A PANEL STUDY OF CORPORATE VENTURING AND LISTED MANUFACTURING FIRMS’ GROWTH IN NIGERIA
Keywords:
corporate venturing, return on assets, manufacturing firms, NigeriaAbstract
The study sought to investigate the impact of corporate venturing dimensions on organisational growth with specific reference to consumer goods manufacturing firms listed by the Nigerian Stock Exchange (NSE). The populace for the study comprised the twenty-one (21) listed consumer goods manufacturing companies in Nigeria as of January 2020 out of which fifteen (15) companies were used as sample size based on inclusion and exclusion criteria. A panel study was conducted using ten years (2010-2019) published and audited annual accounts. Pearson-Moment Correlation Coefficient and Linear Regression were used for the evaluation. The result exhibits a positive correlation between internal corporate venturing, external corporate venturing, cooperative corporate venturing, and organisational growth. The study supports the preceding studies that investment in corporate venturing is an alternative paradigm to organizational growth. Therefore, the study encouraged that manufacturing companies should invest judiciously on corporate venturing. Thus, will go a long way for the sector to take a leading position in economic activities.
References
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Scholtz, R. (2009). Internal corporate venturing as a tool for corporate renewal (Doctoral dissertation, Stellenbosch: University of Stellenbosch).
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Shu, C., Liu, J., Zhao, M., & Davidsson, P. (2020). Proactive environmental strategy and firm performance: The moderating role of corporate venturing. International Small Business Journal, 0266242620923897.
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Torres-García, L. A., López-Fernández, M. C., & Serrano-Bedia, A. M. (2020). Corporate Venturing Determinants in Mexican Family Firms. In Entrepreneurship and Family Business Vitality (pp. 269-295). Springer, Cham.
Van Der Steen, M., Englis, P. D., & Meyer, P. B. (2013). The impact of knowledge capabilities on corporate venturing. International Journal of Entrepreneurship and Small Business, 18(3), 282-297.
Vatcheva KP, Lee M, McCormick JB, Rahbar MH (2016) Multicollinearity in Regression Analyses Conducted in Epidemiologic Studies. Epidemiol 6: 227. doi:10.4172/2161-1165.1000227
Vuori, E., Artto, K., & Sallinen, L. (2012). Investment project as an internal corporate venture. International Journal of Project Management, 30(6), 652-662.
Ademola, I. S., & Michael, A. A. (2012). Small scale businesses as a remedy to unemployment problem in Nigeria. International Journal of Scientific & Engineering Research, 3(11), 1-6.
Adeyeye, M. M. (2016). Corporate entrepreneurship as a paradigm for successful competition and growth. Journal of Research in Management and Social Sciences, 2(2), 1-8.
Akinwale, Y. O., Adepoju, A. O., & Olomu, M. O. (2017). The impact of technological innovation on SME's profitability in Nigeria. International Journal of Research, Innovation and Commercialisation, 1(1), 74-92.
Astivia, Oscar L. Olvera and Zumbo, Bruno D. (2019) "Heteroskedasticity in Multiple Regression Analysis: What it is, How to Detect it and How to Solve it with Applications in R and SPSS," Practical Assessment, Research, and Evaluation: Vol. 24, Article 1. DOI: https://doi.org/10.7275/q5xr-fr95.
Baaken, T., Alfert, C., & Kliewe, T. (2019). Corporate venturing–a new way of creating a company’s future. Optimum. Economic Studies, (1 (99)), 3-21.
Barney, J. B., Wright, M., & Ketchen, D. J. (2001). The resource-based view of the firm: 10 years after 1991. Journal of Management, 27(6), 625–641.
Barney, J., (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Basu, S., Phelps, C. C., & Kotha, S. (2016). Search and integration in external venturing: An inductive examination of corporate venture capital units. Strategic Entrepreneurship Journal, 10(2), 129-152.
Brumana, M., Minola, T., Garrett, R. P., & Digan, S. P. (2017). How do family firms launch new businesses? A developmental perspective on internal corporate venturing in family business. Journal of Small Business Management, 55(4), 594-613.
Brunswicker, S., & Vanhaverbeke, W. (2015). Open innovation in small and medium‐sized enterprises (SMEs): External knowledge sourcing strategies and internal organizational facilitators. Journal of Small Business Management, 53(4), 1241-1263.
Burgers, J. H., Jansen, J. J., Van den Bosch, F. A., & Volberda, H. W. (2009). Structural differentiation and corporate venturing: The moderating role of formal and informal integration mechanisms. Journal of business venturing, 24(3), 206-220.
Castrogiovanni, G. J., Urbano, D., & Loras, J. (2011). Linking corporate entrepreneurship and human resource management in SMEs. International Journal of Manpower, 32(1), 34–47.
Choi, Y., & Lim, U. (2017). Contextual factors affecting the innovation performance of manufacturing SMEs in Korea: A structural equation modelling approach. Sustainability, 9(7), 1193.
Covin, J. G., & Kuratko, D. F. (2015). Corporate entrepreneurship. Wiley Encyclopedia of
Covin, J. G., Garrett, R. P., Kuratko, D. F., & Shepherd, D. A. (2015). Value proposition evolution and the performance of internal corporate ventures. Journal of Business Venturing, 30(5), 749-774.
