Top Management Compositional Effects on Corporate Entrepreneurship: The Moderating Role of Perceived Technological Uncertainty

Because corporate entrepreneurship (CE) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great interest in understanding its origins. To date, prior studies have overwhelmingly focused on the architectural factors—the structures, cul...

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Published in:	The Journal of product innovation management Vol. 30; no. 5; pp. 837 - 855
Main Authors:	Heavey, Ciaran, Simsek, Zeki
Format:	Journal Article
Language:	English
Published:	Hoboken Blackwell Publishing Ltd 01.09.2013 Blackwell Publishing
Subjects:	Arbeitsgruppe Entrepreneurs Entrepreneurship Führungskräfte Hochtechnologie Human capital Intrapreneurship KMU Management theory Organisationssoziologie Organizational structure Social capital Studies Teams USA
ISSN:	0737-6782, 1540-5885
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Abstract	Because corporate entrepreneurship (CE) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great interest in understanding its origins. To date, prior studies have overwhelmingly focused on the architectural factors—the structures, cultures, resources, and incentives—that shape entrepreneurial processes within organizations and the environmental conditions that stimulate entrepreneurial activity. However, some researchers have recently begun to argue that the requirements and challenges of CE fall most saliently on the shoulders of the firm's top management team. Focusing on various aspects of top managers' activities, roles, and processes, this line of research demonstrates the enabling role of top management teams in their firm's pursuit of CE. We extend this research by examining the impact of top management team composition in terms of human capital and social capital on CE. Additionally, because external environment perceptions within top teams shape their sociopolitical process and framing of the issues facing their firms, we submit that a team's level of perceived technological uncertainty moderates the impact of the team's human and social capital on CE. We find support for these arguments using multisource data from a sample of 99 high‐technology firms. The discussion finally traces the implications of our theory and findings for research and managerial understanding on CE.
AbstractList	Because corporate entrepreneurship (CE) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great interest in understanding its origins. To date, prior studies have overwhelmingly focused on the architectural factors—the structures, cultures, resources, and incentives—that shape entrepreneurial processes within organizations and the environmental conditions that stimulate entrepreneurial activity. However, some researchers have recently begun to argue that the requirements and challenges of CE fall most saliently on the shoulders of the firm's top management team. Focusing on various aspects of top managers' activities, roles, and processes, this line of research demonstrates the enabling role of top management teams in their firm's pursuit of CE. We extend this research by examining the impact of top management team composition in terms of human capital and social capital on CE. Additionally, because external environment perceptions within top teams shape their sociopolitical process and framing of the issues facing their firms, we submit that a team's level of perceived technological uncertainty moderates the impact of the team's human and social capital on CE. We find support for these arguments using multisource data from a sample of 99 high‐technology firms. The discussion finally traces the implications of our theory and findings for research and managerial understanding on CE. Because corporate entrepreneurship (CE) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great interest in understanding its origins. To date, prior studies have overwhelmingly focused on the architectural factors -- the structures, cultures, resources, and incentives -- that shape entrepreneurial processes within organizations and the environmental conditions that stimulate entrepreneurial activity. However, some researchers have recently begun to argue that the requirements and challenges of CE fall most saliently on the shoulders of the firm's top management team. Focusing on various aspects of top managers' activities, roles, and processes, this line of research demonstrates the enabling role of top management teams in their firm's pursuit of CE. We extend this research by examining the impact of top management team composition in terms of human capital and social capital on CE. Additionally, because external environment perceptions within top teams shape their sociopolitical process and framing of the issues facing their firms, we submit that a team's level of perceived technological uncertainty moderates the impact of the team's human and social capital on CE. We find support for these arguments using multisource data from a sample of 99 high-technology firms. The discussion finally traces the implications of our theory and findings for research and managerial understanding on CE. [PUBLICATION ABSTRACT] Because corporate entrepreneurship ( CE ) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great interest in understanding its origins. To date, prior studies have overwhelmingly focused on the architectural factors—the structures, cultures, resources, and incentives—that shape entrepreneurial processes within organizations and the environmental conditions that stimulate entrepreneurial activity. However, some researchers have recently begun to argue that the requirements and challenges of CE fall most saliently on the shoulders of the firm's top management team. Focusing on various aspects of top managers' activities, roles, and processes, this line of research demonstrates the enabling role of top management teams in their firm's pursuit of CE . We extend this research by examining the impact of top management team composition in terms of human capital and social capital on CE . Additionally, because external environment perceptions within top teams shape their sociopolitical process and framing of the issues facing their firms, we submit that a team's level of perceived technological uncertainty moderates the impact of the team's human and social capital on CE . We find support for these arguments using multisource data from a sample of 99 high‐technology firms. The discussion finally traces the implications of our theory and findings for research and managerial understanding on CE .
Author	Heavey, Ciaran Simsek, Zeki
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Snippet	Because corporate entrepreneurship (CE) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great... Because corporate entrepreneurship ( CE ) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great...
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SubjectTerms	Arbeitsgruppe Entrepreneurs Entrepreneurship Führungskräfte Hochtechnologie Human capital Intrapreneurship KMU Management theory Organisationssoziologie Organizational structure Social capital Studies Teams USA
Title	Top Management Compositional Effects on Corporate Entrepreneurship: The Moderating Role of Perceived Technological Uncertainty
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