Can corporate entrepreneurship form second-order competences? The role of internal and external contingencies.

The influence of Corporate Entrepreneurship (CE), and second-order competences (SOC) on a firm’s performance are largely acknowledged. Yet, the association between CE and SOC remains largely under-investigated, less so potential moderators of their relationship. Drawing on the resource-based view of the firm, we study whether and how second-order R&D and Marketing competences are influenced by CE. We theoretically argue, and empirically test, the positive influence of CE on SOC. We also find that while such gains are enhanced as environmental hostility increases, they are diminished by the interplay of organizational structure. Data collected from executives of firms from knowledge-intensive industries, analyzed using regression modeling, supports our predicted model's main arguments and offers some support for contingency relationships. Several novel theoretical and managerial implications are discussed