Corporate Entrepreneurship: the Right Path for Developing Countries

Over the past few years, Latin American organizations have begun to appreciate the role of corporate entrepreneurship and intrapreneurship in innovation, growth and business performance. Although there is a growing interest among companies in this type of entrepreneurship, models that can be adapted to their business reality are not easy to find. The majority of research in this field has targeted developed countries, generating models and theories that do not necessarily apply to other economic and cultural contexts, as may be the case of Latin American nations.

Developing countries characteristically have certain institutional and resource limitations, as well as unpredictable market conditions, which imply specific challenges for the survival and economic performance of organizations. This significantly limits the creation and development of entrepreneurial initiatives, in comparison with more stable contexts such as those of developed countries. The objective of our paper “Research on corporate entrepreneurship in developing countries” (Entrepreneurship Research Journal, 2023), co-written with Andreu Turró and David Urbano (Universitat Autònoma de Barcelona), is to contribute to an enhanced understanding of entrepreneurship within developing countries.

Through the analysis of articles, scientific journals and various publication indicators, citations, theoretical and methodological perspectives, topic trends and thematic maps, we were able to determine that research on corporate entrepreneurship and intrapreneurship in developing countries is based on three main areas: determinants and effects of corporate entrepreneurship, determinants of intrapreneurship and performance, and dynamic capabilities and corporate entrepreneurship. At the end of each section, we offer ideas for future research.

Determinants and effects of corporate entrepreneurship

This research focuses above all on context. How does context interact with company directors to define entrepreneurship based on strategy? Given that institutions in developing countries are usually weak and, therefore, regulations are subject to constant change, context plays a key role. This turbulent environment presents a challenge for organizational decision-making. Research in this area highlights, among other topics, the factors that influence the promotion of corporate entrepreneurship, the effects of having an entrepreneurial culture and the practices that seek to increase corporate entrepreneurship, for example, in the field of strategic human resource management. Some authors focus on the relationship between firms’ entrepreneurial orientation and performance, while others concentrate on the influence of cultural values.

We have identified some questions for future exploration by researchers in this field, such as: How do the different determinants contribute to an entrepreneurial mindset, managerial support and corporate entrepreneurship in developing countries? How do institutional and individual factors interact to facilitate corporate entrepreneurship? What are the reasons underpinning the success or failure of corporate entrepreneurship activities in different public and private sector settings?

Determinants of intrapreneurship and performance

Intrapreneurship refers to entrepreneurial activities that emerge at the employee level. Why do employees engage in entrepreneurship? Do they do so inside or outside the organization? Is their personality that of a risk-taker? This research refers to the determinants of entrepreneurial behavior, such as attitudes and human capital, organizational climate or environmental conditions. It also addresses some of the results of startups created with employer investment (corporate venture), innovation derived from synergies between employees and clients, or innovations based on technology.

Some of the questions for future avenues of research are: What are the underlying reasons for variations in the entrepreneurial drive of various generations? What role does gender play? How does senior management impact the successful implementation of human resource practices in an organization?

Dynamic capabilities and corporate entrepreneurship

This research examines the role of capabilities in generating entrepreneurship in organizations: the specific capabilities that are crucial in developing countries, the way organizations use them, the influence of an entrepreneurial orientation on dynamic capabilities, the relationship between entrepreneurial orientation and innovation, etc. These are just some of the topics relevant to this area.

Some of the questions that could be clarified in future research include: How does the institutional environment of developing countries influence the correlation between dynamic capabilities and corporate entrepreneurship? How can companies improve their capabilities to make better use of corporate entrepreneurship? Which capabilities do companies need in order to discover opportunities and assess the context for developing a corporate entrepreneurship strategy?

The author is professor in the Department of Entrepreneurship and Technological Innovation, EGADE Business School.