POSTER SUMMARY


CORPORATE ENTREPRENEURSHIP AMONG MANUFACTURING FIRMS IN MALAYSIA: EMPIRICAL EVIDENCE

Jane Y. C. Chang, Universiti Malaysia Sabah, Malaysia

Principal Topic

In the past, corporate entrepreneurship has been closely associated with intrapreneurship, that is the creation of business within the organization using existing employees to spun new ideas for innovations. This research introduces a new dimension of corporate entrepreneurial activity known as exopreneurship whereby new ventures are set up through the synergistic relationship between large corporations and external partners. The synergistic relationship is obtained through franchising, subcontracting, strategic alliance and external corporate venture capital. This research evaluates the status of corporate entrepreneurship in terms of intrapreneurship and exopreneurship. In addition, it examines the nature of internally generated businesses through intrapreneurship and the characteristics of externally acquired innovations through synergistic relationship between large organizations and their external partners.

Method

The research was based on two randomly selected manufacturing firms using mail survey method. The questionnaire was constructed out of extensive literature search and was pretested among lecturers and managing directors of business establishment in Kota Kinabalu (the capital of Sabah, one of the 13 states in Malaysia, situated in the island of Borneo). The hypothesis on the status of corporate entrepreneurship, intrapreneurship, and exopreneurship and their attributes were tested using the differences of means. The first study sample was randomly selected from Sabah and the second study sample was selected from manufacturing companies listed in the Kuala Lumpur Stock Exchange. Postal survey of the two randomly selected samples showed no differences in both populations.

Implications

The findings of this research will help government practitioner in deciding the type of entrepreneurs to be trained, that is either intrapreneurs or exopreneurs. Since intrapreneurship was found to be prevalent, government economic policies should be carefully drawn to attract intrapreneurship among manufacturing firms in the country to achieve competitive advantage. It was found out that exopreneurship yielded faster results in the creation of new products than that of intrapreneurship; therefore, organization should be encouraged to adopt exopreneurship rather than intrapreneurship. The findings also showed that exopreneurship results in cost minimization which is due to the economy of scale shared between the large organizations and the external partners. However, the respondents of this research are more risk averse in adopting exopreneurship strategy to achieve competitive advantage.

CONTACT: Jane Y.C. Chang, P.O.Box 11860, 88820, Kota Kinabalu, Sabah, Malaysia; (T) 088-269361, (F) 088-287234; janeyong@tm.net.my