), pages 818-825, August.
    15. Liu, Sandra S. & Luo, Xueming & Shi, Yi-Zheng, 2003. "Market-oriented organizations in an emerging economy: A study of missing links," Journal of Business Research, Elsevier, vol. 56(6), pages 481-491, June.
    16. Fiona Lee & Amy C. Edmondson & Stefan Thomke & Monica Worline, 2004. "The Mixed Effects of Inconsistency on Experimentation in Organizations," Organization Science, INFORMS, vol. 15(3), pages 310-326, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lyu, Chongchong & Zhang, Feng & Ji, Jing & Teo, Thompson S.H. & Wang, Ting & Liu, Zifan, 2022. "Competitive intensity and new product development outcomes: The roles of knowledge integration and organizational unlearning," Journal of Business Research, Elsevier, vol. 139(C), pages 121-133.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lennart Burger & Ivana Blažková, 2020. "Internal Determinants Promoting Corporate Entrepreneurship in Established Organizations: A Systematic Literature Review," Central European Business Review, Prague University of Economics and Business, vol. 2020(2), pages 19-45.
    2. Rostain, Marjolaine, 2021. "The impact of organizational culture on entrepreneurial orientation: A meta-analysis," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    3. Smirnova, Maria M. & Rebiazina, Vera A. & Frösén, Johanna, 2018. "Customer orientation as a multidimensional construct: Evidence from the Russian markets," Journal of Business Research, Elsevier, vol. 86(C), pages 457-467.
    4. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    5. Yang Chen & Guiyao Tang & Jiafei Jin & Ji Li & Pascal Paillé, 2015. "Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality," Journal of Business Ethics, Springer, vol. 127(2), pages 479-500, March.
    6. Green, Kimberly M. & Covin, Jeffrey G. & Slevin, Dennis P., 2008. "Exploring the relationship between strategic reactiveness and entrepreneurial orientation: The role of structure-style fit," Journal of Business Venturing, Elsevier, vol. 23(3), pages 356-383, May.
    7. Kamal Sakhdari & J. Henri Burgers, 2018. "The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship: an attention-based view," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 927-950, December.
    8. Wu Zhao & Wei Liu & Yun Chen, 2019. "Internal Fission Strategies in Corporate Entrepreneurship: A Case Study in China," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    9. Jiyeon Kim & Min Jae Park, 2022. "Influence of Entrepreneurship Manifestation Factor on Organisational Innovation: The Role of Corporate Entrepreneurship and Imperative Innovation Culture," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 514-545, November.
    10. A. Emre Demirci, 2013. "Strategic Representation of an Abstract Reality: Spiraling Relations between Organizational Culture and Innovativeness," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(3), pages 39-55, August.
    11. Smith, Lisa & Rees, Patricia & Murray, Noel, 2016. "Turning entrepreneurs into intrapreneurs: Thomas Cook, a case-study," Tourism Management, Elsevier, vol. 56(C), pages 191-204.
    12. Chung, Henry F.L. & Kingshott, Russel P.J. & MacDonald, Robyn V.G. & Putranta, Martinus Parnawa, 2021. "Dynamism and B2B firm performance: The dark and bright contingent role of B2B relationships," Journal of Business Research, Elsevier, vol. 129(C), pages 250-259.
    13. William Q. Judge & Yuping Liu–Thompkins & J. Lee Brown & Chatdanai Pongpatipat, 2015. "The Impact of Home Country Institutions on Corporate Technological Entrepreneurship via R&D Investments and Virtual World Presence," Entrepreneurship Theory and Practice, , vol. 39(2), pages 237-266, March.
    14. Bhattarai, Charan Raj & Kwong, Caleb C.Y. & Tasavori, Misagh, 2019. "Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom," Journal of Business Research, Elsevier, vol. 96(C), pages 47-60.
    15. Yan Ling & María Concepción López-Fernández & Ana María Serrano-Bedia & Franz W. Kellermanns, 2020. "Organizational culture and entrepreneurial orientation: examination through a new conceptualization lens," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 709-737, June.
    16. Jeffery S. McMullen & Katrina M. Brownell & Joel Adams, 2021. "What Makes an Entrepreneurship Study Entrepreneurial? Toward A Unified Theory of Entrepreneurial Agency," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1197-1238, September.
    17. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    18. Pierre Erasmus & Retha Scheepers, 2008. "The Relationship Between Entrepreneurial Intensity and Shareholder Value Creation," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 6(3), pages 229-256.
    19. Yi-Ying Chang & Paul Hughes & Ian Hodgkinson & Che-Yuan Chang & Yi-Tai Seih, 2022. "The antecedents of corporate entrepreneurship: multilevel, multisource evidence," Review of Managerial Science, Springer, vol. 16(2), pages 355-390, February.
    20. Mitchell, Rebecca & Boyle, Brendan & Nicholas, Stephen & Maitland, Elizabeth & Zhao, Shuming, 2016. "Boundary conditions of a curvilinear relationship between decision comprehensiveness and performance: The role of functional and national diversity," Journal of Business Research, Elsevier, vol. 69(8), pages 2801-2811.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:asiapa:v:36:y:2019:i:3:d:10.1007_s10490-019-09645-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.