The Impact of Research and Development on Corporate Entrepreneurship: Emphasizing the Mediating Role of Innovation
Keywords:
Innovation, corporate entrepreneurship, innovation, research and developmentAbstract
This study aimed to examine the effect of research and development on corporate entrepreneurship, with particular emphasis on the mediating position of innovation in an industrial company. This applied study employed a descriptive–survey design. The statistical population consisted of approximately 120 managers and experts employed by an industrial company. Because of the limited population size, a census approach was adopted. Data were collected using a standardized questionnaire. The research and development, corporate entrepreneurship, and innovation items were adapted from the questionnaires developed by Brown, Kim, and Liao et al., respectively, and were localized based on the judgments of five experts. Instrument reliability was confirmed using Cronbach’s alpha and composite reliability, while convergent and discriminant validity were assessed through average variance extracted and the Fornell–Larcker criterion. As the data were not normally distributed, the hypotheses were tested using partial least squares structural equation modeling in SmartPLS 3. Research and development had a positive and statistically significant effect on corporate entrepreneurship (β=0.543, t=4.125). Research and development also exerted a positive and significant effect on innovation (β=0.576, t=3.333). Furthermore, innovation positively and significantly predicted corporate entrepreneurship (β=0.628, t=3.591). Accordingly, all three research hypotheses were supported at the 0.05 significance level. The model’s goodness-of-fit index was 0.58, indicating an acceptable overall fit. Nevertheless, the study did not report an indirect-effect coefficient or a formal significance test for the proposed mediation effect. Research and development can directly strengthen corporate entrepreneurship while also creating favorable conditions for entrepreneurial activities by enhancing organizational innovation. Organizations should therefore integrate investment in research and development, employee idea-support systems, technological learning, and innovation-oriented practices into their strategic plans. Such an integrated approach can facilitate the conversion of technical knowledge into new products, processes, services, and entrepreneurial opportunities.
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