Differentiating the effects of the institutional environment on corporate entrepreneurship

Abstract

Purpose – The main purpose of this paper is to contribute to a better understanding of how different dimensions of the institutional environment of a region may influence the level of corporate entrepreneurship of firms.

Design/methodology/approach – The paper develops the relationship between the institutional environment, differentiated in regulatory, cognitive and normative dimensions, and entrepreneurshipin existing firms, corporate entrepreneurship, via a questionnaire study covering 150 firms in Spain.

Findings – The relation between institutional environment and corporate entrepreneurship can be distinct. The results show that both the normative and cognitive dimension of the institutional environment influence an organisation’s entrepreneurial orientation. They also show that regulatory dimension influences what type of corporate entrepreneurial activity is carried out.

Originality/value – Literature about institutional theory and entrepreneurship has been both descriptive and fragmented. This paper complements the increasing interest in the analysis of the influence of institutional frameworks on corporate entrepreneurship and answers recent calls in the literature to complete previous analyses in an empirical way that supports previous works.