Abstract
Whereas our understanding of corporate entrepreneurship (CE) and corporate entrepreneurship strategy (CES) continues to expand, there has been little theoretical development to support the most extensive framework to date: the integrative model of CES as proposed by Ireland et al. (Entrep Theory Pract 33(1):19–46, 2009). According to the model, CES is built upon the “three foundational elements of an entrepreneurial strategic vision, a pro-entrepreneurship organizational architecture, and entrepreneurial processes and behaviors as exhibited throughout the organization” (Ireland et al. 2009, p. 38). The purpose of this study is to present a broad, overarching theory—complexity science—to examine the key elements and propositions of the CES model. Complexity science—founded on assumptions of interdependent heterogeneous agents and nonlinear interactions, as well as non-deterministic and potentially extreme outcomes—offers established multi-level concepts, theoretical boundary conditions, and methodological guidance for scholars to build and test future studies on CE and CES. Though our complexity perspective draws extensively from conceptual work on complex adaptive systems and agent-based models, we ground our arguments on the empirical ubiquity of power law distributions in all constructs and levels of analysis within the CES model. We conclude with a detailed research agenda, as well as a prescriptive discussion related to theory development, quantitative analysis, and practical applications to guide future studies on CE.
Similar content being viewed by others
Notes
We would like to thank an anonymous reviewer for offering this suggestion.
References
Aguinis, H., Gottfredson, R. K., & Joo, H. (2013). Best-practice recommendations for defining, identifying, and handling outliers. Organizational Research Methods, 16(2), 270–301.
Aguinis, H., & O’Boyle, E. H. (2014). Star performers in twenty-first-century organizations. Personnel Psychology, 67(2), 313–350.
Aldrich, H. E., & Ruef, M. (2006). Organizations Evolving. Thousand Oaks: Sage Publications.
Alvarez, S. A., & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1), 11–27.
Alvarez, S. A., & Busenitz, L. W. (2001). The entrepreneurship of resource-based theory. Journal of Management, 27(6), 755–775.
Amburgey, T. L., & Rao, H. (1996). Organizational ecology: Past, present, and future directions. Academy of Management Journal, 39(5), 1265–1286.
Amit, R., Brander, J., & Zott, C. (2000). Venture capital financing of entrepreneurship: Theory, empirical evidence, and a research agenda. In D. Sexton & H. Landstrom (Eds.), Blackwell Handbook of Entrepreneurship (pp. 259–281). Hoboken: Wiley.
Amit, R., Glosten, L., & Muller, E. (1990). Entrepreneurial ability, venture investments, and risk sharing. Management Science, 36(10), 1232–1245.
Anderson, P. (1999). Complexity theory and organization science. Organization Science, 10(3), 216–232.
Andriani, P., & McKelvey, B. (2009). From Gaussian to Paretian thinking: Causes and implications of power laws in organizations. Organization Science, 20(6), 1053–1071.
Ansoff, H. I. (1987). The emerging paradigm of strategic behavior. Strategic Management Journal, 8(6), 501–515.
Axtell, R. J. (1999). The emergence of firms in a population of agents: Local increasing returns, unstable Nash equilibria, and power law size distribution. Washington, DC: Brookings Institution.
Barabási, A.-L., & Bonabeau, E. (2003). Scale-free networks. Scientific American, 288(May), 60–69.
Barabási, A.-L., Jeong, H., Neda, Z., Ravasz, E., Schubert, A., & Vicsek, T. (2002). Evolution of the social network of scientific collaborations. Physica A: Statistical Mechanics and its Applications, 311(3), 590–614.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Baron, R. A., & Ensley, M. D. (2006). Opportunity recognition as the detection of meaningful patterns: Evidence from comparisons of novice and experienced entrepreneurs. Management Science, 52(9), 1331–1344.
Bar-Yam, Y. (1997). Dynamics of complex systems (Vol. 213). Reading: Addison-Wesley.
Baum, J. R., Locke, E. A., & Smith, K. G. (2001). A multidimensional model of venture growth. The Academy of Management Journal, 44(2), 292–303.
Bettencourt, L. M. A., Lobo, J., Strumsky, D., & West, G. (2010). Urban scaling and its deviations: Revealing the structure of wealth, innovation, and crime across cities. PLoS One, 5(11), 1–9.
