ORGANISATIONAL STRUCTURE, CORPORATE ENTREPRENEURSHIP AND PERFORMANCE

Shaker A. Zahra, Jeffrey G. Covin and Patricia H. Zahra
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Shaker A. Zahra: Department of Management, Georgia State University, USA
Jeffrey G. Covin: School of Management, Georgia Institute of Technology, USA
Patricia H. Zahra: Atlanta, GA 30318, USA

Journal of Enterprising Culture (JEC), 1998, vol. 06, issue 01, 111-146

Abstract: The importance of a firm's formal organisational structure for stimulating corporate entrepreneurship (CE) has been the subject of interest and debate in the literature. A firm's organisational structure usually provides the context, incentives and impetus for its CE activities and determines the success of its innovative ventures. This study empirically examines the association of the dimensions of organisational structure with CE activities in a sample of 130 banks. The results suggest that low formalisation, low centralisation, high professionalism, high participation, and intensive organisational-wide communication are positively associated with CE. Further, CE is positively associated with bank financial performance measures. Finally, the fit between the dimensions of organisational structure and CE is associated with successful organisational performance.

Date: 1998
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DOI: 10.1142/S0218495898000072

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