Presenting a model of corporate entrepreneurship with corporate governance approach
| Published date | 12 November 2018 |
| Pages | 342-352 |
| Date | 12 November 2018 |
| DOI | https://doi.org/10.1108/WJEMSD-09-2017-0064 |
| Author | Babak Ziyae |
| Subject Matter | Strategy,Business ethics,Sustainability |
Presenting a model of corporate
entrepreneurship with corporate
governance approach
Babak Ziyae
Faculty of Entrepreneurship, University of Tehran, Tehran, Iran
Abstract
Purpose –The purpose of this paper is to design a model of corporate entrepreneurship (CE) considering
corporate governance in the brokerage industry.
Design/methodology/approach –The research method is qualitative using grounded theory as the
method for research operation. The qualitative data were collected using an in-depth interview technique.
Using snowball sampling method, 18 chief executive officers of Iranian brokerage listed in Iran’s Securities
and Exchange organization were selected for the current study.
Findings –The findings of the study showed that CE at inbound, outbound and composition is defined as
strategies that enhance corporate governance. Research findings also recommend that by using CE strategies
corporate governance will be enhanced in the brokerage industry.
Research limitations/implications –Possibility of proper applying, deploying and implementing CE and
its various methods will require the necessary fields and infrastructures in the considered organization. On
the other hand, according to the research results, at inbound, outbound and composition levels, CE is defined
as a practice or strategy that enhances corporate governance.
Practical implications –This study established that corporate governance in the Iranian brokerage firms
is weak. The aforementioned firms do not have particular units to deal with stock market risks. The findings
explain why some Iranian brokerage firms either collapsed or were facing financial distress. The research
therefore recommends that Iranian brokerage firms should strengthen their governance structure and risk
mitigation mechanisms. Therefore, CE practice facilitates the development of appropriate strategic actions for
brokerage corporate success.
Originality/value –This study has been conducted due to the lack of theoretical literaturein CE to deal with
the ultimate goals of corporate governance in the brokerage industry.
Keywords Corporate governance, Corporate entrepreneurship, Brokerage firm
Paper type Research paper
Introduction
Today, changes in the environment where organizations operate have become more and
more unpredictable (Adams et al., 2010). In such circumstances, corporate entrepreneurship
(CE) is referred as a mean providing for harmonization with the environment. In this respect,
CE allows the internal and external ideas to be utilized for solving the problems faced by
businesses. In fact, CE establishes formal and informal channels enhancing the capabilities
and capacities of an organization (Aguilera and Cuervo-Cazurra, 2009). In a simpler view, CE
can also be considered a means of organizational renewal (Aguilera et al., 2008). These two
work in harmony as the company undertakes innovations across the entire organizational
spectrum, from product and process to technology and administration (Arcot et al., 2010).
In addition, venturing is a primary component in the process, pushing larger companies
to enhance their overall competitiveness in the marketplace by taking bigger risks
(Bebchuk and Weisbach, 2010). Examples of these risks, as seen in a large-scale
organization, may include: redefinition of the business concept, reorganization and the
introduction of system-wide changes for innovation (Aguilera et al., 2008).
CE approaches include: inbound –utilizing theexternal innovative resources; outbound –
utilizing the external resources to develop and commercialize a product; and combined
approach, which involves the partnership of organizations and their closer cooperation to
create new knowledge (Bebchuk and Weisbach, 2010). The inbound innovation methods
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 14 No. 4, 2018
pp. 342-352
© Emerald PublishingLimited
2042-5961
DOI 10.1108/WJEMSD-09-2017-0064
The current issue and full text archive of this journal is available on Emerald Insight at:
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