Bettis, R. A., & Wong, S.-S. (2003). Dominant logic, knowledge creation, and managerial choice. In M. Easterby-Smith & M. Lyles (Eds.), The Blackwell handbook of organizational learning and knowledge management (pp. 343–355). Hoboken: Wiley.
Boisot, M., & McKelvey, B. (2010). Integrating modernist and postmodernist perspectives on organizations: A complexity science bridge. The Academy of Management Review, 35(3), 415–433.
Brock, W. A. (2000). Some Santa Fe scenery. In D. Colander (Ed.), The complexity vision and the teaching of economics (pp. 29–49). Cheltanham: Edward Elgar.
Buldyrev, S. V., Dokholyan, N. V., Erramilli, S., Hong, M., Kim, J. Y., Malescio, G., & Stanley, H. E. (2003). Hierarchy in social organization. Physica A, 330(3), 653–659.
Burgelman, R. A. (1983). A process model of internal corporate venturing in the diversified major firm. Administrative Science Quarterly, 28(2), 223–244.
Burgelman, R. A. (1984). Designs for corporate entrepreneurship in established firms. California Management Review, 26(3), 154–166.
Chiles, T. H., Vultee, D. M., Gupta, V. K., Greening, D. W., & Tuggle, C. S. (2010). The philosophical foundations of a radical Austrian approach to entrepreneurship. Journal of Management Inquiry, 19(2), 138–164.
Clauset, A., Shalizi, C. R., & Newman, M. E. J. (2009). Power-law distributions in empirical data. SIAM Review, 51(4), 661–703.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.
Cornelissen, J. P., & Durand, R. (2013). More than just novelty: Conceptual blending and causality. Academy of Management Review, 37(1), 152–154.
Covin, J. G., & Miles, M. P. (1999). Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice, 23(3), 47–63.
Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 1(10), 75–87.
Covin, J. G., & Slevin, D. P. (1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice, 16(1), 7–25.
Crawford, G. C. (2012a). Emerging scalability and extreme outcomes in new ventures: Power-law analyses of three studies. In L. A. Toombs (Ed.), Proceedings of the seventy-second annual meeting of the academy of management. ISSN 1543-8643.
Crawford, G. C. (2012b). Disobeying power-laws: Perils for theory and method. Journal of Organization Design, 1(2), 75–81.
Crawford, G. C., & McKelvey, B. (2012). Strategic implications of power-law distributions in the creation and emergence of new ventures: Power-law analyses in three panel studies. Frontiers of Entrepreneurship Research, 32(12), 1. (Wellesley: Babson College).
Crawford, G. C., McKelvey, B., & Lichtenstein, B. (2014). The empirical reality of entrepreneurship: How power law distributed outcomes call for new theory and method. Journal of Business Venturing Insights, 1(1–2), 3–7.
Crawford, G. C., Aguinis, H., Lichtenstein, B., Davidsson, P., & McKelvey, B. (2015). Power law distributions in entrepreneurship: Implications for theory and research. Journal of Business Venturing. doi:10.1016/j.jbusvent.2015.01.001.
Cyert, R. M., & March, J. (1963). A behavioral theory of the firm. Englewood Cliffs: Prentice-Hall.
DeKinder, J. S., & Kohli, A. K. (2008). Flow signals: How patterns over time affect the acceptance of start-up firms. Journal of Marketing, 72(5), 84–97.
Delmar, F., & Shane, S. (2004). Legitimating first: Organizing activities and the survival of new ventures. Journal of Business Venturing, 19(3), 385–410.
Dess, G. G., Ireland, R. D., Zahra, S. A., Floyd, S. W., Janney, J. J., & Lane, P. J. (2003). Emerging issues in corporate entrepreneurship. Journal of Management, 29(3), 351–378.
DiMaggio, P. (1997). Culture and cognition. Annual Review of Sociology, 23, 263–287.
Drazin, R., & Sandelands, L. (1992). Autogenesis: A perspective on the process of organizing. Organization Science, 3(2), 230–249.
Eckhardt, J. T., & Shane, S. A. (2003). Opportunities and entrepreneurship. Journal of Management, 29(3), 333–349.
Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25–32.
Eisenhardt, K., Furr, N., & Bingham, C. (2010). Microfoundations of performance: Balancing efficiency and flexibility in dynamic environments. Organization Science, 21(6), 1263.
