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The Influence of Top Management’s Strategic Planning Capacity and Entrepreneurial Orientation on Corporate Entrepreneurship

  • Kuo-Ting Hung , Somnath Banerjee , Onnolee Nordstrom EMAIL logo , Chanchai Tangpong , Yue Li and Jin Li
Published/Copyright: April 6, 2023

Abstract

This study examines whether, and how, top management influences middle management’s support of corporate entrepreneurship activities. Specifically, the study explores the influence of top management characteristics, i.e. strategic planning capacity and entrepreneurial orientation, on manager’s decision to support innovation adoption. We report on the findings from a vignette study. Research participants included a group of 259 experienced business professionals: 148 from the United States and 111 from China. The results suggest that the alignment of strategic planning capacity and entrepreneurial orientation influences middle management’s support for corporate entrepreneurship in both cultural settings.


Corresponding author: Onnolee Nordstrom, Management and Marketing, North Dakota State University, Fargo, ND, USA, E-mail:

Appendix: Innovation Adoption Decision Vignette

You are a senior manager of Company X, which is an aircraft component supplier. You have an existing buyer, Company Y, which is a commercial private jet manufacturer and has purchased components from your company. Currently, you are working with Company Y in developing a new generation commercial private jet. This new aircraft aims to greatly improve fuel efficiency for private jet operators. In doing so, Company Y has proposed to you that your company make the body of the new aircraft completely with a lightweight and durable composite material. However, while composite materials have been used in wings and other parts in commercial aircrafts for years, the risks of having a composite body have not been fully assessed, unlike metals, the traditional material used in an aircraft body. Failures in composite materials are also harder to detect than those in metals. This means that your company has to completely redevelop the design and the production process of the aircraft body based on the new material. Alternatively, your R&D team believes that they can improve the aircraft fuel efficiency simply by tweaking the design of the current aircraft body instead of having to completely redesign it based on the new material. The resulting fuel efficiency improvement gained from tweaking the current design will be much less than that gained from the complete redesign based on the new materials as Company Y proposed. However, your company is familiar with the current body design and has already had its production process in place for years. As a senior manager of Company X, you need to make a decision whether (a) to accept the proposal from Company Y or (b) to tweak the current design of the aircraft body.

Question: From the scale of 1 (very unlikely) to 7 (very likely), how likely is it that you would make a decision to accept the innovation proposal from Company Y instead of tweaking the current design of the aircraft body?

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Received: 2022-01-19
Accepted: 2022-12-10
Published Online: 2023-04-06

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Articles in the same Issue

  1. Frontmatter
  2. Competitive Research Articles
  3. Impact of Entrepreneurial Orientation on MSME Performance: Mediating Role of Entrepreneurial Competency
  4. The Development of Corporate Entrepreneurship among Emerging Economy SMEs: Insights from Both Institutional and Contingency Theory
  5. The Dynamic Capabilities of High-Turbulent Markets: Indonesian Start-Up Cases During COVID-19 Pandemic
  6. Entrepreneurship, Resource Rents and Institutions
  7. The Scaling Strategies and the Scaling Performance of Chinese Social Enterprises: The Moderating Role of Organizational Resources
  8. Research on Corporate Entrepreneurship in Developing Countries: A Review and Agenda for Future Directions
  9. The Impact of Initial Intellectual Property Decisions of Start-Ups on Innovation Performance
  10. Social Capital and Innovative Performance in Networks: The Journey of Romanian SaaS Entrepreneurs
  11. Gender Differences in the use of Social Capital for Entrepreneurial Activity Within Contexts of Poverty
  12. Commitment Helps: The Positive Effects of Long-Term Orientation and Family Ownership on Firms’ International Expansion
  13. Institutional Environment, Executive Equity Incentive, and Enterprise Innovation: The Case of China
  14. Determinants of Entrepreneurial Employee Activity in Saudi Arabia
  15. How Does Entrepreneurial Role Model Connect to Entrepreneurial Perceptions: The Moderating Role of Psychological Distance
  16. The Influence of Top Management’s Strategic Planning Capacity and Entrepreneurial Orientation on Corporate Entrepreneurship
  17. Innovation Ambidexterity and Firm Performance: The Moderating Effects of Contextual Factors
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