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 Volume 1. Issue 2. July 2019 

ISSN 2603-5324 

http://faba.bg 

 

Corporate Entrepreneurship in Improving Company Performance 

 

Ahmad Hadi Fauzi, Sam`un Jaja Raharja, Rusdin Tahir 

 

Department of Business Administration, Faculty of Social and Political Sciences,  

Padjadjaran University, Indonesia 

 

Info Articles 

________________ 
History Articles: 

Submited 12 March 2019 

Revised 30 April 2019 

Accepted 1 July 2019 

________________ 
Keywords: 

Balance Score Card ; 

Financial perspective; 

Customer perspective; 

Internal   Business 

Process perspective; 

Learning and growth. 

Abstract
 

___________________________________________________________________ 

Enterprise entrepreneurship in the study of entrepreneurial processes in which 

individuals in organizations can exploit and exploit opportunities without considering 

the resources within the company. This research method uses Literature Review using 

electronic journal data base sources, and research articles. This study develops concepts 

that introduce the concept of corporate entrepreneurship in improving company 

performance. Innovation, technology-specific competencies, Top Management Support, 

and organizational learning. 

 Address Correspondence:  

   Jl. Raya Bandung Sumedang KM 21, Jatinangor 45363 
 

  



 

Ahmad Hadi Fauzi / Finance, Accounting and Business Analysis 1 (2) (2019) 

146 

INTRODUCTION 

 

Corporate Entrepreneurship CE is the 

process by which individuals in an organization 

can explore and take advantage of opportunities 

without regard to resources within the company 

(Stevenson, Roberts and Grousbeck, 1998). An 

entrepreneurial manager connects separate 

pieces of new technical knowledge that will 

provide solutions to existing problems in the 

company, and gather the resources and skills 

needed to take the business to the next stage. 

This process leads to the birth of new business 

and the transformation of companies through 

the renewal of their key ideas (Guth & Ginsberg, 

1990). In the realm of existing companies, CE 

includes three types of phenomena that may or 

may not be interrelated (Chua, Chrisman, & 

Sharma, 1999), namely the birth of a new 

business in an existing company, the 

transformation of an existing company through 

the renewal or reshaping of ideas the key to 

where they are built, and innovation. 

Researchers have used various labels to describe 

the first two phenomena. The creation of new 

business by companies through this process has 

been called the company's internal business 

(Zajac, Golden, & Shortell, 1991), 

intrapreneurship (Pinchot III, 1985) and so on. 

The process of transforming the company 

through renewal. 

The concept of the Corporate 

Entrepreneurship CE concept is innovation 

(Schumpeter, 1934; Drucker, 1985) which leads 

to wealth creation (Khandwalla, 1987) and 

sustainable company growth (Lumpkin & Dess, 

1996). The motive for entrepreneurship lies in 

the drive to identify existing and emerging 

sources of customer dissatisfaction and develop 

solutions to eliminate them (Pandey et al., 

2003). There are three main phases in the 

entrepreneurial process: perception and 

commitment to opportunities, the pursuit of 

opportunities, and de-commitment (Burgelman 

& Sayles, 1988). The first involves the process of 

identifying opportunities is the most difficult of 

all phases. Although the last few years (Zahra, 

1996) have witnessed primary research interest 

in identifying opportunities, except for some 

frameworks developed by (Kim & Mauborgne, 

2000), (Ramachandran, Devarajan, & Ray, 

2006), and (Shane, 2004 ), research is basically 

limited in this area. 

Based on the results of research conducted 

by Martín-Rojas, García-Morales, & Bolívar-

Ramos, (2013); Yang, Li-Hua, Zhang, & Wang, 

2007; Yunis, El-Kassar, & Tarhini, (2017), this 

paper aims to find the role of CE in improving 

company performance. 

