The relationship between corporate entrepreneurship climate and innovativeness: A national study

Innovativeness is recognized as a central property of corporate entrepreneurship (CE), yet past findings were inconsistent when identifying this relationship. Drawing on a sample of 1415 Australian organizations, the study investigates the assumption that management support for CE, rewards/reinforcement, work discretion, organizational boundaries and time availability comprise the CE climate. A second assumption addresses how CE climate (CEC) contributes to innovativeness. The findings confirm the existence of an overarching (second-order) CEC construct and a statistically significant positive relationship with innovativeness. The two factors of management support for CE and rewards/reinforcement are strongly associated with innovativeness, thus supporting a distinction between CE climate factors.