Fini, R., Grimaldi, R., Marzocchi, G. L., & Sobrero, M. (2012). The determinants of corporate entrepreneurial intention within small and newly established firms. Entrepreneurship Theory and Practice, 36(2), 387–414.
Fioretti, G. (2013). Agent-based simulation models in organization science. Organizational Research Methods, 16(2), 227–242.
Fleming, L. (2007). Breakthroughs and the ‘long tail’ of innovation. MIT Sloan Management Review, 49(1), 68–74.
Florin, J., Lubatkin, M., & Schulze, W. (2003). A social capital model of high-growth ventures. Academy of Management Journal, 46(3), 374.
Förster, J., Grant, H., Idson, L. C., & Higgins, E. T. (2001). Success/failure feedback, expectancies, and approach/avoidance motivation: How regulatory focus moderates classic relations. Journal of Experimental Social Psychology, 37(3), 253–260.
Gartner, W. B., Bird, B., & Starr, J. (1992). Acting as if: Differentiating entrepreneurial from organizational behavior. Entrepreneurship Theory and Practice, 16(3), 13–30.
Gell-Mann, M. (1988). The concept of the Institute. In D. Pines (Ed.), Emerging synthesis in science (pp. 1–15). Boston: Addison-Wesley.
Goffman, E. (1967). Interaction ritual: Essays on face-to-face interaction. New York: Doubleday.
Grégoire, D., Barr, P., & Shepherd, D. (2010). Cognitive processes of opportunity recognition: The role of structural alignment. Organization Science, 21(2), 413.
Haynie, M., & Shepherd, D. A. (2009). A measure of adaptive cognition for entrepreneurship research. Entrepreneurship Theory and Practice, 33(3), 695–714.
Holland, J. H. (1995). Hidden order: How adaptation builds complexity. Boston: Addison-Wesley.
Hornsby, J. S., Kuratko, D. F., Shepherd, D. A., & Bott, J. P. (2009). Managers’ corporate entrepreneurial actions: Examining perception and position. Journal of Business Venturing, 24(3), 236–247.
Hornsby, J. S., Kuratko, D. F., & Zahra, S. A. (2002). Middle managers’ perception of the internal environment for corporate entrepreneurship: Assessing a measurement scale. Journal of Business Venturing, 17(3), 253–273.
Ireland, R. D., Covin, J. G., & Kuratko, D. F. (2009). Conceptualizing corporate entrepreneurship strategy. Entrepreneurship Theory and Practice, 33(1), 19–46.
Khanin, D., Baum, J. R., Turel, O., & Mahto, R. V. (2009). Are some venture capitalists more likely than others to replace founder-CEOs? The Journal of Private Equity, 12(2), 19–29.
Kohli, R., & Sah, R. (2006). Some empirical regularities in market shares. Management Science, 52(11), 1792–1798.
Komolgorov, A. (1933). Sulla determinazione empirica di una legge di distribuzione. Giornale dell’Istituto Italiano degli Attuari, 4, 83–91.
Kreiser, P. M., Marino, L. D., Kuratko, D. F., & Weaver, K. M. (2013). Disaggregating entrepreneurial orientation: The non-linear impact of innovativeness, proactiveness and risk-taking on SME performance. Small Business Economics, 40(2), 273–291.
Kuratko, D. F. (2009). The entrepreneurial imperative of the 21st century. Business Horizons, 52(5), 421–428.
Labianca, G., Moon, H., & Watt, I. (2005). When is an hour not 60 minutes? Deadlines, temporal schemata, and individual and task group performance. Academy of Management Journal, 48(4), 677–694.
Leitch, C., Hill, F., & Neergaard, H. (2010). Entrepreneurial business Growth and the quest for a “comprehensive theory”: Tilting at windmills? Entrepreneurship Theory and Practice, 34(2), 249–260.
Lewin, A. Y., Long, C. P., & Carroll, T. N. (1999). The coevolution of new organizational forms. Organization Science, 10(5), 535–550.
Lichtenstein, B. (2011). Complexity science contributions to the field of entrepreneurship. In S. Maguire, P. Allen, & B. McKelvey (Eds.), SAGE handbook of complexity and management (pp. 473–495). Los Angeles: Sage Publications.
