Although previous research shows that corporate entrepreneurship (CE) relates to firm performance differently across countries, there is little research on the country-level factors that explain these differences. Adopting an institutional perspective, we propose that home country intellectual property (IP) and employee protection institutions moderate the relationship between corporate entrepreneurship (CE) and firm performance. Examining 9642 European firms, we find that whereas internal CE is more positively correlated with firm performance in countries with less stringent IP protection and less stringent employee protection, external CE (venturing) is particularly negatively correlated with firm performance in countries with less stringent IP protection and more stringent employee protection.
Vanacker, T., Zahra, S. A., & Holmes, R. M. (Forthcoming). Corporate entrepreneurship, country institutions and firm financial performance. Journal of World Business.