Corporate parenting and corporate entrepreneurship in media company

https://doi.org/10.35912/ijfam.v3i1.425
Published: Jun 3, 2021

Abstract:

Purpose; The study aimed to understand how the multi-business company creates value through a combined effort of Corporate Parenting (CP) and Corporate Entrepreneurship (CE). The parenting-fit matrix was used to describe CP, while CE four model was used to describe CE.

Research methodology: This study is qualitative applied research using a case study approach conducted on a multi-business media company. Data was obtained primarily through interviews with senior executives representing the holding company and 18 subsidiaries. Questionnaires were also distributed to executives to develop a parenting-fit matrix and CE model.

Results: This study shows that the 18 subsidiaries of the multi-business company fall under four different cells. The CE model applied at the parent company level is the enabler.

Limitations: The limitation of this study mainly lies in the measurement method's reliability for corporate parenting and corporate entrepreneurship.

Contribution: This study shows that, apart from the parent company, the development of new businesses can also be carried out by the subsidiary companies using the CE producer model.

Keywords:
1. Corporate entrepreneurship
2. Corporate parenting
3. Parenting fit matrix
4. Multibusiness company
5. Media company
Authors:
Ningky Sasanti Munir
Group of Experts in Strategic Management & Entrepreneurship, Sekolah Tinggi Manajemen PPM, Central Jakarta, Indonesia
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How to Cite
Munir, N. S. (2021). Corporate parenting and corporate entrepreneurship in media company. International Journal of Financial, Accounting, and Management, 3(1), 15–26. https://doi.org/10.35912/ijfam.v3i1.425
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Issue & Section
Vol. 3 No. 1 (2021): June
Articles
References

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    Calisto, M. D. L., & Sarkar, S. (2017). Innovation and corporate entrepreneurship in service businesses. Service Business, 11(3), 581-600. http://dx.doi.org/10.1007/s11628-016-0321-6

    Campbell, A., Goold, M., and Alexander, M. (1995). Corporate strategy: The quest for parenting advantage. Harvard Business Review, March-April pp. 120-132.

    Chen, Y., Wang, Y., Nevo, S., Benitez-Amado, J., and Kou, G. (2015). IT capabilities and product innovation performance: The roles of corporate entrepreneurship and competitive intensity. Information & Management, 52(6), 643-657. https://doi.org/10.1177/2158244020962779

    Corbett, A., Covin, J. G., O'Connor, G. C., and Tucci, C. L. (2013). Corporate entrepreneurship: State-of-the-art research and a future research agenda. Journal of Product Innovation Management, 3(5): 812–820. http://dx.doi.org/10.1111/jpim.12031

    Cucculelli, M., and Bettinelli, C. (2015). Business models, intangibles and firm performance: Evidence on corporate entrepreneurship from Italian manufacturing SMEs, Small Business Economics, 45(2), 329-350. DOI: 10.1007/s11187-015-9631-7

    Goold, M., Campbell, A., and Alexander, M. (2012). Strategy for the corporate level: Where to invest, what to cut back and how to grow organizations with multiple divisions. John Wiley & Sons, Ltd. DOI:10.1002/9781119208013

    Han, J. and Park, C. (2017), Case study on adoption of new technology for innovation: perspective of institutional and corporate entrepreneurship, Asia Pacific Journal of Innovation and Entrepreneurship, 11(2), 144-158. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/APJIE-08-2017-031/full/html

    Heavey, C., and Simsek, Z. (2013). Top management compositional effects on corporate entrepreneurship: The moderating role of perceived technological uncertainty. The Journal of Product Innovation Management, 30(5), 837–855. DOI: 10.1111/jpim.12033

    Kuratko, D. F., and Audretsch, D. B. (2013). Clarifying the domains of corporate entrepreneurship. International Entrepreneurship and Management Journal, 9(3), 323–335. DOI:10.1007/S11365-013-0257-4 Retrieved from https://www.semanticscholar.org/paper/Clarifying-the-domains-of-corporate-Kuratko-Audretsch/fedacb2e20e0c40e4ef52213bbdb9cc99dad092f

    Kuratko, D. F., Hornsby, J. S. and Covin, J. G. (2014). Diagnosing a firm's internal environment for corporate entrepreneurship. Business Horizons, 57(1), 37–47. DOI:10.1016/J.BUSHOR.2013.08.009 Retrieved from https://www.semanticscholar.org/paper/Diagnosing-a-firm%27s-internal-environment-for-Kuratko-Hornsby/3adfaf4e8a1d62d69b6713aa4a4ff7afe3986a10

    Lange, D., Boivie S., and Henderson, A.D. (2009). The parenting paradox: How multibusiness diversifiers endorse disruptive technologies while their corporate children struggle. Academy of Management Journal, 52(1), 179-198. DOI: 10.5465/AMJ.2009.36462006

