Abstract
Organizational size is an important factor contributing to the heterogeneous nature of corporate entrepreneurship (CE). We focus on explicating size-based differences in CE and integrating them into new theoretical development. Through a search of the contemporary CE literature, we argue that there has been a tendency toward examining CE dimensions within the context of large public firms, even though they represent a relatively small proportion of the firms that engage in CE activities. Drawing on resource-based theorizing, we identify how size confers CE competitive advantages via slack resources and resource structuring processes, but disadvantages via bureaucratic structures and resource bundling. Aware of these weaknesses, we suggest that small firms are more likely to utilize CE for growth to overcome liabilities of smallness, while large firms are more likely to utilize CE for learning to overcome liabilities of inertia. We thereby provide greater specificity to CE research and stimulate new theoretical development with a forward-looking CE research agenda that incorporates the role of organizational size.
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Notes
In general, we use the terms size, firm size, and organizational size interchangeably.
The EU definition technically defines size categories based on employees and assets. However, as most studies did not report both assets and employees, we base our categorization on either indicator available.
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Acknowledgments
The authors would like to thank action editor Donald F. Kuratko and two anonymous reviewers for their insightful comments on this manuscript throughout the review process. The authors also benefited from feedback at the special issue conference held at the University of Warwick, including the special issue editors and Erik Monsen, and on an earlier version of this paper presented at the 2012 Academy of Management Conference.
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Nason, R.S., McKelvie, A. & Lumpkin, G.T. The role of organizational size in the heterogeneous nature of corporate entrepreneurship. Small Bus Econ 45, 279–304 (2015). https://doi.org/10.1007/s11187-015-9632-6
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DOI: https://doi.org/10.1007/s11187-015-9632-6
Keywords
- Corporate entrepreneurship
- Organizational size
- Contingency approach
- Resource-based theory
- Resource management