The Effect of Corporate Entrepreneurship on Financial Performance: A Research on Manufacturing Companies Listed in BIST

Abstract

Purpose – The research topic was chosen to examine how corporate and non-corporate entrepreneur firms’ financial performances differ. The financial performance differences of the 192 manufacturing companies listed in BIST those of which are corporate entrepreneurs and those that are not, were examined in a longitudinal framework covering the period of 2011-2020. Design/methodology/approach – Within the framework of developed model in accordance of the research purpose ten-year activity reports of the companies in the research sample were examined with content analysis. As a result of this analysis, the financial results of the companies determined as corporate entrepreneurs were compared with those that are not corporate entrepreneurs, longitudinally with a two-way analysis of variance. In addition, the effect of these activities of corporate entrepreneur companies on their financial results was examined by regression analysis. Findings – According to the research results, corporate entrepreneur companies' financial performances differ significantly in a positive way from those that are not corporate entrepreneurs. In addition, corporate entrepreneurship activities have a positive and significant effect on financial results. Discussion – While organizations each day continue their activities with the aim of profit earning, they try to gain a competitive advantage in the environments that surround them and under many uncertainties. Corporate entrepreneurship is one of the phenomena that will enable these efforts to be realized toward a specific performance target. The concept of corporate entrepreneurship has been extensively studied in the literature for at least 40 years as an essential tool for establishing a sustainable competitive advantage as a result of determining and evaluating opportunities by organizations, creating new ideas, business models, growth expectations, and improving the efficiency of the company and ensuring its growth. Just as individual entrepreneurship is accepted as the economy's locomotive, corporate entrepreneurship is recommended as a result of theoretical and experimental research, with the thought that it will benefit organizations in many ways. However, only some of these studies have subjectively evaluated the impact of corporate entrepreneurship on financial outcomes.