Adopting an institutional perspective, we propose that home country intellectual property (IP) and employee protection institutions moderate the relationship between corporate entrepreneurship (CE) and firm performance. Examining 9642 European firms, we find that whereas internal CE is more positively correlated with firm performance in countries with less stringent IP protection and less stringent employee protection, external CE is particularly negatively correlated with firm performance in countries with less stringent IP protection and more stringent employee protection. These results provide a richer view of the relationship between CE and firm performance than the extant entrepreneurship and international businesses literatures suggest.
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We thank the Editors and anonymous JWB reviewers for the helpful and constructive feedback. This paper benefited from presentations at the 2017 Academy of Management Meeting (Atlanta), the University of Zürich and Shanghai Jiao Tong University. We acknowledge the financial support of the Global Business Institute at Carlson School of Management .
- Corporate entrepreneurship (CE)
- Employee protection
- Intellectual property (IP) protection