The study aims to fill the gap in literature by ascertaining the link between corporate entrepreneurship and agency cost. It presents conceptual framework between corporate entrepreneurship and agency cost, on the basis of their theoretical background. Being a prelude endeavour, it provides a keystone for future studies.
KeywordsCorporate EntrepreneurshipAgency CostRelationship between Corporate EntrepreneurshipAgency Cost
J. S. Hornsby, D. F. Kuratko and S. A. Zahra, “Middle Managers’ Perception of the Internal Environment for Corporate Entrepreneurship: Assessing a Measurement Scale,” Journal of Business Venturing, Vol. 17, No. 3, 2002, pp. 253-273. doi:10.1016/S0883-9026(00)00059-8
R. M. Kanter, “The Change Masters,” Touchstone, Simon & Schuster, New York, 1984.
S. A. Zahra, “Predictors and Financial Outcomes of Corporate Entrepreneurship: An Exploratory Study,” Journal of Business Venturing, Vol. 6, No. 4, 1991, pp. 259-285. doi:10.1016/0883-9026(91)90019-A
A. Barnea, R. A. Haugea and L. W. Senbet, “Agency Problems and Financial Contracting Englewood Cliffs,” Prentice-Hall, Upper Saddle River, 1985.
M. C. Jensen and R. S. Ruback, “The Market for Corporate Control,” Journal of Financial Economics, Vol. 11, No. 1, 1983, pp. 5-49. doi:10.1016/0304-405X(83)90004-1
G. Pinchot III, “In-trapreneuring: Why You Don’t Have to Leave the Corporation to Become an Entrepreneur,” Harper & Row, New York, 1985.
P. Drucker, “The Discipline of the Innovator,” Harvard Business Review, Vol. 63, No. 3, 1985, pp. 67-72.
S. A. Zahra and J. Covin, “Contextual Influences on the Corporate Entrepreneurship—Company Performance Relationship in Established Firms: A Longitudinal Analysis,” Journal of Business Venturing, Vol. 10, No. 1, 1995, pp. 43-58.
G. T. Lumpkin and G. G. Dess, “Clarifying the Entrepreneurial Orientation Construct and linking it to Performance,” Academy of Management Review, Vol. 21, No. 1, 1996, pp. 135-172.
P. Sharma and J. J. Chrisman, “Toward a Reconciliation of the Definitional Issues in the Field of Corporate Entrepreneurship,” Entrepreneurship Theory and Practice, Vol. 23, No. 3, 1999, pp. 11-27.
G. G. Dess, R. D. Ireland, S. A. Zahra, S. W. Floyd, J. J. Janney and P. J. Lane, “Emerging Issues in Corporate Entrepreneurship,” Journal of Management, Vol. 29, No. 3, 2003, pp. 351-378.
M. C. Jensen and W. H. Meckling, “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure,” Journal of Financial Economics, Vol. 3, No. 4, 1976, pp. 305-360. doi:10.1016/0304-405X(76)90026-X
M. C. Jensen, “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers,” The American Economic Review, Vol. 76, No. 2, 1986, pp. 323-332.
M. C. Jensen, “The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems,” Journal of Finance, Vol. 48, No. 3, 1993, pp. 831-880. doi:10.1111/j.1540-6261.1993.tb04022.x
J. S. Ang, R. A. Cole and J. W. Lin, “Agency Costs and Ownership Structure,” Journal of Finance, Vol. 55, No. 1, 2000, pp. 81-106. doi:10.1111/0022-1082.00201
S. Xiao, “How Do Agency Costs Affect Firm Performance? Evidence from China,” Furman University, Greenville, 2008, pp. 1-25.
B. Antoncic and R. D. Hisrich, “Intrapreneurship: Construct Refinement and Cross-Cultural Validation,” Journal of Business Venturing, Vol. 16, No. 5, 2001, pp. 495-527. doi:10.1016/S0883-9026(99)00054-3
K. Vesper, “New Venture Strategies,” Englewood Cliffs, Prentice-Hall, New York, 1990.
G. R. Jones and J. E. Butler, “Managing Internal Corporate Entrepreneurship: An Agency Theory Perspective,” Journal of Management, Vol. 18, No. 4, 1992, pp. 733-749. doi:10.1177/014920639201800408
H. H. Stevenson and J. C. Jarillo, “A Paradigm of Entrepreneurship: Entrepreneurial Management,” Strategic Management Journal, Vol. 11, 1990, pp. 17-27.
