The effect of corporate entrepreneurship dimensions on business performance of commercial banks in Ethiopia
Bibliographic Data
| ID | 22437358 |
|---|---|
| Authors | Girma Tadesse Gorfie (Wollo University, corresponding author), Tesfaye Abate Zewdu (Wollo University, corresponding author) |
| Year | 2026 |
| Volume | 4 |
| Issue | 1 |
| Publication date | 2026-07-17 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Discover Global Society (JOURNAL) |
| Journal identifiers | ISSN: 2731-9687 • E-ISSN: 2731-9687 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s44282-026-00498-0 |
| OpenAlex | W7169574094 |
| Language | EN |
| References cited | 92 |
Corporate entrepreneurship (CE) remains under-researched within the banking sectors of developing countries, particularly in Ethiopia. While corporate entrepreneurship (CE) is proven to enhance performance internationally, studies in Ethiopia have largely focused on small and medium enterprises (SMEs) rather than large commercial banks, leaving a critical knowledge gap regarding CE adoption in this heavily regulated sector. This study examines the effect of CE dimensions—pro-activeness, innovativeness, and risk-taking, transformational leadership(TFL)—on the business performance (BP) of commercial banks in the Dessie District, Amhara Region. Adopting a quantitative research approach with an explanatory design, primary data were collected from 251 bank managers and employees via systematic random sampling. Data were validated through factor analysis and tested using multiple linear regression. Multiple linear regression analysis revealed that TFL, pro-activeness, and innovativeness have a statistically significant positive effect on BP, with innovativeness yielding the highest impact. Conversely, risk-taking has a significant negative effect on BP, suggesting a cautious financial environment. The model explains 66.2% of the variance in business performance. This study extends the Resource-Based View (RBV) and Dynamic Capability Theory by identifying TFL and CE practices as crucial, intangible assets that drive performance in highly regulated and conservative emerging markets. The findings contribute to the existing CE literature in the Ethiopian banking sector. Practically, commercial bank executives should cultivate innovative cultures, prioritize leadership development, and re-align risk management frameworks to safely stimulate entrepreneurial initiatives within this conservative economic context.
Banking industry · Business risks · Conceptual framework · Entrepreneurship · Regression analysis · Small business · Transformational leadership · Variance (accounting) · Economic and Business Studies · Entrepreneurship Studies and Influences · Family Business Performance and Succession
Entrepreneurial Orientation and Business Performance
Middle managers' perception of the internal environment for corporate entrepreneurship
Intrapreneurship
The New Field of Sustainable Entrepreneurship
Cross-Sectional Studies
Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance
Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses
A Conceptual Model of Entrepreneurship as Firm Behavior
Artificial intelligence capability
Explicating dynamic capabilities
Unveiling the drivers of bank profitability
CEO proactiveness, innovation, and firm performance
Empirical evidence of the relationship between regulatory efficiency, market openness, and bank productivity in economies at different income levels
Corporate entrepreneurship and performance
Corporate entrepreneurship
International trade and environmental performance in top ten‐emitters countries
Transformational leadership and organizational commitment
| Highly cited | No |
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