Corporate entrepreneurship of emerging market firms: current research and future directions

Abstract

Purpose The purpose of this paper is to examine the current state of corporate entrepreneurship (CE) of emerging market firms (EMFs) and provide direction for future research on the topic. Design/methodology/approach The authors specifically review the recent literature between the years 2000 and 2019 on CE with the keywords “corporate entrepreneurship,” “emerging economies” and “emerging countries” published in the Australian Business Deans Council list journals. The authors review the existing literature about CE in emerging markets, summarize current achievements and present an agenda for future research. Findings Based on the review, the authors categorized the macro and micro contexts of CE and summarized the current articles on CE in emerging markets within each macro and micro context. The authors conclude that despite the abundance of research on CE that investigates the three prongs of CE in terms of innovation, strategic renewal and new venturing in developed market contexts, there is a scarcity of literature that focuses on CE in emerging markets from a holistic perspective. Originality/value While there is an abundance of literature review on CE in general in terms of the drivers of the construct, the contexts contributing to it and the outcomes, the reviews are lacking about CE specifically within the context of emerging markets. Emerging markets vary from developed markets institutionally, economically, culturally, socially and technologically. However, the questions of how these differences impact the CE activities, as it relates to innovation, venturing and strategic renewal in EMFs, and how these differences provide incentives or hinder the activities that contribute to CE remain mostly unanswered. This paper reviewed the research on CE and emerging market contexts from 2000 to present. It targets to provide a better understanding of the current achievement on this topic and what to be done in the future.

Assessing the Impact of Corporate Entrepreneurship in the Financial Performance of Subsidiaries of Colombian Business Groups: Under Environmental Dynamism Moderation

“…The contributions of this research are the following: first, considering the academic interest in the relationship between CE and performance increases (Alam et al, 2020;Rauch et al, 2009;Wiklund & Shepherd, 2005), this study extends this knowledge to SCBG and confirms that CE is context-dependent (Demirkan et al, 2019;Liu & Vrontis, 2017;Miller, 2011); second, the results reveal a positive and strong relationship between EO and CV in SCBG; third, this paper sheds light on the impact of ED as a moderator in the relationship between CE and FP in emerging economies; finally, the present investigation adapted scales relevant to the continuity of this research field in Colombia and Latin America.…”

“…This result is contrary to Tajeddini & Mueller (2018) who found that ED moderates the relationship between EO and the FP, using a sample of 192 Swiss firms from several industries. One possible explanation is that CE has boundary conditions associated with the context of each country (Demirkan et al, 2019;Liu & Vrontis, 2017;Miller, 2011). Considering that the impact of CE in the FP depends on economic drivers, such as gross domestic product, investment-grade sovereign rating, political and regulatory stability, and environmental hostility (Rauch et al, 2009;Sakhdari & Farsi, 2016), then there are marked differences between emerging and developed economies.…”

“…Besides, many studies have approached the effects of CE on FP in developed economies (Narayanan, Yang & Zahra, 2009;Wiklund, 1999). However, little research to date has examined those effects in emerging economies (Demirkan, Yang & Jiang, 2019;De Villiers-Scheepers, 2012), leaving a void in the literature about CE in Latin America, where it is a recent trend (Prats & Siota, 2018). This raises the question of whether these causal relations are similar for emerging economies because their conditions are very different (Kelley, Singer & Herrington, 2016).…”

“…Furthermore, the entrepreneurship ecosystems of developed and emerging economies have marked differences in the institutional environment, government support, technological advances, cultural influences, socioeconomic conditions, and characteristics, motivations, and ambitions of entrepreneurs (Kelley et al, 2016). Moreover, questions like how these differences affect CE activities in emerging economies remain unanswered (Demirkan et al, 2019).…”

Dynamic capabilities and performance of emerging market international new ventures: Does international entrepreneurial culture matter?

“…An IEC facilitates new ideas and creativity in seeking novel international opportunities (Dimitratos et al, 2012) and has come to describe firm-level entrepreneurship of INVs. Entrepreneurship in emerging market INVs differs from developed market INVs (Demirkan et al, 2019;Estrin et al, 2019) as they historically possess lower levels of economic development and supportive policies to foster SME development. Many new ventures in emerging markets are born out of necessity to resolve poverty and social issues; furthermore, access to government aid for global expansion is limited, and institutional deficiencies weaken capital markets (venture capital).…”