 

LITERATURE REVIEW 

 

Corporate entrepreneurship has now 

become a concept that has attracted the attention 

of many experts, giving birth to various terms, 

but actually refers to the same concept. The 

terms included in Corporate entrepreneurship 

include intrapreneurship, internal corporate 

entrepreneurship, venture management, 

corporate venturing, strategic renewal, and 

internal corporate venturing (Zahra, Jennings & 

Kuratko, 1999; Ferreira 2001). Corporate 

entrepreneurship is seen as a process by 

individuals or groups to create new companies, 

revitalize, and renew organizations, or innovate 

in existing organizations (Antoncic & Hisrich 

2001). Zahra's opinion (1996) explains that 

Corporate entrepreneurship is a formal or 

informal activity that aims to create new 

business in established companies through 

product innovation, process, and market 

development. Zahra (1991) further notes that 

Corporate entrepreneurship is the art of creating 

innovative ideas in a company and realizing 

them to generate profits. 

Research in the field of Entrepreneurship 

in the last decade has increasingly focused on 

Corporate entrepreneurship. The majority of 

Corporate entrepreneurship research focuses on 

issues such as diagnosing the benefits of the 

Corporate entrepreneurship process (Zahra & 

Covin, 1995), defining the phenomenon of 

Corporate entrepreneurship (Sharma & 

Chrisman 1999), identifying the attributes 

companies must have to promote Corporate 

entrepreneurship (Miller, 1983; Covin & Slevin, 



 

Ahmad Hadi Fauzi / Finance, Accounting and Business Analysis 1 (2) (2019) 

147 

1989), defining the role of managers as a catalyst 

for Corporate entrepreneurship (Guth & 

Ginsberg, 1990), measuring the results of 

Corporate entrepreneurship programs (Kuratko 

et al., 1990; Zahra, 1991; Covin & Slevin, 1996), 

and examining the effects of mediation and 

moderation of latent variables in the conceptual 

model of Corporate entrepreneurship (Lumpkin 

& Dess, 2001). However, there are still 

inconsistencies regarding the dynamics of the 

combined effects of various factors on the 

Corporate entrepreneurship model, so the results 

cannot be explained adequately. Nevertheless, 

Corporate entrepreneurship is not a new topic in 

business administration research. Peterson & 

Berger (1971), for example, have studied the 

phenomenon of Corporate entrepreneurship 

over the past five decades. The next section 

develops an understanding of entrepreneurship 

in the entrepreneurship intra-network network 

by outlining the basic forms of entrepreneurship 

at the corporate level and the relationship 

between entrepreneurship and corporate 

entrepreneurship. Most of the Corporate 

entrepreneurship research is on a special 

investigation. Namely, innovation as a source of 

organizational sustainable competitive 

advantage (Covin & Slevin, 2002). For example, 

Guth & Ginsberg (1990) described corporate 

entrepreneurship as consisting of two 

phenomena of innovation, namely the creation 

of new businesses and strategic renewal. 

Previous studies that attempted to 

conduct a literature review in the field of 

corporate entrepreneurship were conducted by 

Sakhdari (2016). Based on a literature review, 

Sakhdari (2016) divides three major themes of 

scientific publications in the field of corporate 

entrepreneurship, namely articles that seek to 

conceptualize corporate entrepreneurship; 

articles that attempt to study the antecedents of 

corporate entrepreneurship; and articles that 

focus on corporate entrepreneurship outcomes. 

Then, based on the results of his literature 

review, Sakhdari, (2016) developed an 

antecedent and consequent model of corporate 

entrepreneurship with the Input-Process-Output 

approach as presented in Figure 2.1. Based on 

Sakhdari's opinion (2016), the output of 

corporate entrepreneurship can consist of 

growth, profitability, corporate entrepreneurship 

performance. 

 

Figure 1. Antecedent Model and Output of 

Corporate Entrepreneurship 

Source: Sahdari (2016). 

 

METHODS 

 

This study uses the Literature Review 

literature review method to discuss the topic 

being studied. Literature study is intended to 

solve a problem which basically relies on critical 

and in-depth review of relevant library materials. 

Literature review is done by collecting data or 

information from various sources of literature 

needed as a source of ideas to explore new ideas 

or ideas as a basis for deduction of existing 

knowledge, so that a new theoretical framework 

can be developed, or as a basis for problem 

solving. The literature review approach consists 

of 5 stages, namely: (1) Find models, (2) 

Problem formulation - which topics are under 

consideration and what are the constituent 

issues, (3) Literature search, (4) Evaluation of 

findings, and (5) ) Analysis and interpretation of 

literature. Literature sources examined in the 

form of research results, journals and other 

scientific articles derived from electronic data 

bases. 

