Corporate entrepreneurship, perceived autonomous support and firm performance in New Zealand: A mediation study

Abstract or Summary

While the benefits of corporate entrepreneurship towards firm performance are established, the role of organizational culture based on support is less explored. The present study of 115 firms explores the relationships between perceived autonomous support (PAS), corporate entrepreneurship and multiple dimensions of performance. Structural equation modelling was used to test direct and alternative mediation effects, and a partial mediation model was found to be the superior model. Overall, PAS was found to directly influence corporate entrepreneurship and market performance; corporate entrepreneurship directly influenced market and development performance; while both market and development performance influenced financial performance. The mediating effects model accounted for modest amounts of variance towards most variables, but a very large amount (57%) towards financial performance. Overall, the study found that financial performance was best predicted by other forms of performance, while they were in turn directly and indirectly influenced by PAS and corporate entrepreneurship. The implications for understanding firm performance are discussed.