Lichtenstein, B. (2014). Generative emergence: A new discipline of organizational, entrepreneurial, and social innovation. New York: Oxford University Press.
Lichtenstein, B., Carter, N., Dooley, K., & Gartner, W. (2007). Complexity dynamics of nascent entrepreneurship. Journal of Business Venturing, 22(2), 236–261.
Lomi, A., Larsen, E., & Wezel, F. (2010). Getting there: Exploring the role of expectations and preproduction delays in processes of organizational founding. Organization Science, 21(1), 132–149.
Mahoney, J. T., & Pandian, J. R. (1992). The resource-based view within the conversation of strategic management. Strategic Management Journal, 13(5), 363–380.
Mandelbrot, B. B. (1963). New methods in statistical economics. Journal of Political Economy, 71, 421–440.
March, J. G., & Simon, H. (1958). Organizations. Hoboken: Wiley.
McGraw, A. P., Tetlock, P. E., Kristel, O. V., Mick, D. G., & Johnson, M. D. (2003). The limits of fungibility: Relational schemata and the value of things. Journal of Consumer Research, 30(2), 219–229.
McKelvey, B. (2004a). Toward a complexity science of entrepreneurship. Journal of Business Venturing, 19(3), 313–341.
McKelvey, B. (2004b). Toward a 0th law of thermodynamics: Order-creation complexity dynamics from physics and biology to bioeconomics. Journal of Bioeconomics, 6(1), 65–96.
McMullen, J. S., Plummer, L. A., & Acs, Z. J. (2007). What is an entrepreneurial opportunity? Small Business Economics, 28(4), 273–283.
McMullen, J. S., & Shepherd, D. S. (2006). Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. The Academy of Management Review, 31(1), 132–152.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791.
Miller, K. D., & Lin, S.-J. (2010). Different truths in different worlds. Organization Science, 21(1), 97–114.
Mitchell, R. K., Busenitz, L., Lant, T., McDougall, P. P., Morse, E. A., & Smith, J. S. (2002). Toward a theory of entrepreneurial cognition: Rethinking the people side of entrepreneurship research. Entrepreneurship Theory and Practice, 29(2), 93–104.
Morris, M. H., Kuratko, D. F., & Covin, J. G. (2011). Corporate entrepreneurship and innovation (3rd ed.). Cincinnati: Cengage/SouthWestern Publishers.
Ndofor, H. A., Sirmon, D. G., & He, X. (2011). Firm resources, competitive actions and performance: Investigating a mediated model with evidence from the in vitro diagnostics industry. Strategic Management Journal, 32(6), 640–657.
O’Boyle, E. H., & Aguinis, H. (2012). The best and the rest: Revisiting the norm of normality of individual performance. Personnel Psychology, 65, 79–119.
Poole, M. S., Van de Ven, A. H., Dooley, K., & Holmes, M. M. (2000). Organizational change and innovation processes: Theory and methods for research. Oxford: Oxford University Press.
Powell, T. C. (2003). Varieties of competitive parity. Strategic Management Journal, 24(1), 61–81.
Rahmandad, H., & Sterman, J. (2008). Heterogeneity and network structure in the dynamics of diffusion: Comparing agent-based and differential equation models. Management Science, 54(5), 998–1014.
Rivkin, J. W., & Siggelkow, N. (2007). Patterned interactions in complex systems: Implications for exploration. Management Science, 53(7), 1068–1085.
Ronstadt, R. (1988). The corridor principle. Journal of Business Venturing, 3(1), 31–40.
Rosenbusch, N., Rauch, A., & Bausch, A. (2013). The mediating role of entrepreneurial orientation in the task environment–performance relationship: A meta-analysis. Journal of Management, 39(3), 633–659.
Sarasvathy, S. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263.
Schindehutte, M., & Morris, M. H. (2009). Advancing strategic entrepreneurship research: The role of complexity science in shifting the paradigm. Entrepreneurship Theory and Practice, 33(1), 241–276.
Scholer, A. A., & Higgins, E. T. (2010). Regulatory focus in a demanding world. In R. H. Hoyle (Ed.), Handbook of personality and self-regulation (pp. 291–314). Hoboken: Wiley.
Schoonhoven, C. B. (1981). Problems with contingency theory: Testing assumptions hidden within the language of contingency “theory”. Administrative Science Quarterly, 26(3), 349–377.
