A Strategic Entrepreneurship Model Based on Corporate Governance in the Iranian Manufacturing Enterprises
Keywords:Entrepreneurship, Agency theory, Executive compensation, Innovation, Structural Equation Modeling (SEM)
Recently much attention has been paid to the relationship between organizational entrepreneurship and corporate governance and their effects on firm performance. This study was carried out by survey and analysis of secondary data to investigate the relationships between strategic entrepreneurship, corporate governance and firm performance among the listed Iranian manufacturing firms. Some 80 companies from various industries were studied. To analyze data, Partial Least Squares (PLS) method of Structural Equation Modeling (SEM) was used. Findings indicate that the presence of executives in the board, the amount of ownership by the board members and also compensating board members according to long-term firm performance have a positive effect on strategic entrepreneurship intensity. However a negative result was found for the amount of stocks held by institutional investors. ANOVA test results also indicated that small businesses are more entrepreneurial than medium businesses and younger businesses and businesses having more technological opportunities show more entrepreneurial intensity. Moreover, three moderating variables namely company age, company size and company past performance have strong impact on the relationship between corporate governance and strategic entrepreneurship.
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