 

RESULTS AND DISCUSSION 

 

The Concept of Entrepreneurship 



 

Ahmad Hadi Fauzi / Finance, Accounting and Business Analysis 1 (2) (2019) 

148 

Entrepreneurship is one important 

element in a country's economic development. 

Researchers and practitioners have shown an 

interest in the concept of entrepreneurship since 

the 1960s, because of its positive effect on 

company performance (Miller & Frieson, 1972). 

In the 20th century, Joseph Schumpeter (1883-

1950) focused his attention on how 

entrepreneurs encouraged to innovate in product 

development and manufacturing process 

changes to bring useful products at affordable 

prices. The term entrepreneur is used to describe 

someone who builds and manages their own 

business. It is also used to describe the 

organization's process of creating new business 

units or initiating updates within the 

organization (Sharma & Chrisman, 1999). 

Entrepreneurship explains the process of 

value creation through the identification and 

exploitation of opportunities such as developing 

new products or finding new markets or both 

(Shane & Venkataraman, 2000; McCline et al., 

2000). Entrepreneurship focuses on innovation 

by identifying market opportunities, for which 

competitors have not been identified or utilized 

and the creation of a unique set of resources to 

exploit these opportunities (Davidson et al., 

2002). Entrepreneurial opportunities arise from 

uncertainty. An appropriate set of resources is 

needed to take advantage of entrepreneurial 

opportunities (Hitt et al, 2002). One of the main 

challenges for entrepreneurs is dealing with the 

strategy changes needed through the growth of 

their companies (Thompson, 1999). 

In the Lumpkin & Dess study (1996) 

namely about Entrepreneurial Orientation 

(Entrepreneurial Orientation) is a firm-level 

strategic orientation which captures an 

organization's strategy-making practice-

corporate entrepreneurships, managerial 

philosophies, and firm behaviors that are 

entrepreneurial in nature. Lumpkin & Dess 

(1996 ) noted that a company's strategy must be 

oriented to managerial philosophy, and 

entrepreneurial corporate behavior, where the 

nature or characteristics of entrepreneurial 

include innovation, proactivity, autonomy, 

competitive aggressiveness and dare to take 

risks. Based on the definition of Entrepreneurial 

Orientation according to Lumpkin & Dess 

(1996), and the relationship of relations with the 

current phenomenon where companies in the 

era of the digital economy become turbulent, 

and faced by the uncertainty of global market 

changes. Thus, companies highlight the 

important role that entrepreneurial concepts play 

by building entrepreneurial-oriented corporate 

character and maximizing resources for the 

survival and growth of the company (Gulati, 

1998; Hite & Hesterly, 2001). Thus, the topic of 

entrepreneurial research emerged and the role of 

Entrepreneurial Orientation (Covin, Green, & 

Slevin, 2006; Lumpkin & Dess, 1996) in the 

concept of entrepreneurial action in corporate 

entrepreneurship actions (Sambamurthy, 

Bharadwaj, & Grover, 2003) has been widely 

studied in 10 years lastly. 

 

The Concept of Corporate Entrepreneurship in 

Improving Company Performance 

The concept of Corporate 

Entrepreneurship has now become a concept 

that attracts the attention of many experts so that 

it gives birth to various terms, but actually refers 

to the same concept. The terms included in 

corporate entrepreneurship include 

intrapreneurship, internal corporate 

entrepreneurship, venture management, 

corporate venturing, strategic renewal, and 

internal corporate venturing (Zahra, Jennings & 

Kuratko, 1999; Ferreira 2001). 

Zahra (1995, 1996) states that corporate 

entrepreneurship can be seen as a collection of 

company activities in the form of innovation, 

renewal and venturing. Innovation includes 

activities to create and introduce new products, 

renewal of production processes and 

organizational systems. Renewal means 

revitalizing the company's operations by 

changing its business scope, competing, or both. 

It also means building or gaining new abilities 

and then creatively using them to add value. 

Venturing means the company develops new 

businesses by expanding the scope of its existing 

market operations or entering new markets 

(1995: 227; 1996: 1715). 



