The Effect of Organizational characteristics and Human Resource Management on Corporate Entrepreneurship

With the development of Information and Communication Technology (ICT) convergence technology, a platform business utilizing mobile technology is now rapidly emerging. In order to secure engines for future growth and achieve sustainable growth, the importance of competitive platform businesses and their corporate entrepreneurship has been highlighted. However, there is little research on corporate entrepreneurship, and research on corporate entrepreneurship in the platform business is even scarcer. Based on a sample of 273 platform and non-platform firms, this study empirically examines 1) how organizational characteristics (social value, social capital) and human resource management [staff rewards, specialist assignment (core engineer)] influence their corporate entrepreneurship and 2) whether and how these influences may differ by business type (platform businesses vs. non-platform businesses). The results show that staff rewards were effective in advancing corporate entrepreneurship both in the platform business and (to a more degree) in the non-platform business. While in the platform business, specialist assignment (core engineer) had strongest influence on corporate entrepreneurship, in the non-platform business, staff rewards had strongest influence on corporate entrepreneurship. Emphasizing the importance of corporate entrepreneurship for platform businesses and possibly different strategies for entrepreneurship needed for them compared to existing traditional businesses, we provide suggestions for ways in which platform businesses could use to enhance corporate entrepreneurship so as to improve their market competitiveness.