Schumpeter, J. (1942). Capitalism, Socialism, and Democracy. New York: Harper & Row.
Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469.
Shane, S., & Stuart, T. (2002). Organizational endowments and the performance of university start-ups. Management Science, 48(1), 154–170.
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226.
Shepherd, D. A. (2011). Multilevel entrepreneurship research: Opportunities for studying entrepreneurial decision making. Journal of Management, 37(2), 412–420.
Shinkle, G. A. (2012). Organizational aspirations, reference points, and goals: Building on the past and aiming for the future. Journal of Management, 38(1), 415–455.
Short, J., Broberg, J., Cogliser, C., & Brigham, K. (2010). Construct validation using computer-aided text analysis (CATA): An illustration using entrepreneurial orientation. Organizational Research Methods, 13(2), 320–347.
Siggelkow, N., & Rivkin, J. W. (2005). Speed and search: Designing organizations for turbulence and complexity. Organization Science, 16(2), 101–122.
Simon, H. A. (1955). On a class of skew distribution functions. Biometrika, 42(3/4), 425–440.
Simon, H. A. (1968). On judging the plausibility of theories. In B. van Rootselaar, & F. Staal (Eds.), Logic, methodology and philosophy of sciences III (pp. 439–459). Amsterdam: North-Holland.
Singh, J., & Fleming, L. (2010). Lone inventors as sources of technological breakthroughs: Myth or reality? Management Science, 56(1), 41–56.
Song, C., Qu, Z., Blumm, N., & Barabási, A.-L. (2010). Limits of predictability in human mobility. Science, 327(5968), 1018–1021.
Stacey, R. D. (1995). The science of complexity: An alternative perspective for strategic change processes. Strategic Management Journal, 16(6), 477–495.
Stanley, M., Amaral, L. A. N., Buldyrev, S. V., Havlin, S., Leschhorn, H., Maass, P., et al. (1996). Scaling behavior in the growth of companies. Nature, 379(6568), 804–806.
Starbuck, W. H., & Nystrom, P. C. (1981). Why the world needs organizational design. Journal of General Management, 6(3), 3–16.
Stinchcombe, A. (1965). Social structure and organizations. In J. March (Ed.), The handbook of organizations (pp. 142–193). Chicago: Rand-McNally.
Suddaby, R. (2014). Editor’s comments: Why theory? Academy of Management Review, 39(4), 407–411.
Sutton, J. (2002). The variance of firm growth rates: the ‘scaling’puzzle. Physica A: Statistical Mechanics and its Applications, 312(3), 577–590.
Toegel, G., Kilduff, M., & Anand, N. (2013). Emotion helping by managers: An emergent understanding of discrepant role expectations and outcomes. Academy of Management Journal, 56(2), 334–357.
Uy, M. A., Foo, M. D., & Aguinis, H. (2010). Using experience sampling methodology to advance entrepreneurship theory and research. Organizational Research Methods, 13(1), 31–54.
Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution. Journal of the Academy of Marketing Science, 36(1), 1–10.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
West, B. J., & Deering, B. (1995). The lure of modern science: Fractal thinking. Singapore: World Scientific.
Wiklund, J., & Shepherd, D. A. (2003). Aspiring for, and achieving growth: The moderating role of resources and opportunities. Journal of Management Studies, 40(8), 1911–1941.
Winter, S., Cattani, G., & Dorsch, A. (2007). The value of moderate obsession: Insights from a new model of organizational search. Organization Science, 18(3), 403–419.
Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management Studies, 43(4), 917–955.
Zanini, M. (2008) Using power curves to assess industry dynamics. McKinsey Quarterly, November, 1–5.
Zipf, G. K. (1949). Human behavior and the principle of least effort. Eastford: Martino-Fine.
Zott, C., & Huy, Q. N. (2007). How entrepreneurs use symbolic management to acquire resources. Administrative Science Quarterly, 52(1), 70–105.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Crawford, G.C., Kreiser, P.M. Corporate entrepreneurship strategy: extending the integrative framework through the lens of complexity science. Small Bus Econ 45, 403–423 (2015). https://doi.org/10.1007/s11187-015-9637-1
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11187-015-9637-1
Keywords
- Complexity science
- Corporate entrepreneurship strategy
- Entrepreneurship
- Growth expectations
- Power law distributions
- Schemata