 

Ahmad Hadi Fauzi / Finance, Accounting and Business Analysis 1 (2) (2019) 

149 

corporate entrepreneurship is seen as a 

process undertaken by individuals or groups to 

create new companies, revitalize, and renew 

organizations, or innovate in existing 

organizations (Antoncic & Hisrich 2001). 

Zahra's opinion (1996) explains that corporate 

entrepreneurship is a formal or informal activity 

that aims to create new business in established 

companies through product innovation, process, 

and market development. Zahra (1991) further 

notes that corporate entrepreneurship is the art 

of creating innovative ideas in a company and 

realizing them to generate profits. 

Earlier studies of Martín-Rojas et al., 

(2013) corporate entrepreneurship showed that 

corporate entrepreneurship can be supported by 

organizational learning, because the higher the 

new knowledge gained in the organization will 

increase the autonomy of various parts of the 

company, which allows it to adopt a more 

flexible structure for enhance corporate 

entrepreneurship and enable employees to be 

more creative (Antoncic and Hisrich, 2001; 

Garcı'a-Morales et al., 2006; Knight, 1997). 

Finally, the results show that corporate 

entrepreneurship will increase profits in the 

company, whether sales or market share 

(Antoncic and Prodan, 2008; Lengnick-Hall, 

1992; Murray and Kotabe, 1999). corporate 

entrepreneurship is useful for the revitalization 

and performance of large companies, as well as 

small and medium-sized businesses (Antoncic 

and Hisrich, 2001). Organizations involved in 

entrepreneurship activities achieve higher levels 

of growth and profitability than organizations 

that do not (Antoncic and Hisrich, 2001), thus 

obtaining higher performance (Antoncic and 

Prodan, 2008; Zahra, 1993). 

The previous study of Yunis et al., (2017) 

innovation in ICT-performance relationships 

guarantees strategic steps in organizations to 

emphasize the mixing of ICTs with efforts aimed 

at realizing the company's strategic goals. This is 

consistent with previous research (Lundvall and 

Nielsen, 2007). The great role of innovation 

enables organizations to utilize ICT, which is 

the innovative use of ICT which distinguishes 

competitiveness from non-competitive 

organizations. This is evident in the myriad of 

potential innovations made possible by ICT. 

Business reengineering processes, new business 

models, timely supply chains that lack 

inventory, and new services, such as e-banking 

and e-health are just a few examples of the 

innovations made possible by the adoption and 

use of ICTs. Early adopters of these ICTs can 

realize great benefits compared to those who are 

slow and who are not adopters. The main result 

is that ICT contributions are enhanced when the 

use of ICTs and technological innovations are 

combined (Hempell et al, 2004). Corporate 

entrepreneurship was found to mediate a part of 

the relationship between ICT and Innovation 

and organizational performance. Investing in 

ICT-based innovations and using them to 

introduce new products, services and business 

models requires a business culture that promotes 

transformational, proactive, innovative, and 

risk-taking leadership (Todd and Javalgi, 2007). 

Previous studies of Rodrigo Martín-Rojas, 

García-Morales, & Mihi-Ramírez, (2011) 

emphasize that corporate entrepreneurship in 

technology companies leads to higher 

performance (Antoncic and Prodan, 2008). 

Corporate entrepreneurship enables recognition 

of organizational opportunities and innovations 

based on knowledge, increasing benefits for 

companies (Andreu and Ciborra, 1996; Shane 

and Venkataraman, 2000). In addition, with the 

knowledge gained and organizational 

innovation carried. 

 

CONCLUSION 

 

This research discusses the concept of 

corporate entrepreneurship in improving 

company performance. In the practical field, the 

corporate entrepreneurship model can help 

companies position themselves better in the face 

of the current environmental changes and can 

improve company performance. From the 

results of several studies on the development of 

the corporate entrepreneurship model, it can be 

concluded that corporate entrepreneurship has a 

very important role, especially in company 

performance. By understanding more deeply the 



 

Ahmad Hadi Fauzi / Finance, Accounting and Business Analysis 1 (2) (2019) 

150 

scope of corporate entrepreneurship, it is hoped 

that it can increase knowledge about the concept 

of corporate entrepreneurship and find ideas for 

further research. 

 

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