Sustainable corporate entrepreneurship initiatives: a risk and reward analysis

Abstract

Earlier studies recognize the importance of corporate entrepreneurship towards achieving a sustainable competitive advantage. This study proposes that the likelihood of individual participation in corporate entrepreneurship initiatives is contingent upon individual perceptions of rewards and risks. The research presents different scenarios, and tests several attributes that influence the decision to participate. Conjoint analysis utilisation simulates a real life situation where scenario analyses in varying combinations in terms of their intensity levels take place. The results indicate the most important attribute influencing the decision to participate is the probability of venture success followed closely by financial reward. As expected, job risk, pay risk and required effort are deterrents to participation; and individuals with past entrepreneurial experience are less concerned about job risk and have a higher positive perception regarding the probability of corporate venture success.

Keywords:

• corporate entrepreneurship
• participation
• decision-making
• conjoint analysis

JEL Classification:

• D8
• J24
• L26
• M13

Additional information

Notes on contributors

Boris Urban

Boris URBAN. He is a Professor at the Graduate School of Business Administration, Wits Business School (WBS), Faculty of Commerce, Law and Management, University of Witwatersrand. He has more than 30 years academic and professional experience in business, where he has practiced, taught and researched strategy, organisational behaviour and entrepreneurship. Since 2009 he has held the Chair in Entrepreneurship (Lamberti Foundation) at the WBS. He has more than 50 peer reviewed publications in scholarly journals, including high-impact ISI and Financial Times Top 40 ranked journals. He has presented several papers at international conferences and won best paper awards. He is the book series editor and author of ‘Perspectives in Entrepreneurship: a Research Companion’ published by Pearson Publishers and Springer Books internationally. He is co-author of ‘Entrepreneurship Theory and Practice’ published by Oxford University Press, which is prescribed as a standard text at several universities.

Kristo Nikolov

Kristo NIKOLOV. He is a Master student at the Graduate School of Business Administartion, WBS, University of the Witwatersrand.