Del Giudice, M., & Della Peruta, M. R. (2016). The impact of IT-based knowledge management systems on internal venturing and innovation: a structural equation modelling approach to corporate performance. Journal of Knowledge Management, 20(3), 484-498.
Dushnitsky, G., & Birkinshaw, J. (2016). Corporate venturing virtual special issue. Strategic Management Journal, 37(13), E6-E10.
Garrett Jr, R. P., & Neubaum, D. O. (2013). Top management support and Initial strategic assets: A dependency model for internal corporate venture performance. Journal of Product Innovation Management, 30(5), 896-915.
Garrett, R. P. (2010). Challenges of quantitative research on internal corporate venturing. International Journal of Entrepreneurial Venturing, 2(2), 129-143.
Gutmann, T. (2019). Harmonizing corporate venturing modes: an integrative review and research agenda. Management Review Quarterly, 69(2), 121-157.
Huang, Y. F. (2009). Strategic renewal within an information technology firm: Exploration, exploitation and corporate venturing. International Journal of Entrepreneurial Behavior & Research, 15(5), 436-452.
Kuratko, D. F., Hornsby, J. S., & Hayton, J. (2015). Corporate entrepreneurship: the innovative challenge for a new global economic reality. Small Business Economics, 45(2), 245-253.
Lai, H. C., Chiu, Y. C., & Liaw, Y. C. (2010). Can external corporate venturing broaden firm's technological scope? The role of complementary assets. Journal of Engineering and Technology Management, 27(3-4), 183-196.
Leten, B., & Van Dyck, W. (2012). Corporate venturing: Strategies and success factors. Review of Business and Economic Literature, 57(4), 242.
Lin, S. J., & Lee, J. R. (2011). Configuring a corporate venturing portfolio to create growth value: Within-portfolio diversity and strategic linkage. Journal of Business Venturing, 26(4), 489-503.
Madhani, P. M. (2010). Resource based view (RBV) of competitive advantage: An overview. Resource based view: concepts and practices, Pankaj Madhani, ed, 3-22.
Management, 1-8.
Mazzarol, T., & Reboud, S. (2020). Work Book: Entrepreneurship and Innovation in Large Firms. In Workbook for Entrepreneurship and Innovation (pp. 31-44). Springer, Singapore.
Meyskens, M., Robb-Post, C., Stamp, J. A., Carsrud, A., & Reynolds, P. D. (2010). Social ventures from a resource-based perspective: an exploratory study assessing global ashoka fellows. Entrepreneurship Theory and Practice, 34(4), 661–680.
Michi, T., Gold, B., & Picot, A. (2012). The spin-along approach: ambidextrous corporate venturing management. International Journal of Entrepreneurship and Small Business, 15(1), 39-56.
Morris M, Kuratko D, & Covin J. (2010). Corporate Entrepreneurship & Innovation (2nd ed), Mason, OH: South-Western Cengage Learning.
Morris, M. H., Kuratko, D. F., & Covin, J. G. (2011). Corporate entrepreneurship & innovation. Boston: Cengage/South-Western/Publishers.
Narayanan, V. K., Yang, Y., & Zahra, S. A. (2009). Corporate venturing and value creation: A review and proposed framework. Research policy, 38(1), 58-76.
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 179-191.
Scholtz, R. (2009). Internal corporate venturing as a tool for corporate renewal (Doctoral dissertation, Stellenbosch: University of Stellenbosch).
Selig, C. J., Gasser, T., & Baltes, G. H. (2019). Effects of internal corporate venturing on the transformation of established companies. In Digital Entrepreneurship (pp. 159-183). Springer, Cham.
Shu, C., Liu, J., Zhao, M., & Davidsson, P. (2020). Proactive environmental strategy and firm performance: The moderating role of corporate venturing. International Small Business Journal, 0266242620923897.
Titus Jr, V. K., House, J. M., & Covin, J. G. (2015). Resource stocks and needs as drivers of external corporate venturing. In Academy of Management Proceedings (2014)1, 11566). Briarcliff Manor, NY 10510: Academy of Management.
Torres-García, L. A., López-Fernández, M. C., & Serrano-Bedia, A. M. (2020). Corporate Venturing Determinants in Mexican Family Firms. In Entrepreneurship and Family Business Vitality (pp. 269-295). Springer, Cham.
Van Der Steen, M., Englis, P. D., & Meyer, P. B. (2013). The impact of knowledge capabilities on corporate venturing. International Journal of Entrepreneurship and Small Business, 18(3), 282-297.
Vatcheva KP, Lee M, McCormick JB, Rahbar MH (2016) Multicollinearity in Regression Analyses Conducted in Epidemiologic Studies. Epidemiol 6: 227. doi:10.4172/2161-1165.1000227
Vuori, E., Artto, K., & Sallinen, L. (2012). Investment project as an internal corporate venture. International Journal of Project Management, 30(6), 652-662.
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Published
2021-03-06
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How to Cite
A PANEL STUDY OF CORPORATE VENTURING AND LISTED MANUFACTURING FIRMS’ GROWTH IN NIGERIA (A. A. Ayorinde, M. M. Adeyeye, A. S. Sajuyigbe, & P. O. Omoshagba , Trans.). (2021). Journal of Business And Entrepreneurship, 9(1), 37-50. https://ojs.sampoernauniversity.ac.id/index.php/JOBE/article/view/143
