EFFECT OF CORPORATE ENTREPRENEURSHIP ON THE PERFORMANCE OF SELECTED FOOD AND BEVERAGE FIRMS IN SOUTH -WEST NIGERIA
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Date
2017
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University of Ilorin
Abstract
Some firms have collapsed because of the complexity of the environment while others struggle for
survival and eventually failed. The survival and continuity of business firms no longer depend solely
on generic growth; hence, the need for other options for survival. This study examined the effect of
corporate entrepreneurship on performance of selected food and beverages firms in South-west,
Nigeria as an alternative option for survival. The objectives were to: (i) examine the effect of
management support for corporate entrepreneurship on performance of selected food and beverage
firms; (ii) examine the effect of the dimensions of corporate entrepreneurship on the performance of
selected food and beverage firms; (iii) determine how corporate entrepreneurship orientations affect
performance of selected food and beverage firms; and (iv) assess the influence of corporate
entrepreneurship environment on performance of selected food and beverage firms in South-west,
Nigeria.
Survey research design was adopted for the study. The population of the study comprised of twenty
quoted companies as at 2014.A sample of six food and beverages firms with total staff strength of
10,543 were selected purposively on the basis of market value exceeding 150billion.. Corporate
Entrepreneurship Assessment Instrument (CEAI) was adopted to obtain information from
371employees from the sampled firms. Correlation and multiple regression analyses were used to
analyse the data.
The findings of the study were that:
i. management support for corporate entrepreneurship influenced performance of selected food
and beverage firms in South-west, Nigeria with R-square = 0.664; β’s = 0.668; 0.191; -0.218;
and 0.254 for employee innovation, employee proactive personality, employee autonomy, and
internal locus of control respectively with p-value < 0.05. A unit increase in management
support increased performance by 66.4%. Employee autonomy should be given a close
attention.
ii. corporate entrepreneurship dimensions have significant influence on performance of selected
food and beverage firms in South-west, Nigeria with R = 0.744, R-square = 0.533; β’s =
0.160; 0.377; and 0 .283, p-value < 0.05 for Innovation, Proactiveness, and Strategic
Renewal respectively;
iii. corporate entrepreneurship orientations have significant effect on performance of selected
food and beverage firms in South-west, Nigeria with R = 0.828, R-square = 0.683; β’s =
0.293;0.151; and 0 .139, p-value < 0.05 for Strategic Orientation, Growth Orientation and
Resource Orientation respectively; and
iv. there is significant influence of corporate entrepreneurship environment on performance of
selected food and beverage firms in South-west, Nigeria with R = 0.716, R-square = 0.512;
β’s = 0.216; 0.277 and 0.207, p-value ˃ 0.05 for Technological Opportunity, Environmental
Complexity and demand for new product respectively.
The study concluded that management support for corporate entrepreneurship, dimensions of
corporate entrepreneurship, corporate entrepreneurship orientations and corporate entrepreneurship
environment have significant effects on performance of selected food and beverage firms in Southwest,
Nigeria. The study therefore recommended that, management should ensure support for
employees’ innovation, internal locus of control and employees’ proactive personality of selected
food and beverage firms.. Also, employees’ entrepreneurial orientations should be considered as
appropriate construct to approach behavioural component of corporate entrepreneurship at the highest
level of an organisation.
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Keywords
CORPORATE ENTREPRENEURSHIP, PERFORMANCE, FOOD, BEVERAGE FIRMS, SOUTH -WEST, NIGERIA