Strategic corporate entrepreneurship practices in financial services firms: the role of organizational factors

Abstract

The study explores a hitherto neglected area of strategic corporate entrepreneurship in services firms, the association of organizational factors with different strategic corporate entrepreneurship practices. It represents a first step toward understanding how internal organizational factors may spur different forms of strategic corporate entrepreneurship practices within services firms, especially those operating in the financial sector. Data for the study were collected through a survey study and the sample consisted of employees at a major insurance company in Sweden. The sample includes five offices placed in the north-eastern in Sweden and four offices ubicated in Stockholm. Using structural equation modelling, it was found that whereas organizational factors such as management support and reward/reinforcement have a positive effect on both incremental and discontinuous strategic corporate entrepreneurship practices, the organizational factor work discretion presents a differentiated effect. The study provides an important step toward understanding the internal factors that spur employees toward strategic corporate entrepreneurship practices in financial services firms. Moreover, the study develops a potential measure of incremental and discontinuous strategic corporate entrepreneurship practices. In terms of practical implications, the findings offer managers a solid foundation on which to base their decisions to create and improve an internal organizational environment that facilitates strategic corporate entrepreneurship practices.