THE EFFECT OF CORPORATE ENTREPRENEURSHIP ON FIRM INNOVATION AND COMPETITIVE ADVANTAGE

Abstract

This study examines the relationship between corporate entrepreneurship, innovation, and competitive advantage in organizations. The objective of the research is to provide a comprehensive understanding of how corporate entrepreneurship practices influence an organization's capacity for innovation and its ability to achieve a competitive edge in the market. The study employs a quantitative research methodology and collects data from a diverse sample population of companies across various industries. Regression analysis and structural equation modeling are utilized to analyze the data and investigate the proposed relationships between corporate entrepreneurship, innovation, and competitive advantage. The findings of the study reveal a significant positive association between corporate entrepreneurship and firm innovation. The results support the hypothesis that organizations fostering an entrepreneurial culture and mindset are more likely to generate novel ideas and innovative solutions. Furthermore, the study identifies innovation as a key driver of competitive advantage, as companies that allocate resources and prioritize innovation initiatives have a higher likelihood of differentiating themselves in the marketplace. By continuously enhancing their product or service offerings through innovative practices, these organizations can gain a competitive edge.The theoretical implications of this study contribute to the literature on strategic management and entrepreneurship by highlighting the importance of entrepreneurial actions within established firms. The practical implications underscore the significance of cultivating a corporate culture that supports and encourages entrepreneurial behavior, as it can lead to enhanced innovation capabilities and long-term success.