Dynamics of Corporate Entrepreneurial Initiatives: A Literature Review

Abstract

The competitive landscape in many industries today is marked by intense competition among existing players and the emergence of many focused competitors targeting specific segments of the market. In addition, the macro environment is characterized by rapid technological progress in many fields resulting in current solutions to customer problems becoming obsolete. These changes have highlighted the need for companies to become more entrepreneurial. Institutionalizing entrepreneurship, therefore, is a major challenge for the companies in the current competitive scenario. This study examined the dynamics of corporate entrepreneurship. From the review of extant literature, it was indicated that there was improved firm performance which was linked to corporate entrepreneurship. For companies that initiated actions to which competitors responded to, the firms had a tendency to be ahead of other competitors in introducing novel ideas or products and the companies strived in identifying new markets to sell products. Also, risk taking, innovativeness, competitive aggressiveness and organizational factors were key determinants of firm performance. It is recommended that empirical studies should be carried out using various criterion variables within different industrial sectors in Nigeria so as to test the validity of the concepts reviewed in this paper.