    Minafam, Z. (2019). Corporate entrepreneurship and innovation performance in established Iranian media firms. Ad-Minister, (34), 69-92. doi:http://dx.doi.org/10.17230/ad-minister.34.4

    Mishra, A., and Akbar, M. (2007). Parenting advantage in business groups of emerging markets. Vision – The Journal of Business Perspective, 11(3), 1-10. DOI: 10.1177/097226290701100302

    Ravjee, B., and Mamabolo, M. A. (2019). The impact of corporate entrepreneurship on service innovation: A case of a South African banking institution. The Southern African Journal of Entrepreneurship and Small Business Management, 11(1) http://dx.doi.org/10.4102/sajesbm.v11i1.155

    Romero-Martínez, A. M., Ortiz-de-Urbina-Criado, M., & Ribeiro Soriano, D. (2010). Evaluating European Union support for innovation in Spanish small and medium enterprises. The Service Industries Journal, 30(5), 671-683.

    Singh, N., and Salwan, P. (2015). Contribution of parent company in growth of its subsidiary in emerging markets: Case study of Maruti Suzuki. The Journal of Applied Business and Economics, 17(1), 24-44. Retrieved from https://search.proquest.com/scholarly-journals/contribution-parent-company-growth-subsidiary/docview/1726782919/se-2?accountid=130508

    Tseng, C. and Tseng, C. (2019). Corporate entrepreneurship as a strategic approach for internal innovation performance. Asia Pacific Journal of Innovation and Entrepreneurship, 13(1), 108-120 Retrieved from https://www.emerald.com/insight/content/doi/10.1108/APJIE-08-2018-0047/full/html

    Umair, A., Umrani, W. A., Umer, Z., Rajput, S. M., & Aziz, T. (2020). Corporate entrepreneurship and business performance: The mediating role of employee engagement. Sage Open, 10(4) http://dx.doi.org/10.1177/2158244020962779

    Victoria, M., and Dipak, B. (2014). Evolving relationship between the parent and subsidiaries in multinational companies. Advances in Management, 7(2), 1-15. Retrieved from https://search.proquest.com/scholarly-journals/evolving-relationship-between-parent-subsidiaries/docview/1502695827/se-2?accountid=130508

    Wolcott, R.C. and Lippitz, M.J. (2007). The four models of corporate entrepreneurship. MIT Sloan Management Review, 49(1), 74-82. Retrieved from https://sloanreview.mit.edu/article/the-four-models-of-corporate-entrepreneurship/

    Ziyae, B. and Sadeghi, H. (2020). Exploring the relationship between corporate entrepreneurship and firm performance: The Mediating effect of strategic entrepreneurship. Baltic Journal of Management. 16(1), 113-133 https://doi.org/10.1108/BJM-04-2020-0124

