Entrepreneurial Management, Corporate Venturing, and Financial Performance

Abstract

Corporate venturing activities can expand a firm’s business by creating new products and entering new markets. The literature suggests that entrepreneurial management should have a positive effect on corporate venturing activities and, as a consequence of this, a positive effect on a company's financial performance. By entrepreneurial management we mean an outward opportunity- seeking approach to management rather than a more inward- looking approach towards resources and competences currently controlled. Despite the prevalence of descriptions of entrepreneurial management and the alleged importance of such practices, we have little empirically based knowledge about its effects. This study contributes to filling this gap in the literature by examining the effect of entrepreneurial management on financial performance, using corporate venturing activities as an intermediary variable.