Unpacking the mechanism linking market orientation and corporate entrepreneurship: the mediating role of human resource management strength

Guiyao Tang, Bingjie Yu, Yang Chen*, Liqun WEI

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

Corporate entrepreneurship is becoming increasingly important for firms to gain competitiveness in the marketplace. Yet, insufficient knowledge has been accumulated on how to develop entrepreneurial behaviors within firms, specifically how firms are motivated to develop entrepreneurship and what managerial process facilitates the development process. Drawing on the literature of market orientation, human resource management (HRM) and corporate entrepreneurship, we propose a model in which the relationship between market orientation and corporate entrepreneurship is mediated by HRM strength, and hierarchical culture and competitive intensity moderate the relationship between HRM strength and corporate entrepreneurship. Using time-lagged matching survey data obtained from 97 CEOs, CFOs and also 220 employees in 97 Chinese companies, we show that HRM strength mediates the relationship between market orientation and corporate entrepreneurship, and that the relationship between HRM strength and corporate entrepreneurship is stronger when the organizational culture is more hierarchical and the competition is less intensified. Both theoretical and practical implications and limitations of the study are discussed.

Original languageEnglish
Pages (from-to)593-614
Number of pages22
JournalAsia Pacific Journal of Management
Volume36
Issue number3
DOIs
Publication statusPublished - 15 Sep 2019

Scopus Subject Areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

User-Defined Keywords

  • Competitive intensity
  • Corporate entrepreneurship
  • Hierarchical culture
  • Human resource management strength
  • Market orientation

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