IDEAS home Printed from
   My bibliography  Save this paper

Value creation through entrepreneurial activity: A multiple constituency approach


  • Mair, Johanna

    () (IESE Business School)


While both business press and scholarly research largely portray entrepreneurship within well-established companies as inherently good, empirical evidence for positive performance implications based on rigorous research is scarce. This paper empirically assesses whether and for whom entrepreneurial activity creates value in a large traditional firm. In contrast to previous research I adopt a less "heroic" view and emphasize day-to-day entrepreneurship -"getting things done in an entrepreneurial way"- instead of focusing on grand entrepreneurship, i.e. new venture creation or new product development. Furthermore, I consider the perspectives of multiple constituencies to assess performance implications over time, and acknowledge the value creation potential at the sub-unit level. In the empirical part of the paper I analyze entrepreneurial activities of 121 middle managers in a large European financial services firm and their effect on changes in economic performance, customer satisfaction, and subordinate satisfaction. I combine subjective (survey) data on entrepreneurial activity and objective data on performance collected over three consecutive years (1997-2000). My results show that entrepreneurial activities of middle managers are positively and significantly related to change in economic results, measured in terms of profit growth. Non-significant results linking entrepreneurial activities and changes in customer or subordinate satisfaction suggest that entrepreneurial activities hardly connote a "quick fix" in these dimensions. The results furthermore accentuate the importance of personal characteristics of middle managers for the development of economic performance. My data, e.g., suggest that female middle managers and managers holding lower-level educational degrees do significantly better in achieving profit growth.

Suggested Citation

  • Mair, Johanna, 2002. "Value creation through entrepreneurial activity: A multiple constituency approach," IESE Research Papers D/468, IESE Business School.
  • Handle: RePEc:ebg:iesewp:d-0468

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    2. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    3. Eugene W. Anderson & Claes Fornell & Roland T. Rust, 1997. "Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services," Marketing Science, INFORMS, vol. 16(2), pages 129-145.
    4. Romer, P.M., 1988. "Capital Accumulation In The Theory Of Long Run Growth," RCER Working Papers 123, University of Rochester - Center for Economic Research (RCER).
    Full references (including those not matched with items on IDEAS)

    More about this item


    Entrepreneurship; intrapreneurship; middle managers;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebg:iesewp:d-0468. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Noelia Romero). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.