The relationship between corporate entrepreneurship and innovation and the moderating effect of transformational leadership

Soyal, Barış
Innovation has one of the most important activities for ensuring competitiveness and development which results in sustainable economic growth.Innovation is encouraged by corporate entrepreneurship which challenges bureaucracy and promotesentrepreneurial behaviorswithin an organization. Corporate entrepreneurial environmentis the stimulator ofinnovation within large companiesthrough development of new opportunities, renewing processes, implementationof new methods,andexploitation of the new products or services.In this study, the relationship between innovation and factorssuch as topmanagement support, workdiscretion/autonomy, time availability, organizational boundaries,and rewards/reinforcements, which are covered within the scope of corporate entrepreneurialfactors, are examined. In addition, the moderationeffect of transformational leadership in the relationship between corporate entrepreneurial factors and innovationisinvestigated. For this purpose, survey data collected from 135 unitlevel managers of a large defense and aviation company are examined by regression analysis. Contrary to the corporate entrepreneurship literature, no significant relationship between innovation and the corporate entrepreneurial factors have been found by this research. Moreover, a significant moderating effect of transformational leadership on the relationship between corporate entrepreneurial factors and innovation has not been found.