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Board behavior’s impact on entrepreneurial orientation in public enterprises

  • Public enterprises find themselves in increasingly competitive markets, a situation that makes having an entrepreneurial orientation (EO) an urgent need, given that EO is an indispensable driver of performance. Research describes politicians delaying the strategic change of public enterprises when serving as board members, but empirical evidence of the impact of board behavior on EO in public enterprises is lacking. We draw on stakeholder-agency theory (SAT) and resource dependence theory (RDT) and use structural equation modeling (SEM) to investigate survey data collected from 110 German energy suppliers that are majority government owned. Results indicate that board strategy control and board networking do not seem to predict EO on first sight. Closer analysis reveals a board networking–EO relationship depending on ownership structure. Remarkably, we find that it is not the usually suspected local municipal owner who hinders EO in our sample organizations but minority shareholders engaging in board networking activities. The results shed light on the intersection of governance and entrepreneurship with special reference to the fine-grained conceptualization of RDT.

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Metadaten
Author of HS ReutlingenLöbbe, Sabine
URN:urn:nbn:de:bsz:rt2-opus4-31630
DOI:https://doi.org/10.1007/s10997-021-09592-8
ISSN:1385-3457
eISSN:1572-963X
Erschienen in:Journal of management & governance
Publisher:Springer Science + Business Media B.V
Place of publication:Dordrecht
Document Type:Article
Language:English
Year of Publication:2021
Tag:board; entrepreneurial orientation; entrepreneurship; governance; public enterprise
Volume:25
Page Number:29
DDC classes:650 Management
Open Access?:Ja
Licence (German):License Logo  Creative Commons - CC BY - Namensnennung 4.0 International