  1. Abdullah, H. H., and Mehmood, K.K. (2013). Corporate parent value addition and challenges. Middle-East Journal of Scientific Research, 15 (11). 1606-1617. DOI: 10.5829/idosi.mejsr.2013.15.11.11640, Retrieved from https://www.researchgate.net/publication/282283695_Corporate_Parent_Value_Addition_and_Challenges
  2. Anand, Bharat N. 2005. Strategies of related diversification. Harvard Business School Publishing, 9-705-481.
  3. Bierwerth, M., Schwens, C., Isidor, R., and Kabst, R. (2015). Corporate entrepreneurship and performance: A meta-analysis. Small Business Economics, 45(2), 255-278. DOI: 10.1007/s11187-015-9629-1 Retrieved from https://www.researchgate.net/publication/269516885_Corporate_Entrepreneurship_and_Performance_A_Meta-Analysis
  4. Calisto, M. D. L., & Sarkar, S. (2017). Innovation and corporate entrepreneurship in service businesses. Service Business, 11(3), 581-600. http://dx.doi.org/10.1007/s11628-016-0321-6
  5. Campbell, A., Goold, M., and Alexander, M. (1995). Corporate strategy: The quest for parenting advantage. Harvard Business Review, March-April pp. 120-132.
  6. Chen, Y., Wang, Y., Nevo, S., Benitez-Amado, J., and Kou, G. (2015). IT capabilities and product innovation performance: The roles of corporate entrepreneurship and competitive intensity. Information & Management, 52(6), 643-657. https://doi.org/10.1177/2158244020962779
  7. Corbett, A., Covin, J. G., O'Connor, G. C., and Tucci, C. L. (2013). Corporate entrepreneurship: State-of-the-art research and a future research agenda. Journal of Product Innovation Management, 3(5): 812–820. http://dx.doi.org/10.1111/jpim.12031
  8. Cucculelli, M., and Bettinelli, C. (2015). Business models, intangibles and firm performance: Evidence on corporate entrepreneurship from Italian manufacturing SMEs, Small Business Economics, 45(2), 329-350. DOI: 10.1007/s11187-015-9631-7
  9. Goold, M., Campbell, A., and Alexander, M. (2012). Strategy for the corporate level: Where to invest, what to cut back and how to grow organizations with multiple divisions. John Wiley & Sons, Ltd. DOI:10.1002/9781119208013
  10. Han, J. and Park, C. (2017), Case study on adoption of new technology for innovation: perspective of institutional and corporate entrepreneurship, Asia Pacific Journal of Innovation and Entrepreneurship, 11(2), 144-158. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/APJIE-08-2017-031/full/html
  11. Heavey, C., and Simsek, Z. (2013). Top management compositional effects on corporate entrepreneurship: The moderating role of perceived technological uncertainty. The Journal of Product Innovation Management, 30(5), 837–855. DOI: 10.1111/jpim.12033
  12. Kuratko, D. F., and Audretsch, D. B. (2013). Clarifying the domains of corporate entrepreneurship. International Entrepreneurship and Management Journal, 9(3), 323–335. DOI:10.1007/S11365-013-0257-4 Retrieved from https://www.semanticscholar.org/paper/Clarifying-the-domains-of-corporate-Kuratko-Audretsch/fedacb2e20e0c40e4ef52213bbdb9cc99dad092f
  13. Kuratko, D. F., Hornsby, J. S. and Covin, J. G. (2014). Diagnosing a firm's internal environment for corporate entrepreneurship. Business Horizons, 57(1), 37–47. DOI:10.1016/J.BUSHOR.2013.08.009 Retrieved from https://www.semanticscholar.org/paper/Diagnosing-a-firm%27s-internal-environment-for-Kuratko-Hornsby/3adfaf4e8a1d62d69b6713aa4a4ff7afe3986a10
  14. Lange, D., Boivie S., and Henderson, A.D. (2009). The parenting paradox: How multibusiness diversifiers endorse disruptive technologies while their corporate children struggle. Academy of Management Journal, 52(1), 179-198. DOI: 10.5465/AMJ.2009.36462006
  15. Minafam, Z. (2019). Corporate entrepreneurship and innovation performance in established Iranian media firms. Ad-Minister, (34), 69-92. doi:http://dx.doi.org/10.17230/ad-minister.34.4
  16. Mishra, A., and Akbar, M. (2007). Parenting advantage in business groups of emerging markets. Vision – The Journal of Business Perspective, 11(3), 1-10. DOI: 10.1177/097226290701100302
  17. Ravjee, B., and Mamabolo, M. A. (2019). The impact of corporate entrepreneurship on service innovation: A case of a South African banking institution. The Southern African Journal of Entrepreneurship and Small Business Management, 11(1) http://dx.doi.org/10.4102/sajesbm.v11i1.155
  18. Romero-Martínez, A. M., Ortiz-de-Urbina-Criado, M., & Ribeiro Soriano, D. (2010). Evaluating European Union support for innovation in Spanish small and medium enterprises. The Service Industries Journal, 30(5), 671-683.
  19. Singh, N., and Salwan, P. (2015). Contribution of parent company in growth of its subsidiary in emerging markets: Case study of Maruti Suzuki. The Journal of Applied Business and Economics, 17(1), 24-44. Retrieved from https://search.proquest.com/scholarly-journals/contribution-parent-company-growth-subsidiary/docview/1726782919/se-2?accountid=130508
  20. Tseng, C. and Tseng, C. (2019). Corporate entrepreneurship as a strategic approach for internal innovation performance. Asia Pacific Journal of Innovation and Entrepreneurship, 13(1), 108-120 Retrieved from https://www.emerald.com/insight/content/doi/10.1108/APJIE-08-2018-0047/full/html
  21. Umair, A., Umrani, W. A., Umer, Z., Rajput, S. M., & Aziz, T. (2020). Corporate entrepreneurship and business performance: The mediating role of employee engagement. Sage Open, 10(4) http://dx.doi.org/10.1177/2158244020962779
  22. Victoria, M., and Dipak, B. (2014). Evolving relationship between the parent and subsidiaries in multinational companies. Advances in Management, 7(2), 1-15. Retrieved from https://search.proquest.com/scholarly-journals/evolving-relationship-between-parent-subsidiaries/docview/1502695827/se-2?accountid=130508
  23. Wolcott, R.C. and Lippitz, M.J. (2007). The four models of corporate entrepreneurship. MIT Sloan Management Review, 49(1), 74-82. Retrieved from https://sloanreview.mit.edu/article/the-four-models-of-corporate-entrepreneurship/
  24. Ziyae, B. and Sadeghi, H. (2020). Exploring the relationship between corporate entrepreneurship and firm performance: The Mediating effect of strategic entrepreneurship. Baltic Journal of Management. 16(1), 113-133 https://doi.org/10.1108/BJM-04-2020-0124