Environmental turbulence and corporate entrepreneurship : the moderating role of transformational leadership

Abstract

Despite the unwavering research that measures corporate entrepreneurship and its consequences, such as firm performance, strategic management, and market performance, minimal studies have explored the antecedents of corporate entrepreneurship, especially the ones that relate to the environment and other related organisational factors, that will ultimately drive increased positive consequential outcomes. Therefore, this study developed a model that examines the moderating role of transformational leadership (organisational factor) to the relationship between environmental turbulence (antecedent), its subdimensions, and corporate entrepreneurship. The subdimensions of environmental turbulence were argued to be market turbulence, technological turbulence, and competitive intensity. This study operated on a central theory that argued that transformational leadership moderates the positive relationship between environmental turbulence, its subdimensions, and corporate entrepreneurship. It used survey data from a sample of 156 individuals working in organisations within the South African market across different industries for analysis. The bivariate, stepwise hierarchal linear regression analysis found that transformational leadership does indeed significantly moderate the positive relationship between (1) environmental turbulence and corporate entrepreneurship, (2) market turbulence and corporate entrepreneurship, (3) technological turbulence and corporate entrepreneurship, and (4) competitive intensity and corporate entrepreneurship, with varying strengths.