The Relationship between Corporate Entrepreneurship and Strategic Management: The Case of Food Processing Firms in Addis Ababa

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Addis Ababa University


Purpose: The purpose of this paper is to analyze the results of a survey that aims to explore and identify the thread between strategic management practices of food processing companies in Addis Ababa and their corporate entrepreneurship intensity. Design\methodology: The research followed deductive approach, survey as a strategy, a crosssectional time horizon and questionnaire as data collection instrument. It also employed factor analysis (explanatory and confirmatory factor analysis) to analyze the data. Both primary and secondary data were used to gather data. Primary data were used for data analysis while the secondary sources of data included extensive review of literature. Findings: Major findings revealed that most of strategic management practice component (i.e. locus of planning, planning horizon, strategic control and planning flexibility) has positive impact on core corporate entrepreneurship dimensions (i.e. innovativeness, proactiveness and risk taking) whereas some SM dimension (i.e. financial control) has negative impact on CE dimensions. Research limitation: The research is temporally and contextually limited to food processing sub sector specifically in Addis Ababa city only which might limit its generalizability into other industries, sectors, small, medium, and large-scale business organizations and other cities and country level as a whole. Originality/value: As far as the researcher's knowledge is concerned, the absence of similar empirical studies specifically on the relationship between a firm’s strategic management practices and its corporate entrepreneurial intensity in Ethiopian context also motivated the researcher to put his own contribution since Ethiopian manufacturing sector in not yet well strong as developed countries and need empirical study on this area. Key words: Strategic management, corporate entrepreneurship intensity, food processing firms Paper type: Research paper



Strategic management, corporate entrepreneurship intensity, food processing firmsPaper type, Research paper