In Pursuit of Corporate Entrepreneurship: How Employees Perceive the Role of Formalization and Centralization

Abstract

Corporate entrepreneurship is one of the key strategies of today’s organizations in search of acquiring and sustaining competitive advantage in the global markets. Although many companies claim that entrepreneurial spirit is an inherent part of their organizational cultures, it is not common to see organizations gained competitive edge through solid corporate entrepreneurship strategies. Among many other organizational antecedents and oxymorons that have impact on the entrepreneurial profiles of the organizations, formalization and centralization stand out among other variables as key characteristics of the organizational structures.

This study aims to analyze the relationship between corporate entrepreneurship, formalization and centralization. The findings of this study indicate that centralization and formalization have impact on the entrepreneurial behaviors within the companies. A sample of 273 surveys was collected from three leading companies operating in the ceramics industry.