The Multi-level Effects of Corporate Entrepreneurial Orientation on Business unit Radical Innovation and Financial Performance

Mathew Hughes*, Yi-Ying Chang*, Ian R. Hodgkinson*, Paul Hughes*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Corporate enterprises must support its business units to adapt to changes that are increasingly dramatic and complex. In response, corporate entities must organize to embed a corporate entrepreneurial orientation (EO) that pervades the actions of its business units to create the radical innovations needed to thrive in these circumstances. By developing a global willingness–local ability framework, we test a multi-level model of corporate EO by conceptualizing its effects on business unit radical innovation and business unit financial performance, moderated by business unit R&D resourcing and business unit absorptive capacity. With data from 2820 business units of 1290 Taiwanese corporations from two separate surveys, we find support for our theoretical expectations and contribute much-needed knowledge of the multi-level effects of EO and the conditions to turn EO into actual innovation activity and profit from it.
Original languageEnglish
Article number101989
JournalLong Range Planning
Volume54
Issue number1
Number of pages27
ISSN0024-6301
DOIs
Publication statusPublished - Feb 2021
Externally publishedYes

Keywords

  • Entrepreneurial orientation
  • Multi-level
  • Radical innovation
  • Resources
  • Absorptive capacity
  • R&D
  • Corporation
  • Business unit
  • Willingness and ability

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