R. D. Hisrich and M. P. Peters, “Entrepreneurship: Starting, Developing and Managing a New Enterprise,” 7th Edition, Irwin, Chicago, 2007.
M. Adonisi, “The Relationship between Corporate Entrepreneurship, Market Orientation, Organizational Flexibility and Job Satisfaction,” University of Pretoria, Pretoria, 2003, pp. 1-171.
T. M. Davis, “Corporate Entrepreneurship Assessment Instrument: Systematic Validation of A Measure,” Graduate School of Engineering and Management, Air University, 2006, pp. 1-88.
C. Kearney, R. Hisrich and F. Roche, “A Conceptual Model of Public Sector Corporate Entrepreneurship,” International Entrepreneurship and Management Journal ,Vol. 4, No. 3, 2007, pp. 295-313.
B. Antoncic and I. Prodan, “Alliances, Corporate Technological Entrepreneurship and Firm Performance: Testing a Model on Manufacturing Firms,” Technovation, Vol. 28, No. 5, 2008, pp. 257-265. doi:10.1016/j.technovation.2007.07.005
L. Pittaway, “Corporate Enterprise: A New Reality for Hospitality Organizations?” Hospitality Management, Vol. 20, No. 4, 2001, pp. 379-393. doi:10.1016/S0278-4319(01)00023-8
J. G. Covin and D. P. Slevin, “Strategic Management of Small Firms in Hostile and Benign Environments,” Strategic Management Journal, Vol. 10, No. 1, 1989, pp. 75-87. doi:10.1002/smj.4250100107
D. Miller, “The Correlates of Entrepreneurship in Three Types of Firms,” Management Science, Vol. 29 No. 7, 1983, pp. 770-791. doi:10.1287/mnsc.29.7.770
W. B. Gartner, “‘Who Is an Entrepreneur?’ Is the Wrong Question,” American Journal of Small Business, Vol. 12, No. 4, 1988, pp. 11-32.
W. D. Guth and A. Ginsberg, “Guest Editors: Introduction: Corporate Entrepreneurship,” Strategic Management Journal, Vol. 11, No. 1, 1990, pp. 5-15.
J. G. Covin and D. P. Slevin, “A Conceptual Model of Entrepreneurship as Firm Behavior,” Entrepreneurship Theory and Practice, Vol. 16, No. 1, 1991, pp. 7-25.
S. A. Zahra, “Environment, Corporate Entrepreneurship and Firm Performance. A Taxonomic Approach,” Journal of Business Venturing, Vol. 8, No. 4, 1993, pp. 319-340. doi:10.1016/0883-9026(93)90003-N
H. Barrett and A. Weinstein, “The Effect of Market Orientation and Organizational Flexibility on Corporate Entrepreneurship,” Entrepreneurship Theory and Practice, Vol. 23, No. 1, 1998, pp. 57-67.
C. J. Goosen, T. J. De Coning and E. V. D. M. Smit, “Corporate Entrepreneurship and Financial Performance: The Role of Management,” South African Journal of Business Management, Vol. 33, No. 4, 2002, pp. 21-27.
D. Henry, “Agency Costs, Corporate Governance and Ownership Structure: Evidence from Australia,” La Trobe University, Melbourne, 2010, pp. 1-44.
B. Aktan and C. Bulut, “Financial Performance Impacts of Corporate Entrepreneurship in Emerging Markets: A Case of Turkey,” European Journal of Economics, Finance and Administrative Sciences, Vol. 12, 2008, pp. 69-79.
S. Claessens, S. Djankov, J. Fan and L. H. P. Lang, “Disentangling the Incentive and Entrenchment Effects of Large Shareholdings,” Journal of Finance, Vol. 57, No. 6, 2002, pp. 2741-2772. doi:10.1111/1540-6261.00511
M. L. Lemmon and K. V. Lins, “Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis,” Journal of Finance, Vol. 58, No. 4, 2003, pp. 1445-1468. doi:10.1111/1540-6261.00573
B. Baysinger and R. E. Hoskisson, “The Composition of Boards of Directors and Strategic Control: Effects on Corporate Strategy,” Academy of Management Review, Vol. 15, No. 1, 1990, pp. 72-87.
C. Krishnamurti, K. Udayasankar and S. S. Das, “When Is Two Really Company? The Effects of Competition and Regulation on Corporate Governance,” 2008, pp. 1-57.