Organizational Internal Factors, Corporate Entrepreneurship, and Organizational Performance

Abstract

The purpose of this study is to examine and explain the effect of: a) top management support on corporate entrepreneurship, b) supportive organizational structure on corporate entrepreneurship, c) resources availability on corporate entrepreneurship, d) reward system on corporate entrepreneurship, e) work discretion on corporate entrepreneurship, f) corporate entrepreneurship on financial performance, and g) corporate entrepreneurship on non financial performance. The data collection was done using a survey. The sample of this study was manager or director of Bank Sulselbar, regional development bank in South Sulawesi and West Sulawesi Province in Indonesia with 97 questionnaires were distributed with 91.78% response rate. The data were analyzed using Generalized Structured Component Analysis (GSCA). The result reveals that: a) top management support has a positive and significant effect on corporate entrepreneurship, b) supportive organizational structure has a positive but not significant effect on corporate entrepreneurship, c) resources availability has negative and not significant effect on corporate entrepreneurship, d) reward system has positive and significant effect on corporate entrepreneurship, e) work discretion has positive and significant effect on corporate entrepreneurship, f) corporate entrepreneurship has a positive and significant effect on financial performance, and g) corporate entrepreneurship has a positive and significant effect on non financial performance.

Keywords: top management support, supportive organizational structure, resources availability, reward system, work discretion, corporate entrepreneurship, organizational performance