Pearson product-moment correlation matrix including corporate

entrepreneurship dimensions of strategic management included in the study,

and control variables. N ranges from 148 to 167
Variable Name Mean S.D. 1 2 3 4 5 6 7 8 9 10 11
Corporate
Entrepreneurship
4.48 1.05 (0.87)
Scanning Intensity
4.92 0.83 0.16 (0.83)
Planning Flexibility
4.82 0.85 0.34 0.11 (0.80)
Planning
Horizon
2.32 1.27 0.13 0.30 0.25 (0.90)
Locus of Planning
4.11 0.96 0.19 0.48 0.25 0.31 (0.89)
Strategic Controls
5.57 0.92 0.29 0.33 0.29 0.31 0.33 (0.64)
Financial Controls
5.41 1.04 0.04 0.32 0.11 0.24 0.19 0.33 (0.77)
Environmental
Turbulence
3.88 0.80 0.09 0.14 -0.13 0.12 0.08 -0.11 -0.08 (0.67)
Environmental
Complexity
3.79 1.12 0.10 0.10 -0.04 0.15 0.10 -0.05 0.00 0.25 (0.73)
Firm Size
3.67 1.91 -0.21 0.15 -0.10 0.22 -0.02 -0.07 0.28 0.04 -0.03
Debt Level
2.75 2.13 -0.05 -0.11 0.10 -0.10 -0.03 0.04 -0.11 -0.02 -0.09 -0.46
Current Ratio
3.01 3.19 -0.04 -0.06 -0.03 -0.06 -0.01 -0.00 -0.20 -0.09 -0.00 -0.39 0.74


Data Analysis:
The sample size for this study is 169. The data is collected through a mail survey. This survey
and its representatives, which are 169, represent a broad cross-section of the manufacturing
sector in United States. The largest number of responses came from SIC 35, Machinery except
electrical. The number of responses from this source was 36. A total of 17 of the 20 SIC codes in
the manufacturing sector were represented in the sample, improving the studys generalization.
The tools used to analyze the data were mean, standard deviation, Pearson product-moment
correlations, and coefficient alphas. The range was broad for the responses to all the variables.
This avoided a restriction of range problem in the data. The correlation matrix shows statistically
significant correlations in the direction expected between corporate entrepreneurship and four of
the six dimensions of strategic management included in the study.
Corporate entrepreneurship had a positive correlation with the following variables:
Scanning Intensity (p < 0.05)
Planning Flexibility (p < 0.01)
Locus of Planning (p < 0.05)
Strategic Controls (p < 0.01)
Corporate entrepreneurship has no significant positive correlation with planning horizon and
financial controls. As the correlation matrix indicates, the inter-correlations among the
dimensions of strategic management included in the study were generally low, thereby
minimizing the problem of multi-co linearity. A high level of multi-co linearity can result in
unstable regression coefficients in linear regression models.
Results of the tests of the Hypothesis:
To test the hypothesis, hierarchical regression analysis was used. Corporate entrepreneurship was
tested against a set of control variables, and then the respective dimensions of strategic
management were added into the equation. Then it was tested whether the incremental change in
R
2
resulting from the addition of the strategic management variable was statistically significant.
The control variables are as follows:
Environmental turbulence
Environmental complexity
Firm size
Debt level
Current ratio
Environmental turbulence and complexity are found to have a positive correlation with the
corporate entrepreneurship in previous studies. Firm size, debt level and current ratio are
demographic and financial measures that have been found to influence elements of
entrepreneurial behavior. In this study, firm size and debt level were expected to have a negative
correlation with corporate entrepreneurship, whereas, current ratio was expected to have a
positive correlation with corporate entrepreneurship.
In the hierarchical regression analysis, a two step approach was used. In the first step, corporate
entrepreneurship was regressed against the control variable. In the second step, corporate
entrepreneurship intensity was regressed against the control variable and dimension of strategic
management associated with the hypothesis. The F-Test that constituted the test of the hypothesis
was based on the statistical significance of the change in R
2
between the restricted model
(control variables only) and the full model (control variables plus the dimension of strategic
management associated with the hypothesis).
Results and Conclusions:
There are a total of 6 hypotheses that have been tested in this study. Their correlation with
corporate entrepreneurship intensity has been studied in this research. Scanning intensity is
found to have a positive correlation with corporate entrepreneurship. Scanning intensity is
related to opportunity recognition and also recognizing threats. The study depicts a positive
correlation between planning flexibility and corporate entrepreneurship intensity. Planning
flexibility refers to the extent to which, the firm can make alterations in its plans with ease in
accordance to changing environmental conditions. This flexibility is relatively more important
for manufacturing firms then the service providing firms, because firms have to keep their
manufacturing systems, processes and machineries up-to-date with the latest technology. The
positive correlation between locus of planning and corporate entrepreneurship intensity indicates
that a high level of employee involvement in planning facilities firm-level entrepreneurial
behavior. Strategic controls also have positive correlation with corporate entrepreneurship
intensity.
Two dimension of strategic management were found to have no significant correlation with
corporate entrepreneurship intensity, these variables are: financial controls and planning horizon.
Overall, this study not only focuses on normative implications but also focuses on the
development of the psychometric scales used to measure the dimensions of strategic
management included in this study.
Strategic management is a multidimensional factor. This study has confined it to five dimensions
only. This is a limitation of this study. Other dimensions of strategic management also affect the
entrepreneurial activities of a firm. The extent to which the tested dimensions affect the
manufacturing and service firms differs. This difference is not measured in this study, which is
another limitation of this study. The theme of the conclusion of this study is that a firms
strategic management practices affect its entrepreneurial intensity, and upcoming entrepreneurial
ventures should keep a keen eye on their strategic management practices in order to be
successful.